Nearshore Capabilities

1
Neoris

• Nearshore Capabilities

March 2008
2
Agenda

• Neoris Overview
• The Business Case for Nearshore
• Neoris Facilities and Infrastructure
• Our Clients

3
Overview
Neoris Overview
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Neoris Corporate Overview - Neoris History

• One of The Fastest Growing Global IT Consulting
  Companies

SAP xMII Award
New Management Alignment
12 acquisitions to create an e-builder services
firm
SAP Incremental Revenue Award
Launch of Global SAP practice
Absorption of 2 firms to acquire skills
CEMEX Spin-off and Neoris inception
Internet Buble Colapse
2000 2001 2002 2003 2004 2005 2006 2007
Redefinition of strategy into a Global IT
Consulting Firm
Absorption of Arthur Andersen Mexico practice
IDC Ranking 24th 25th
IDC Ranking 5th 6th
IDC Ranking 5th - 4th
IDC Ranking 3rd 1st
IDC Ranking 2nd - 1st

• The company grew out of the innovative solutions
  it created for CEMEX (NYSE CX), one of the
  worlds largest, profitable and most innovative
  cement producer. As in-house technology
  consultants at CEMEX, the Neoris professionals
  perfected their unique model for capturing value
  in a large enterprise.

• Neoris is one of the very few cases where a
  consulting company derived from the spin-off of
  the IT department of a large industrial
  conglomerate, becoming successful as a standalone
  open market participant. Neoris is headquartered
  in Miami, Florida, has 15 offices and a global
  staff of over 3000 employees.

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Neoris Corporate Overview Global Model
A Business and IT Consulting Company with a
Global Footprint

• Majority owned by CEMEX (NYSE CX) Market cap
  of US25 Billion
• Significant accomplishment of growth
• 2nd on IT consulting in Latin America
• Largest IT consultancy in Mexico
• Top 5 Best Performing IT OutsourcingService
  Provider, Global Services 100
• Best Nearshore Outsourcing Company from Latin
  America, Brown-Wilson Black Book
• Rapidly increasing presence in North America and
  Europe

IDC Latin America Semi-annual IT Services
Tracker, 2006
Neoris Offices
Neoris Solution Centers

• Nearshore Outsourcing Solution Centers Culiacan,
  Monterrey, Buenos Aires and Santa Fe and
  expansion for EMEA with a center in Budapest
• SAP Centers of Expertise (COE) Buenos Aires,
  Monterrey, Ratingen, Sao Paulo
• RD Centers Madrid and Miami

Argentina (Buenos Aires, Rosario, Santa
Fe) Brazil (Rio de Janeiro Sao Paulo) Chile
(Santiago) Colombia (Bogotá) Hungary
(Budapest) Mexico (Culiacan, Monterrey Mexico
DF) USA (Miami Dallas-Fort Worth) Spain (Madrid
Barcelona) United Arab Emirates (Dubai)
Other Emerging Markets

• Poland, El Salvador, Trinidad and Tobago,
  Guatemala, France, UK, Germany, Dubai, Morocco

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Neoris Clients
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Neoris Background
3 Major Service Pillars a full service
consulting firm
Nearshore Outsourcing
Emerging Technology Driven Consulting
Value Added Consulting

• Process reengineering
• Change management integration
• SAP
• SCM (APO Focus)
• Integration CoE
• Technology practice consulting (ITIL, IT
  Foundation)
• Specialized solutions development

• Application Management
• Software factories
• Hosting
• SAP Hosting

• SAP NetWeavertm
• Active RFID
• ActiveSuite SAP xAPP
• SAP xMII

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Scope of Neoris Full Stream Nearshore Model
Handoff may start here
Mature Nearshore Development includes these
activities
Handoff may start here
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The Business Case for Nearshore
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Global IT Skilled Human ResourcesAnd Relative
Hourly Rates

