… … Advantage India…BPO &…Advantage India…BPO &…

Highly skilled, English-speaking workforce. Cheaper workforce than their Western counterparts.

According to Nasscom, The wage difference is as high as 70-80 percent when compared to their Western counterparts.

The cost of telecom and network infrastructure getting equivalent to rest of the world.

Dedicated workforce aiming at making a long-term career in the field.

Round-the-clock advantage for Western companies due to the huge time difference.

Lower response time with efficient and effective service. Developed legal system.

… … Economic…Economic… The economy is expected to grow by 6.75 - 7 % during

2005-06 and inflation is likely to be around 5-5.5 %. Agriculture to grow by 3.5 %, industry by 7 and services

by 8.5 % next fiscal…Crisil. India has one of the largest Telecom Networks in Asia

with approx. 1,23,000 route kilometers of optic fibre cable network.

Forex Reserves are as high as $120billion, Exports are rising @ 20%, Industrial Production is rising @7-8%

India ranked 10th among 29 emerging markets in the latest country… Economic Intelligence Unit (EIU)

Full signatory to WTO and committed to integrate completely with the world market by year 2005.

Country USP Limitation

Philippines Understands the US market; voice work; low attrition

More expensive than India; small talent pool

Canada, Australia

Understands the US market; high-end skills

High costs

South Africa Time zone similar to Europe; 25% cost saving, good for niche work

Skill shortage

China Low costs Quality of English not good

Russia Technology skills Poor infrastructure; corruption; language

Czech Rep, Hungary

European language skills Small talent pool; high costs

Mexico Immediate neighbor of US, 30% cheaper than US; Spanish skills

Good only for low-end jobs

… … competition … lagging behindcompetition … lagging behind

India – Land of India – Land of OpportunitiesOpportunities

Second Largest Emerging Market

Largest democracy –

political stability &

consensus on reforms

Liberal & transparent investment

policies

Highest returns on investment; India 19.33%, China 14.25%, Thailand 13.3%

Fourth largest Economy

(PPP) - A safe place

to do business

Largest reservoir of skilled/semi-

skilled manpower

Long-term sustainableCompetitive advantage

- High growth rate economy

Infrastructure DevelopmentInfrastructure Development

US$ 12 billion Highways Development Programme;• Over 13,000 Kms of Highways being developed.

US$ 22 billion ‘Sagar Mala’ programme to develop ports and shipping sector

Modernization of Airports at New Delhi & Mumbai. World’s Fastest growing telecom market with unified

licensing regime and world class international and domestic connectivity;

The Electricity Act, 2003 enables captive generation and trading in electricity;

Brand IndiaBrand India R&D base for 100 of Fortune 500 companies;

GE’s largest R&D Center outside US; Large pool of World class scientific and technical manpower;

Indian Institutes of Technology; Indian Institutes of Management.

S&T policy aims at R&D investments of 2% of GDP by 2007 Among the only three Asian countries with super computing

competence Strong base for manufacturing;

Bharat Forge world’s largest forging facility Most major MNC’s like Volvo,GM,GE, Chrysler, Ford,Toyota,

Unilever, Cliariant, Cummins, Delphi sourcing high quality components and hardware from India

Hyundai Motors India – Global base for manufacturing small cars; Indica(100% indigenous car) being exported to Europe as Rover City. Hero Honda world’s largest manufacturer of motorbikes Precision Automation & Robotics India (PARI) - 20 Fortune 500 clients

Competitive EntrepreneurshipCompetitive Entrepreneurship

Prevalence of foreign technology licensing – Rank 1 Availability of scientist and engineers – Rank 2 Quality of management schools – Rank 9 Firm level innovation – Rank

12 Firm level technology absorption – Rank 16

(Source: Global Competitiveness Report, 2002-03) India amongst the leading entrepreneurial hotbeds

globally (Red Herring Clubs India with Israel)

India: FDI OutlookIndia: FDI Outlook Rated as the best BPO destination; AT KEARNEY Best technology licensing regime - UNCTAD’s Global

Competitiveness Report, 2003; Rated among the most favourite investment

destinations (UNCTAD, JETRO, JBIC, Deutsche Bank, EIU, etc.)

Major destination for foreign venture capital funds (Far Eastern Economic Review)

Sixth most attractive investment destination – ATKEARNEY Business Confidence Index, 2003

Also among the top 10 Tourist Destinations.

Skilled knowledge WorkforceSkilled knowledge Workforce

India’s competitive edge is its manpower Over 380 universities (11200 colleges) 1500 research institutions Over 200,000 engineering graduates Over 300,000 post graduates from non-

engineering colleges 2,100,000 other graduates Around 9,000 PhDs

Knowledge workers in software and service industry increased from 6,800 in 1985-86 to 650,000 in 2003

Global Business Leaders - Bullish On Global Business Leaders - Bullish On India’s PotentialIndia’s Potential

“India is a developed country as far as intellectual capital is concerned”

“India can be a major part of Dell’s operations and we are looking to capitalize on India’s human capital”

“We are expanding our presence in India to take advantage of the ample R&D talent available”

“India is handling the most sophisticated projects in the world..I am impressed with the quality of work”

JACK WELCH, GE JOHN CHAMBERS, CISCO

MICHAEL DELL, DELL BILL GATES, MICROSOFT

Third Party Service Providers Third Party Service Providers (TPSPs) … Benefits(TPSPs) … Benefits Expertise and experience with other clients in similar

business lines. Very competitive pricing No infrastructural / capital investment. Payback period very less (usually between 6 months to a

year). Flexibility to scale up and down business relationship. Retains decision-making, therefore relationship with TPSP

is clear (fee-based, quality-based); no staff backlash. As TPSP works towards a profit there is more business

commitment. Customized solutions ensure data security and safety.

What Virtualsource brings What Virtualsource brings to the Tableto the Table

Management Band width

Experience of delivering back office

services to global majors

Understanding of successful JVs with

global majors

Scalable Existing Infrastructure

Strong Balance Sheet and willingness and ability to infuse

further Capital to scale up to 1200 seats

Virtualsource