IT Industry in India (A brief walkthrough) Presented by Ali Sadhik Shaik [email_address]

Agenda Introduction and Focus Background and Growth IT Statistics India Advantage IT Clusters Top Players Conclusion

Introduction and Focus

Background and Growth

IT Statistics

India Advantage

IT Clusters

Top Players

Conclusion

Introduction and Focus

Industry Growth Shri Rajiv Gandhi Regime- 1984 “ Unix Country”- 1986 GE’s partnership- 1989 STP’s Concept- 1990 Foreign Investments Policy-1991 Y2K

Shri Rajiv Gandhi Regime- 1984

“ Unix Country”- 1986

GE’s partnership- 1989

STP’s Concept- 1990

Foreign Investments Policy-1991

Y2K

Skill shortage Lower costs Legacy Migration Enterprise wide IT Y2K deadlines New capabilities ERPs Faster time to market Bus Continuity Lower cost Business alignment Maximize leverage Innovation Scale 70’s to early 90’s 94-98 99-2001 Mainstream today Scale & Complexity Value to Customer Offshore IT Companies Skilled workforce Cost advantage Legacy platform skills Wider range skills Legacy platform skills Strong execution frameworks Committed delivery Quality excellence R&D investments Business Continuity Project Management Stable companies Investments into Domain & Consulting skills World class Infrastructure Domain / consulting expertise Innovation New Technologies Project Mgmt. Excellence End-to-End Services World Class Companies World class Infrastructure Integration New and Legacy Large Scale Application Dev. Legacy Maintenance What next Total Outsourcing Marching ahead and meeting changing market requirements Medium Large Application Projects ERP/CRM e-Business IT Strategy BPO / ITO Y2K Large Scale Maintenance Staff Augmentation Execution Excellence Customer Satisfaction Cost Competitiveness Change Management GDM

Skill shortage

Lower costs

Legacy Migration

Enterprise wide IT

Y2K deadlines

New capabilities

ERPs

Faster time to market

Bus Continuity

Lower cost

Business alignment

Maximize leverage

Innovation

Scale

Skilled workforce

Cost advantage

Legacy platform skills

Wider range skills

Legacy platform skills

Strong execution frameworks

Committed delivery

Quality excellence

R&D investments

Business Continuity

Project Management

Stable companies

Investments into Domain & Consulting skills

World class Infrastructure

Domain / consulting expertise

Innovation

New Technologies

Project Mgmt. Excellence

End-to-End Services

World Class Companies

World class Infrastructure

IT Statistics

IT Statistics Below table gives the statistical data of IT industry. *Source: NASSCOM. (USD billion) 2003-‘04 2004-‘05 2005-‘06 2006-‘07 2007-‘08 (projected) Export 12.8 17.7 23.6 31.4 ~ 40 Domestic market 3.9 4.8 6 8.2 ~ 10 Revenue 16.7 22.5 29.6 39.6 50 % contribution to national GDP 3.5 4.1 4.8 5.2 7 % annual growth in revenue 28.2 33.7 31 30 ~ 27

IT Statistics Exporting – 95 countries North America – 63% Europe – 26% Japan & others – 11% Estimation of 2.2 million jobs and US $ 4-5 billion of FDI by 2008 Estimation of US $ 60-70 billion IT revenue by 2010

Exporting – 95 countries

North America – 63%

Europe – 26%

Japan & others – 11%

Estimation of 2.2 million jobs and US $ 4-5 billion of FDI by 2008

Estimation of US $ 60-70 billion IT revenue by 2010

Share of on-shore & off-shore Off-shore On-shore 4 3 % 5 5 % 6 4 % 7 4 % 5 7 % 4 5 % 3 6 % 2 9 % 2 0 0 0 2 0 0 2 2 0 0 4 2 0 0 6 % of revenue

FDI in IT-ITES CAGR-178.6%

India Advantage

India Advantage

India Advantage Cost Advantage

India Advantage Vast access to skill base Strong Quality orientation Availability of high quality infrastructure Government Policies Mature industry eco-system Venture capital and private equity Prestigious educational institutes

