1. Perspective 2020: Transform Business, Transform India Perspective 2020: Transform Business, Transform India Perspective 2020: Transform Business, Transform India

2. 1 1 PERSPECTIVE 2020: KEY MESSAGES An unparalleled impact on the Indian economy in the last 10 years Demographic shifts will fuel the growth of new sectors, markets, and service lines 80% of incremental growth will be driven by opportunities outside the current core markets, verticals and customer segments 80 per cent of incremental growth cannot be captured solely through the current “offshore and low-cost” proposition. Need for new business models Business services will account for 60% of the total opportunity in 2020 The exports component of the Indian industry is expected to expand three-fold and reach USD 175 billion and the domestic component will grow to USD 50 billion by 2020. Additional USD 150 billion at risk

3. 2 THE INDUSTRY HAS HAD AN UNPARALLELED IMPACT ON THE INDIAN ECONOMY Rapid growth in the last decade Exports USD billion 2009200520021998 CAGR 1998- 2009 (exports) CAGR 1998- 2009 (domestic) 33% 26% Areas of ImpactImpact Employment Creation 45% of new urban jobs created (1995- 2005) Contribution to Education 6-7x fold increase in tertiary education in exporting states Diversity and Global Exposure Women in the workforce estimated to be 30%; new entrants-45% 30% of delivery outside India Contribution to Exports Exports offset close to 65 per cent of India’s cumulative net oil imports over past decade

4. 3 3 PERSPECTIVE 2020: KEY MESSAGES An unparalleled impact on the Indian economy in the last 10 years Demographic shifts will fuel the growth of new sectors, markets, and service lines 80% of incremental growth will be driven by opportunities outside the current core markets, verticals and customer segments 80 per cent of incremental growth cannot be captured solely through the current “offshore and low-cost” proposition. Need for new business models Business services will account for 60% of the total opportunity in 2020 The exports component of the Indian industry is expected to expand three-fold and reach USD 175 billion and the domestic component will grow to USD 50 billion by 2020. Additional USD 150 billion at risk

5. 4 *Estimates Source: McKinsey Global Forces research Regional share of global GDP Per cent Middle East & Africa Latin America Asia (except Japan) Europe North America Japan 0 20 40 60 80 100 1990‘95‘00‘05‘10‘15‘202025 7% 5% 20% 25% 33% 10% 2020 share BY 2020, ASIA (INCLUDING JAPAN) WILL BYPASS EUROPE IN THE GLOBAL ECONOMY

6. 5 Source: UN population prospects, 2004; McKinsey Global Forces research Decrease in working age (15-60 years) population: Japan Millions of people Increase in retiree (60+ years) population: United States Millions of people Current offshore base in India – 1.6 million WORK FORCES WILL DECLINE AND AGEING POPULATIONS INCREASE IN KEY WESTERN COUNTRIES 20082020 8 20082020 16

7. 6 6 PERSPECTIVE 2020: KEY MESSAGES An unparalleled impact on the Indian economy in the last 10 years Demographic shifts will fuel the growth of new sectors, markets, and service lines 80% of incremental growth will be driven by opportunities outside the current core markets, verticals and customer segments 80 per cent of incremental growth cannot be captured solely through the current “offshore and low-cost” proposition. Need for new business models Business services will account for 60% of the total opportunity in 2020 The exports component of the Indian industry is expected to expand three-fold and reach USD 175 billion and the domestic component will grow to USD 50 billion by 2020. Additional USD 150 billion at risk

8. 7 Total revenue potential for global sourcing, 2020 USD billion CURRENTLY UNTAPPED MARKETS WILL DRIVE ALMOST 80% OF INCREMENTAL GROWTH BY 2020 Growth in core markets Not adjusted for potential erosion due to automation 200 190 New verticals in developed countries Public sector Healthcare Media Utilities 230 New customer segments SMBs 380 Outsourcing market in new geographies BRIC Up to 80% of growth from markets that are not core today 1,500 Core markets 2008 6 verticals* N. America, Europe, Japan Large enterprises 500 *BFSI, telecom, retail, pharma, manufacturing, travel

9. 8 8 PERSPECTIVE 2020: KEY MESSAGES An unparalleled impact on the Indian economy in the last 10 years Demographic shifts will fuel the growth of new sectors, markets, and service lines 80% of incremental growth will be driven by opportunities outside the current core markets, verticals and customer segments 80 per cent of incremental growth cannot be captured solely through the current “offshore and low-cost” proposition. Need for new business models Business services will account for 60% of the total opportunity in 2020 The exports component of the Indian industry is expected to expand three-fold and reach USD 175 billion and the domestic component will grow to USD 50 billion by 2020. Additional USD 150 billion at risk

