CHILE Nearshore Alternative for Information Technology Services

1. CHILE Nearshore Alternative for Information Technology Services

August 2008 Chilean Economic Development Agency - CORFO

2. A.T. KEARNEY RANKS CHILE AMONG THE 10 MOST ATTRACTIVE COUNTRIES FOR OFFSHORING SERVICES

Financial People Environment 6 5 4 3 7 2 8 1 0 India Mexico US (#21) Brazil Thailand Indonesia Chile Malaysia China Bulgaria Gap between India and Chile shrunk 15% between 2005 and 2007 Philippines As you can see, the gap between operating an offshore facility in Chile versus India or China is closing. This is mainly because of the financial stability in Chile has remain steady over the last 20 years and because of the business environment that tends to ease the establishment of a companyAs you can see, the gap between operating an offshore facility in Chile versus India or China is closing. This is mainly because of the financial stability in Chile has remain steady over the last 20 years and because of the business environment that tends to ease the establishment of a company

3. Lets start talking about the advantages o being in Chile.Lets start talking about the advantages o being in Chile.

4. The International Monetary Fund has found out that Chile is close to South Korea and Singapore in terms of GDP. The World Economic Forums Global Competitive Index classifies Chile as the 26th in ranking, and actually first in LATAM.The International Monetary Fund has found out that Chile is close to South Korea and Singapore in terms of GDP. The World Economic Forums Global Competitive Index classifies Chile as the 26th in ranking, and actually first in LATAM.

5. The International Monetary Fund has found out that Chile is close to South Korea and Singapore in terms of GDP. The World Economic Forums Global Competitive Index classifies Chile as the 26th in ranking, and actually first in LATAM.The International Monetary Fund has found out that Chile is close to South Korea and Singapore in terms of GDP. The World Economic Forums Global Competitive Index classifies Chile as the 26th in ranking, and actually first in LATAM.

6. Market size irrelevant since we are talking about offshoring Same time zone as New York, Optimal for nearshore Overnight flights from Santiago to many destinations in US soilMarket size irrelevant since we are talking about offshoring Same time zone as New York, Optimal for nearshore Overnight flights from Santiago to many destinations in US soil

8. We open are telecom industry in the late 80s, allowing private companies to invest and develop new technologies, new schemes and to result in a vigorous and powerful market. Now days, all companies are private held. Services are regulated as so tariffs delivering to the public high quality services. In most of the big cities in Chile you can lend a private fiber optic, to gain access to telephone, internet and private networks. Distances are not an issue, in fact your internet access is in average at 120 ms from any mayor node in the US network. All service providers in Chile are connected to at least one Tier 1 Internet Provider. IP Telephony is now regulated and operates in an open market. We open are telecom industry in the late 80s, allowing private companies to invest and develop new technologies, new schemes and to result in a vigorous and powerful market. Now days, all companies are private held. Services are regulated as so tariffs delivering to the public high quality services. In most of the big cities in Chile you can lend a private fiber optic, to gain access to telephone, internet and private networks. Distances are not an issue, in fact your internet access is in average at 120 ms from any mayor node in the US network. All service providers in Chile are connected to at least one Tier 1 Internet Provider. IP Telephony is now regulated and operates in an open market.

9. Mobile Business has grown dramatically. By the end of 2007, there were actually more cell phones than physical lines. Chile has become one of the first countries in the world to go G3 mobile, also Wireless Local Loop, VSAT and WIMAX are available to distant geographical zones, to ensure everyone is connected.Mobile Business has grown dramatically. By the end of 2007, there were actually more cell phones than physical lines. Chile has become one of the first countries in the world to go G3 mobile, also Wireless Local Loop, VSAT and WIMAX are available to distant geographical zones, to ensure everyone is connected.

10. With many public and private initiatives, Chile has endorsed the digital leap, so 3 of 10 chileans has access to Internet, no mater if he has or not a computer. In terms of broadband we are by far the LATAM country with the biggest broadband architecture. With many public and private initiatives, Chile has endorsed the digital leap, so 3 of 10 chileans has access to Internet, no mater if he has or not a computer. In terms of broadband we are by far the LATAM country with the biggest broadband architecture.

11. Because one is not enough, Chile has three different fiber optics running from Santiago to Miami transatlantic and transpacific. This full redundancy architecture ensures availability of networks, internet and phones. Because one is not enough, Chile has three different fiber optics running from Santiago to Miami transatlantic and transpacific. This full redundancy architecture ensures availability of networks, internet and phones.

13. Three of every ten chileans go to higher education. With a vast Academy infrastructure, chileans want to prevail, so they study. Three of every ten chileans go to higher education. With a vast Academy infrastructure, chileans want to prevail, so they study.

14. By the end of 2007, more than 750.000.- people were in the system, 20% of them were studying technology related careers. By the end of 2007, more than 750.000.- people were in the system, 20% of them were studying technology related careers.

15. GRADUATES BY CAREERS (2007)

Source: Mineduc www.mineduc.cl 2008, Higher Education Council of (www.cse.cl) 10% of the Technological related alumni get graduated by end of the 2007, that�s is that you can expect around 10,000new IT professionals available each year. 10% of the Technological related alumni get graduated by end of the 2007, that�s is that you can expect around 10,000new IT professionals available each year.

