Global Sourcing Forum

Engage Global Sourcing & Win! April 24, 2007

Trend: Convergence
Global Delivery Forced Convergence.
Service providers move toward global delivery models

Offshore providers are the catalyst for convergence

Traditional Service Providers

Offshore Service Providers

Convergence occurs in: Big deal Pursuit Range of Services Global Coverage Area
Source: Gartner The Reshaping of IT Services and Outsourcing Competitive Landscape, Ian Marriott and Allie Young, March 2007

Why Global Sourcing is a Priority

Traditional Service Providers
Competitor January 2007 Status Global Headcount India Headcount % India Headcount Published Plans Increase in Offshore 16,000 more in 2007 Add 100,000 more by 2008 15,000 more by 2008 7,000 more by 2007 3,600 more by 2008 Overall Offshore %

Accenture IBM EDS Cap Gemini Unisys

~123,000 ~329,400 ~120,000 ~61,000 ~31,000

~34,000 ~53,000 ~14,000 ~5,000 ~2,400

~28% ~16% ~8% ~8% ~8%

~40% ~45% ~25% ~16% ~20%

The competitive offshore landscape in India is becoming more intense as our competition continues to build their offshore expertise.

Why Global Sourcing is a Priority

Offshore Service Providers
Competitor March 2007 Status Global Headcount India Headcount Offshore % Published Plans Global Strategy Expanding in Europe and China. Plans to add 20,000 more in India in 2007. Expanding in Hungary, Brazil and China. Plan to add 20,000 in India in 2007. Expanding in UK and Japan. Expanding to Brazil.

Wipro TCS Infosys Satyam

67,800 89,500 72,200 39,500

56,000 62,500 58,000 29,400

83% 70% 80% 75%

Indian companies are competing against the traditional service providers and expanding their global footprint.

Global Sourcing Options

Staff Augmentation Model
Third-Party Outsourcing

Multisourcing Model

Relationship Structure

Build-Operate-Transfer Model
Joint Venture

UGSH

Completely Owned Subsidiary

Captive Center Model

UGSI
Onshore

UGSH
Nearshore

UGSI UGSC
Offshore

Geographic Location
Source: Robinson and Kalakota Offshore Outsourcing: Business Models, ROI and Best Practices

Leveraging Onshore and Offshore

Development Projects
Onshore
Development
Customer Facing 100% Concept 70% Design Functional Design Requirements Definition 20% Testing 30% Implementation 80% Deploy
30% Build Test 20% 80% 70%

Nearshore or Offshore
Technical Design Coding Implementation Integration Testing Deployment Support

The target is to achieve a 30/70 (onshore/offshore) ratio on development projects. A 30/70 project ratio is very profitable.

Leveraging Onshore and Offshore

Maintenance Projects
Onshore Maintenance
Requirements Definition Functional Design Application Analysis

Nearshore or Offshore
20% 80% Enhancements 90% Implementation 10% Reporting 90% Monitoring 10% Upgrades 10% Performance Tuning 90% Technical Analysis 50% Application Analysis 50%

Maintenance projects require less onshore staff so a 20/80 (onshore/offshore) ratio works well. A 20/80 project ratio is highly profitable.

Leveraging Onshore and Offshore

Support Projects
Prioritization of Problems Escalation Procedures Operations
20% 20% 20% Network Support 80% Operation Support 80% Customer Support 80%

Problem Analysis 24x7 Support Telephone Support E-mail Support

Support

Support projects require less onshore staff so a 20/80 (onshore/offshore) ratio works well. A 20/80 project ratio is highly profitable.

More Information

To access the Unisys Global Sourcing Portal, visit: http://knet1.unisys.com/sites/globalsourcing/default.aspx

Blended Delivery Model

World-Class Delivery Model Objectives

Integrate all service delivery Common methodology - SDF Common Training 3D-VE
Partners

Senior Managers

Line Managers & Architects

Consultants Global Sourcing

Low Cost Local Subs

Executing the Plan: Global Resource Optimization

1 PreSales PreSales Opportunity /Bid Resource Mgmt 2 Project Offshore/ Nearshore 3 UTS UGSx UGSx (incl. 3rd party) Sales Support

4 Onshore <M2 HPC Resource rd party) (incl. 3

Application Services 5 >M2 BU Resource

Blended Delivery Toys R Us

Multiple development projects to standardize their application portfolio
Unisys 3D-VE introduced a common set of tools, methods, and vocabulary, which enabled work to be undertaken anywhere while yielding the same quality. Achieved 60% cost reduction through reduction in development labor cost. Utilized an Onshore/Offshore Model. Avg. 1 Resource Onshore, 9 Resources Offshore (Caritor).

Orange Telecom
Develop a global voice platform Leveraged Unisys offshore/onshore team Caritor provided a systems analyst and a systems architect to work with the Unisys team in Malvern Performed complex integration of various components from more than twenty different suppliers to work with the reference architecture. Periodic reviews between onshore and offshore teams ensured uniform communication across the two teams facilitating them to work as a One Unisys team; not as two separate suppliers.

Northwest Airlines
NWA had a backlog of coding Cargo change requests including industry required changes. Contract completed in less than two weeks. Provided a mix of domain expertise in Cargo onshore while utilizing economical offshore Unisys resources in Bangalore. Utilized onshore/offshore model, two resources onsite at NWA, and four UGSI programmers offshore. Delivered a unique and effective solution completing backlog of coding Cargo change requests.

Sul America
Modernize the legacy applications used for Enterprise Content Management (ECM). Leveraged resources with certifications on various FileNet applications from Unisys Global Services India (UGSI). Two resources from UGSI performed requirements gathering onshore in Brazil and four UGSI resources worked onshore in Brazil Successful deployment of the FileNet solution has strengthened the relationship with SulAmerica, which has approached Unisys for further development works.

Integrated Global Delivery Components

HPC

Global Sourcing

Onshore Low Cost

3rd Party Contracts

Global Resource Management

SkillPort Access