1. Unlimited Opportunities
of your Making
SOM MITTAL
FORMER PRESIDENT & CHAIRMAN, NASSCOM
OCTOBER 2014
Som Mittal

2. 2
What we will discuss today
• Where are we today, what does the present hold for us
• What are the disruptions that are happening
• What opportunities are these disruptions creating
• How do we make most of these
Som Mittal

3. 3
India – the country
7th largest country
780 dialects spoken, 86 scripts used
2nd largest population
>50% below 25 years
>65% below 35 years
2nd largest pool of
scientists and engineers
Largest democracy
815 million voters
Internet users
 2nd largest
 215+ million
Teledensity
 75+%
 920+ million subscribers
Source: IAMAI, New reports
Mix of contemporary and traditional
Poverty rate
1994 45%
2012 22%
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4. 4
Indian market presents a huge global opportunity
Source: IBEF, McKinsey
Healthcare spending to be
USD 160 billion by 2017
Consumer market to be over
USD1.5 trillion by 2025
Growing rural market –
potential to add USD 1.8
trillion to economy
Attractive FDI destination
25% of world’s skilled
workforce by 2025
Infrastructure investment
– USD 1 trillion over next
5 years
Growing middle-class –
~600 million by 2025
Broadband growth –
expected to have 1.38%
multiplier effect on GDP
Retail industry – expected
to be USD 750-850 billion
by 2015
A fast growing e-commerce
industry – USD 100 billion
by 2015
World's second-fastest
growing auto market
Banking sector to become
fifth largest in the world by
2020
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5. 5
Technology can also play a key role in India’s
transformation
GROWTH
 500 million skills needed over the next decade
 400 million people need stable electricity
INCLUSIVENESS
 650 million people need proper nourishment
 120 million rural households need bank accounts
GOVERNANCE
 #134 out of 189 countries on ease of doing business
 #94 out of 176 countries on corruption perception index
KEY
FOCUS
AREAS
FOR
NEW
GOVT
Technology can help in bringing about a positive change in the lives of millions
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6. 6
IT-BPM industry: Highest impact sector
8.1%
Relative industry share in national GDP
45% Offsets nearly half of India’s oil import bill
38%
Spearheading the Indian MNC story
Largest share in total services exports
Highest attractor of PE/VC investments
3.1
mn
Largest private sector employer
Largest private sector women employer
Promoting balanced regional growth
60-
70%
>1 mn
>60
Total cross border
M&As;
28% share
in total
$2.4 bn
Total investment;
IT-BPM share:
47%
99
Operational
IT SEZs;
44% in
Tier II/III
Highest net value add sector
Source: NASSCOM
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7. 7
Services industry providing value addition across five
distinct levels
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8. 8
India leadership drivers
BENEFITS IMPACT ON CUSTOMERS
Cost
Competitive
Human Capital
Customer
First
Scalability,
Security
Strong
Ecosystem
3X
cheaper than US
>5 million graduates
>3 million workforce
100%
coverage of outsourcing
engagements
~75 countries
~600 ODCs
43
Tier II/III cities
• Optimum cost
• Operational flexibilities, efficiencies
• Largest employable pool
• Diverse background
• Customer centric business outcomes
• End-to-end services
• Niche, domain capabilities
• Global delivery network
• Best-in-class governance frameworks
• Competitive infrastructure
• Emerging potential locations
Maturity USD 118 billion
industry
• Scale: 16,000 firms
• Depth of services: across IT-BPM
• Vertical-wide presence
1
2
3
4
5
6
Source: NASSCOM
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9. Diverse industry structure: Future growth driven by innovation
9
Large
11 players
Mid-sized
120-150 players
Emerging players
~1,000-1,200
Small sized
~15,000 players
%
contribution
to total IT-BPM
revenues
>40 per cent
~35-40 per cent
~9-10 per cent
~9-10 per
cent
• 1% (~150) companies contribute 80%
of industry revenues
• This segment needs facilitatory
environment, policy predictability &
stability, ease of doing business;
• 99% (~16,000) companies contribute
less than 20% of revenues
• Future growth driven by innovation, IP
& valuations rather than revenues
• Need support, markets, incentives and
simple regulation
• Can contribute 50% of growth by 2020
Incentivize expansion to Tier 2/3 towns &
integrate with new cities program
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Source: NASSCOM

