1. This material was used by Data Infocom Limited during an oral presentation; it is not a complete record of the discussion. No part of this document may be circulated, quoted, or reproduced for distribution without prior written approval from Data Infocom Limted, India. Presented By :

2. Key Messages As a rapidly growing market and a key sourcing destination, India is increasingly becoming the center of global commercial interest and economic activity IT-ITES, a poster-child for the new Indian economy, has grown by 25% (CAGR) over the past decade; exports alone have grown by over 36% (CAGR) over the same period Sector growth driven by sustained demand, and increasing service line depth and supply-side maturity based on strong fundamentals of abundant talent/skill, quality and service delivery expertise at a sustained cost-value proposition - reflecting India’s growing importance in the new world IT order The future holds significant opportunity for India – much larger than the aggressive targets set by the industry for itself; key stakeholders are undertaking several initiatives to ensure that Indian IT-ITES achieves its full potential

3. India is not just a land of mystics and wonders… India’s GDP has grown at nearly twice the global rate over past 20 years Steady annual growth in real GDP, industrial production and domestic demand of 5-6% Sustained real growth in foreign investment inflows (FDI and FII) since economic liberalization (1991) Cumulative forex reserves of ~USD 140bn FY06 GDP Growth in India is Amongst the Fastest in the Region Source: JM Morgan Stanley Source: Citigroup

4. …but a growing economic superpower Organisation for Economic Co-operation and Development

5. A maturing economy led by high growth in services… Over the last decade the Indian economy has transitioned from an agrarian economy to a predominantly services based economy Key services sectors – Personal services, trade, hotels, banking, communications and business services

6. Progressive liberalization and increasing investor confidence… SectorFDI / FII Limit* Insurance26% Civil Aviation49% Private Banking49% NBFCs49% Trading49% Telecom74% IT-ITES100% Power (excl. atomic power)100% Hotel & Tourism100% Drugs and Pharma Mfg.100% Infrastructure (roads, highways, ports, harbors) 100% * Automatic approval Source: Websites of Rating Agencies

7. Indian IT-ITES sector estimated to grow by 28% and account for 4.6-4.8%* of GDP in FY06 Indian IT-ITES sector revenue to exceed USD 36bn in FY06 – growing at a CAGR of over 25 percent over the past decade Exports account for nearly two- thirds of the total – growing at a CAGR of over 36 percent over the past decade Industry employment to reach 1,287,000 – a net addition of over 1 million employees over the past six years alone 4.6-4.8% 4.1% 3.5% 3.2% 2.9% 1.2% 1.5% 1.9% 2.7% USD Billion Share of GDP Source: NASSCOM * Proportion of GDP denoted as a range after FY06 GDP revised upwards by CSO

8. Growth driven by service line depth,… Demand for traditional services remained strong Emerging service lines such as infrastructure outsourcing, software testing, etc., in IT outsourcing Analytics, research and functional outsourcing (F&A, CIS and HR) in ITES-BPO gained greater visibility Engineering and R&D services emerged as an independent segment USD Billion Source: NASSCOM

9. …increasing supply-side maturity…

10. IT services exports lead, accounting for 35% of the total, growing at 32-33% (FY06E) Source: NASSCOM

11. ITES-BPO exports* to grow by 37%, estimated to reach USD 6.3bn (FY06E) * Reclassified to exclude services now included under engineering and R&D Source: NASSCOM

12. Engineering and R&D, software products hold significant opportunity for India – growing at 43% and 25% (CAGR FY 2003-06E), respectively Source: NASSCOM Leading prodoucts : Tally, Ebiz, Spamjadoo, Xgen,Finacle

13. Positive outlook for Indian IT-ITES; industry set to achieve targets for 2010 14-15 60+ USD Billion CAGR 26-27% CAGR 24-25% Source: NASSCOM * Estimates for software and services only. Does not include estimates for hardware.

14. As global delivery matures, newer locations are emerging; however India remains the undisputed leader India maintains its distinctive lead amongst offshore destinations Strong fundamentals will help sustain India’s value proposition –28% of the suitable talent available across all offshore locations (outranks the next destination by a factor of 2.5) –Keen emphasis on security and quality –Sustained cost competitiveness, gains from increased productivity, utilization and scale expansion Key initiatives underway to strengthen India’s value proposition

15. India’s pillars of success – You can use this opportunity. Access to a large, growing pool of highly qualified talent A high degree of quality orientation and demonstrated service delivery expertise Keen emphasis on information security reflected in the comprehensive legal framework and elaborate security practices supplemented by enabling intervention World class telecommunication infrastructure International standards in real estate and office facilities Enabling (and progressively improving) business environment through strong government support; incentives, favorable regulations and policy …delivered at a sustained and compelling cost-value proposition

16. Five key areas that India is focused on, to sustain its lead Enhancing the talent pool advantage – focus on skill development to better leverage the worlds largest working population Strengthening urban infrastructure in existing and emerging cities and emphasis on proactive regulatory reform to facilitate greater ease of doing business Driving a philosophy of operational excellence amongst industry players to ensure that India based delivery sustains world leading benchmarks in performance Catalyzing domestic market development Actively promoting an uncompromised agenda towards global free trade

17. Jai Hind Dr. Ajay Data, CEO, Data Infocom Limited, INDIA akd.ibsa@dil.in