2006 Outsourcing World Summit Workshop Presentation

1. Business and Legal Structures for Outsourcing Success February 19, 2006 Chas R. Mullins Managing Director, neoIT

3. Offshore Strategy Framework/Alignment Company Culture Affinity for outsourcing & globalization including past experiences Quality Need for consistent quality and service levels Risk Manage stability, security, privacy, volatility, etc. Control Ownership preference as influenced by risk & culture factors Cost Savings Need for reducing cost or fundamentally altering business model Corporate Strategy Business plan, goals and results expected-acquisition, cost structure, growth, flexibility, risk aversion, profitability, cash etc. Social Responsibility Issues related to job loss, globalization, employee upheaval, etc. Industry Activity Offshore actions of competitors and industry players

4. Strategic Globalization Process Analyze Portfolio Manage Acquire Information Develop Strategy Select Geography, Partners Source/Build/ Acquire/Partner Contract Transition “ Adopting Process For Globalization Vital For Success”

6. O4 Methodology Source: neoIT

9. Are You Ready for Globalization? Globalization Risk Tolerance Index Indicates the organization’s ability to prepare for, mitigate and possibly withstand potential risk factors Globalization Objectives Index Indicates clarity around the benefits of offshoring and the factors that influence globalization decisions Globalization Alignment Index Indicates the company’s ability to implement globalization best practices IT FINANCE OPERATIONS HR LEGAL / COMPLIANCE CUSTOMER SERVICE Corporate Strategy Company Culture Industry Activity Quality Control Cost Savings Risk Profile Social Responsibility Source: neoIT’s Globalization Readiness Index

13. What: Evaluating the Offshoreability Offshoreable Processes will cut across each layer Migrate

14. What – Prioritizing the Processes Globalization Matrix Source: neoIT Assessment Methodoloy 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 Qualitative Scores Quantitative Scores Process 2 Process 1 Process 3 Process 4 Cluster N HIGH [Identify Quick-Hits] LOW [Not Targeted] DISAGGREGATE [Long-Term Planned Transformation] AGGREGATE [Selective Sourcing]

15. Where – Defining the Location Low Medium High India Philippines China Hungary English Proficiency Cultural Compatibility Quality Cost Advantage Educational System Infrastructure Labor Pool Government Support Poland Czech Republic Ireland Canada Russia BPO

16. Where: Global Sourcing Location Strategy Onshore Nearshore Offshore On-site Team Off-site Team Off-site Team Off-site Team PMO

17. How – Making the Ownership Decision Transition Time Short Long Upfront Investment Limited High Build Operate Transfer (BOT) Third-Party Dedicated Center Joint Venture Captive Requirements Control Limited Full Value Capture Limited High Build Operate Transfer (BOT) Third-Party Dedicated Center Joint Venture Captive Benefits

18. When – Execution: Transition Waves Time Start-up costs decline with maturity and steady state is reached sooner Rate of Return Complexity of Process Wave 1 Wave 2 Wave 3

20. Process Flow The difference in Offshoring is the nature of the dynamic variables that severely impact offshore sourcing outcome Launch Project Finalize Requirements Develop and Issue RFP Contract and Implement Conduct Due Diligence Select and Notify Suppliers Evaluate RFP Responses Select Finalists and Conduct Negotiations Manage Stakeholders (Internal and External) Sourcing Process Source

21. Evaluating Vendor Options Carreker, TRW, MasterCard Inautica, Sitel, Aviva, P&O Nedloyd GE, Amex, Standard Chartered, AXA Pure Play Offshore BPO “Transaction” Joint Venture Captive Center ACS, Accenture, IBM, Convergys Convergys, Hewitt Infosys, Satyam, Patni, HCL, Wipro EXL,WNS Spectramind, Daksh, ICICI One Source, HTMT Competitive Landscape Pure Play Offshore BPO “Contact” Global Pure Play “ Process” Global IT services Vendors Offshore IT Services Vendors BOT/BTO

22. Align Key Supplier Selection Criteria with Overall Strategy Sources: Gartner , neoIT

23. Best Practices: Supplier Due Diligence Culture of Company Domain Experience Performance History Human Resources /Labor Pool Project Management Productivity History Company Culture Fit Market Reputation Infrastructure Transition Process Onsite-Offshore Mix Risk Control Approach Knowledge Management Tools Quality of personnel Commitment of Company Overall Ability Deal Terms Service Levels Geographic Profile Transition Success Strategic Economic Impact Process Improvement Minimum Client Impact Risk Mitigation IP Retention Reduce Cost Increase Capacity Maintain Quality Improve Process Strategic Objectives Tactical Objectives Evaluation Criteria Client Team fully engaged

24. Sample Decision Model Source 69.00 100 43 60 29.5 45 45 60 18.5 30 30 45 41 60 Supplier 5 67.33 100 47 60 27.5 45 40.5 60 17 30 26 45 44 60 Supplier 4 66.67 100 38 60 31 45 38.5 60 22.5 30 33 45 37 60 Supplier 3 72.33 100 33 60 29 45 43.5 60 26.5 30 37 45 48 60 Supplier 2 0.00 100 0 60 0 45 0 60 0 30 0 45 0 60 Supplier 1 Actual Scored Total Weight Actual Wt Total Wt Actual Wt Total Wt Actual Wt Total Wt Actual Wt Total Wt Actual Wt Total Wt Actual Wt Total Wt Total Components Experience in Similar Projects Resource Capability Organizational & Business Qualifications Performance & Risk Mitigation IT & Physical Infrastructure Solution Proposed Parameters Scores

36. A Framework for Managing Risk Time Readiness Start-up Ramp-up Steady-state Stage 1 Geo-political Country Socio-economic Internal Due diligence Stage 2 Cultural Language Communications Human Capital Legal/Contractual Stage 3 Infrastructure Knowledge Xfer Change Management Portfolio Mgmt Scope Change Project/Process Risk Stage 4 BCP/DRP Security Privacy Pricing Treasury Stage 5 Exit Plan Resources Exit* * may be by design or on contingency 0% 100% T T-6 T+6 T+12 T+18

49. Best Practices - Striving for Optimum Balance Risk Cost Savings Quality Control Sourcing Objectives

55. Contact Information Chas R. Mullins Managing Director [email_address] 816.213.1171 neoIT Global Headquarters 2603 Camino Ramon, 2nd Floor San Ramon, CA 94583 USA neoIT Asia Headquarters 210, Bellary Road Upper Palace Orchards Bangalore - 560 080 India neoIT Philippines 8/F Pacific Star Building Senator Gil Puyat Ave. cor Makati Ave. Makati City, Metro Manila, 1200, Philippines