1. - 0 - Turning Chile Into The Nearshore Platform of Choice For Indian ITS Companies Presentation to January 15, 2007

2. - 1 - OUR OBJECTIVES FOR THIS MEETING Learn firsthand about HCL Quickly summarize for you Chiles advantages as a place to do business Explain why Chile stands out as a offshoring platform in its region Share some interesting news Discuss how we can move forward –the real reason for us being here

3. - 2 - AGENDA The Chilean Business Environment Chile: The Nearshore Platform of Choice HCL and the Chilean Nearshore Opportunity

4. - 3 - AGENDA The Chilean Business Environment Chile: The Nearshore Platform of Choice HCL and the Chilean Nearshore Opportunity

5. - 4 - CHILE'S BUSINESS ENVIRONMENT STANDS OUT IN LATIN AMERICA AND BEYOND The most stable and competitive economy in Latin America Ranked 1 st by WEF in World Competitiveness Index 2005 Ranked as Best Place to do Business by Economist Intelligence Unit 2005 -4 th among emerging countries and 19 th in global ranking Lowest country risk in the region Strong, transparent institutions and regulatory framework are an example for the region Ranked 1 st by Transparency International in Corruption Perception Index -tied with U.S. in 20 th place in global rankings -followed by Uruguay (28 th ) and Costa Rica (55 th ) Ranked 1 st by World Bank among Latin countries in Ease of Doing Business -and 28 th worldwide Positioned as a gateway to the world Free trade agreements with strong intellectual property protection Low tax burden and extensive network of double taxation treaties Favorable foreign investment regime (DL 600) in force since 1974

6. - 5 - CHILE AT A GLANCE Population: 16.3 M GDP: US$ 145 B GDP per capita: US$ 8.9K Annual inflation: 2.6% Unemployment: 8% Adult literacy rate: 96% Corporate tax: 17% Tariffs General 6% Hardware 0% 95% of imports pay no tax -FTAs Sources: World Bank, EIU, IMF, A.T.Kearney 2006 Vital Statistics (2006) Time zone alignement Overnight flights to the U.S.

7. - 6 - CHILE: A GLOBALLY COMPETITIVE, HIGHLY DYNAMIC AND TRANSPARENT BUSINESS ENVIRONMENT GDP Growth Rate (CAGR %, 1986-2006) Uruguay Argentina Brazil Chile Global Competitiveness Index (WEF 2006) Circle size proportional to score in EIU survey on Best Place to Do Business 2006-10 Index 0.0 – 3.3 Index 3.4 – 6.7 Index 6.8 – 10.0 Sources: WEF, TI, World Bank Color coding indicates corruption levels index (TI CPI index, 2006) Integrar con Best place to do business EIU

8. - 7 - CHILES FAVOURABLE BUSINESS CLIMATE IS REFLECTED IN MODERATE TAX BURDEN AND FLEXIBLE LABOR LAWS Source: World Bank (www.worldbank.org) 2006www.worldbank.org Brazil Mexico Chile Number of tax payments per year Man hours required to file taxes Total tax rate (% of profits) 49 10 23 55 2 2,600 432 37.1 71.1 26.3 Difficulty of hiring Rigidity of work hours Difficulty of firing Overall index 33 67 33 40 60 20 40 20 0 38 42 24

9. - 8 - Web of trade agreements provides access to 90% of OECD economies Source: www.ideaincuba.cl/new_inc/CONTENT/bio4.htmwww.ideaincuba.cl/new_inc/CONTENT/bio4.htm Web of double taxation agreements covers XX% of OECD economies CHILE IS A GATEWAY TO THE WORLD OFFERING MAJOR ADVANTAGES TO GLOBAL PLAYERS Canada USA Mexico El Salvador Panama Uruguay Paraguay Argentina Brazil Iceland European Union Norway Switzerland Lichtenstein South Korea Japan China Brunei New Zealand Singapore India In negotiation Spain Portugal UK France Netherlands Switzerland Ireland Italy Norway Denmark Sweden Finland Poland Croatia Hungary Czech Republic Russia South Korea Malaysia China New Zealand South Africa Cuba Mexico Canada USA Argentina Brazil Ecuador Peru Venezuela Paraguay In negotiation OJO Hay cosas que corregir y completar Australia

10. - 9 - A FOREIGN INVESTOR FRIENDLY ENVIRONMENT Legal framework guarantees foreign investors a full bill of rights Inhibits government from adversely changing legal environment Over USD 75 B invested under DL 600 regime - 89% of that since 1990 Chile second after Singapore in 2005 FDI inflows as % GDP ?? Simple to set up and run a business No joint venture requirements - foreign companies may have 100%-owned subsidiaries Minimal bureaucracy and no bribes involved It takes less than a month to start a business - no Latin American country does it faster Most companies don´t know how easy it is to do business in Chile Country Manager, Evalueserve Easy to repatriate capital and dividends May enter most of the funds invested as a loan Can repay loan without any obstacles or taxes OJO Hay cosas que validar