10. India will continue to play a dominant role in the KPO market
10
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Key trends in KPO services
• Expansion in breadth and depth of services
• Services are likely to be offered in near-shores
along with language capabilities
• Emerging verticals and non-traditional
markets will be the growth engine
Scope of
services
• Many knowledge services deal with
regulatory standards across nations
• Data compliance with respect to regulatory
standards (especially those defined by the
United States, Canada and the European
Union) will be required
Awareness of
regulations
• Domain expertise in sales and marketing
team to sell appropriate services to client
• Collaboration with client will be required to
access business related data for performing
value-added analysis on it
Investment in
sales and
marketing
capabilities
Exports KPO - Split by verticals (2020E)
100% = $11.3bn1
• China for key phases of clinical trial process
• Philippines for number of key areas,
including healthcare outsourcing
• Sri Lanka for specific service lines such as
equity and credit research
Emerging
geographies
32%
14%
13%
9%
4%
6%
2%
20%
Hi-tech/ Telecom
BFSI
Healthcare
T&T
Retail
Manufacturing
Construction &
Utilities
Others
Source: NASSCOM

11. 11
Four major trends are driving investment in ER&D
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Increasing use of
electronics
Fuel efficiency/
Alternate Fuels
 Electronics / Communication technologies increasing across
verticals (e.g., Automotive, Construction, Energy)
 Enables real time monitoring, greater operational efficiencies and
higher comfort
 Higher fuel efficiency and sustainability becoming a priority
1
2
3
Products for
local markets
 Required customized products for the emerging markets
 Leverage local talent (India and China) to develop products for the
emerging markets
Convergence of
Technologies
4
 Devices and products with multiple functionalities (e.g., Consumer
Electronics, Mobile handsets, Medical Devices)
Source: NASSCOM

12. 12
India also emerging as hub for products and innovation
Tectonic Technology Shifts Underway
• Software / Hardware / Services silos merge into “Solutions”
• Majority of new software delivered "as a service”
• Hardware of all kinds embed software intelligence
• India is uniquely positioned to deliver innovative combinations of
world class product, services and hardware
India's Young will Invent the Future
• Innovation landscape worldwide is more youthful, agile, capital
efficient and multi-disciplinary than ever before
Goal: Transform India into an “Innovation Nation”!
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13. 13
Govt Support Increasing for Startups plus the Digital India
initiative
• Rs 10,000 crore debt and equity fund
• Widespread incubator and accelerator network
• Simplified laws for setting up and closure
• Focus on rural entrepreneurship
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Impact 2020 50,000
tech start-ups can
add 2% to India’s
GDP and 3 million
jobs

14. 14
Vision of Digital India
Announced by Modi Govt
Centered on 3 Key Areas
1. Digital Infrastructure as a Utility to Every Citizen
2. Governance & Services on Demand
3. Digital Empowerment of Citizens
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15. 15
Nine Pillars of Digital India
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1. Broadband
Highways
2. Universal
Access to Phones
3. Public Internet
Access
Programme
4. E-Governance –
Reforming
government through
Technology
5. eKranti –
Electronic delivery
of services
6. Information for All
Electronics Manufacturing
7. Electronics
Manufacturing –
Target NET ZERO
Imports
8. IT for Jobs
9. Early Harvest
Programmes

16. 16
Composition of Monitoring Committee on Digital India
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Special Invitees
• Principal Secretary to PM
• Cabinet Secretary
• Secretaries of Expenditure,
Planning, DoT and Posts
• Secretary, DeitY – Convener
Prime Minister – Chairman
Finance Minister
Minister of
Communications & IT
Minister of Rural
Development
Minister of HRD
Minister of
Health

17. 17
What Is Driving the Opportunity
New disruptive technology evolving fast
Most of these are consumer oriented
Consumer and people behaviors are getting impacted
This is creating completely new green field opportunities
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18. 18
What do these things have in common?
Technology is constantly shaping our lives...

