NOIDA & Greater NOIDA: the North India BPO HUB

Discussion Agenda • Brief Profile - Noida & Greater Noida • Contribution to the IT – BPO industry • Key Differentiators • Overall Location Assessment • Imperatives for the Government • Role of NASSCOM Northern Regional Council • NASSCOM Agenda 2 Copyright © NASSCOM 2008

NOIDA and Greater NOIDA are one of the largest planned industrial townships of Asia Economic & Business environment • A major satellite town of Delhi, with state of the art infrastructure - an international airport, expressway, well connected roadways, railways and upcoming METRO • IT/BPO hub with more than 400 IT BPO companies • IT-BPO SEZs in Greater Noida across 15 locations in the pipeline • Automobile ancillary units, with companies like Escorts, Honda-SIEL and New Holland Tractors (JV of FIAT with Ford), • Manufacturing and other companies: ISGEC, LG, Samsung, also have their offices in the township • Film location, situated in Sector 16A is the hub of all the major news channels and several studios. News channels such as Zee News, NDTV, TV Today group, IBN, CNBC Perspective on location Demographics Snapshot • Significant influx of working population from other Population (2008, estimated) ~ 500,000 locations in India and especially those in NCR 67.8 % Literacy Rate (2001) [decadal • Literacy (~68%) is higher than the national average of growth] 59.5 % Average Household Income (2004- 89,027 05) ® Copyright © NASSCOM 2009

Fourth largest IT- BPO destination in India, accounting for almost 9% of total IT-BPO exports in FY08…. Indian IT-BPO exports industry revenue share, Noida*, FY08 TOP INDIAN IT-BPO DESTINATIONS Bangalore Mumbai/Pune Hyderabad Noida Chennai 100%= USD 40.4 Bn * NASSCOM estimates 4 ® Copyright © NASSCOM 2009

….similar to the total IT-BPO employment Share of NOIDA in the Indian IT-BPO exports Noida – Total employment in FY08 in the IT-BPO industry direct employment, FY08 exports industry(in lacs) 4 5.3 1.3 Direct Indirect Total 100%= 1.56 million Employment Employment Source: NASSCOM estimates 5 ® Copyright © NASSCOM 2009

Many integrated and pure-play companies have established their operations in Noida……. INDICATIVE Industry Key Players Key Highlights Segments Total Number of Companies: ~ 400 • An attractive destination for companies across a range of areas IT Services i.e. traditional areas (eg core sectors such as automotive) to high-end IT development including niche areas. • Most of the top 20 IT-BPO companies have centers in Noida with MNC’s forming a major portion • Many of these players provide fully- integrated services with their development centers in Noida • Services provided range from integrated services to niche services - VLSI design, embedded services, high-end KPO services BPO • Adequate English skills, together with a large technically proficient student outturn, results in good opportunity for international voice and non-voice BPO services 6 ® Copyright © NASSCOM 2009

…..with presence of many of the Eng Services and OPD players…. INDICATIVE Industry Key Players Key Highlights Segments • Hi-tech/Telecom, Automotive and Construction/Industrial sectors are the key verticals Engineering most of the companies cater to Services • Availability of cost-efficient, highly skilled engineering/computer science talent led to setting up of development centers in Noida • Companies provide product- based and solution-based software products • Focused on a variety of Software domains, including ERP, Products/OPD banking, insurance and finance • In addition to the established companies providing OPD, several niche players, that are leaders in their areas of specialization, also have their centers in Noida 7 ® Copyright © NASSCOM 2009

…..ranked one of the best Semiconductor Design hub in India second only to Bangalore… INDICATIVE HIGHLIGHTS Noida is considered one of the best location in India to start a semiconductor operation for both, Indian and MNC companies Some factors driving this choice: • Availability of “quality–cum-cost advantage” • Minimized turnaround time for product development • Growing markets are increasingly driving the demand for more dynamic products • Strong engineering talent with English language skills • Companies focus on activities ranging from the development of EDA tools, verification, chip design applications and methodologies to consulting and design services, and customer support. • Indian domestic market fast growing; and the demand for electronics equipment expected to reach USD 363 billion in 2015 from USD 28.2 billion in 2005 Source: Indian Semiconductors Association and NASSCOM 8 ® Copyright © NASSCOM 2009

