2. Multinational companies that opened captive centers in India since early 2001 230 Value of research conducted by Indian captives of multinationals in 2003-04 $800 million to $1 billion Value of research conducted by Indian captives of multinationals in 2008 (projected) $11 billion Call center seats 96,000 in 2003; 158,000 in 2004 Source: NASSCOM Strategic Review 2005 Evalueserve (2004) IT offshore revenue worldwide, April 2003-March 2004 $17 billion (almost half from India, almost onequarter from Ireland) (includes IT products shipped from Ireland) UN Conference on Trade and Development (2004) (as quoted on TurkishPress.com) percentage of world’s largest 1000 companies offshoring business process outsourcing 30 Value growth in offshore business process outsourcing worldwide (projected) $1.3 billion in 2002 to $24 billion in 2007 Perot CSC Sales (Date: 2003)

3. Opportunity for Growth in OffshoringValue IT offshore revenue worldwide April 2003-March 2004 $17 billion (half from India) % of Fortune 500 Companies Offshoring45% Market value for OffShoring of IT Services.$32 billion Multinational companies that opened in India since early 2001 230 Source: UN (2004), Evalueserve (2004), Scholl World Investment Report (2003), McKinsey & Co. (2003)

4. 1.Offshoring to India Will Substantially Lower Direct Costs 2.Offshoring Requires Effective Management of Indirect Costs 3.Offshoring Requires Local Leadership and Sound Execution

5. Cost Savings $168 Source: CIO, http://www.cio.com/article/29654/The_Hidden_Costs_of_Offshore_Outsourcing. Harvard Business School,. “Offshoring at Global Information Systems., Inc. 2005.

6. Total Domestic Labor Costs Per Year ($336) Time Period Considered 10 Years Total NPV (@10%) ($2,400.57) Tax Savings (34%) $816.19 Total NPV After Tax ($1,584.38) Source: CIO, http://www.cio.com/article/29654/The_Hidden_Costs_of_Offshore_Outsourcing. Harvard Business School,. “Offshoring at Global Information Systems., Inc. 2005.

7. 20042005 Total Offshore Labor Costs Per Year ($75) Costs Noted by GIS ($280)$221 Turnover – High Attrition ($9.82)($2.32) Language/Cultural Differences ($22.92)($5.41) Decrease in Productivity ($6.53) Total NPV After Tax ($1,584.38) Source: CIO, http://www.cio.com/article/29654/The_Hidden_Costs_of_Offshore_Outsourcing. Harvard Business School,. “Offshoring at Global Information Systems., Inc. 2005.

8. Source: CIO, http://www.cio.com/article/29654/The_Hidden_Costs_of_Offshore_Outsourcing. Harvard Business School,. “Offshoring at Global Information Systems., Inc. 2005.

9. 1.Offshoring to India Will Substantially Lower Direct Costs 2.Offshoring Requires Effective Management of Indirect Costs 3.Offshoring Requires Local Leadership and Sound Execution

11. Upper Control Limit = Lower Control Limit =

12. Functional Program Common Program Languages Rare Program Languages Strategic Programming

13. 1.Offshoring to India Will Substantially Lower Direct Costs 2.Offshoring Requires Effective Management of Indirect Costs 3.Offshoring Requires Local Leadership and Sound Execution

14. Communicate Vision & Objectives Select Manager to Oversee the Operation Develop Quarterly Monitoring Processes

16. Transition Period Create Strong Bond Between Employees in India and the U.S. Data Install Encryption Software Keep Military and Government Work in the U.S. Allies Protect From Unjustified Regulatory Fines and Governmental Fees

17. Implement a Disaster Recovery Plan Daily Work Back-ups Train Employees in Documentation

18. 1.Offshoring to India Will Substantially Lower Direct Costs 2.Offshoring Requires Effective Management of Indirect Costs 3.Offshoring Requires Local Leadership and Sound Execution