1. 1 India as outsourcing destination – Key milestones George Anthony VP & CTO Tech Mahindra Limited

2. 2 Agenda  Introduction  Key statistics  India outsourcing – Milestones  Current Challenges  China-India model

3. 3 Growth is at fast pace (Offshore based outsourcing) * NASSCOM, McKinsey, Forrester, Aberdeen, neoIT IT Exports $ Billion

4. 4 IT-ITES Sector performance Source - NASSCOM

5. 5 Outsourcing Drivers & India advantages Focus Quality Time to Market SkillsShortage SpecialistRequirements Cost Savings/ Containment OUTSOURCING DRIVERS

6. 6 Total Outsourcing Proposition  New application Development & Mgmt  Process Consulting  Technology Consulting  Infrastructure Optimization  Infrastructure Set up & Provisioning on a pay-by-use basis  Infrastructure Management  Application Optimization  Business Applications Sustenance  Strategic Consulting

7. 7 India’s Competitive advantage Critical Ingredients of India’s success Abundant Talent Highlights India has 28% of suitable talent among all cost competitive offshore locations Key stakeholders are taking initiatives to further enhance India’s talent proposition Significant primary infrastructure is being built in leading centres ~ 25 million sq feet of Class A real estate was available in 2005 End-to-end network uptime for India and other offshore locations vis-à-vis US levels (~99.95%) India’s business environment is competitive with those in other countries Key government policy interventions have catalyzed growth Increase in domestic spending on IT Performance = Low = High Quality & Scaleable Infrastructure Operational Excellence Conducive Business Environment Growing Domestic IT/ BPO Market 1 2 3 4 5 India based players have managed to maintain quality and cost leadership vis-à-vis other countries Source: Nasscom-McKinsey Report 2005

8. 8 The Outsourcing Value Chain Risk and Ownership Professional Services T&M Projects Fixed Price Projects Application Outsourcing Systems Outsourcing, Product Testing E2E Ownership Level of Maturity Managed Services, Product Sales linked revenue

9. 9 India as a Pivot in GDM Source: IDC and Forrester Low Cost Global Delivery Player Worldwide Offshore IT Services Share by Region, 2004 Total = $9.8 Bn. India well established on the Global Outsourcing Stage 75.5% 6.8% 4.5% 2.1% 3.3% 3.8% 1.7% 2.3% IndiaCEE PhilippinesLatin America ChinaCanada MEAOthers

10. 10 Leading to 2nd Generation Outsourcing

11. 11 Key Challenges  Attrition Pure-play, MNC, Captive, Product Engineering, R&D Ambitious growth plans  Costs are going up  Quality of resources

12. 12 China-India model  China IT Outsourcing industry is emerging  Advantages of China Great Infrastructure, Huge domestic market, Better living conditions, increasing engineering graduates  Adoption of best practices from INDIA outsourcing model  COMPLEMENTARY and SYNERGESTIC model between China and India  CHINA is important in our growth strategy  Working model

13. 13 Telecom Expertise  Effective & Proven Solutions for players in telecom ecosystem  Developing business solutions & consulting capabilities  Multiyear partnerships, preferred vendor status, partners in key transformations Process & Quality Leadership  Proven mASTER TM Service Delivery Framework  Integrated Business Management System comprising SEI CMM Level 5 & ISO9001:2000, BS7799 adherent practice  Customer benefits:  Predictable high quality results  Consistently delivered on time & budget  Annualized Revenue of US$ 290 Million*  Global JV of BT Group Plc.(43%) & Mahindra & Mahindra (57%)  18 years of focused IT experience exclusively in the Telecom domain  Wide range of services right from IT Consulting to Operations Outsourcing  Over 9,500 dedicated resources Overview Tech Mahindra Revenue US$ Mn. Global Reach  People from diverse culture and nationalities  Global Fortune 500 customers Financials People and Services

14. 14 Thank You