Benchmarking

Wipro has worked effectively with its clients and provided assurance that prices will remain competitive over a long term deal. We also have been flexible in accommodating where the clients circumstances have changed. However, for an objective benchmarking Wipro will expect Client to ensure that such benchmarking is carried out within a comparable ecosystem and against comparable and mutually agreed suppliers. Our productivity norms have shown an increasing trend over a period of time and are benchmarked once a year. The same norms are fed back into the delivery teams so the effort estimates and the resulting costs show an improving trend over a period of time.

Wipro has periodic internal and external audit events that perform a benchmark comparison based on industry norms, cross projects and services across Wipro, apart from customer specific audits such as SOX (costs of which are borne by our customers). As part of the ITSM framework which Wipro has adopted, we have developed ITSM compliant processes for both the areas of Service Delivery and Service Support. Our business gets benchmarked on a regular basis as we effectively compete and win deals in this IT business. Our philosophy entrenched in the Spirit of Wipro Intensity to Win, Act with Sensitivity and Unyielding Integrity ensures that customers are always successful. Wipro has a dedicated Software and process engineering group under the Chief Quality Officer that benchmarks Wipro norms, metrics against industry and internal norms and standards for continuous improvements and cost benefits to customers. Process for ensuring adoption and benefits realization across the eco-system of Guitar Center To implement innovation for Technology integration, Wipro would adopt the below mentioned approach. Wipro would identify the current costing model for all the technology tower in scope and benchmark the same. These will be used as references for any future business case calculations. Once the benchmarking process is completed, Wipro would start the process of adopting the innovative ideas into the ecosystem to realise the benefits for Client. Wipro would implement these ideas as transformation projects driven by Wipros
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innovation council. The innovation council and the technology tower lead would register the above and many more of such technology driven initiatives. The technology lead would be responsible for developing the solution and associated business case. He / She will work with Wipros technology centre of excellence and tool group to identify a suitable technical solution. The business case would be ratified by the Innovation council. Once the business case and solution is established, the proposal would be presented and discussed with Client management for approval. Wipro team would then work with Client management (BRM) to develop a scheme paper based on the technical solution and business case. The Client technology management would then get the necessary approval for the scheme paper. Wipro would provide support to Client lead during the approval process. Once the scheme paper is approved, Wipro team would implement the solution following Clients process. The benefits identified in the business case and scheme paper would be compared with the benchmarks to prove the effectiveness of the project. The effectiveness of the business case would be monitored for 6 months through the monthly report. Only when the business case is proven for 6 months, re-baseline of the benchmark metrics would be done. The new benchmark metrics would now become reference for any future initiatives.

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Competitive pricing Wipro offers a combination of pricing models that suits the clients specific needs. Even within the same client relationship, different engagements may require different pricing models. Cornerstone of Wipros relationship with many of its clients is the flexibility Wipro can demonstrate on the adoption of pricing model suitable for specific engagements that deliver maximum value / benefit to the customer at an optimal cost. At the same time, the onus is on Wipro to ensure that the proposed model carries adequate checks & balances to make sure that Wipros profitability is not compromised making the engagement unsustainable. Benchmarking is one the best ways to determine the price competitiveness. The other ways by which Wipro would demonstrate competitive pricing if a benchmark is not used are: Internal bench marking: Wipro does an internal benchmarking exercise of all its large customers in different geographies and industry segments to identify the business value delivered to its customers. CSAT (Customer Satisfaction) is one mechanism to know about customers view on value delivery.

External Audit Information: There are reports (paid and unpaid) published by
external analysts and agencies that typically compare multiple service providers including pricing. GUITAR CENTER can access these reports and benchmark Wipro with other providers. A joint exercise will be warranted to validate.

Business Value Measurement through TCO commitments, Business outcomes

linked success bi-annual or annual reviews is another mode for receiving competitive pricing. The performance of the provider will be measured against various committed business initiatives for the year. Pricing Models We can classify the various financial / pricing models on parameters such as the way in which GUITAR CENTER is charged (input/ output based), volume, efficiency, SLAs. For example: o o o User Based Pricing for Application support SAP System ID (SID) based pricing for Basis/ DBA support Ticket based pricing for multiple categories of tickets

Transaction based pricing models eliminating the need to pay for additional

capacity and utility based pricing - GUITAR CENTER pays only for whatever service that has been availed Value based pricing - GUITAR CENTER is charged on the basis of the business value created by the IT deal. Business value refers to performance metrics that add value to the GUITAR CENTER business e.g. increase in savings, revenue, or lead to decrease in expenditure e.g. decrease in annual IT spend

Given below are some of our clients where some of the above mentioned pricing models have already been implemented successfully:

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Large European

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One of Europe'

Some of the other tangible or intangible ways Wipro could demonstrate GUITAR CENTER receiving competitive pricing are: 1. Continuous Improvement some of the parameters for continuous improvement and TCO optimization are Incoming ticket reduction achieved through

One of world's l supplier

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Application architecture standardization and improvements (performance tuning, Integration standardization, Customization component standardization where possible) Better control of ticket initiation through the power/super users

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Improved and continuous training activities for End User to utilize self-help mechanisms Proactive Monitoring of batch processes Monitoring automation and application diagnostics leveraging OEM / CNC Helpdesk scripts that would ensure resolution at the helpdesk itself

Move the commodity and repeatable ticket resolution responsibilities to helpdesk and enabling the same through focused and dedicated training Backlog ticket reduction - achieved through Dedicated problem management team Backlog reduction targets every year (typically 10 20%)

Run analysis programs on large related backlogs to arrive at problem areas and hotspots. Improvement proposals will be made for these problem areas including planned enhancements which will close/resolve a large number of related tickets 2. Process Standardization - Business/Application support process standardization across geographies, and application landscapes. Core teams aligned by process areas. Tools Standardized and customized tools that are closely integrated with GUITAR CENTER process model for incident/problem management, governance, application monitoring and automation. For Incident Management & Problem Management Wipro recommends its internal tool HPSM to be integrated with Infra Enterprise. This will help Wipro to leverage the Flex teams from offshore to seamlessly participate and integrate with the GUITAR CENTER delivery teams during peak loads. Other tools used are Digital Fuel for Governance & Reporting. Innovation in Delivery Flex-delivery and factory models deployed can reduce TCO by 5 - 15% over traditional delivery models. Labour Arbitrage Continuously scout for cost effective global delivery locations and execute operations for GUITAR CENTER from these locations. Competency Mapping - Identify the right set of resources for each and every technology involved to enable quicker knowledge acquisition and improve the overall efficiency of the engagement team.

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