In Q4 of 2007, we launched MGL Labs, our new hub of innovation for MGL. Our focus for MGL Labs is that it will serve as our most forward-reaching center for research and development.

MGL Labs partners with current clients and our horizontal and vertical industry groups to develop new IP-based solutions and services that transform our clients’ businesses. We are bringing together technological and domain-centric leadership to do what hasn’t been done before – creating configurable and reusable software solutions that transform and evolve our customers’ businesses. We are doing this across each of MGL’s key areas of expertise and domain leadership, including finance, telecom, healthcare and life sciences, and manufacturing.

MGL Labs focuses on:

• A targeted group of industries that are rapidly changing as they aggressively pursue real-time automation and higher-value customer service
• IP required to provide transformative solutions in an interconnected world of collaborating enterprises
• Business services that are of high-value to our customers and that we can standardize to ensure consistency and top quality

A Focus on Applied Innovation
Our innovation is “applied innovation.” We innovate only where it will deliver direct and relevant benefit to our customers. By not spending needless R&D time and money on innovation, we can concentrate on developing technology that truly transforms our customers, and as a result, our industry.

We work in areas where we can get traction quickly and make a tremendous impact. This lets us scale our business via a combination of key factors:

• We apply our R&D innovation to areas where our customers need to transform their enterprises
• We work in an early-mover IP development model with marquee clients to provide them a time-to-market advantage
• We get scale by standardizing our offerings based upon standard methodology; architecture; components; and standard sales, account management, and delivery models
• We focus our acquisitions on key expertise that can be rapidly integrated into our standardized model

We believe that we can seize a significant market opportunity because we have invested in a number of important areas:

• We have acquired deep domain expertise across key verticals through both customer experience and through acquisitions
• We have invested in IP to create configurable and reusable components that let us create new solutionsfor our customers faster than otherwise possible and that enable our customers to leap to a new level of competitive advantage
• We establish trusted advisor relationships with each customer through our many years of experience working with our blue-chip customers
• We have technology leaders that have changed the industry—obtaining patents, built enterprise applications for the world’s largest technology companies, and invented technologies and processes that have transformed the technology industry

We have established our credentials as a high-value solution and service provider over the course of our history working with top tier clients in finance, healthcare and life sciences, telecom, and manufacturing—MGL Labs will create even greater synergies in our business by bundling our service offerings with our domain-based IP to drive untold value for our clients and for our stakeholders.