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November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
November 17, 2004 MIS 680 International HR
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November 17, 2004 MIS 680 International HR

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  • 1. November 17, 2004 MIS 680 International HR BRYAN HARGREAVES JASON AUSTIN JONATHAN MUEKE KERRY OLIVER SRIRAM KOTHANDARAMAN IT DESTINATION OF THE WORLD
  • 2. Agenda
    • Geography
    • Demographics
    • Government
    • Culture
    • Economy
    • IT Industry
    • Company Showcase
    • Issues
    • Summary
    • Vs Pakistan
    • Questions
  • 3. Geography
  • 4. Geography
    • 5,000 year old civilization
    • 325 languages spoken – 1,652 dialects
    • 18 official languages
    • 29 states, 5 union territories
    • 3.28 million sq. kilometers - Area
    • 7,516 kilometers - Coastline
    • 1,000,000,000 people in 2000
    • Political Map of India
  • 5. Geography
    • 2.4% of the world's land area, support over 15% of the world's population
    • Over 30% of Indians younger than 15 years
    • More than 70% live in more than 550,000 villages
    • Remainder in more than 200 towns and cities
  • 6. Demographics
    • Age structure
        • 0-14 years: 32.2%
        • 15-64 years: 63%
        • 65 years and over: 4.8%
    • Religions
        • Hindu 80%
        • Muslim 13.4%
        • Christian 2.3%
        • Sikh 1.9%
        • Others 2.5%
    • Sex ratio
        • 1.07 male(s)/female
  • 7. Factors that Influence the IT Outsourcing Environment Level of Economic Growth Political System Culture IT Outsource Readiness IT Outsourcing Environment
  • 8. Government
    • Sovereign, Socialist, Secular, Democratic Republic
    • Form of government
      • Parliamentary, based on universal adult franchise
    • Legislature
      • Parliament, consists of President and the two Houses, known as Rajya Sabha (Council of States) and Lok Sabha (House of the People )
    • Executive
      • Consists of President, Vice-President and Council of Ministers led by the Prime Minister
    • Judiciary
      • Independent of executive
  • 9. Government
    • Constitution
      • Adopted on 26 November 1949 and came into force on 26 January 1950
    • Federal Government
      • President is the constitutional head of Executive of the Union
      • Real executive power vests in a Council of Ministers with the Prime Minister as head
      • The Council of Ministers is collectively responsible to the Lok Sabha, the House of the People
  • 10. Government
    • State Government
        • The Governor- Representative of the President, is the head of Executive
        • Real executive power rests with the Chief Minister who heads the Council of Ministers
        • The Council of Ministers of a state is collectively responsible to the elected legislative assembly of the state
  • 11. Government Indian Parliament Official Web Site
  • 12. Government
    • Some Indian Government Websites
    • President of India
    • Prime Minister Of India
    • Ministry of Defense
    • Ministry of Environment and Forest
    • Ministry of Education
  • 13. Government
    • Customs Regulations are good for IT industry
    • Reduction of import duty on Computer Software from 114% to 0% including
      • Data
      • Sound or images
      • Source code or object code
      • CD- ROMs containing educational, journals, periodicals, or newspapers
    IT Policies
  • 14. Government
    • NASSCOM - National Association of Software and Service Companies -Secured tax exemption from profit on exports
    • Income Tax Policies since 1990 have encouraged exports of computer software and technical services
    • Tax deductions on IT profits let firms establish themselves
    • By 2010 the Indian Government will slowly begin to reduce the Income Tax deduction amounts
    IT Policies
  • 15. Government
    • New revenue for the Indian Government will go toward IT industry development
    • Laws and Regulations- Information Technology Act 0f 2000
      • Bill addresses jurisdiction, privacy, liability, uniform laws for electronic commerce, content regulation, and taxation.
