ActiveTrac - SAPPHIRE 2007

Confidential // Neoris 1 Confidential // Do Not Reproduce without prior written permission from Neoris

Practical Visionaries

Nearshore Capabilities

Neoris

March 2008

Confidential // Neoris 2

Agenda

Neoris Overview

The Business Case for Nearshore

Neoris Facilities and Infrastructure

Our Clients



Overview

Neoris Overview


Neoris Corporate Overview - Neoris History

One of The Fastest Growing Global IT Consulting Companies

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.

The company grew out of the innovative solutions it created for CEMEX (NYSE: CX), one of the world’s 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.

20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007 ……20002000 20012001 20022002 20032003 20042004 20052005 20062006 20072007 ……

CEMEX Spin-off and Neoris inception

IDC Ranking24th – 25th

12 acquisitions to createan e-builder services firm

Redefinition of strategy into a Global IT Consulting Firm

Internet BubleColapse

Absorption of Arthur Andersen Mexico practice

Launch of GlobalSAP practice

New ManagementAlignment

Absorption of 2 firms to acquire

skills

SAP IncrementalRevenue Award

IDC Ranking5th – 6th

IDC Ranking5th - 4th

IDC Ranking3rd – 1st

IDC Ranking2nd - 1st

SAP xMIIAward


Neoris Corporate Overview – Global Model

Majority owned by CEMEX (NYSE: CX); Market cap of US$25 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

A Business and IT Consulting Company with a Global Footprint

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

R&D Centers: Madrid and Miami

Other Emerging Markets

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

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)

*IDC Latin America Semi-annual IT Services Tracker, 2006



Neoris Clients


Value Added Consulting Emerging Technology Driven Consulting

Nearshore

Outsourcing

3 Major Service Pillars – a full service consulting firm

Neoris Background

Process reengineering

Change management integration

SAP

SCM (APO Focus)

Integration CoE

Technology practice consulting (ITIL, IT Foundation)

Specialized solutions development

SAP NetWeavertm

Active RFID

ActiveSuite SAP xAPP

SAP xMII

Application Management

Software factories

Hosting

SAP Hosting


Handoff may start here

Handoff may start hereMature Nearshore Development includes these activities

DISTRIBUTION OF EFFORT IN APPLICATION DEVELOPMENT

Implement-ation

Project Planning

Business Requirements

Functional Design

Technical Architecture

Detailed Technical Design

Code BuildQA /

TestingFunctionalValidation

1 2 3 4 5 6 7 8 9

Implement-ation

Project Planning


Functional Design



Code BuildQA /


1 2 3 4 5 6 7 8 9

5%

10%

15%

10%

35%

20%5%

35%

25%

40%

100%

TOTAL

Planning & Design Testing & ImplementationCoding

Planning & Design

Testing & Implementation

Coding

Implement-ation

Project Planning


Functional Design



Code BuildQA /


1 2 3 4 5 6 7 8 9

Implement-ation

Project Planning


Functional Design



Code BuildQA /


1 2 3 4 5 6 7 8 9

5%

10%

15%

10%

35%

20%5%

35%

25%

40%

100%

TOTAL

Planning & Design Testing & ImplementationCoding

Planning & Design

Testing & Implementation

Coding

Scope of Neoris Full Stream Nearshore Model



The Business Casefor Nearshore


Thailand5%

Poland4%

Brazil4%

India28%

China11%

Russia10%

Philippines8%

Turkey7%

Other16%

Indonesia3%

México4%

Source: McKinsey & Co - 2007

Global IT Skilled Human ResourcesAnd Relative Hourly Rates

Asia rates no longer the Driving Factor


India Offshore outsourcing

India Offshore outsourcing

Low Hourly CostLow Hourly Cost

Strong Cultural DifferenceStrong Cultural Difference

Huge Geographical DistanceHuge Geographical Distance

Costly Travel ExpensesCostly Travel Expenses

11 Hours time Difference11 Hours time Difference

Jobs Talent DilutionJobs Talent Dilution

High Political RiskHigh Political Risk

Higher Total Cost of Engagement Higher Total Cost of Engagement

>20%>20%

High StandardsHigh Standards

Outsourcing FactorsOutsourcing Factors

Hourly CostHourly Cost

Cultural AffinityCultural Affinity

GeographyGeography

Travel CostTravel Cost

Time DifferenceTime Difference

JobsJobs

PoliticalPolitical

Total Integrated CostTotal Integrated Cost

AttritionAttrition

Education Education

NEORIS Nearshore Outsourcing

NEORIS Nearshore Outsourcing

On Par with IndiaOn Par with India

Cultural AffinityCultural Affinity

Geographical Proximity Geographical Proximity

Lower Travel ExpensesLower Travel Expenses

Full U.S. Business Day OverlapFull U.S. Business Day Overlap

Top-Tier TalentTop-Tier Talent

Lower Political RiskLower Political Risk

Lower Total Cost of EngagementLower Total Cost of Engagement

< 5%< 5%

Comparable IT SkillsComparable IT Skills

CONS PROS

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


Neoris has Considerable Advantages Over other Nearshoring Firms

Access to more visa types: E, TN, L, H1

Strong intellectual property protection provisions

Innovative Government Sponsored Investment Incentives


Strong intellectual property protection provisions

Innovative Government Sponsored Investment Incentives

NAFTA AdvantageNAFTA Advantage

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

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

Neoris Team StrengthsNeoris Team Strengths

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

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

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

Neoris USA Nearshore Outsourcing Advantages


NAFTA

Strong Economic Relationship (Mexico, USA and Canada

Investment Protection

National treatment for firms in government procurement

Staff Mobility, US-Mexico


Second level

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)

Legal Framework

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.

NAFTA and Legal Framework



Neoris Facilities andInfrastructure


Facilities in Monterrey

Facilities in Culiacan

Neoris Physical & Logical Security

Nearshore Nearshore Facilities - Mexico

Neoris Help Desk

Neoris NOC

Neoris SAP Certified Hosting Facility


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.

Neoris Nearshore Center – Argentina (Buenos Aires & Rosario)


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.

Neoris Solution Center – Brazil (São Paulo & Rio)


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%

Neoris Datacenter – Mexico (Monterrey)


Thank you

Jeff Johnson SVP, Managing Director

[email protected]

ActiveTrac - SAPPHIRE 2007

Technology

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