V C U S T O M E R

1. V C U S T O M E R Chiara Broggi Ricardo Pique Patricia Yamasaki Lucia Zavala

2. “Companies need an effective global IT sourcing strategy in order to remain competitive. India service companies offer the greatest breadth of services and have the most experience and as a result, India is the preferred starting point for developing an offshore relationship. But once a company has established relationships with one or more Indian companies and gained experience in managing an offshore outsourcing relationship, they should look to other geographies as they expand their IT” OFFSHORE OUTSOURCING ISN'T JUST INDIA By Lance Travis, AMR Research India will remain the safe choice for companies considering offshore outsourcing; however, it is facing several challenges It is time for vCustomer to look for new locations

3. AGENDA • Defining the factors involved in the selection of offshore • locations for ITES 2. Defining the selection methodology 3. Selection of Locations 4. Prioritizing the selection of locations 5. Determine the entering strategy 6. Summarizing the proposal 7. Additional consulting services

4. Defining the factors involved in the selection of offshore locations for ITES Factors Main Markets vCustomer Objectives Offshore Location Attractiveness based on market conditions Best Offshore Locations for vCustomer

5. Offshore Location Attactiveness based on market conditions ATKEARNEY’s Global Services Location Index (ITES) 2007 Financial Cost People Skills and Availability Business Environment 30% 30% 40% - Cumulative business process experience and skills - Labor force availability - Education and language - Compensation costs - Infraestructure costs - Tax and regulatory costs - Country environment - Cultural adaptability - Security of intellectual property

6. Main Markets EU Japan Americas Target Markets selection Americas EU Japan R E A S O N S Share of Indian Exports 61% 26.86% 4% High Predisposition to outsourcing Potential Clients with higher possibilities of making value transactions

7. Global Presence Improves its offshore model Local Knowledge Near Shoring Based on market new trends vCustomer Objectives

8. Defining the factors involved in the selection of offshore • locations for ITES 2. Defining the selection methodology 3. Selection of Locations 4. Prioritizing the selection of locations 5. Determine the entering strategy 6. Summarizing the proposal 7. Additional consulting services

9. For every market, nearby regional countries will be evaluated on: VARIABLES GSLI 2007 People Skills and Availability vCustomer Specifics Market Relevance Language Commercial Relationships Proximity Cultural affinity Laudicina (ATKEARNEY): “...the key differentiatior in the future will be the talent base and future projections of skilled labor supply will be imperative for companies making long-term location decisions...”

10. GSLI People Skills and Availability Market Relevance vCustomer Specifics Final Average R A N K I N G Country A Country B Country C Country D Potential Location = Country A

11. Defining the factors involved in the selection of offshore • locations for ITES 2. Defining the selection methodology 3. Selection of Locations 4. Defining the entering strategy 4. Prioritizing the selection of locations 5. Determine the entering strategy 5. Prioritize the select of locations 6. Summarizing the proposal 6. Summarizing the proposal 7. Additional consulting services 7. Additional consulting services

12. Target Market Americas (especially US Hispanics and Latin America)

13. GSLI People Skills and Availability Market Relevance vCustomer Specifics Final Average R A N K I N G Brazil Chile Mexico Argentina Potential Location = Mexico

14. Target Market EU (especially Western Europe)

15. GSLI People Skills and Availability Market Relevance vCustomer Specifics Final Average R A N K I N G Bulgaria Estonia Czech Rep Poland Potencial Location = Poland

16. Target Market Japan (and Korea)

17. GSLI People Skills and Availability Market Relevance vCustomer Specifics Final Average R A N K I N G China Malaysia Thailand Philippines Potential Location = China

18. Poland China Mexico New Locations Actual Locations Mexico Poland China India Bulgaria Americas EU Japan M A R K E T S Americas EU Korea UK Hong Kong

19. Defining the factors involved in the selection of offshore • locations for ITES 2. Defining the selection methodology 3. Selection of Locations 4. Defining the entering strategy 4. Prioritizing the selection of locations 5. Determine the entering strategy 5. Prioritize the select of locations 6. Summarizing the proposal 6. Summarizing the proposal 7. Additional consulting services 7. Additional consulting services

20. Prioritize the selection of locations Maximize return Main Factor Market Size MEXICO POLAND CHINA

21. Defining the factors involved in the selection of offshore • locations for ITES 2. Defining the selection methodology 3. Selection of Locations 4. Defining the entering strategy 4. Prioritizing the selection of locations 5. Determine the entering strategy 5. Prioritize the selection of locations 6. Summarizing the proposal 6. Summarizing the proposal 7. Additional consulting services 7. Additional consulting services

22. How to enter to the potential countries? Factors Maintain Quality Reduce Risk and Costs of entrance Problems Limited local knowledge Cultural barriers Solution Strategy Mexico Poland China Partnership

23. PARTNER REQUIREMENTS • Similar culture, values & principles • Complementarity of resources, knowledge and technology • Access to market • Good reputation • Well established relationship networks

24. Defining the factors involved in the selection of offshore • locations for ITES 2. Defining the selection methodology 3. Selection of Locations 4. Defining the entering strategy 4. Defining the entering strategy 4. Prioritizing the selection of locations 5. Prioritize the select of locations 5. Determine the entering strategy 5. Prioritize the selection of locations 6. Summarizing the proposal 6. Summarizing the proposal 6. Summarizing the proposal 7. Additional consulting services 7. Additional consulting services 7. Additional consulting services

