The Offshore Imperative: Lessons learnt and case studies from the UK

1. Strategic IT services sourcing  "The Offshore Imperative" - Lessons learnt and case studies from the UK. Arun Krishnamurthi General Manager – Utilities Wipro Technologies

2. What do we do? - Integrated service lines Operations • Business Process Outsourcing (BPO) and Consulting Services Applications AWS • Application Development and Maintenance (ADM) • Package Implementation – ERP, CRM, eProcurement • Point Services for specific pain areas • Consulting Services Operations Microsoft Bank of America Applications Integrated service lines Infrastructure Infrastructure • Technology Infrastructure and Consulting Services Across the value chain of industries

3. The No. 1 provider of integrated business, technology and process solutions on a global delivery platform * Clients • Partner to industry leaders • and challengers • 89 global 500 clients • 151 clients among Forbes 2000 386 339 272 180 160 150 Globaldevelopmentcenters Global footprint • Listed on NYSE • 35 countries • 10,000 itinerant employees • 9 near shore development centers 38 34 28 26 22 14 Employees • Diverse talent pool • 23 nationalities • 2000 domain consultants 40 19 14 (thousands) 13 10 8 Revenues** • Sustained growth • CAGR of 45% in last 5 years • Part of NYSE’s TMT Index, NSE Nifty Index and BSE Sensex 1865 934 635 (millions USD) 475 384 240 *Ranked leader by IDC, MetaGroup, Forrester – 2004 Awarded the highest rating in stakeholder value creation & Corporate governance by ICRA, An Associate of Moody’s Investor Services 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05

4. India Development Centres: Bangalore : 8 interconnected locations Chennai Hyderabad Pune Mumbai Delhi Kolkatta Nearshore Development Centers: Santa Clara & Phoenix, US Windsor, Canada Reading, UK Keil, Germany Tokyo, Japan. Distributed Development Centres 2,000,000+ sq.ft. of state-of the-art development facilities • Calcutta • Mumbai • Pune • Hyderabad • Bangalore • Chennai Built-in multi-level redundancy with strategic interconnected centers : inter and intra cities

5. Beyond numbers INDUSTRY EXPERTISE • 25+ COE’s developing industry focused solutions, over 2000 domain consultants • INTEGRATED SERVICE LINES • Business Process Outsourcing > Package Implementation >Technology Infrastructure > Consulting > Application Development & Maintenance (ADM) > Systems Integration> R&D Services • Over two decades of IT experience PROCESS LEADERSHIP • Integrated Six Sigma ,SEI CMM and CMMi for Software development • Delivers increased productivity, timeliness and cost effectiveness to clients Big providers like Hewlett-Packard, IBM or Wipro will also get the nod from 50% of the companies embarking on outsourcing deals Nov 2003 “Wipro Technologies is expanding its portfolio of IT services by offering high value services such as IT consulting and systems integration, bringing it into direct competition with global IT consulting giants like Accenture.” May 2003

6. Wipro Blueprint : Getting it right first time 3 How to managewhat is outsourced 2 How to outsource 1 What to outsource 2-3 weeks 2-3 weeks How to manage what is outsourced What to outsource How to outsource 3 1 2 Sequencing plan Engagement approach Requirement analysis workshop • Application sequencing plan • SLA’s • Risk mitigation • Performance metrics • Engagement plan • Timelines for transition • Change management • Cost savings analysis • Cultural synchronization • Questionnaires/interviews • Study application inventory, documentation status, demonstrations of applications • Offshoreability of applications • Governance Model

7. Wipro’s current engagements at NGT Major Programmes Ongoing development/build/SI engagements • Field Force Management • Exit Capacity Regime • Interruptions • Entry Capacity • On the day Commodity Market (OCM) • Area Control Centre rationalisation • Metering • Connections (Fulcrum Connections) • Emergency • (Post Emergency Metering Services) • General Standards of Service (GSOS) • Project Blackwater • Front Office systems • Back office systems • Agency systems Applications Support and Maintenance • Shipper Services • Back Office • Work & Asset Management • Fulcrum Connections • Meter Reading Services • Field Force Management • Capacity Management • Commercial gas network balancing Infrastructure Support • Real time control systems • for gas transmission • Physical and commercial gas balancing

8. Case Study # 1 Case Study • QuarterBack Scope • Applications Support and Maintenance • Mobile field force management • Asset management

9. MIS EAI ADVANTEX & AFARIA WORKFLOW & WEB Pool Formation NGT QuarterBack Applications (Stream wise) METERING NETWORKS MARS • Mobile Applications with Advantex • MA, DA, SA • AFARIA • Management Information – Reports • Mobile Applications with Advantex • MA, DA, SA • AFARIA, MIMS • Web Applications • AMAZE, ACE, ASCII • Management Information – Reports • STORMS, NRSWA • Mobile Applications with Advantex • MA, DA, SA • AFARIA, MIMS • Web Applications • AMAZE, ASCII, POS, AMP • SSRA, QA Fiche Indexing System • Management Information – Reports Applications that are related to Work and Asset Management Systems Applications that are related to Metering Business Applications that are related to Network Services

