Business Transformation and Innovative Business Models

Business Transformation and Innovative Business Models Srinath N MD & CEO, Tata Communications NASSCOM BPO Strategy Summit 09 JUN 2008

Tata Communications: Vision NASSCOM BPO Strategy Summit Emerging Markets Converged IP Solutions Managed Services INDIA, ASIA incl CHINA, SOUTH AFRICA New WORLD of Communications To deliver a new world of communications to advance the reach and leadership of our customers India’s Gateway To the World

Transformation Story NASSCOM BPO Strategy Summit Monopoly ILD Provider ILD (89%); Others (11%) Wholesale Voice, Wholesale & Enterprise Data, Retail Broadband VSNL in 2002 Tata Comm in 2008 Carriers; Retail (Dial-up) Customers Carriers, Large Enterprises, Mobile Operators, Broadband Consumers India-Centric Play; negligible global operations Global Infrastructure, Global Customers Revenues: $1.6 bn Market Cap: $1.2 bn Revenues: ~$2.0* bn Market Cap: >$3.5 bn *FY07 Lines of Business Reach Financials Customers

A Transformation in the midst of adversity NASSCOM BPO Strategy Summit

Recovery and Transformation Process NASSCOM BPO Strategy Summit Revenue Enhancement in Existing Businesses

Creation of Enterprise Business Unit

Expansion of VPN networks, Data Centers

Implementation of ATM and MPLS networks

Launch of Voice Calling Cards

Improving Competitiveness of the Company

Focus on Customer Service

Balance Sheet Restructuring

Business process re-engineering

Redeployment / Sale of assets & recovery of debts

Investments in New Businesses - Domestic Investments in New Businesses - International

Entry into NLD Voice and Data Services

Entry into new Corporate Data offerings – vertical solutions for BPO, IT, BFSI, Media…

Managed Services

Broadband Services, incl. WiFi and Content

Entry into Sri Lanka and Nepal

Expansion into USA, UK, Singapore

New submarine cable to Singapore

Acquisitions of TGN and Teleglobe

Entry into South Africa

Transforming our Enterprise Business NASSCOM BPO Strategy Summit India Leadership India Enabled A New World

International & Internet bandwidth led

Expansion into NPLC, IP / MPLS & Ethernet

Global MPLS & Ethernet

Targeted fiber investments

Expansion of Managed infrastructure, collaboration & security

India + Asia + South Africa leadership

Global MPLS

Data center expansion

Introduction of Global Ethernet & managed services

WiMAX-led last mile access in India

2005-06 2007-08 2009-10 2003-04

Organization Change NASSCOM BPO Strategy Summit Transformation Levers Leadership Processes & Tools People Culture

People Transformation NASSCOM BPO Strategy Summit > 5,000 employees (net addition of ~4000) 20% outside India (from 0% in 2002) 37 nationalities, 36 years age (1,43 in 2002) 80% less than 5 years (< 20% in 2002) > 30% are customer facing (from < 1% in 2002)

Transformation Journey Summarized NASSCOM BPO Strategy Summit 2002 2003 2004-06 2007- ILD Leadership Enterprise Services NLD Tyco Global Network Teleglobe South Africa Mobile VAS Global Enterprise IP Transit Global Voice Global Connectivity Managed Services Emerging Markets Global Challenger Competitive Private Sector Monopoly Public Sector International Expansion

Transformation into a New Outsourcing Model NASSCOM BPO Strategy Summit

Tata Communications Experience

Transformation incl. integration of 6 acquisitions in 3 yrs, including TGN and Teleglobe

Off-shoring of 400 jobs from Canada & USA to India

Creation of Global Delivery Centers in Pune and Chennai

TL9001 Quality and BS7799 Information Security certifications

Tata Communications Transformation Services

The Global Telco Challenges

Increased competition and tariff pressures

Increased costs & insufficient ops support

Delayed / poor customer service processes

Wholly owned subsidiary of Tata Comms

Focused on outsourcing services to other carriers (including “competitors”)

Major Service Areas:

Network Engineering (Planning & Design)

Service Fulfilment

Network Operations

Customer Benefits:

Productivity improvements (zero backlogs, quick turnaround)

New business

Higher accuracy levels in SLAs

From Zero to 650 employees in 18 mos; planned addition in FY09: >1500

NASSCOM BPO Strategy Summit Audio Web Conferencing The Next World for the BPO Industry Cost Arbitrage Value- added services Business Knowledge Process improvement Business Transformation Processes & Tools – Full services

What is our role as a Service Provider ? NASSCOM BPO Strategy Summit Offshoring Multi-Channel Multimedia IP Migration Speech Recognition Globalization Remote Agents Out-Tasking Competitive Requirements VcIPLC mVoIP SIP Trunking Hosted PBX Touch Tone IVR Speech Recognition / Text to Speech IVR Enhanced Call Routing Hosted Contact Center

Thank you NASSCOM BPO Strategy Summit

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