India as outsourcing destination – Key milestones

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

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

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

4. IT-ITES Sector performance Source - NASSCOM

5. Outsourcing Drivers & India advantages Cost Savings/Containment OUTSOURCING DRIVERS Focus Skills Shortage Quality Specialist Requirements Time to Market

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

7. India’s Competitive advantage Performance 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 Abundant Talent 1 • 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%) Quality & Scaleable Infrastructure 2 Critical Ingredients of India’s success • India based players have managed to maintain quality and cost leadership vis-à-vis other countries Operational Excellence 3 • India’s business environment is competitive with those in other countries • Key government policy interventions have catalyzed growth Conducive Business Environment 4 Growing Domestic IT/ BPO Market • Increase in domestic spending on IT 5 = Low = High Source: Nasscom-McKinsey Report 2005

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

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

10. Leading to 2nd Generation Outsourcing

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

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. Overview Tech Mahindra Financials Revenue US$ Mn. • Global Reach • People from diverse culture and nationalities • Global Fortune 500 customers TelecomExpertise • 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 mASTERTM 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%) People and Services • 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

14. Thank You