1. Confidential© 2004 Sierra Atlantic, Inc. Early stage offshore R&D BITSAA-CEL Raju Reddy March 24, 2007

2. 2 Confidential© Sierra Atlantic, Inc. 2 Sierra Atlantic At a Glance 1200 employees worldwide and growing Best in Class Global IT services Rich history of R&D partnerships with Enterprise Software companies Deep Integration & Product development expertise Process and Methodologies –CMM Level 5 –SAS70 & BS7799 Certified –NShore™ Methodology “Top 20 IT companies” to work for in India

3. 3 Confidential© Sierra Atlantic, Inc. 3 Leadership Team Sarath Sura Global Services Brian Rogan SVP Marketing Bob Hersh CFO Raju Reddy Founder & CEO GK Murthy SVP Enterprise Solutions Sanjay Jesrani VP Operations, Hyderabad Center Feroze Mohammad SVP Integration Solutions & Products

4. 4 Confidential© Sierra Atlantic, Inc. 4 Offshore R&D: Market Trends It is for real and a high growth segment –“Offshore product development has arrived”: Forrester Research VC’s increasingly expect offshore R&D for portfolio companies Specialized service vendors emerging –Captive center is not a universal answer India is not the only option –China & Eastern Europe growing rapidly

5. 5 Confidential© Sierra Atlantic, Inc. 5 FY 2001FY 2005 Source: Nasscom US$3.1B Offshore R&D spending in India

6. 6 Confidential© Sierra Atlantic, Inc. 6 Benefits Get more done with less –50% cost savings Scalability Access to potential new markets –India and China becoming attractive even for startups Growing ecosystem of partner companies are now offshore Process maturity –Especially when you outsource to reputed vendors Helps build a “global mindset” in company from day one

7. 7 Confidential© Sierra Atlantic, Inc. 7 Challenges Communication –Some prefer doing offshore R&D after Release 1.0 –Product Marketing needs to be in close contact with engineering in early stages Management Overhead –Most underestimate the effort Attrition & cost escalation –Especially in India IP protection –Perhaps more perceived than real

8. 8 Confidential© Sierra Atlantic, Inc. 8 In Closing …. Offshore R&D is here to stay Your company/product success ultimately depends on factors other than Offshore R&D