Capgemini Rightshore™ Overview: Capgemini Rightshore™ Overview Collaborating for Success


Outline: Outline India as an Offshore Destination Capgemini RightshoreTM Overview Lessons Learnt


Offshore is the fastest growing sourcing model: Offshore is the fastest growing sourcing model Note: “Captive offshoring” is used to describe a company-owned offshore operation. “Shared Services” - is the outsourcing of a business function within an enterprise to a highly skilled internal department or group. For e.g. the purchasing department at one site may provide purchasing services to all other sites. Source: “Strategies and preconditions for outsourcing and offshoring” May 2005 Shared Services Offshore Outsourcing Onshore Outsourcing CAGR: 12% CAGR: 0% CAGR: 38% CAGR: 26% Control Captive Out-sourced Onshore Offshore 304 664 2001 2008 17 164 2001 2008 35 182 2001 2008 3000 3000 2001 2008 Captive Outsourcing


India as an offshore destination is ahead of China and Eastern Europe…: India as an offshore destination is ahead of China and Eastern Europe… China CIS Mexico India Philippines People Sophistication (Number, Cost, Language Skills) Vendor Sophistication (Number, Quality) Russia Cost Quality of Supply (Resource Availability, CMM Level, Cultural Fit) China Hungary Philippines Malaysia Mexico India Ireland Israel Singapore Source: McKinsey - NASSCOM Source: NASSCOM Low Cost High Quality Faster India – the Preferred Offshore Destination 2004 2008 Total India Canada Others China Eastern Europe Philippines Mexico


… And has a strong talent pool of IT resources: … And has a strong talent pool of IT resources Revenue split of the Indian IT Industry * The term IT Industry refers to combined markets which are domestic, exports, BPO and hardware segments IT industry in India contributes 4.8 percent towards India’s GDP IT industry presently employees 1.04 million professionals Indian IT industry is expected to cross USD 36 billion in 2006 and USD 89 billion in 2009 growing at a CAGR of 35%, employing 2.2 million professionals 400,000 technical graduates come out of colleges every year Total revenue of Indian IT industry is USD 28.4 billion. The revenue split is as in the pie chart below Export Software and Services 46% Domestic Software and Services 15% BPO 18% Hardware 21%


Outline: Outline India as an Offshore Destination Capgemini RightshoreTM Overview Lessons Learnt


Our Rightshore™ delivery model provides increased value at reduced TCO: Service managed from client site. For example, business critical production line support. Nearshore On site Onshore Moving service provision within the same country but to a cheaper location. For example, moving a service provision from London to Scotland. Offshore Moving the service provision to another region of the world. For example, from the US to India or China. Moving service provision to a nearby region of the world. For example, from France to Spain. Distributed Delivery Front Office Back Office Our Rightshore™ delivery model provides increased value at reduced TCO Rightshore™ : The right resources, at the right location, at the right time – leveraging our network of industrialised ‘near’ and ‘off’ - shore centres to provide increased value at reduced TCO. Key Drivers Cost Scalability Flexibility Quality


