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Industry Trends and Challenges of IT Professionals

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Presented at: Trends in Computer Education, 22-Feb-2013, Goa University

Presented at: Trends in Computer Education, 22-Feb-2013, Goa University

Published in: Technology

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  • 1. © Mindtree limited 2012 Presented at: Trends in Computer Education, 22-Feb-2013, Goa University Raja Bavani, Chief Architect, Mindtree Industry Trends and Challenges of Next Generation IT Professionals
  • 2. Agenda 2 • Indian IT & BPO Key Trends • Challenges (short term) • Possible Improvements (medium term) • Financial Year 2013 Outlook • Global Uncertainties • Media Buzz • What Do Young Professionals Need? • Discussions
  • 3. Indian IT & BPO: Key Trends 3 Aggregate revenue for the sector estimated to cross USD 100 billion mark [including hardware] Industry continues its growth trajectory, with no visible competition in the near future; Growing impressively CAGR 2007-12 : 17 per cent From 2009 to 2011, M&As increased 77 per cent CAGR to reach USD 4.5 billion 70 countries, 560 delivery centers –providing skills, domain, language and disaster recovery; non Indian employees – 5-6% for large firms Fixed price contracts, cloud based solutions, productizing service Changing model Inorganic Growth Global Footprint Growth trends Revenue Direct employment expected to grow by over 9% to reach ~2.8 million, with over 230,000 jobs being added in FY2012Employment Source: NASSCOM
  • 4. Aggregate Industry Revenue (> 100 Billion USD) 4 IT-BPO revenue aggregate India’s share in global sourcing - 58 per cent in 2011, up from 55 per cent in 2010 IT services exhibiting fastest growth at 19 per cent, BPO growing by 13 per cent, ER&D by 15 per cent Maturing domestic market – key thrust area for the industry – growth faster than exports Domestic IT services growth at 17.8 per cent, driven by localized strategies by service providers Domestic BPO - 16.9 per cent driven by demand from new verticals and technology platforms Software products to grow by 13.3 per cent: New wave of start-ups driving growth Source: World Bank, NASSCOM Estimated
  • 5. Job Creation 5 Direct Employment (’000) FY2012 Estimates Indirect Direct Total Emp ~10.2mn ~2.8mn ~11.7mn ~8.9mn Estimated Source: World Bank, NASSCOM
  • 6. Challenges (short-term) • Delayed decision making - impacting refresh cycles and projects • Volume growth higher, not reflected in revenue • Rupee depreciation impact – pricing pressure • Increased offshore component • Investing in Cloud/platforms – doing more for less • Differentiated growth for diverse industry segments and companies • Maturity and value addition focus for R&D, GICs 6 Source: NASSCOM
  • 7. Possible Improvements (mid-term) • GDP growth may increase in the second half • Technology spending to go up driven by- new tech, emerging markets, business models • Increased adoption of global sourcing • Future of technology services -combination of services, solutions and platforms 7 Source: NASSCOM
  • 8. FY 2013 Outlook 8 IT-BPO Export revenues* (USD billion) FY2011 FY2012E FY2013P Growth of 11-14% • FY2013 software and services growth forecast 11-14 per cent (USD) • Revenue growth USD 8-10 billion • Differentiated growth – across service lines and verticals • Hiring – mix of campus and just in time; 100,000+ offers already made 59 68.7 76-78 786 918 FY2011 FY2012E FY2013P 1030-1060 IT-BPO Domestic revenues (INR billion–excluding hardware) Growth of 13-16% • FY2013 software and services growth forecast 13-16 per cent; • Revenue growth INR 110-140 billion • Consumer, Government, SMB to be key growth drivers • Software Product Start-ups creating innovative solutions for India • Technology enabled social and financial inclusion Source: NASSCOM
  • 9. Global Uncertainties 9 Economic Growth - Global GDP Growth estimate for 2012 - 2.5% (2.8% in 2011); Euro area in mild recession Employment & Households - Unemployment high, but signs of recovery in US jobs, PMI and durables Financial Conditions – Developed markets – fiscal consolidation, credit stringency. Emerging Markets – Tight money, declining capital flows, currency volatility Corporates – Cash hordes, Buoyant earnings in US mainly driven by overseas revenues. Risks - Downside risks elevated (credit crunch in Eurozone); Upside possibilities in US Source: NASSCOM
  • 10. Need for Specialization 10 Changing Customer Demands and focus on Digital Transformation Focus on Core Partner for Specialization Choose where to compete and then how to compete Building a specialist talent pool Source: NASSCOM
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  • 20. What do young professionals need? Communication skills (verbal and written) Interpersonal skills (relates well to others) Teamwork skills (works well with others) Analytic skills Flexibility/adaptability Detail-orientation Creativity Critical Thinking/Problem Solving Organizational skills Leadership skills Lifelong Learning/Self Direction Industry Knowledge 20 Honesty/integrity Motivation/Initiative Strong work ethic Self-confidence Friendly/outgoing personality Tactfulness Well-mannered/polite Social Responsibility
  • 21. Discussions 21
  • 22. India | USA | UK | Germany | Sweden | Belgium | France | Switzerland | UAE | Singapore | Australia | Japan | China Raja Bavani Raja_bavani@mindtree.com www.mindtree.com/social

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