OUTLINE I. Why outsource business processes? II. The specific opportunities in the Philippines

1. THE PHILIPPINESYour Partner in Global ExpansionA document to introduce the possibilities for outsourcing of customer support and other business processes to the Philippines

2. OUTLINE I. Why outsource business processes? II. The specific opportunities in the Philippines III. Why the Philippines? Advantages IV. Join the other MNCs V. Invitation

3. I. Why outsource business processes?

4. REASON # 1 As businesses develop and establish themselves as a supplier of quality, high-end products, there arises a parallel need to extend better customer care and customer support. REASON # 2 Stiff competition means products are chosen not only because of price, quality, nor features, but also because of the nature of support and close relationship extended by the company to its customers. REASON # 3 As businesses expand abroad and become global companies servicing different markets, capability to connect with customers using different languages, especially English, becomes important. REASON # 4 To be as competitive as possible, companies need to focus on their core strengths and businesses where they are most efficient, and then outsourcing their other backroom processes to others who can do it better and cheaper becomes an effective solution.

5. II. The specific opportunities in the Philippines

6. The Philippines is the world-leader in these outsourcing services:

7. III. Why the Philippines? The advantages of locating with us

8. Available Quality Human Resources • Young Labor force of 32 million, all fluent in English, and highly educated The Swiss International Institute for Management Development (IIMD) study in 2004 rates the Philippines among 60 countries in the Asia Pacific: • #1 in the availability of skilled workers (out of 33 million total labor force) • #3 in the availability of senior managers • #4 in the availability of IT professionals • #10 in the availability of accounting and financial skills • #10 in the availability of expat middle management • #12 in qualified engineers.

9. Available Quality Human Resources • World-class English Proficiency • Strong customer service orientation • Long tradition of excellence in the professions • Highly trainable • Fast learning curve • Cost efficient • Universal cultural adaptation, affinity to Western culture • High level of commitment and loyalty

10. … Lowest IT Salary among 32 countries for same skills

11. Reliable Infrastructure Support • Robust, Redundant International Networks and Connectivity • Expanding Multi-media Infrastructure • 24x7x 365 support operation • Aggressive lead times in provisioning of international leased circuits: 30-45 days • Deregulated Telecommunications Industry • More stable, robust, highly scalable due to numerous fiber optic landings/links • Cost of bandwidth has gone down by 70% in the last 4 years (From US$ 14,000 in 2001 to today’s rates of US$ 2,000 per month for E1 lines to U.S.) • Presence of Dedicated IT Parks Right in the Center of Business Districts

12. Reliable Infrastructure Support • REAL-ESTATE • Low rates with liberal lease agreement terms; mostly administered by international property management companies (JonesLangLasalle, FPDSavills, CB Richard Ellis, Colliers, etc.) Total Occupation Cost for Prime Office Space in CBD (US$/ft2/year)1 MumbaiShanghaiSingaporeManila Rent/Lease Rate 56.43 40.49 33.71 13.43 - Typical Lease Terms 9 yrs. 2-3 yrs. 3 yrs. 3-5 yrs. - Typical Months Free 1 mo. 1-2 mos. 1 mo. 3 mos. Existing Inventory (ft2)2 8,865,605 33,768,893 45,725,047 28,327,249 Under Construction (ft2)2 0 6,819,430 704,100 153,868 • POWER • Stable with excess capacity over current demand • Back-up generator system: a regular feature in almost all buildings 1 – Global Market Rents Report by CB Richard Ellis, Aug 2005 2 – Global Office Real EstateHighlights by Colliers Int’l., June 2005

13. Strategically Located in Asia • Regional Hub for Logistics (UPS, Lufthansa Technik) • Good Access to the important 550 Million People ASEAN Market, plus ongoing bilateral trade negotiations with Japan (120 M affluent population) • Reachable within 4 hours by plane from Asian key cities • Japan • Korea • China • Singapore • Taipei • Thailand • Indonesia

14. Strong Affinity With the West • Historical • Educational • Political • Accounting National Standards and practice adhering to Generally Accepted Accounting Principles (GAAP) and International Accounting Standards (IAS) • Legal • Banking & Finance, Insurance • Entertainment

15. Hospitable Lifestyle Expatriates’ top choice for quality of life • Friendly people • Value-for-money housing • Modern recreational facilities • First-rate educational institutions • Presence of International schools

16. Government Support • ICT enjoys the full support of Philippine President Gloria Arroyo, and is considered a high priority sector • E-commerce Law is in place • ICT incentives available

17. Investment Incentives available: • 4 to 6 years Income Tax Holiday • Special 5% tax rate on gross income after the lapse of ITH (for IT Park/Ecozone locators) • Tax and duty exemption on imported capital equipment (for IT Park/Ecozone locators) • Unrestricted use of consigned equipment • Exemption from wharfage dues • Employment of foreign nationals • Exemption from 10% input VAT on allowable local purchase of goods and services (e.g., communication charges)

18. IV. Join the other global companies outsourcing in the Philippines

19. Contact Centers (including customer support call centers): • Growth has been phenomenal, with the industry growing 79% last 2005! • 87% of our foreign customers are from the USA, a testament to the Philippines’ strength in English contact centers! • Majority of the top call centers have set up operations over the last two years and many of the Fortune 500 companies are outsourcing to the Philippines, as can be seen in the next pages!

20. The world’s top Contact Center companies are in the Philippines:

21. Some Fortune 500 Clients outsourcing to the Philippines:

22. Companies who have setup their own in-house Contact Center operations in the Philippines:

23. Other Business Processes: • Meta Group cites the Philippines as Asia’s “Bright Spot” for outsourcing • We specialize in Finance and Accounting, Human Resources Administration , software development, and engineering design • Key players include AIG, JPMorgan, Alitalia, Citibank, P&G, Chevron Texaco, Accenture, Shell,HSBC and SGS, as follows:

24. Companies who are already outsourcing finance, HR, and other processes in the Philippines: Who Are With Us

25. V. Invitation

26. Value Proposition Better Quality Delivery At A Significantly Reduced Cost

27. Our Invitation We invite you and your customer care officials to visit the Philippines. We can assist you and put together an itinerary that will demonstrate exactly the opportunities that are mentioned in this document • Contact details: • Mr. Emmanuel W. Ang, Commercial Attaché and Director, Philippine Trade and Investment Center, Guangzhou, PROC • Address: Rm. 713, Guangdong International Hotel, 339 Huanshi Dong Lu, Guangzhou, PROC, 510098 • Telephone: (8620)83316331; (8620)83312391 for fax