…SMEs accounting for more than half of the total number of companies... INDICATIVE HIGHLIGHTS • Cost effectiveness is the main reason for start-ups and SMEs to set up shop in Noida. They also have the opportunity to cater to niche markets • The presence of incubation centers and the support provided by STPI to start-ups and SME’s makes Noida a favorite location • The support garnered from the established players in terms of mentoring and other support • Availability of world-class training institutions makes it a hub for students in North India thus providing access to quality talent. Source: Zinnov Study and NASSCOM Note: SME’s are companies having revenues in the range of Rs. 50 crores or less 9 ® Copyright © NASSCOM 2009

…. and presence of MNCs who want to leverage the talent pool and robust business environment INDICATIVE STATISTICS Total MNC (Nos) : ~40-50 Captives (Nos) : ~ 25 % of total Noida revenue : ~35 SERVICES OFFERED • Many of the R&D centers are the key service nodes for the parent company. – The facility in Noida for Accenture forms a key node in the “Accenture Global Delivery Network” . – Steria has three units in Noida employing more than 3,000 employees REASONS TO SET UP UNIT IN NOIDA EXPANSION PLANS • A large pool of qualified candidates is available, hence, • Many of the companies are deferring their large scale ramp up is relatively easy expansion plans until the current economic • Large number of colleges – Hub for the students from situation changes North India • Some companies like Headstrong plan to continue • Good Telecom/Broadband Infrastructure with the existing STPI facility in Noida, however • Economical rentals compared to Gurgaon and Delhi shift to a Noida SEZ in 2010-11 • Social and living Environment for workforce 10 ® Copyright © NASSCOM 2009

Highlights of NASSCOM-ATK Location study High Chennai Mature Attractive Mumbai Hyderabad • One of the seven Leader Locations Bengaluru • IT sector identified as a Delhi Location Attractiveness growth vehicle for economic Kolkata development NOIDA Lucknow • An attractive destination for various industries – Kanpur Automotive & ancillary, Allahabad Varanasi Media, Manufacturing, IT- BPO Needs development ‘Explore focused • Availability of domain experts support operations’ across Manufacturing, Low Low Financial services, Telecom, High Cost of Operations Retail, Government, etc. Assessment Parameters NOIDA Lucknow Kanpur Allahabad Varanasi • Given the diverse sector opportunities, ability to draw Government Support * 4.9 4.9 4.9 4.9 4.9 manpower is good especially Business Environment 5.5 4.1 3.3 1.8 1.7 when coupled with the influx Skill Set Assessment-IT 5.9 4.4 4.2 3.8 3.1 from other locations across Skill Set Assessment-BPO 6.0 5.0 3.9 3.2 2.6 India Infrastructure 6.6 5.7 3.7 3.2 3.6 • It enjoys a 2% cost Social and Living Env. 4.2 6.0 6.1 5.5 5.6 advantage over the average Location Attractiveness-IT 5.7 4.9 4.3 3.8 3.6 cost of leader locations Location Attractiveness-BPO 5.7 5.2 4.1 3.6 3.4 Leaders Cost Advantage 2% 27% 43% 39% 43% *Government support for the State/UT in which the location is present Challengers/Followers/Aspirants ** Estimated difference in cost of operations between the above location and the average cost of 11 ® operations across all the leader locations. A negative number indicates a cost higher than the average cost across the Leader locations

Infrastructure facilities on par with other Leader locations……. Hyderabad Mumbai Delhi Noida Chennai Bengaluru Kolkata Local 1 Connectivity National 2 Connectivity 3 Roads & Traffic 4 Space 5 Power 6 Telecom 7 Hotels 12 Excellent Average Good Poor ® Copyright © NASSCOM 2009