16. Of the 10 premium business schools in LATAM, 4 of them are in Chile.Of the 10 premium business schools in LATAM, 4 of them are in Chile.

17. CORFO created a National Register for English speakers certified with the TOEIC test. Total: 37,000 people registered nationwide Profile: - 70% university students and technicians under 30 years old - 39% related to engineering, IT and business careers In 2008, CORFO will sponsor 3,000 scholarships for IT engineers to improve English capacities.

REDUCING THE ENGLISH GAP CORFO�s register and training programs are available for foreign companies looking for local talent We are committed to make it happen, to actually have increment in bilingual capacities in our people. English IS the objective and chileans will endure until it is mission accomplished. We are committed to make it happen, to actually have increment in bilingual capacities in our people. English IS the objective and chileans will endure until it is mission accomplished.

19. What are WE doing? We are the agency devoted to Economic Growth of the country. We are the people expecting for you, we ca inform you of the country state, support you thru the rollout process in Chile, and we have the economic incentives your project needs to be realized in Chile- What are WE doing? We are the agency devoted to Economic Growth of the country. We are the people expecting for you, we ca inform you of the country state, support you thru the rollout process in Chile, and we have the economic incentives your project needs to be realized in Chile-

20. FOSTERING INNOVATION THROUGH NEW POLICIES IS A GOVERNMENT PRIORITY

THE MINING ROYALTY LAW: aimed to increase the national budget for science, technology and innovation from 0.7% to 1.5% of GDP by 2010. THE NATIONAL COUNCIL FOR INNOVATION: in charge of designing the national strategy of innovation for competitiveness, with a timeframe of 12 years and evaluations every 4 years. It created the nationwide 8 cluster framework. 35% TAX CREDIT FOR R&D: for the adoption and generation of technologies in conjunction with universities and research centers. NEW VERSION OF THE DIGITAL AGENDA: Established 10 years ago between the public and private sector, includes: internet access & broadband, education & training, e-government, industry development and legal framework. BIOTECHNOLOGY AGENDA: Developed 3 years ago between the public and private sector, it includes: entrepreneurship, training of human resources, modernization of regulatory framework and development of public institutions. President Bachelet comitment to foster innovation is materialized in this iniciatives. Science, Technology and Innovation are growing from a 0.7% of the GDP to a 1.5% of GDP by 2010. Adoption or creation of new technologies has a 35% tax credit. Biotech is part of the government agenda, we are working with the private sector to promote, develop and enrich the industry of the future, today.President Bachelet comitment to foster innovation is materialized in this iniciatives. Science, Technology and Innovation are growing from a 0.7% of the GDP to a 1.5% of GDP by 2010. Adoption or creation of new technologies has a 35% tax credit. Biotech is part of the government agenda, we are working with the private sector to promote, develop and enrich the industry of the future, today.

21. The Global Services Cluster has been created to turn Chile into the near-shore platform of choice for BPO, KPO and ITO. A Private & Public Partnership has been created for this purpose, that includes Government agencies, business associations, academia and foreign companies.

CHILE�S STRATEGY TO DEVELOP THE GLOBAL SERVICES INDUSTRY To turn Chile into the near-shore platform of your interest, a public and private partnership has been created. For us to here, is part of our job to deliver the message, that Chile waits for your near-shore operations with the technological resources, the human capital to make it work and the government to support your investment efforts. To turn Chile into the near-shore platform of your interest, a public and private partnership has been created. For us to here, is part of our job to deliver the message, that Chile waits for your near-shore operations with the technological resources, the human capital to make it work and the government to support your investment efforts.

23. INNOVATION FUND & CORFO PROVIDE MATCHING GRANTS FOR R&D

TECHNOLOGY TRANSFER CONSORTIA DEVELOPMENT Up to 70% or USD 400,000 Up to 50% or USD1M Partner prospect in Chile and abroad, business plan formulation, patenting, internships Public interest and pre competitive innovation

25. The industry is evolving, 8 years ago was the callcentre industry that opens it way thru success in chilean soil. Now companies in many diferent markets are moving their operations. No matter how hard is the task, chileans are commited to deliver.The industry is evolving, 8 years ago was the callcentre industry that opens it way thru success in chilean soil. Now companies in many diferent markets are moving their operations. No matter how hard is the task, chileans are commited to deliver.

26. A RECORD OF SUCCESS AS AN OFF-SHORE BASE

Citigroup is currently expanding it operations center, developing software for the bank everywhere form here. JP Morgan is actually doing the same. Santander Bank has been doing this for now 4 years and we are proud to have Evalueserve, Experian and Teleperformance, among others, serving the english speaking community here in the states. Citigroup is currently expanding it operations center, developing software for the bank everywhere form here. JP Morgan is actually doing the same. Santander Bank has been doing this for now 4 years and we are proud to have Evalueserve, Experian and Teleperformance, among others, serving the english speaking community here in the states.