10. Wipro solution – restructure support team based on common technical and functional competencies Ability to deliveron time with cost effective solution Objective : Capability Building Next Step: Identify Pool Lead Monitor, Control and Close: Team ready for multi-system support • Team re-organisation • New Pools Span across Business Streams • Derive synergy between the various streams • Build around technical/functional competencies KNOWLEDGE RESOURCE POOLS • Pool 1: Work Flow & Web Applications • Pool 2: Management Information • Pool 3: Advantex & Afaria • Pool 4: Enterprise Application Integration Objective : Provide active support Improve: Implement learning & improve Execution: Pool leads manages Pools Increase offshore component ORGANISATION OF POOLS PLANNING

11. NGT QuarterBack Applications Pools Management Information Advantex & Afaria (MWF) Work Flow Management and Web Applications Enterprise Application Integration Applications • STORMS • IDB / Policy Planner • NRSWA / SAP • MIMS • Web Applications like ASCII, AMAZE, ACE • Bespoke Applications • E-Gate Enterprise Manager • E-Gate Enterprise Monitor • System Administration Application • Dispatch Application • Mobile Application • Reservation Manager • Afaria • Business Objects / Web Intelligence • ETL • HDB / DataMart • BCA Scheduler Technologies J2EE, Oracle, PL/SQL, SQL, Oracle 9iAS, MS XML Parser, Visual Basic, .Net, Visual C++ SeeBeyond e*Gate 4.5.3 suite, Oracle, PL/SQL, SNMP alert agent, JMS, Java, MONK, Unix Shell Scripts, XML Advantex Dispatch Application, System Administration, Mobile Application and Reservation Manager, Afaria, Oracle, PL/SQL Business Objects, Broadcast Agent , Oracle Warehouse Builder, Oracle, SQL, PL/SQL, WebIntelligence

12. Case Study - Benefits realised by NGT Month on month cost reductions to client due to synergy and effective resource utilisation of ~ 20% Month on month reduction in total number of resources as well increasing proportion of work being carried out offshore

13. Benefits realised by NGT • Cost Savings • With in 6 months period a cost savings of ~20% is realised by NGT with effective implementation of the solution against the target savings of 14% • Work Load Distribution • Workload peaks were smoothened with a bigger pool of resources available for each area – risk mitigation Motivated Team • Team members learnt new technologies and functionality and addressed most of their career aspirations In-built Backup Procedures • Eliminated a exclusive backup building activities and mitigated risks for NGT

14. Case Study # 2 Case Study • Managed Application Support • Global sourcing model delivers 32% savings on OPEX with improved quality

15. Business Model for IT in Thames Water IS team Strategy Business Strategy, Service Profile ‘Business Value Approach’ Thames Water Business Customers ‘Partnership Approach’ ‘Accountable for delivery’ APPLICATION S & M Wipro APPLICATION DEVELOPMENT Thames Water SERVICE DELIVERY Accenture ‘IT Lifecycle’ HP WIPRO ACCENTURE SCI SYS SEMA WIPRO XANSA WIPRO XANSA

16. Thames Water – service scope Customer Services Operations Work Management Operations Management System Consent Management - Gemini Network Info Mgmt System Sewer Record System Business Objects Reporting Developer Services Champ Netbase Eagle Harmony Aegis Sample Manager Merlin Customer Cash Management MIDAS Vistec Service Contact I-Source / B2B PC Systems Commercial Billing Commercial and Domestic Database Contact Logging System Billing (CIS) Meter Reading System Mi Customer Vistec Service Management Vistec Field Management Job Management Systems Electronic Transfer of Notices /Highway Report Smart (VIP) Shared Services Delphi General Ledger Payroll Management Information Capex Management System (CMS) Internet Website Maintenance Payroll Desktop Services NetTeam Engineering Asset Management Open Plan CAD (Intergraph/Bentley) Project Accounting System (PAS) Darius Documentum Asset Information Systems (AIS) Maximo Strategic Cost Integration

17. Case Study – Thames Water : Goals and Objectives OBJECTIVES BETTER SERVICE DELIERY • Goal 1: A greater degree of challenge and innovation • Goal 2: End to End quality • Goal 3: Competitive and cost effective solutions / services • Goal 4: Access to a pool of resources with varied technical/functional and managerial skills IMPROVED CUSTOMER RELATIONSHIP AND BUSINESS LINKS BUSINESS DRIVEN IS SERVICE THIN LAYER OF IS CAREER OPPORTUNITIES FOR IN-HOUSE STAFF

18. Support and Maintenance – Service Transition approach

19. Case Study – Thames Water : Cost Benefits The end result of offshoring was a 32% cost saving over initial position

20. Case Study – Thames Water : Measurable Benefits

21. Summary Through the “offshore imperative”, Wipro has been able to provide, through a balanced mix of onsite and offshore resources; • At National Grid Transco • By managing a combined onsite and offshore applications support and maintenance team effectively, significant cost savings and business benefits were achieved • Reduction in cost ~20% • Greater proportion of work being carried out offshore • Logical groupings of Wipro team by technology and synergy rather than business stream • Reduced business risk; knowledge shared across more people • At RWE Thames Water UK • By moving to an combined offshore and nearshore delivery model, for a portfolio of support and maintenance work, significant cost savings and improvements in SLA and delivery were achieved • Use of proven Knowledge Acquisition Process for taking over S&M activities • End user productivity improvements • 32% cost savings achieved • SLA performance improved

22. Thank you Arun Krishnamurthi General Manager – Utilities Wipro Technologies Arun.krishnamurthi@wipro.com +91 98450 74784