…….and a healthy Social and Living Environment Hyderabad Mumbai Delhi Noida Chennai Bengaluru Kolkata Educational 8 Facilities Medical 9 Facilities Recreational 10 Facilities Social 11 Infrastructure Security & 12 Hygiene 13 Cost of Living Excellent Average Good Poor Source: NASSCOM-ATK: Location Roadmap for IT-BPO Growth 2008;NASSCOM 13 ® Copyright © NASSCOM 2009

Imperatives for the Government of Uttar Pradesh • Address key infrastructure challenges i.e., availability of power, security, hotels and water supply • Encourage development of a large pool of qualified workforce along with domain expertise to offer quality high-end research and/or analytics expertise • Create clusters of learning and innovation by ensuring integration between stake holders; Universities should form an integral part of the ecosystem to nurture talent and provide assistance to key research areas of importance to IT-BPO industry • Continue to increase the visibility of NOIDA/Greater NOIDA as an IT – BPO destination in order to attract more investors. Provide visible and consistent political support for attracting anchor IT/ITES companies • Ongoing infrastructural development to support growth in the sector, e.g. roads, hotels etc. ® 14 Copyright © NASSCOM 2008

Leading to an unprecedented andCouncil year for Role of NASSCOM Regional eventful the Indian IT-BPO industry - spearhead the change you wish to see ! • Establish a vibrant and involved IT-BPO community where members and Special Interest Groups (SIGs) interact freely with each other to share knowledge and industry best practices, and • Setup a NOIDA/GNOIDA outreach program to enable NASSCOM members engage deeply with the society we work in viz. the educational institutions, police & administration, and the public ® 15 Copyright © NASSCOM 2008

SIG’s which are making progress Infrastructure & Transportation • Training • HR • Security • Operational Efficiency • If you would like to contribute to any of the sigs please send an email to avinash(a)nasscom.in 16 ®

Members of NRC-Noida Harsh Lohit, MD, Headstrong – Chair, NRC - Noida • Vishnu Dusad - MD, Nucleus Software, Co- Chair, NRC - Noida • Ashoke Ghosh, President - Delivery GrapeCity (Lead Operational Efficiency - SIG) • Gen. S. K. Nanda, Chairman, Infogain India (Lead Security - SIG) • J. Parthasarathy, Director - STPI Noida • J. Ramachandran, Chief Executive Officer, Birlasoft • Navin Chugh – COO, Steria(India)Ltd • Padmaja Krishnan, Director – Marketing & Communications, CSC India • Sanjeev Bikhchandani - CEO, InfoEdge • Saugat Sen, VP and Noida Center Head, Cadence (Lead – Education & Training SIG) • Sunil Goyal, COO - Sopra India (Lead HR SIG) • Vivek Agarwal, Chief Executive Officer, Liqvid eLearning Services Private Limited • Gen Chander Bhan Sukhu, Global Head – Administration, HCL Technologies (Lead • Infrastructure & transportation SIG) 17 ®

NASSCOM 2009 – 2010 priorities What does Industry, Academia & Government need to work on to make NOIDA & Greater NOIDA an even more attractive destination for IT / BPO 2 Build a IT / BPO Community Engage with academia 1 Position NOIDA & 3 & potential workforce Greater NOIDA • A culture of volunteerism amidst busy lives • Industry – academia • A significant contributor to • SIG’s for HR, Education, engagement for building an Uttar Pradesh’s economy Operational Excellence, employable workforce, • Design & Embedded hub Infrastructure, Women in • Faculty development, • Product development Technology • Engaging with the student • Software services • Monthly, quarterly, annual events community for & by these groups • Add Membership 4 Safety & Infrastructure 5 Give back to society • Law & Order • Concerns over safety – • Engage actively with especially of women employees community at large – is a major challenge for • Involvement of local community companies in programs done by IT Industry • Traffic Management • Donation of computers to schools, etc 18 ®

THANK YOU DISCLAIMER This presentation has been prepared by NASSCOM This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of the NASSCOM’s knowledge, the content is not to be construed in any manner whatsoever as a substitute for professional advice. NASSCOM shall not be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation. 19 ® Copyright © NASSCOM 2009

NOIDA & Greater NOIDA: the North India BPO HUB

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