      • Digital signatures are now acceptable and equal to hand signatures
      • Outlines penalties for IT criminal activity
    IT Policies
  • 16. Government
    • National Long Term IT Policy
      • Deregulation and de-licensing of import of software productivity tools
      • Insistence of higher quality through ISO 9000 standards or equivalent
      • Introduction of special incentives for increasing the language advantage for other languages such as Russian, Japanese, Chinese
      • Encourage mathematical talent into mathematically oriented software
      • Enforcement of copyright laws
    IT Policies
  • 17. Government
    • National Long Term IT Policy
      • Incentives for R&D
      • Deregulation of fiber optic linkages
        • Example- project for a National Internet backbone supporting 10mbps or more including series of Urban data networks
    IT Policies
  • 18. Government
    • Software Development Parks
    • Example - TIDEL Park
    • http://www.tidelpark.com /
    IT Policies
  • 19. Culture History
    • Indus Valley Civilization (up to 1500 BC)
    • Brahmanic Ages (1500 BC - 1000 AD)
    • Islamic period (1000 AD - 1750 AD)
    • British Rule (1750-1947)
    • The Indian Republic (1947-present)
  • 20. Culture Religion
  • 21. Culture Hindu Caste System
  • 22. Culture Hofstede Comparison
  • 23. Culture Business Etiquette – Appearance
    • Men are generally expected to wear a suit and tie for business
    • Women should wear conservative dresses or pantsuits
    • When dressing casual, short-sleeved shirts and long pants are preferred for men; shorts are acceptable only when exercising. Women must keep their upper arms, chest, back, and legs covered at all times
  • 24. Culture Business Etiquette – Behavior
    • Never point your feet at a person. Feet are considered unclean. If your shoes or feet touch another person, apologize
    • Business lunches are preferred to dinners. Hindus do not eat beef and Muslims do not eat pork
    • Whistling is impolite and winking may be interpreted as either an insult or a sexual proposition
  • 25. Culture Business Etiquette – Communications
    • There are more than fourteen major and three hundred minor languages spoken in India. The official languages are English and Hindi. English is widely used in business, politics and education
    • The word "no" has harsh implications in India. Evasive refusals are more common, and are considered more polite. Never directly refuse an invitation, a vague "I’ll try" is an acceptable refusal
    • Titles are very important. Always use professional titles
  • 26. Culture
  • 27. Culture Education – IT rank within Asia Asiaweek.com – 1999 data
  • 28. Culture Indian Institute Of Technology
    • “ IIT has probably produced more
    • millionaires than any other undergraduate institution.”
    • “ Indians, most of whom graduated from IIT, founded about 10 percent of the start-ups in
    • Silicon Valley between 1995 and 1998.”
    • http://shantanunigam.tripod.com/html/iit_good.htm
  • 29. Culture Indian Institute Of Technology
  • 30. Economy
    • GDP composition
      • Agricultural 23%, Industry 28%, Services 48%
  • 31. Economy
    • GDP ~ $3.033T USD (9% IT sector)
    • GDP Real growth rate ~ 8.3%
    • Investment ~ 23.1% of GDP
    • Poverty ~ 25% below poverty line
    • Labor force ~ 472 million (60% agricultural, 17% industry, 23% services)
    • Unemployment ~ 9.5%
    • Exports ~ $57.24B USD:
      • US 20%, China 6%, UK 5.2%
    • Imports $74.15B:
      • US 7%, UK 5%, China 5%
  • 32. Economy
    • After Independence
      • door closed to foreign investors
      • Gov’t was “interventionalist”, monopolized media, aviation, banking, and telecommunications
    • Gandhian self-sufficiency or "swadeshi" that had inspired the Independence movement
    • Policy-makers favored socialist economic planning with limited free-marketeering
  • 33. Economy
    • Private companies moved into agriculture, industry and the production of consumer goods
    • By 1990, Country was broke
    • Foreign exchange reserves were at an all time low.