25. OUR PROPOSAL Analyse the factors Develop the selection method Apply the selection method Select the ideal locations Prioritize the select of locations Define the entering strategy Offshore Location Attractiveness based on market conditions GSLI 2007 Maximize return Factors People Skills and Availability Market Size Problems Main Markets Market Relevance 1 2 3 Mexico Partnership Poland vCustomer Objectives vCustomer Specifics China

26. Defining the factors involved in the selection of offshore • locations for ITES 2. Defining the selection methodology 3. Selection of Locations 5. Prioritize the selection of locations 4. Defining the entering strategy 6. Summarizing the proposal 7. Additional consulting services

27. Additional Consulting Services Is Health-care a viable option for diversification? Health care is a new vertical that gives vCustomer the opportunity to grow through new clients that are just discovering the benefits of offshoring services and also provides opportunities for many new value-added services. Two main issues Is selling the company the next move? The best moment to sell your business is when you don’t have to. VCustomer has a large growth potential that could be better achieved if owned by a large company.

28. Is Health-care a viable option for diversification? • Considering: • Existing demand • Potential growth • Technologycal capability Viable • NPV • Resource Capability • Associated Risk

29. Is Health-care a viable option for diversification? -Projected Cash Flow NPV -Cost of Capital -Required Investment Resource -Re-investment policy analysis -Comparable investments -Skills needed -How to neutralize economic exposure Associated -Investor’s portfolio Risk -Financing options -Peer companies information

30. Is selling the company the next move? -Projected Cash Flow NPV -Cost of Capital -Required Investment Most important consideration: What are the owner’s priorities and plans for the company? Industry -Growth potential Analysis -Market concentration -Interested companies Potential deals -Offers -Peer information Resource -Re-investment policy analysis -Comparable investments -Skills needed

31. Q&A

32. EXHIBITS GSLI GSLI Methodology GSLI Top Ten Offshore Locations Asia – GSLI Top Countries Latin America – GSLI Top Countries Eastern Europe - GSLI Top Countries Protecting Investors Protecting Investors – LA Protecting Investors – EE Protesting Investors – Asia India Why India? Government Policy in India India IT – BPO Sector • vCustomer • SWOT Analysis • VCustomer Competitive Advantage • VCustomer Values • Locations selection • Poland – Positive & Negative • Mexico – Positive & Negative • China – Positive & Negative • Partnership – Pros & Cons • ITES Market • ITES – BPO Market • Who uses IT Offshoring? • Additional Consulting Support • Health-care offshoring • Selection of services • Health-care Pros & Cons • Selling vs. keeping

33. GSLI

34. GSLI METHODOLOGY Source: A.T Kearney

35. GSLI – TOP 10 OFFSHORE LOCATIONS Source: ATKEARNEY – Global Services Location Index

36. ASIA – GSLI TOP COUNTRIES Source: ATKEARNEY – Global Services Location Index

37. LATIN AMERICA – GSLI TOP COUNTRIES Source: ATKEARNEY – Global Services Location Index

38. EASTERN EUROPE – GSLI TOP COUNTRIES Source: ATKEARNEY – Global Services Location Index

39. Protecting Investors

40. PROTECTING INVESTORS IN LA Source: Doing Business 2006 – World Bank

41. PROTECTING INVESTORS IN EASTERN EUROPE Source: Doing Business 2006 – World Bank Source: Doing Business 2006 – World Bank

42. PROTECTING INVESTORS ASIA Source: Doing Business 2006 – World Bank

43. India

44. WHY INDIA? Source: Indobase

45. INDIA’S CHALLEGES • Entering of large IT companies (i.e. IBM and Fujistsu) • Falling operating margins (Period of mature growth) • Changing clients demands (companies with global presence, local knowledge, locations physically close to their customers, better cultural fit) • Overheated labor market in India is driving up labor costs and attrition rates for service providers • Non-English language skills • Hedge geo-political risk

46. GOVERNMENT POLICY IN INDIA • The reforms have reduced licensing requirements and made foreign technology accessible. • The reforms have also removed restrictions on investment and made the process of investment easier. • The Indian government is actively promoting FDI and investments from NRIs (Non-Resident Indians). • In pursuance of liberalization and globalization, the Indian government has been formulating and implementing more transparent and investment friendly policies. • In pursuance of the liberal policies, the Indian government has been continuously proposing amendments in the Indian Evidence Act, Indian Penal Code and the RBI Act. • The Ministry of Information Technology has set up a National Venture Fund for the Software and IT Industry with a corpus of Rs. 100 crore. • Nasscom has been playing a crucial role in helping the IT industry achieve the IT and ITES vision and make India far ahead of other players in the field of IT and BPO. Source: policies.gov.in/

47. INDIA IT-BPO SECTOR • The Indian IT-BPO sector (including the domestic and exports segments) is growing at an estimated 28 percent in FY2007. • Total revenue aggregate for the sector is expected to exceed USD 47.8 billion, nearly a ten-fold increase over the aggregate revenue of USD 4.8 billion, reported in FY1998, and direct employment is likely to cross 1.6 million. • As a proportion of national GDP, the revenue aggregate of the Indian technology sector has grown from 1.2 percent in FY1998 to an estimated 5.4 percent in FY2007. • Net value-added by this sector, to the economy, is estimated at 3-3.5 percent for FY2007. Source: Nasscom

48. vCustomer

49. SWOT ANALYSIS Source: http://bschool.washington.edu/mbastud/PDF_files/vcustomer_Judges_Brief.pdf

50. SWOT ANALYSIS Source: http://bschool.washington.edu/mbastud/PDF_files/vcustomer_Judges_Brief.pdf