India & China: Capitalizing On The Next Opportunities Pramod Bhasin President & CEO GENPACT ICCO Global Summit New Delhi, India October 5, 2006 Global Provider of Business Services & Technology Solutions India China Europe United States 19,700 employees 1,700 employees in 1,000 employees 800 employees across 6 major China across Hungary, Mexico cities Romania, Poland & 2,300 employees the UK UK Poland Hungary Romania China USA India Mexico Philippines Genpact Centers New/Additional Centres 2,000+ MBAs, 100+ PhDs/MDs, 600+ CAs/CPAs, 75+ Actuarial Trained, 2,000+ Green Belts, 500+ Black Belts, 3,000 IT resources 20+ languages, 30+ nationalities . . . Spread across nine countries Employer of Choice and first mover in many of our locations 2 Confidential. All trademarks appearing herein belong to their respective owners. India & China: Leading the Outsourcing World $ 22 BN ITO/ BPO market $ 2-3 BN ITO/ BPO market Primary focus - US and UK markets Primary focus - A-Pac countries High end outsourcing solutions like Back office processes such as Call F&A, Analytics & Supply Chain Centre, F&A, Payables, R&D Tier II cities to tap talent pool and Tier II cities to tap language lower cost advantage capabilities & cost advantage Delhi Jaipur Changchun Beijing Dalian Kolkata Xi’an Mumbai Shanghai Pune Hyderabad Wuhan Hangzhou Chengdu Bangalore Tier I Cities Tier II Cities Chennai Genpact Shenzhen China catching up fast with India on the outsourcing track 3 Confidential. All trademarks appearing herein belong to their respective owners. Shared Problems, Common Opportunities Opportunities Problems Demographic and skills Wage inflation Demographics advantage Increasing cost pressures Huge populations, Skilled global resources increasingly strong education outputs and low labor costs – Developed Nations to face rising costs & staffing crunch Taking initiatives to move to Tier Challenges in attracting newer Talent 2 cities talents Development Experimenting with profiles Increasing turnover rates in (senior profiles/undergraduates) major cities Driving Change in Tapping Talent Pool & Hiring Practices 4 Confidential. All trademarks appearing herein belong to their respective owners. Services Industry in India & China: Building The Corporation of the FutureSM Past Present Future Access restricted by Best-in-class services Sharply focused, boundaries and products disaggregated corporations Bulk of goods and Define Core services in-house operations and Decide on Core processes Falling barriers and Partner with best-in- improved connectivity Non-core processes class suppliers to expert providers Manufacturers Innovation at the pioneered global speed of thought sourcing Increase customer and shareholder value Outsourcing Industry . . . Changing the Way Businesses Work 5 Confidential. All trademarks appearing herein belong to their respective owners. The Natural Evolution of Outsourcing – As Big As Manufacturing? Labor Arbitrage Capacity Productivity Competitiveness 25-30% cost Turn fixed costs Best in class Change the game savings into variable ones processes driven for companies to support by continuous and their Fast payback on expansion & improvements positioning investment growth and efficiencies Deliver products Leverage global Onshore capital Benefit from Six faster and talent pool expenditure Sigma and Lean cheaper to market avoidance expertise M&A Support and 24/7 work day Margin expansion integration Not a Question of “Will” or “If” . . . But “How Fast” 6 Confidential. All trademarks appearing herein belong to their respective owners. Indian & Chinese Players Driving Global Best-in- Class Solutions • Investments in innovation 1 Innovation • High-end R&D across industries • Forefront in IT & process innovation • Proven ability to handle complexity…F&A, analytics 2 Complexity • Highly educated talent pools, with advanced degrees • Developing complex offshored functions. . .Media, Engineering Domain 3 Expertise • Documented training and learning paths • Global acquisitions by offshore players • Global reporting standards 4 Transparency • Greater visibility into operations than in-house • Measured and documented metrics Process • Greater quality and control 5 Discipline • Industrial strength process excellence • Six Sigma and Lean implementation • Attract top talent…Manage attrition of 30% - 100% HR 6 Practices • Provide career opportunities • Enrich and improve the lives of employees 7 Confidential. All trademarks appearing herein belong to their respective owners. Best in Class Finance and Accounting Coverage Financial Plg. & Analysis Base Cost, P&L, Closing & Balance Sheet, Reporting and Cash Flow Analysis G/L Closing Budget Planning SEC and U.S. Variance and Treasury GAAP Reporting Issue Analysis Treasury Competitor Valuation Analysis Bank Operations Tax Filing Accounting Cash Mgt Reporting Forecasting Receivables G/L Closing Consolidation Management Fixed Assets Ledger Remittance Reconciliations Accounts Accrual and Exception Payable Tracking & Reserve Account Resolution (Cash) Reconciliation Invoice Receipt and Deduction Mgt Matching Collections Dispute Resolution Recoveries Vendor Payment Setup Primarily Transactional Primarily Decision-Support Highly Complex Tasks – proving end-to-end solutions 8 Confidential. All trademarks appearing herein belong to their respective owners. Outsourcing Industry – Driving Broad Impact Highest employment generator Direct employment doubling annually…Genpact hiring around 8,000 annually…45% women Ancillary businesses creating huge employment Class of young employees with huge disposable income Accumulation of human capital High-end and specialized projects such as analytics, engineering design, F&A, insurance, pharmaceutical clinical trials Exposure to cutting-edge technology and practices Increased productivity and professionalism Professional practices in workplace World-class workplace standards compared to say, other sectors Very high importance given to HR practices in the workplace Impact on cities IT/BPO professionals, returning migrants, foreign business travelers, increased travel abroad – all are influencing • Infrastructure improvements • Higher service from government and other public companies Driving Change across Cities and Populations 9 Confidential. All trademarks appearing herein belong to their respective owners. Outsourcing of services is a new reality…driven by India and China Some will view this defensively . . . Others will use this offensively…Very few can ignore the level of savings & efficiency being delivered Opportunity to quickly enhance profitability and drive top-line growth . . . As well as to change competitive dynamics in your industry Ideal candidates for virtual companies are financial institutions, insurance, research and service companies . . . Manufacturing companies already employing model Those who grab the opportunity and drive it as a strategic advantage will win, changing the notion of what is core and non- core for companies and making them much more focused The Globalization Train Is On Track 10 Confidential. All trademarks appearing herein belong to their respective owners. Contact Information Pramod Bhasin President & CEO email@example.com +91 (124) 235-6980 www.genpact.com 11 Confidential. All trademarks appearing herein belong to their respective owners.