• Asia rates no longer the Driving Factor

Source McKinsey Co - 2007
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Offshoring vs. Nearshoring (Why India Firms are
moving to LATAM)
Nearshoring for the USA Market has Become a
Viable Option Compared to India Based Offshoring
India Offshore outsourcing
Outsourcing Factors
NEORIS Nearshore Outsourcing
Low Hourly Cost
Hourly Cost
On Par with India
Strong Cultural Difference
Cultural Affinity
Cultural Affinity
Huge Geographical Distance
Geography
Geographical Proximity
Costly Travel Expenses
Travel Cost
Lower Travel Expenses
11 Hours time Difference
Time Difference
Full U.S. Business Day Overlap
Jobs Talent Dilution
Jobs
Top-Tier Talent
High Political Risk
Political
Lower Political Risk
gt20
Attrition
lt 5
High Standards
Education
Comparable IT Skills
Higher Total Cost of Engagement
Total Integrated Cost
Lower Total Cost of Engagement
CONS
PROS
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Neoris USA Nearshore Outsourcing Advantages

• Neoris has Considerable Advantages Over other
  Nearshoring Firms

NAFTA Advantage
Neoris Team Strengths

• Access to more visa types E, TN, L, H1
• Strong intellectual property protection
  provisions
• Innovative Government Sponsored Investment
  Incentives

• USA Client teams lead by Big 5 partner level
  executives
• USA native consultants staff our on site
  consulting teams
• Deep industry skills in Retail/CPG,
  Distribution,Health Services and Financial
  Services
• Strategic focus on building long-term, mutually
  beneficial partnerships with clients

• Local onshore consulting services that simplify
  management and systems lifecycle iterations
• Solution Centers based io Tier One and Tier Two
  LATAM cities with facilities that support the
  availability of skilled people
• Strong support infrastructure creating a virtual
  network of skilled consultants

• Agile development methodologies
• Proven iterative methodologies ease the
  requirement of tech savvy users
• World class HR practices (Recruitment-
  Retention Training Benefits)
• Focus on innovation and productivity beyond just
  labor cost
• Strongest LATAM SAP Practice, SAP Advanced
  Technologies and SAP xAP Partnering

Neoris Methodologies Best Practices
The Advantage of Being Global and Delivering
Locally
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NAFTA and Legal Framework
NAFTA

• Strong Economic Relationship (Mexico, USA and
  Canada
• Investment Protection
• National treatment for firms in government
  procurement
• Staff Mobility, US-Mexico
• Access to more visa types E, TN, L, H1
• Second level

Legal Framework

• NAFTA Intellectual property rights
• Compatible legal framework with respect to US
  legislation
• E-commerce enabled electronic signature and
  invoice
• Data protection and privacy
• SPP Canada, Mexico and US (Electronic Commerce
  Common Principles for North America)

Neoris Global HQ is in Miami, Florida, all
Corporate Level executives are residents in the
USA, the largest Group of solution center
resources are in Mexico. Our clients have
expressed these factors as a comfort factor In
protecting their intellectual property (core
systems) they share with an IT outsourcing
partner.
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Neoris Facilities and Infrastructure
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Nearshore Nearshore Facilities - Mexico

• Facilities in Monterrey

• Neoris Help Desk

• Facilities in Culiacan

• Neoris NOC

• Neoris Physical Logical Security

• Neoris SAP Certified Hosting Facility

16
Neoris Nearshore Center Argentina (Buenos Aires
Rosario)

• Established 2006
• Access to top tier talent in the BA labor market
  due to Neoris leading market position
• 200 Mainframe Practice in BA for USA Retail and
  Financial Services
• Consultants specialized in SQL, Oracle, Java, C,
  .Net,
• Supplemented by over 500 programming and analyst
  resources in Rosario, Argentina
• Rapid growth of capacity is ongoing due to the
  cost/quality factor of resources in Argentina.

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Neoris Solution Center Brazil (São Paulo Rio)

• Brazil practice has incubated the global Neoris
  xMII expertise with the acquisition of Konitech
  in 2006.
• Brazil is the center of Supply Chain advanced
  planning tools.
• Brazil as a market has the largest pool of
  experienced SAP resources in LATAM.

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Neoris Datacenter Mexico (Monterrey)

• 300 square meters of Datacenter
• Restricted and independent access to functional
  areas
• Operations and Test Development
• Level six cabling (global standard colors)
• Operations are monitored by 23 webcams
• Percentage of occupancy 45

19
Thank you

• Jeff Johnson
• SVP, Managing Director jeff.johnson_at_neoris.com