Vast access to skill base

Strong Quality orientation

Availability of high quality infrastructure

Government Policies

Mature industry eco-system

Venture capital and private equity

Prestigious educational institutes

IT Clusters

IT Clusters

IT Clusters Bangalore -- Local government support -- Infrastructure -- Availability of Knowledge -- Favorable environment for R & D -- First mover advantage Hyderabad -- Entrepreneurial visionary Leader Kolkata -- Entrepreneurial Leader

Bangalore

-- Local government support

-- Infrastructure

-- Availability of Knowledge

-- Favorable environment for R & D

-- First mover advantage

Hyderabad

-- Entrepreneurial visionary Leader

Kolkata

-- Entrepreneurial Leader

Major players Tata Consultancy Services Ltd. Ranked 1 in 2005 by NASSCOM Incorporated - 1968 Revenues - USD 2.97 Bn 71,000 employees Wipro Technologies Ltd. Ranked 3 in 2005 by NASSCOM Incorporated - 1997 Revenues - USD 1.81 Bn over 50,000 employees Infosys Technologies Ltd. Ranked 2 in 2005 by NASSCOM Incorporated - 1991 Revenues - USD 2.04 Bn 52,700 employees Satyam Computer Services Ltd. Ranked 4 in 2005 by NASSCOM Incorporated - 1987 Revenues - USD 0.72 Bn 24,798 employees

Tata Consultancy Services Ltd.

Ranked 1 in 2005 by NASSCOM

Incorporated - 1968

Revenues - USD 2.97 Bn

71,000 employees

Wipro Technologies Ltd.

Ranked 3 in 2005 by NASSCOM

Incorporated - 1997

Revenues - USD 1.81 Bn

over 50,000 employees

Infosys Technologies Ltd.

Ranked 2 in 2005 by NASSCOM

Incorporated - 1991

Revenues - USD 2.04 Bn

52,700 employees

Satyam Computer Services Ltd.

Ranked 4 in 2005 by NASSCOM

Incorporated - 1987

Revenues - USD 0.72 Bn

24,798 employees

India: The R&D Hub for MNCs

Conclusion

Reference: Sarala V.Nagala. (2006). India's Story of Success. Stanford Journal of International Relations. K Ramachandran, (2004).ISB. Formation of Information Technology clusters: How late movers follow models different from early movers presented at NSF workshop Bangalore. T.N. Srinivasan, Samuel C. Park, Jr. Professor of Economics, Yale University. (2005, September). Information Technology enabled services and India’s growth prospect. Sankaran Krishna. (2005). India: Globalisation and IT Development. South Asian Journal. Ashok Jhunjhunwala (2003). Can Information Technology Help Transform India? IIT Madras. KPMG (2006, January) Report on Indian IT Sector. www.ibef.org –The India Brand Equity Foundation. www.nasscom.org – National Association of Software and Service Companies. Government of India Ministry of Communications & Information Technology Department of Information Technology (2003) . "Task force on meeting the Human Resources Challenge for IT and IT enabled Services".

Sarala V.Nagala. (2006). India's Story of Success. Stanford Journal of International Relations.

K Ramachandran, (2004).ISB. Formation of Information Technology clusters: How late movers follow models different from early movers presented at NSF workshop Bangalore.

T.N. Srinivasan, Samuel C. Park, Jr. Professor of Economics, Yale University. (2005, September). Information Technology enabled services and India’s growth prospect.

Sankaran Krishna. (2005). India: Globalisation and IT Development. South Asian Journal.

Ashok Jhunjhunwala (2003). Can Information Technology Help Transform India? IIT Madras.

KPMG (2006, January) Report on Indian IT Sector.

www.ibef.org –The India Brand Equity Foundation.

www.nasscom.org – National Association of Software and Service Companies.

Government of India Ministry of Communications & Information Technology Department of Information Technology (2003) . "Task force on meeting the Human Resources Challenge for IT and IT enabled Services".