11. - 10 - Personal safety (homicides /100m hab.) UNDP Human Development Index LowHigh Miami Santiago Buenos Aires Montevideo Monterrey Bogota Sao Paulo Rio de Janeiro 60 50 40 30 20 10 0 CHILE OFFERS A UNIQUE QUALITY OF LIFE AT A VERY REASONABLE COST Source: América Economía Magazine (www.americaeconomia.com), 2006, UNDP (www.undp.org), 2006, Mercer Human Resource Consulting (www.mercer.com), 2005 Tokyo Dearest Moscow Stockholm Madrid Miami Boston Mexico City Sao Paulo Santiago Asunción Cheapest Mercer Cost of Living Index 2005: Chile among lowest in the world 1 4 18 46 57 70 95 114 12 8 14 4 Rank Personal safety and overall quality of the environment are big benefits

12. - 11 - IMAGES OF SANTIAGO OJO Hay cosas que corregir y completar

13. - 12 - IMAGES OF CHILE No incluida para aligerar

14. - 13 - Increasing productivity also means innovation… I want this to be a country that not only exports copper, but also mining software; not only fruit, but also techniques to pack and preserve foods; not only salmon, but also vaccines to prevent diseases in fish. The public sector will increase its spending on research and development by 50%. Our goal is for our country to spend more than 1% of GDP on research and development by its Bicentennial in 2010. We will increase our efforts to make Chile a platform for the export of services. Michelle Bachelet, President of Chile, State of the Nation Address 2006 STRONG GOVERNMENT COMMITMENT TO TURN CHILE INTO A GLOBAL IT SERVICES PLATFORM

15. - 14 - AGENDA The Chilean Business Environment Chile: The Nearshore Platform of Choice HCL and the Chilean Nearshore Opportunity

16. - 15 - A NEARSHORE BASE IN LATIN AMERICA HELPS INDIAN OFFSHORING LEADERS RESOLVE KEY CHALLENGES U.S.A. India Growing concerns about over-dependence on India due to geopolitical risks Mounting restrictions for work permits to Indian nationals for security reasons Ample access to IT professionals at costs soon comparable to Indias Chile is on same time zone as Eastern U.S. during much of the year and 3 hours away from the U.K. during remaining months Easy overnight flights to the U.S and direct flights to Europe Chile has declared the development of nearshore facilities a national priority Chile Rising labor costs and attrition rates due to breakneck pace of IT industry growth create need for alternate talent pools Increased customer interaction required in higher value-added IT services that Indian offshoring firms are targeting

17. - 16 - A.T. KEARNEY RANKS CHILE AMONG THE 10 MOST ATTRACTIVE COUNTRIES FOR SERVICES OFFSHORING 6 5 4 3 7 2 8 1 0 India Brazil Mexico (#17) Singapore PhilippinesThailand Czech Rep. Malaysia China Canada Chile People Environment Cost Source: A.T. Kearney Global Services Location Index (2003, 04, 05), EIU Offshoring Rankings, in CEO Briefing: Corporate Priorities for 2005 (2005) Gap between India and Chile shrunk 40% between 2003 and 2005 Economist Intelligence Unit also ranks Chile 1 st in Latin America among future leaders in global offshoring

18. - 17 - CHILES LABOR COSTS ARE COMPETITIVE Source: Mercer Human Resource Consulting (www.mercer.com), 2006 Annual Compensation in US$ 000 Cash compensation Mandatory employee-paid benefits Data Entry Clerk Brazil Chile Costa Rica Mexico Argentina 2 4 6 8 10 Argentina Brazil Chile Costa Rica Mexico Junior Programmer 10 15 20 5

19. - 18 - Availability of finance skills 1 st Absence of Brain Drain 2 nd Attitudes toward globalization 2 nd Credibility of managers 2 nd Availability of qualified engineers 3 rd Labor market conditions 7 th Education in finance 8 th Information Technology skills11 th Standards of university education11 th Overall Position19 th Source: International Institute for Management Development (www.imd.ch), 2005; The Times World University Rankings (2006) CHILE OFFERS TOP TALENT FOR OFFSHORE OPERATIONS IMDs World Competitiveness Yearbook ranks Chile high among 60 countries Autonomous University of México Catholic University of Chile University of Buenos Aires University of Chile University of Sao Paulo Universidad Austral Federal University of Rio de Janeiro Catholic University of Peru State University of Campinas Torcuato di Tella University Adolfo Ibañez University Times World University Rankings: Chiles Universities Among Best in Region 1 2 3 4 5 6 7 8 9 10 11

20. - 19 - CHILES NETWORK OF HIGHER LEARNING INSTITUTIONS SPANS THE ENTIRE COUNTRY COMPLETAR OJO Hay cosas que corregir y completar