    • The World Bank and the IMF agreed to bail out India
    • India joins Structural Adjustment Program
  • 34. Economy
    • In five years India became one of the world's top ten emerging markets
  • 35. Economy
  • 36. Economy
  • 37. Economy
  • 38. Economy
    • FDI in India
      • FDI conference index (AT Kearney) ranks India as third best destination for FDI (overall) behind China and USA
      • In 2003, India was ranked 3 rd
      • India displaced US as second place for FDI among manufacturing investors.
      • Telecom and Utility investors rank India 2 nd (up from 5 th in 2003)
  • 39. Economy
    • FDI in India
      • India (along with China) dominate the top two positions for:
        • Most positive investor outlook
        • Likely first-time investments
        • Most preferred offshore investment locations for business processing and information technology services
  • 40. IT - Access
    • Teledensity at 6.0
      • Significantly lower than other developing countries. Mainly because of low per capita income and low level of urban population
      • World average at 15
      • Increased from 3.6 in 2001 – to 6.0 in 2004
    • 48,917,000 land lines (2003)
    • 23,154,400 mobile phones (2003)
    • 7.2 computers per 1,000 people
    • 86,871 internet hosts
    • 18,481,000 internet users
  • 41. IT - Access
    • Age
      • 68% users between the age of 15 and 30 use the internet
    • Gender
      • Male: 76%, Female 24%
        • USA moved from similar profile to 49:51 ratio
    • Usage purpose
      • Email - 90%
      • Information - 50%
      • Chat - 43%
      • Academic - 41%
      • Entertainment - 27%
  • 42. IT - Access
    • Time Spent
        • < 1/2 hr 21%
        • 1/2 hr - 2 hrs 64%
        • > 2 hrs 15%
    • Point of Access
        • Home 25%
        • Cyber Cafe 30%
        • Work 29%
        • Others 16%
  • 43. IT - Infrastructure
    • Telecommunications
      • Grown by over 20% on a year to year basis since 1997
    • Power
      • 6 th largest power generator in the world
      • Regular, reliable un-interrupted power
    • Roads
      • 3.3 million KM’s of road (2 nd largest in world). ½ of them paved
      • Roads & highways improved over last few years. Most cities linked
  • 44. IT – Major Locations
  • 45. IT – Economic Growth
    • Inward FDI
      • US largest investor
        • Microsoft, Oracle, Cisco, Intel, Dell
    • Job creation
      • 40% compounded annual growth rate (2 million jobs by 2008)
    • Real estate demand/growth as a result of business relocations
  • 46. IT – ecommerce
    • Low e-commerce activity
      • Low personal computer and Internet base
      • lack of security
      • high access costs
      • Small number of credit cards (5 million)
    • Dominated by low value products
      • Music, greeting cards and gifts, books and magazines, food stuffs and beverages
    • E-commerce is picking up
      • Increase from 4.5 billion Rs. In 2000 to an estimated 252 billion Rs. in 2005 (233 billion from B2B e-commerce)
  • 47. IT – Outsourcing
    • Software development
      • Evolution
        • Started in 1984
        • 160 fortune 500 companies in 1998
        • 250 in 2004
      • Abundance of English speaking skilled IT workers at low cost
      • 30% to 50% cost savings
      • Reliable communication infrastructure
      • Time zone advantage
      • Good export relationships
  • 48. IT – BPO
    • Business process outsourcing (BPO) is the act of transferring some of an organization's repeated non-core and core business processes to an outside provider to achieve cost reductions while improving service quality
    • 75% of US and European multinational companies now use outsourcing or shared services to support their financial functions
  • 49. IT – BPO
    • Kinds Of Service
      • Customer Support Services
      • Technical Support Services
      • Telemarketing Services
      • Employee IT Help-desk Services
      • Insurance Processing
      • New Business / Promotion
      • Policy Maintenance / Management
      • Data Entry Services / Data Processing Services
      • Scanning, OCR with Editing & Indexing Services
      • Book Keeping and Accounting Services
      • Internet Search, Product Research, Market Research, Survey, Analysis.
