INDIA - THE ROAD AHEAD IN SEARCH OF A NEW VALUE PROPOSITION

1. INDIA - THE ROAD AHEAD IN SEARCH OF A NEW VALUE PROPOSITION Suvas Mahapatra General Manager - PES Wipro Technologies Wipro confidential

2. India: A snapshot Area: More than 1/3 ofUSA Population: 1.10 BnCurrency: Rupees (~44.5/$) Capital: New Delhi Coastline: > 5000 miles. Multi Cultural: 15 languages, over 200 variations, multi ethnic, multi religious-Hindus (80.5%), Muslims (13.4%), Christians (2.3%), Sikhs (1.9%), others (1.2%) Wipro confidential

3. Familiar India Wipro confidential

4. Indian Economy is big and low on risk Risk Ratings* Source: Economist Intelligence unit, April 2005 * Aggregate of political stability, political efficacy, monetary, fiscal, exchange, trade, regulatory, global climate, growth, current account, debt structure, financial structure, and liquidity Source: IMF, April 2005 Wipro confidential

5. … and Getting Bigger World’s third largest economy by 2032 World’s growth engine - Fastest growing economy by 2012 Source: Goldman Sachs More service driven (> 50% in 2003) than most middle income economies Reduction in agriculture share  Less dependence on monsoon (2004-05 GDP figure at 6.9% despite agricultural growth of just 1.1%) Wipro confidential

6. Globalization – Underlying Theme Globalization is irreversible Knowledge can be rendered anywhere Products / services can be created anywhere Removing boundaries Wipro confidential

7. Wipro’s 3C collaboration modelOffshore as a strategic enablers for market leadership Product innovators Strategic vacuum Product Innovation Typical Cost Leaders Cost Leadership Wipro confidential

8. Global collaboration strategic framework Resource Based Capability and Capacity “Increase available resource capacity” Capacity 41% of projects* C C C Complexity Cost 13% of projects* 88% of projects* Execution complexity and Context “Utilize global tacit market or industry knowledge” The 3C model Cost Reduction “Obtain substitute skills at lower costs” * Multiple Strategies Per Project Wipro confidential

9. Global sourcing – An irreversible mega-trend …so much so that it has become a part of our every day lexicon Wipro confidential

10. Annual Purchasing Power Parity (PPP) in $US Population In Millions 4 Billion People Earning less than $2,000/year Middle Class in developing countries Wealthy Nations 100 > $20,000 adjacentmarkets $2,000—$20,000 2,000 < $2,000 4,000 Opportunity - ‘The Bottom of the Pyramid’ emerging ‘mass’ markets Source: Prahalad & Hammond,Harvard Business Review, Vol. 80, Issue Wipro confidential

11. Through the new faces on the mirror Wipro confidential

12. Technology : Destination India Wipro confidential

13. 360º Opportunity space Infrastructure Services R&D Services Business process Mechatronics ED Services IT Services Consult & architect Design & develop Maintain, Manage & support Wipro confidential

14. India’s Offshore IT and BPO Industries can reach Exports of US $ 60 Billion by 2010. India’s offshore IT and BPO exports, US $ Bn. ~80 Projected CAGR 2005-2010 CAGR 28% ~60 > 37% BPO CAGR 29% Offshore IT > 24% 17.2 6.2 • India’s Offshore IT and BPO industries can achieve US $ 60 Bn. in exports by 2010 if they sustain their current leadership. • These industries could also aspire for an even bigger pie in the next five to ten years: an additional $ 20 Bn. in exports by extending leadership through a targeted expansion of the Offshore market. Source: NASSCOM McKinsey report 2002. NASSCOM McKinsey report 2005 Wipro confidential

15. Enablers Wipro confidential

16. Global: Business drivers • Falling Tariffs barriers • Reducing Trade Barriers • Telecom / Datacom Revolution • Evolved Global Skill Set • New Technology – Offshore, Call-Centers • Death of Distance The next decade is unlikely to see any disruptive technology with the exception of WiMax. Corporates would derive their competitive advantage from non-technological innovations. Wipro confidential

17. Changing values Value Migration from Goods to Services Manufacturing Services Goods carry the value Value is in Goods Technology removes major competitive advantages Manufacturing Services Telecom and Data-com Online Sales & Support Sales Channel Supply Chain Logistics and Transport Technology Wipro confidential

18. De-coupling of value chain Fragmentation Of Processes Front office Back office Product design Process Competency Wipro confidential

19. India: People power • Vast educational system • Universities 237 • Deemed Universities 47 • Engineering Colleges 1,200+ • Indian Institute of Technology (IITs) 7 • Indian Institute of Management (IIMs) 6 • Medical College 171 • Degree College 10,600 • Dental College 78 • Polytechnic 1,210 • Schools 1.1Mn • Over 250 m students; 7.5 m teachers • Evenly spread all over the Country Population 1.08 Bn (25.7% urban) Population growth rate–1.6% pa Sex Ratio 933 /1000 Literacy rate 65.4% Life expectancy 63 years Wipro confidential

