iGATE Global Solutions

Dear Shareholders,
 
 The year that has gone by was full of achievements for the Indian IT &
 ITES industry. Despite Talent and Infrastructure playing bottlenecks in
 achieving the fullest potential, business grew leaps and bounds.
 Especially, ITES-BPO revenues witnessed significant growth - currently
 accounting for nearly 20% of the industry aggregate. And we dont see
 any stopping, with IDC India projecting the Indian IT & ITES industry
 to touch a $ 100 billion mark by 2011.
 
 North American and UK companies have contributed over 80% of the
 overall IT spending and will continue to fuel the Outsourcing and
 Off-shoring growth. ADM Services remained the highest revenue
 generators but newer Service lines like Remote Infrastructure
 Management Services (IMS), and Independent Validation & Verification
 (Testing) gained major traction. NASSCOM-McKinsey predicts that the
 market size of these two services will be USD 9 billion each by 201 0.
 ERP Services is also expected to reach USD 7.5 billion mark by 201 0,
 clocking 300% growth.
 
 Clients multi-vendor strategy is here to stay. And it is providing
 Indian companies the opportunity to showcase their capabilities and win
 deals against the Big Five. The India Advantage has seen greater Cost
 Savings, higher Scalability and Availability due to large talent pool
 and time-zone differences and improved productivity and efficiency
 through Quality focus.
 
 Indian IT-ITES Industry has also emerged as the leading employment
 generator. The number of people employed in this industry has increased
 manifold in the last 1 0 years. Total direct employment in the Indian
 IT-ITES has grown approximately from 284,000 in FY 1 999-2000 to
 approx. 1,600,000 in FY 2006-07. NASSCOM-McKinsey Report 2005 predicts
 a,demand for 850,000 IT professionals and 1.4 million ITES-BPO
 professionals by 2010.  With nearly 60 per cent of Indias population
 between the age group of 1 5-59, and more than half below the age of
 25, India will continue to have a significantly higher number of people
 in the productive (working) age group, than in the dependent age group
 for at least the next few decades. The industry, in collaboration with
 government and other stakeholders has initiated several steps to
 further enhance the availability and access to suitable talent for
 IT-ITES in India.
 
 Sustaining industry leadership will require Indian companies to
 continue to drive the frontiers of operational excellence. They will
 have to focus on:
 
 Enhancing customer interaction and solution delivery (e.g., effectively
 influencing customer thinking and decisions).
 
 Improving resource management (e.g., hiring people with the right
 skills at the right tenure).
 
 Upgrading support processes (e.g., near real time monitoring and
 accurate and quick reporting to facilitate decision making).
 
 At iGATE, in the last 4 years, we have not just succeeded in
 transforming the organization, but also in enhancing the shareholders
 value by consistently adding to our existing offerings and growing
 business relationships, increasing our foot-print within Global 1000
 companies and clocking an impressive growth in emerging segments like
 ERP, IMS and IV&V. We continued our investments in IPs, building
 world-class infrastructure, training and development of our employees
 and creating a stronger brand. I am sure our consistent performance
 will strengthen your belief in this company.
 
 We will continue to innovate, delight our stakeholders and achieve our
 goal of becoming a gold standard Integrated Technology and Operations
 company with a global delivery model.
 
 Ashok Trivedi
 Chairman