        • Technical support
        • Customer service
      • 54% growth from 2002 – 2003
  • 50. IT – BPO
    • Industry had a growth rate of 54% in 2003-04
    • BPO COMPANY
    • Outsourced Product Development (OPD)
    • R&D, prototyping, development, testing, maintenance, support and development of next generation of the products
  • 51. IT – BPO
  • 52. IT – BPO
  • 53. IT – Success factors
    • Trade organizations
      • National Association of Software and Service Companies (NASSCOM)
    • Indian Diaspora
      • Keep it’s edge in outsourcing due to influence of the Indian Diaspora in the UK & the US
    • Quality, speed, process orientation all at an attractive price
  • 54. INFOSYS
    • Started in 1981
    • Offers its service in the following areas
      • Enterprise IT programs
      • Communications and Internet technology product development
      • Engineering product design and data management
    • 1999 the company became the first Indian company to list in NASDAQ
    • In 2004 the company crossed a billion dollar in annual revenue
    • Market cap of 16.13 billion dollars
  • 55. INFOSYS
  • 56. Hot off the Press !!! India is magic in software: Steve Ballmer
  • 57. AMERICAN BRAND NAMES
  • 58. Issues
    • Patenting Intellectual Property
    • Boredom and Health concerns of Employees
    • Dwindling Pricing
    • Growing Competition
      • China factor
    • Security
    • Attrition
  • 59. Summary
    • Why Invest in IT in India?
      • Large pool of IT skilled labor
      • Good government polices on inward FDI
      • IT friendly import and export regulations
      • English widely spoken and understood
      • India enjoys the confidence of global corporations
      • Mature Industry
      • Relatively cheap labor
      • Of the 23 software companies in the world that have achieved the prestigious SEI-CMM Level 5, 15 of them are Indian
  • 60. Factors that Influence the IT Outsourcing Environment
    • Economy
    • Fast Growing
    • Stable
    • FDI Friendly
    IT Outsource Readiness
    • Government
    • Democracy
    • Stable
    • IT Friendly
    • Culture
    • English
    • Education
    • Resource Pool
    • Invest In
    • Offshore Development Center
    • BPO center
    • OPD center
  • 61. Vs Pakistan
  • 62. Vs Pakistan
    • Geography & Demographics
      • 803,940 sq. km (~ 2x California)
      • Border w/ India – 2912 km.
      • Coastline 1046 km
      • 141,553,775 people
      • 41% under the age of 15
      • Life expectancy ~ 61 years
      • Religion – 97% Muslim (77% Sunni)
      • English is official language of most government ministries. Official language is Urdu even though less than 10% of population speak it as primary language.
      • Literacy – 37.8%
  • 63.
    • Economy
      • GDP ~ $318B USD
      • GDP Real growth rate ~ 5.3%
      • Investment ~ 12.9% of GDP
      • Poverty ~ 35% below poverty line
      • Labor force ~ 44 million (44% agricultural, 17% industry, 39% services)
      • Unemployment ~ 7.7%
      • Exports ~ $11.7B:
        • US 22%, UAE 9%, China 6%, UK 7%, Saudi Arabia 5%
      • Imports $12.51B:
        • UAE 12%, China 12%, Saudi Arabia 11%, US 7%, UK 5%,
      • 2004 FDI ($950M), 2003 FDI ($798M), 2002 ($485M)
    Vs Pakistan
  • 64.
    • IT Industry and Issues
      • 2002 ~ Ministry of IT created
      • Exports $35 million worth of software a year as compared to $8 billion from India
      • Reasons Pakistan is not a significant player:
        • low production of IT-trained workforce (~ 800 per year)
        • underdeveloped and fragmented IT industry
        • lack of any initiative from existing industry leaders,
    Vs Pakistan
  • 65.
    • IT Industry and Issues
      • To compete:
        • Educate workforce to the int’l educational standards,
        • incorporate new technologies and modern management practices into its industry,
        • focus on building an information-based economy
      • Ex: October, 2004 ~ IT ministry approves Rs 236 million for ten IT projects for advancement of IT in private sector
    Vs Pakistan
  • 66. QUESTIONS ?

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