The document discusses the global computer services industry and India's role as an offshore outsourcing hub. It summarizes that India accounts for less than 6% of global IT spending despite having over 30% growth in its domestic IT industry. While offshore adoption is still low at under 10% of global 500 company budgets, it presents opportunities for continued growth. The document also outlines some of the key advantages and challenges for India's IT services industry.

1. Global Computer Related Services An Industry Perspective WTO Cross-Border Supply Symposium Santosh Head, Talent Engagement & Development, Europe Sept 28, 2005

2. The agenda Industry Snapshot Wipro Advantage Outlook Going Forward & Key Challenges 1 2 3

3. Landscape of Computer Related (IT) Service – India Advantage… Application Development Systems Integration Product Engineering Consulting ERP Services BPO Infrastructure Management Independent Testing Services from India touch all three aspects of IT – software, hardware & network India’s Emergence as IT Sourcing Hub – Key Drivers Highly Talented Labor Pool Cost Arbitrage Leapfrog increases in Telecom reliability in 90’s Quality Advantage Faster Time to Market 24 Hour Service Window Enables customers internal work-force to focus on ‘core’ & strategy Range of Services

4. Translating into >30% Growth for Indian Industry; .. & Corresponding Cost Savings for Customers $ Bn Source: NASSCOM, Strategic Review 2005 Geo Distribution Export of Computer Related Services

5. And Yet, India’s True Potential is Far from Realized Worldwide Offshore IT Services Export Share by Region, 2003 Share of Offshore in Total IT Services Pie Adopted from IDC, Gartner & Nasscom Estimates Even at 72% Share of total offshore spend, India accounts for less than 6% of Global IT Spend Total Global IT Spend (2005): $640 Bn

6. Even as more & more Global Corporates Adopt Offshore Model… Goldman Sachs, September 2005 “ we continue to expect a robust demand backdrop for offshore services over the next two years which should drive sustained growth of at least 25%-30%. In our opinion, the predominant factor driving growth is the continued adoption of the offshore model, which by our estimates continues to be low. From a client IT budget perspective, our estimates suggest that that the offshore model has penetrated less than 10% of Global 500 (G-500) IT budgets for core application maintenance and development work.” Leveraging Offshore Model = Delivering Greater Shareholder Value through Smart Sourcing

7. The agenda Industry Snapshot Wipro Advantage Outlook Going Forward & Key Challenges 1 2 3

8. Wipro Today Ranked leader by IDC, MetaGroup, Forrester – 2004 Awarded the highest rating in Stakeholder Value Creation & Corporate Governance by ICRA, an Associate of Moody’s Investor Services Partner to industry leaders and challengers 89 global 500 clients 151 clients among Forbes 2000 Diverse talent pool 23 nationalities 2000 domain consultants Sustained growth CAGR of 42% in last 5 years Part of NYSE’s TMT (Technology-Media-Telecom) Index, NSE Nifty Index and BSE Sensex 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 217 226 288 339 421 430 10 13 19 29 42 42 (thousands) (millions USD) 384 475 625 934 1354 1595* Clients Employees Revenues *June Quarter Revenues Annualized Incorporated in 1945; 60 years track record of growth & profitability IPO in 1946; Listed at NYSE [WIT] in 2000 Entered IT business in 1980s; IT Services business launched in 1991 Our history – a track record of success Compounded Growth Rate- First 59 Years: Revenues: 21%, Net Income: 31%, M-Cap: 24% IT Services Foot-Print

9. Growth Envisaged Across the Range of Services Constantly incubating newer services Source: Mckinsey-NASSCOM Study, NASSCOM, Company estimate ( all figures in USD B) Percentages below the pie chart represent Wipro’s distribution of Revenues for the Quarter ended June 2005 IT Enabled Services / BPO 11% Package Implementation 11% Infrastructure Outsourcing 8% Consulting 5% Custom App Dev & Maintenance 25% 1.7 6.5 0.3 3.6 5.2 13.5 0.3 3.6 0.6 4.9 Indian Export Potential* FY04 FY09 CAGR 21% CAGR 64% CAGR 64% CAGR 52% CAGR 31% Wipro’s Global IT Revenue pie 3.6 21 CAGR 42% R&D Services 32% Q1 2005-06 $398.5 M Testing Services 8% 1.1 3.1 CAGR 23%