19. Revenge of the Nerds..CHANGING established behaviors!
Apple iTunes
 Retailing of digital
Wearable Devices
 Wearable devices for pathological usage
Napster’s growth and
industry response
 1992 Global adoption
music – Legal
alternative to p2p
sharing
 Arrival of Napster –
 Artists can produce
15 users in 1999,
32mn in 2000, 80 mn
in 2001
19
PGGroiPnoStg eBldea NMseaadvp iTgsoamtioTonm Ap&p Garmin Sleep HealthCenters
 Overnight stay to diagnose sleep ailments
 Launched in 1997, revenue of $10mn in 2004 & $30mn in 2010
 Abruptly shut down in 2012
Book Stores Music Industry
on MP3 std
their own music
 Revenue in 2012 –
$4bn
 East is east, west is west!
 Dominant role of film music & recording companies
 Limited power to artists
 Bezos waited for
exponential imprv in
storage, battery life &
display tech(E Ink)
 2011 – eBook sale
exceeded that of
printed books
 Winning combination
of Mobile & Payment
tech to disrupt FS
supply chain?
Amazon Kindle
What next?
Innovators aren’t targeting your business. You’re just collateral damage.
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20. 20
Increasingly rapid adoption of innovative technologies
Big Bang market adoption with disruptions
It is no longer a 'bell curve'
but a 'shark fin'...
Time to reach 1bn users has
been halving with each new
technology!
 Telephone – 110 yrs
 TV – 50 yrs
 Mobile – 20 yrs
 Internet – 15 yrs
 Smartphones – 8 yrs
 Messaging apps – 2 yrs
Next 1bn in less than 5
years?
Increased Re rsautelt ionfg a idno sphtoiornte dr upero tdou mctu litvipelse factors
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21. 21
Big Data and Analytics break entry
Virtual shopping in subways-Korea US health insurer
New platforms make interactions
social
Mobile Virtual N/w Operator, UK Telefonica
• Social forums -
customers are
rewarded for
answering other
customer queries
• P2P lending, free
SIM and other offers
barriers
• Better health care at
lower costs using
interactive devices
• Monitor members,
through remote
detection/ advisory
Physical footprint much less relevant
today
• Add to cart by scanning code
with smart-phone
• Home delivery after work
Clinical visits reduced by 50%
130% increase in online
sales
90 secs avg waiting time for
complaints
Disruptions are triggering a PARADIGM SHIFT
Disrupts physical retail! Disrupts medical consulting & pathology
labs!
Disrupts Call Centres & BPO!
Intelligent personalized
public transport (Finland)
• Personalised public
transport - Travel
almost door to door
using shared
transport
• Tailored trips without
transfers & parking
concerns
Kutsu plus offering new kind
of bus service
Disrupts public transportation,
private car ownership?
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22. 22
...some could impact MULTIPLE INDUSTRIES
Disrupts energy, home automation?
Google driverless cars
• Self-driven car will
reduce automobile
accidents, nullifying
speeding, drunk/
distracted driving - 6.5
bn hours of on-road
driving time to be
available
• Use as automatic taxis,
cars for disabled
Disrupts automotive industry?
Escorts Group –
Tractor Health Monitoring Internet of things
• N/w of low-cost sensors,
wireless NFC devices
• Smart devices connect
to mobile wallet & auto
debit
• Big data gets bigger with
interacting machines
• Early warning
messages
Disrupts service centres?
New platforms make
interactions social
• 3-D printing consumers
could save 50-60% in
costs per printed product
• Rapid prototyping, rapid
manufacturing, mass
customization, bioprinting
Disrupts manufacturing!
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23. E-Comm and Retail players are the true poster children of Big
Data …
23
“Customers who bought this item also
bought…”
“You need baby products now”
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24. 24
… with applications going beyond business, to creative
arts and public health
“We know what you like to see”
"We own the Netflix customer experience from the moment they
sign up, for the whole time they are with us, across TV, phone
and laptop," - Todd Yellin, VP of product innovation.
"We climb under the hood and get all greasy with algorithms,
numbers and vast amounts of data. Getting to know a user,
millions of them, and what they play. If they play one title, what
did they play after, before, what did they abandon after five
minutes?"
“We can predict flu trends better and quicker than CDC”
Google flu tracker USA CDC flu report
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25. 25
Will require a lot of out of the box thinking
How to inculcate a problem solving
mindset in students school level onwards?
How to partner with academic institutions?
In a country of a billion plus people, how to
encourage free flowing ideation?
How to create next generation leaders
from current Indian talent?
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Skill-set
Social Media
Analytics
Mobility
Cloud platform
Domain skills
Solutions/Recommendations
India level -
Hackathon / Codefest
Collaboration with
industry external
partners
Collaboration with
Universities
Problem Solving Leadership training
How to fuel disruptive innovation in India?
Source: NASSCOM

26. 26
Ecosystem is vibrant than ever!
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27. 27
India has produced 3500+ tech startups…
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28. 28 Som Mittal

29. Photo by kevin dooley - Creative Commons Attribution License https://www.flickr.com/photos/12836528@N00 Created with Haiku Deck

30. Have we missed the opportunity
in UP?
30 Som Mittal

31. 31
If we act now we can still make it happen
• We have to re-energize our colleges; improve the output;
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MOOCs; new ideas
• Get entrepreneurship kicked in; set up incubators ; invite
industry; create mentors; increase visibility
• Focus on local solutions; tie up with Digital India vision
• Do not start with trying to convince Government; they will
follow
• If need Govt., support be very specific; find a champion
• Encourage participation in forums outside; expand
network

32. 32
In Summary: Fortunate to be at this time
• World is changing fast; globalization has made world almost a
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border less market
• Technology has evolved and is now consumerised
• New ideas and innovation are threatening old models and
business as usual
• India itself offers large opportunities to solve its problems
• Government will itself be a key customer and driver
• The eco system is encouraging entrepreneurship. Young
people have more career options
The future is of our own making - Will you be the next Disrupter?