Our Rightshore™ center network provides our clients with many options: Our Rightshore™ center network provides our clients with many options Canada Toronto (ASE, AMSC, BPO, IMSC) Montreal (ADC) United States Cambridge (ASE) Chicago (ADC, ASE, AMSC) Cupertino (ASE) Detroit (ASE) Dallas (AMSC, BPO) El Segundo (ASE) Houston (BPO) Indianapolis (ASE) Kansas City (AMSC, IMSC) Minneapolis (ASE) New York (Secaucus) (ADC, ASE, AMSC, IMSC) Pittsburgh (ASE) Waco (BPO) Washington DC (ASE) Mexico Mexico City (AMSC) UK Aston / Birmingham (ADC, IMSC, BPO) Bristol (IMSC) Inverness (IMSC) London (ASE, 3 IMSC) Manchester (AMSC) Nairn (BPO) Newcastle (AMSC, IMSC) Reading (IMSC) Rotherham (IMSC) Warrington (IMSC) Woking (ADC, AMSC, ASE) Australia Adelaide (BPO) Sydney (ASE, AMSC) Spain Barcelona (AMSC) Madrid (ADC, AMSC, IMSC) Germany Dusseldorf (ADC) Essen (AMSC, IMSC) Munich (ASE) Italy Milan (ASE, BPO) Norway Oslo (AMSC) Fredrikstad (AMSC) Sweden Gothenburg (ADC, AMSC) Malmo (ADC) Orebro (IMSC) Stockholm (ADC, AMSC) France Castres (IMSC) Clermont-Ferrand (AMSC) Grenoble, Lyon & Clermont (ADC, ASE) Lille (ASE, AMSC, IMSC, ADC) Montpellier (IMSC) Nantes & Rennes (ADC) Paris (ADC, ASE, AMSC, 2 IMSC) Rennes (AMSC) Toulouse (ADC) Belgium Brussels (ADC) Mons (IMSC), (BPO) India Mumbai (ADC, AMSC,IMSC, BPO) Bangalore (AMSC, ADC) Kolkata (ADC, AMSC, BPO) Finland Helsinki (ADC, AMSC, ASE, IMSC) Netherlands Utrecht (ADC, AMSC, ASE, 2 IMSC) Zoetermeer (IMSC), (BPO) Denmark Copenhagen (ADC, AMSC) Poland Krakow (BPO) Wroclaw (IMSC) ASE: Accelerated Solution Environment ADC: Accelerated Development Center AMSC: Applications Mgmt Service Center IMSC: Infrastructure Mgmt Service Center Japan Tokyo (AMSC) China Guangzhou (BPO) Hong Kong (BPO) Taiwan Taipei (AMSC)


Our state-of-art infrastructure and tool sets ensure seamless integration of teams across geographies: The global Capgemini IP-VPN network ensures direct connection between Capgemini sites in different geographical areas, and to the delivery centres Our state-of-art infrastructure and tool sets ensure seamless integration of teams across geographies Router INDIA ADC Local Area Network MLDN Modem Canada Toronto (ADC, ASE) Montreal (ADC) United States Chicago (ADC, ASE) Dallas (ADC, ASE) Houston (ADC) Costa Mesa (ADC) Silicon Valley (ADC) Bellevue (ADC) Atlanta (ASE) Cambridge (ASE) Cupertino (ADC) Detroit (ADC, ASE) St Louis (ADC) McLean (ADC) Spain Madrid (ADC) France Paris (ADC, ASE) UK London (ADC) Luton (ASE) Nordic Copenhagen Stockholm Oslo Helsinki Netherlands Utrecht (ADC, ASE) Belgium Brussels (ADC) Germany Frankfurt (ADC) China Hongkong (ADC) Singapore (ADC) Tokyo (ADC) New Zealand Auckland (ADC) Australia Sydney (ADC, ASE) Italy Milan (ADC) Buenos Aires (ADC) Sao Paulo (ADC)


Capgemini India has the right mix of talent and is growing: Capgemini India has the right mix of talent and is growing Incorporated in 1997 at Mumbai 6 centers in Mumbai, Bangalore and Kolkata 24 X 7 Basis of Operation Centers are ISO 9001:2000 certified and SEI-CMMi Level 5 accessed, BS-7799 certified, SAS 70 certified High Priority to expand through organic growth 10,000 FTE  Y2007 > 100 % headcount growth Right experience Right skills SAP 17% MS 16% Mainframe 13% Java 21% CRM 8% Oracle 10% Others 15%


Our capabilities cover all Technology and Outsourcing services: Our capabilities cover all Technology and Outsourcing services Enterprise Solutions Package Customization, Implementation & Roll Out SAP Siebel Oracle PeopleSoft PLM Enterprise Application Integration Application Consolidation Legacy to Web integration SOA Custom Application Development Entire life cycle development Java, .net, Oracle, Mainframe Testing BI Application / Data Migration Outsourcing Application Management Infrastructure Management BPO Application Development


We deliver a full spectrum of services across sectors: We deliver a full spectrum of services across sectors Sector Software Development Application Management Infrastructure Management SAP Oracle* Testing Services Sector split: All Projects MRD EUC FSI TME GPS BPO * Includes Siebel, Peoplesoft and JD Edwards


