1. … 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.

2. … 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.

3. CountryUSPLimitation 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 ChinaLow costs Quality of English not good RussiaTechnology 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 behind

4. India – Land of Opportunities 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 sustainable Competitive advantage - High growth rate economy

5. Infrastructure 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;

6. Brand 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

7. Competitive 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)

8. India: 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.

9. Skilled 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

10. Global Business Leaders - Bullish On India ’ 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

11. Third Party Service Providers (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.

12. What Virtualsource brings to 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