10. 9 Total addressable market for global sourcing and domestic outsourcing, 2020 BUSINESS SERVICES WILL ACCOUNT FOR 60% OF TOTAL ADDRESSABLE MARKET OPPORTUNITY IN 2020 Business services USD billion Growth in core markets New customer segments SMBs New verticals in developed countries Public sector Healthcare Media* Utilities Domestic outsourcing market in new geographies Brazil Russia India China Core markets 2008 6 verticals (BFSI, telecom, retail, pharma, manufacturing, travel) North America, Western Europe, Japan Large enterprises Total addressable market in 2020 *Printing and publishing Source:Global Insight; Gartner January 2009 280 220 500 120-140 200-250 130-150 190-220 145-160 230-250 280-310 380-420 605-220 895-980 1,500-1,640

11. 10 PERSPECTIVE 2020: KEY MESSAGES An unparalleled impact on the Indian economy in the last 10 years Demographic shifts will fuel the growth of new sectors, markets, and service lines 80% of incremental growth will be driven by opportunities outside the current core markets, verticals and customer segments 80 per cent of incremental growth cannot be captured solely through the current “offshore and low-cost” proposition. Need for new business models Business services will account for 60% of the total opportunity in 2020 The exports component of the Indian industry is expected to expand three-fold and reach USD 175 billion and the domestic component will grow to USD 50 billion by 2020. Additional USD 150 billion at risk

12. 11 PROVIDERS CAN CONSIDER MULTIPLE “STEP-OUT” BUSINESS MODELS TO CAPTURE FUTURE OPPORTUNITIES *Independent verification and validation Source:McKinsey analysis NOT EXHAUSTIVE How to compete (competitive advantage) Multi-client services/ products Domain expertise Customer intimacy Delivery excellence New geographies (BRIC) SMBsLarge enterprises SMBs Developed markets Where to compete (customer segments) Large enterprises (Fortune 1000) 3 Domain approach 2 Customer-centric approach 1 Delivery/technical approach 4 Solution approach “Step-out” plays Customer specialist Lean factory Vertical specialist Saas-enabled BRIC specialist

13. 12 PERSPECTIVE 2020: KEY MESSAGES An unparalleled impact on the Indian economy in the last 10 years Demographic shifts will fuel the growth of new sectors, markets, and service lines 80% of incremental growth will be driven by opportunities outside the current core markets, verticals and customer segments 80 per cent of incremental growth cannot be captured solely through the current “offshore and low-cost” proposition. Need for new business models Business services will account for 60% of the total opportunity in 2020 The exports component of the Indian industry is expected to expand three-fold and reach USD 175 billion and the domestic component will grow to USD 50 billion by 2020. Additional USD 150 billion at risk

14. 13 India’s technology and business services export market in 2020 – scenarios* USD billion AN OPPORTUNITY OF UP TO USD 150 BILLION COULD BE AT RISK IN 2020 (1/2) Business services Growth multiple CAGR FY 2020-Focused Initiatives and Innovation - driven growFY 2020-Focused Initiatives and Innovation - driven growFY 2020-Focused Initiatives and Innovation - driven growFY 2020-Focused Initiatives and Innovation - driven grow 225-310 135 Expedited reforms in tertiary education 10-15 Tier II cities with world class infrastructure Adoption of new business models by the industry India among the top 3 innovation hubs of the world Talent pool of 13.5 million 7.7x18.6% FY 2020-Current InitiativesFY 2020-Current InitiativesFY 2020-Current InitiativesFY 2020-Current Initiatives Slow pace of reforms in education (talent pool of 10 million) Limited development of Tier II, III cities Continued trust as a sourcing hub Continued government support Limited lash back from protectionism 4.4x13% 175 FY 2008 40 11 87 110-150

15. 14 Indian domestic technology and business services market in 2020 – scenarios USD billion AN OPPORTUNITY OF UP TO USD 150 BILLION COULD BE AT RISK IN 2020 (2/2) GDP CAGR of ~5.5% Moderate IT adoption across verticals Significant government thrust on IT adoption including broadband rollout Reinvented business models FY 2020 - Current Initiatives 4.2x12.6 % 50 65 GDP CAGR of ~7% Significant IT adoption across verticals 5.4x15% FY 2020 - Focused Initiatives and Innovation Led GrowthFY 2020 - Focused Initiatives and Innovation Led GrowthFY 2020 - Focused Initiatives and Innovation Led GrowthFY 2020 - Focused Initiatives and Innovation Led Growth 15 FY 2008 12 2 24 32 Business services Growth multiple CAGR

16. 15 Catalysing growth beyond today’s core markets Establishing India as a trusted global hub for professional services Harnessing ICT for inclusive growth Developing a high calibre talent pool of over 3 million people Building a preeminent innovation hub in India Five themes 1 5 2 3 4 15 Winning through the downturn Reinvented business models New verticals, geographies, customer segments Robust domestic demand Infrastructure Corporate governance Risk management and security Global branding ICT solutions for healthcare, education, financial services, public services Connectivity and access Soft infrastructure Quality scale of tertiary education Curriculum and faculty quality Intellectual property framework Centres of Excellence Entrepreneurship SUCCESS WILL RELY ON CONCERTED ACTION ANCHORED ON A FIVE-FOLD VISION