21. - 20 - CHILES TELECOM INFRASTRUCTURE IS LEADING EDGE EMERGIA Submarine Arica to Valparaíso Land-based Valparaíso to Argentina 40 Gbps (1,92 Tbps) GLOBAL CROSSING Submarine Lurín to Valparaíso Land-based Valparaíso to Santiago-Argentina 40 Gbps (1,28 Tbps) SILICA NETWORKS Santiago to Argentina: 2,5 Gb 2,5 0.62 7,5 0,1 2,5 5,0 5,6 12,6 12,5 15,0 2,5 Chile ranks 11 th worldwide in mobile phone penetration, with 62 subscribers per 100 inhabitants 100% digital Chile leads in Latin America with 28 subscribers and XX broadband connections per 100 inhabitants Optical fiber networks 270 Mbps Satellite networks Microwave networks 140 MBps Mobile networks Fixed telephony Internet Source: Subtel, Chilean Ministry of Transport and Telecommunications

22. - 21 - DOMESTIC DEMAND IS AGAIN EXPANDING RAPIDLY Source: ACTI AG, 2005 Annual sales ($M) 05009590 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 HardwareSoftwareServices 500+ IT companies active in Chile Over 75,000 people employed Size distribution (# employees) 50 or more 12% 10 to 49 44% Less than 10 44% Larger players may well be strong partners and SMEs provide access to top talent

23. - 22 - A RECORD OF SUCCESS AS AN OFFSHORE BASE Some Representative Examples

24. - 23 - OJO Hay cosas que corregir y completar Banco Santander established a regional offshore center for IT services in 200X Focus on software development and maintenance Serving 10 BSCH banks in 10 countries Invested some US$ 8M to get it up and running Experience proved highly successful Chilean GM led the process Quickly achieved high productivity and quality standards -CMMi 5 by 2005 Costs 60% lower than in Europe Developing into a major player Chiles IT industry Over 500 employees 2005 exports of US$ 60M

25. - 24 - OJO Hay cosas que corregir y completar

26. - 25 - Our Long Term Agenda To turn Chile into the nearshore platform of choice within Latin America Best academic center for IT professionals within the region Most attractive place for Latin IT professionals to live and work -as well as non-Latin offshoring professionals A highly cosmopolitant, vibrant offshoring hub A strong web of partnerships between global and Chilean firms To generate 100,000 offshoring jobs within 5 years Te reach US$ 5,000 million in offshoring ITS/BPO/KPO exports by 2012

27. - 26 - AGENDA The Chilean Business Environment Chile: The Nearshore Platform of Choice HCL and the Chilean Nearshore Opportunity

28. - 27 - MANY WIN:WIN OPPORTUNITIES FOR CHILE AND HCL HCL nearshore facility in Chile serving U.S. and Latin American clients HCL product development partnerships with Chilean companies New products/services/capabilities to feed your offshore clients HCL commercial partnerships New clients developed in partnership with Chiles companies -across all of Latin America Easier access to both the U.S. and the EU markets Staying at parity or better with HCLs leading competitors in building a global business model

29. - 28 - CHILES GOVERNMENT IS PREPARED TO HELP YOU SET UP YOUR NEARSHORE OPERATIONS Single point of contact within public sector for Indian ITS firms CORFO Full range of information and investment support services Well developed set of incentive programs for offshoring operations -pre-investment studies -support during early project stages -personnel training -fixed assets and long term leases -investments in R&D Three specific CORFO support programs to help offshoring firms in Chile Support for immigration of foreign IT professionals -visas, rellocation expenses, tax credits Internationally competitive incentives for industry-specific expenses -recruiting, training and purchase of specialized assets Ad hoc regulatory relief and enhancements -facilitation of customs procedures and data security guarantees

30. - 29 - CIVIL SOCIETY AT LARGE ALSO READY TO SUPPORT YOUR ACTIVITIES IN CHILE ACTI as your industry association in Chile Negotiating collaboration agreement with NASSCOM CPC as the umbrella business organization in Chile Actively pursuing initiatives to turn Chile into an offshoring platfom Leading universities ready to develop tailored programs Catholic University is designing a new undergraduate engineering program -and wants your input Adolfo Ibañez University´s new Engineering School keen to collaborate Network of regional universities can train the required professionals -University of Chile´s Engineering School may champion the effort Technical institutes eager to meet your specific needs, including INACAP tailored technical training programs (eg. with Caterpillar) DUOCs successful English-language courses Pro Innovation Forum is a major champion of your industry and stands behind you

31. - 30 - CHILE IS RESPONDING TO SPECIFIC REQUIREMENTS EXPRESSED BY INDIAN OFFSHORING FIRMS New visa regime for Indian businessmen Exemption from limits on the hiring of foreign nationals Program to support immigration of IT professionals from other countries 1400 L-1 visas available for Chilean professionals to work in the U.S. under Chile / USA Free Trade Agreement 90% currently go unused Free trade zone in Northern Chile interested in offshoring tenants Offshoring one of the major thrusts in new public/private Digital Agenda 2.0

32. - 31 - SUGGESTED NEXT STEPS Reflect on any issues raised by HCL and take appropriate action if required Support your in-depth country assessment process Follow-up meetings in Santiago or abroad HCL can apply to the relevant incentive programs from CORFO

33. - 32 - How can we move forward?