10. Manpower Demand-Supply Scenario: Wipro- Preferred IT Employer One of the top 3 leading recruiters in India Hired over 15000 employees in last one year Has a career portal with active applicants of over 300,000. Recruits from over 160 leading engineering and management colleges. One of the most preferred employers for the top class talent in India. Wipro career portal Offer Evaluation 100% 15% 4% 0.8% Retain Candidate applications Screen / manage Track applicant

11. Q-cult: Enterprise-wide quality culture for continuous improvement 4,000+ employees trained in Six Sigma methodologies 204 certified black belts and 10 master black belts Over 700 PMI certified consultants, highest in India All fresh recruits undergo a 3 day Veloci-Q training 33% business parameters for the Wipro CEO relate to quality Process Technology People Six Sigma World’s first SEI CMM/CMMI Level 5 IT services company (1998-2002) BS7799 ISO 9000 Worlds 1st IT Services Company to use Six Sigma (1999) 1st company outside the USA to receive IEEE award (2003) Worlds 1st PCMM Level 5 software company (2001) “ Wipro clients see additional application maintenance productivity of 10% to 15% from added familiarity with systems; another 10% to 15% raise in productivity after applying Wipro's CMM-based methodology and consolidating redundant programs applications; and yet another 3% to 30% productivity improvement thanks to process automation and tools” Forrester

12. What analysts speak about us “ An increasing number of offshore players are building greater presence in the United States. Examples include Wipro , with its acquisition of the consulting company formerly known as NerveWire ” - US customer experiences and best practices when going offshore, IDC, May 2004 - No Longer Off-Broadway: Offshore Moving to Center Stage, META Group, May 2004 “ Wipro's most recent annual results provide further validation that upscale/upstream services provided by "offshore" firms are now mature ” “… because of its brand, impressive size, and breadth of capability, Wipro is often selected as a strategic partner by customers seeking large, broad-based capability in their primary offshore outsourcing providers. . “ - Indian Offshore Suppliers: The Market Landscape, Forrester, April, 2004

13. The agenda Industry Snapshot Wipro Advantage Outlook Going Forward & Key Challenges 1 2 3

14. India continues to rank as the preferred destination… Likely to benefit disproportionately from Offshoring Drive China CIS Mexico India Philippines People Sophistication (Number, Cost, Language Skills) Vendor Sophistication (Number, Quality) Source: McKinsey-NASSCOM study Deep Rooted strength for sustained global market-share gain… Source: Nasscom India - the Preferred Offshore Destination 2004 2008 Russia Cost Quality of Supply (Resource Availability, CMM Level, Cultural Fit) China Hungary Philippines Malaysia Mexico India Ireland Israel Singapore India Low Cost High Quality Development

15. And Yet, There Are Challenges… Immigration & Visa Issues Universal Recognition of Qualifications, Experience and Training Employment laws enforcing local hiring Wage Parity Insisted upon Social Security Tax Tax Withholding Movement of Employees

16. And Yet, There Are Challenges… Structure of Entity (Branch, JV, Fully owned Subsidiary etc.) Restrictions on Foreign Investments & Local equity participations Remittance of foreign exchange Staffing & Management conditions Restricted Access to certain market segments based on the structure Dual Taxation Government Regulation on Business Entity & Vendor Selection

17. And Yet, There Are Challenges… Macro environment related Improving quality of technical education in India Challenges posed by Urban infrastructure Preparing for competition from other low cost countries Business model related Expanding the breadth of service offering Managing scale without diluting quality & delivery excellence Expanding geographies & adapting to local language and cultures Financial Adverse currency fluctuations Managing wage inflation M&A and their impact on financials Other Challenges

18. Conclusion Offshore Model is a Great Opportunity for Developed nations to achieve Highest Quality services at reasonable prices Visa & Immigration, Taxation, Protectionist Law and Uniformity in Qualification are some of the key challenges still faced by a service provider like us… A uniform GATS framework and commitment will provide the right impetus to the growth of Cross-Border IT Services

19. Q&A Our promise With utmost respect to Human Values , we promise to serve our customers with Integrity , through Innovative , Value for Money solutions, by Applying Thought, day after day Information contained and transmitted by this presentation is proprietary to Wipro Limited and is intended for use only by the individual or entity to which it is addressed, and contains information that is privileged, confidential or exempt from disclosure under applicable law.