This document provides an overview of the global computer services industry from Wipro's perspective. It summarizes that India has emerged as a leading sourcing hub for IT services due to factors like cost arbitrage and a highly skilled workforce. While India accounts for over 70% of the global offshore market, this only represents about 6% of total global IT spending, indicating significant potential for future growth. The document also outlines Wipro's advantages in the industry, as well as some challenges to the continued growth of offshore outsourcing like immigration issues and government regulations.

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

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

3. Wipro confidential 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. Wipro confidential 4
Translating into >30% Growth for Indian Industry;
.. & Corresponding Cost Savings for Customers
2.6
4
6.2
7.7
9.6
12.8
17.2
22
0
5
10
15
20
25
98-99 99-00 00-01 01 - 02 02- 03 03- 04 '04-05 05-06E
Americas,
69.4%
Europe,
22.6%
Japan, 3.0%
Africa, 0.6%
Others, 4.4%
$ Bn
Source: NASSCOM, Strategic Review 2005
Geo Distribution
Export of Computer Related Services

5. Wipro confidential 5
Offshore,
7.5%
Non-
Offshore,
96.6
And Yet, India’s True Potential is Far from Realized
India, 72%
Philippines,
8%
Eastern
Europe, 8%
China, 7%
Others, 1%
Middle East
& Africa, 2%
Latin
America, 2%
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. Wipro confidential 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. Wipro confidential 7
The agenda
Industry Snapshot
Wipro Advantage
Outlook Going Forward & Key Challenges
1
2
3

8. Wipro confidential 8
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
Wipro Today
*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. Wipro confidential 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. Wipro confidential 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%
Track
applicant
Retain
Candidate applications
Screen / manage
2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Total Manpower in IT Services 416 490 588 697 839 1010 1215 1462
Additional Manpower Required in IT
Services
56 74 98 109 142 171 205 247
Supply of IT Engineering Degree Graduates 71 81 95 100 111 117 123 129
Manpower Excess 15 7 -3 -9 -31 -54 -82 -118
Supply of IT Engineering Graduates (Degree
& Diploma)
115 127 141 165 181 193 203 213
Manpower Excess 59 53 43 56 39 22 -2 -34
Total Supply Non IT + Graduates Entering
IT
67 74 70 70 70 70 70 70
Manpower Excess 126 127 113 126 109 92 68 36

11. Wipro confidential 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
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. Wipro confidential 12
“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
What analysts speak about us
- 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. Wipro confidential 13
The agenda
Industry Snapshot
Wipro Advantage
Outlook Going Forward &
Key Challenges
1
2
3

14. Wipro confidential 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)
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
Source: McKinsey-NASSCOM study
Deep Rooted strength for sustained global market-share gain…
4.7
0.5
0.9
1.8
1.9
12.6
17.2
39.6
Others
Mexico
Philippines
Eastern Europe
China
Canada
India
Total
Source: Nasscom
10.0
1.1
2.6
6.4
5.0
20.9
48.0
94.0
India - the Preferred Offshore Destination
2004 2008

15. Wipro confidential 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. Wipro confidential 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. Wipro confidential 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. Wipro confidential 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. Wipro confidential 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
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