20. Technical education: Producing the best work-force No of engineering colleges • One of the largest pools of technical talent • Global employability due to English medium of education • Strong social status of engineers sustaining the momentum Annual intake of engineering students Source: All India Council for Technical Education Wipro confidential

21. Quality: Numbers • 80 of the world’s 117 SEI CMM Level 5 companies are based in India • 360+ ISO 9002 companies are in India • Over 15 companies are in US Stock exchanges • 35%+ Silicon Valley start-ups are by Indians • 90,000 Microsoft Certified Software Engineers – Equal to US & Largest outside US • Largest English speaking technical Manpower Quality of people and processes – provides sustainable advantage for India Wipro confidential

22. Growing Telecom: Connecting virtually • Only infrastructure sector in which liberalisation has led to fall in prices for the consumer • Tele-density doubled in last 3 years and is 9.12% currently • 20012004 • Cellular connections 3.6 Mn 54 Mn • Internet Subscribers 2.5 Mn 5.5 Mn • Basic Telephony 30 Mn 46.3 Mn • Cable Connections 33 Mn 46 Mn • Foreign Direct Investments (FDI) • Year FDI Inflow (in $ Mn) • 1993 0.47 • 1997 283 • 2001 902 • 2004 2180 Significant improvement in quantity and quality Wipro confidential

23. Location Maturity – Country Comparison Wipro confidential

24. Staying in the lead Wipro confidential

25. 1. Improve talent supply • India will need a 2.3 million-strong IT and BPO workforce by 2010 to maintain its current market share. Supply projections indicate a potential shortfall of nearly 0.5 million qualified employees–nearly 70 per cent of which will be concentrated in the BPO industry. • This gap can be bridged by the following initiatives : • expanding the pipeline of people willing to join the industry • improving the quality of education • database and other initiatives for people mobility • quality education – technical and soft skills • global skills Wipro confidential

26. 2. Drive operational excellence : • India-based IT services providers have retained their cost leadership position despite increasing wage rates. This has been accomplished through greater automation and code reuse, as well as tighter people management. • IT services players need to focus on three key areas : • Enhance customer interaction and solution delivery (e.g., effectively influencing customer requirements and decisions); • Improve resourcemanagement (e.g., hiring people with the right skills at the right tenure); • Upgrade support processes (e.g., accurate and quick financial reporting to facilitate decision making) • For BPO players, NASSCOM and McKinsey have jointly developed a benchmarking framework called Process360° to help providers identify key operational gaps. The framework enables tangible improvements in output metrics (e.g., cost), by analyzing 14 different operational areas. Wipro confidential

27. 3. People transformation : Two way learning - It is clear that the flow of knowledge has changed. Indian business people traditionally learned from western business schools. The flow of knowledge is now two-way Building Technical Competency We must not veer away from technical supremacy. With the cost arbitrage advantage reducing, its our technical competency which will help us to sustain our advantage Nose for Business Its important for managers to understand the customers business and provide a solution approach. Re-emphasize on skills, like communication, knowledge of basic finance and ability to build leaders Wipro confidential

28. 4. Leadership traits : 5. Surround yourself with people who are smarter than you 1. Know your genuine self 2. Challenge yourself and those who work with you 6. Become obsessive with excellence. 3. Plan and structure your work 7. Be open to change, but do not compromise on your values 4. Learn to be like an éclair, hard when it comes to tasks and soft inside, when it comes to dealing with sensitive issues 8. Never react to provocations Wipro confidential

29. 5. Innovation Executives around the world recognize Innovation as the most important capability for growth Wipro confidential

30. 5. Maintain cost leadership • Continue to use the factor inputs in India • That is a major source of our competitive advantage • Improve the infrastructure and investments • That is the only way to reduce the per unit variable cost • Automate and rationalize growth opportunities • Never lose focus from Quality, Reliability and Measurability • There is no scope for obesity – keep lean Wipro confidential

31. Propensity to Innovate Sight on value and result may be lost Fresh & innovative thinking Propensity to Innovate Not enough confidence to change and innovate Reduced impetus for innovation State of Economy Depressed Uncertain Growing Booming India is a Growing Economy with Tremendous Potential and Propensity to Innovate Wipro confidential

32. Don’t stop experimenting…. • Changes in the environment are quicker than ever before • Learn and unlearn regularly • There are few or no short cuts, whatever you do, you have to be the “fastest, bestest and….cheapest??” Remember, experiments can fail, but that’s where inventions are born…. Thank you Wipro confidential