Successfully delivering large complex projects… and also many involving smaller teams: Successfully delivering large complex projects… and also many involving smaller teams 4.28 Average India OTACE


Capgemini India’s processes are highly mature: Achievement in 3 successive years to get ADC, AMSC and IMSC processes successfully assessed at CMM Level 5 & CMMi Level 5 Capgemini-India is one of the few companies who have gone in for all disciplines (SW+SE+IPPD+SS) for CMMi Level 5 Metrics Management Quantitative Process Management Defect Prevention Organization Innovation and Deployment Deliver™ QMS DDF ISO 9001:2000 CMM/CMMi L5 SAS 70 BS7799-2 Development Methodology Capgemini India’s processes are highly mature


Strong people processes complement our delivery capabilities: Pre-Joining Post-Joining Pre-Joining Communication with Employee (Information Pack) Assignment and notification of Buddy Internal Communication of relevant departments (Employee Database, Seat lists, Access Cards, etc.) Feedback Process Orientation Feedback Buddy Feedback Assignment Review 90-Day Survey 0-7 days 7-15 days 15-30 days 30-60 days 90 days Welcome Kit Joining Formalities Buddy Program Discover (Orientation Program) Self-directed discovery tour Project- Specific Orientation Role-based training Focus Friday Comm. meet Performance Management and Personal Development Plan Flourish (Reboarding program) Coffee Club PRM Help Naka PRM Intranet SAMPARK Quest Brown Bag Fundoo Friday Socio Zone India Happening Improvements Capgemini Integration Process Strong people processes complement our delivery capabilities


Project Einstein – a structured retention initiative: Project Einstein – a structured retention initiative


Outline: Outline India as an Offshore Destination Capgemini RightshoreTM Overview Lessons Learnt


Corporates are in various stages in the offshore journey: Source: Forrester Corporates are in various stages in the offshore journey


The “right” mix of onshore / offshore work distribution is not fixed and depends on several factors: The “right” mix of onshore / offshore work distribution is not fixed and depends on several factors Offshore / onshore ratio of selected IT projects 100% 15 Offshore Onshore Maintenance of legacy systems 40 60 85 Completed Migration 40 50 Custom application development 60 ERP implementation 50 50 EAI 50 ERP upgrade 20 in percent Key factors Project size, duration, and volume Technology Complexity and dependency on other systems Risk and control 60 40 Offshore / Onshore mix also greatly depends on the ‘offshore readiness’ of the organisation and the ‘risks perceived’ by the stakeholders


Strong project governance and transparency between front & back offices is critical: Strong project governance and transparency between front & back offices is critical Guaranteeing Local Control Front-Office Back-Office Capgemini Service Manager Front-Office Streams Analysis Configuration Data Integration Infrastructure Testing Training Deployment Configuration Mgmt Release planning Capgemini Project Manager Steering Committee Client Team Members Client Project/ Program Manager Capgemini Engagement Manager Web-Net Meetings Video Conferencing VoIP Calls GIMS Periodic Visits Problem Management System E-Mail Weekly Status Report Daily Review Session Clarity, SourceForge, Issue Tracking and Resolution, Knowledge Coordination, Change Request Management Back-Office Delivery / Project Manager QA manager Back-Office Executive Back-Office Streams Build Configuration Data Integration Infrastructure Testing Configuration Mgmt Release planning Communication Tools Project / Service Mgmt Tapping Global Talent Distributed Delivery Framework


Continuous improvement is possible only through rigorous measurement and benchmarking: Continuous improvement is possible only through rigorous measurement and benchmarking Application Development Application Management


Processes are important but collaboration is key: Processes are important but collaboration is key A unique distributed delivery approach driven by collaboration End-to-end collaboration between client, Back-Office and Front-Office The geographic and cultural proximity of the Front-Office ensures a client-driven approach We make significant investments for the customer’s success: Cross cultural training of Back-Office resources Mobility between Front-Office and Back-Office Deployment of collaborative tools FO: Front-Office, BO: Back-Office


Thank You: Thank You