Indian IT Growing and proactively meeting changing market requirements 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 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

Indian IT Industry:- Current Analysis “India IT Industry grows by 31% in 2006, projected to cross 100 B USD in 2011” Source:- IDC 16.50% 132494 116914.25 102034.75 87801.75 74079.75 61652.25 India IT/ ITeS Industry Size 15.40% 80069.5 71166.5 62521.75 54526.75 46535.5 39148.5 IT/ IteS Exports Revenue 18.40% 52424.5 45747.75 39513.25 33275 27544.25 22503.5 Domestic IT/ ITeS Market 27.30% 10009.75 8704.25 7439.5 5857.75 4339.25 2992.5 Domestic ITeS Market 20.90% 5282.25 4447.5 3717.5 3079.75 2520.25 2046 Domestic Packaged Software 20.00% 12993.25 10958.5 9172.75 7629.75 6332.5 5230 Domestic IT Services 14.60% 24139.5 21637.5 19183.5 16707.75 14352.5 12235 Domestic Hardware & Others CAGR07-12 2012(Million USD) 2011(Million USD) 2010(Million USD) 2009(Million USD) 2008(Million USD) 2007(Million USD) India IT/ ITeS Industry Size, 2007-12

Some More Statistics Strong optimism of the industry to achieve its aspired target of USD 60 billion in exports by 2010 Domestic Market Growing @ of 22% Exports Growing@34% Growth of Software Product Companies FY07 Vertical market exposure for industry exports Knowledge Professionals employed in the Indian IT-BPO sector

Strong optimism of the industry to achieve its aspired target of USD 60 billion in exports by 2010

Domestic Market Growing @ of 22%

Exports Growing@34%

Growth of Software Product Companies

Hyderabad Bangalore Pune, Mumbai, Nagpur Noida Delhi Gurgaon Chandigarh Chennai Major IT Hubs Of India

Indian IT Industry

Proven Expertise in software development English proficiency Government Support Cost advantage Strong tertiary education Process quality focus Skilled workforce Expertise in new technologies Reasonable technical innovations Reverse brain drain Existing long term relationships Leverage relationships in West to access APAC/Middle East markets Indian domestic-market growth

Proven Expertise in software development

English proficiency

Government Support

Cost advantage

Strong tertiary education

Process quality focus

Skilled workforce

Expertise in new technologies

Reasonable technical innovations

Reverse brain drain

Existing long term relationships

Leverage relationships in West to access APAC/Middle East markets

Indian domestic-market growth

Positioning & Brand management Internal competition for resources Shortage of Skilled resources The National Association of Software and Service Companies (NASSCOM) said in a recent report the outsourcing industry was expected to face a shortage of 262,000 professionals by 2012. Over-promise / Under-deliver Inadequate data protection laws Resume fudging and Limited use of National Skill Registry Services still limited to ADM, Slow penetration in Software R&D, High end outsourcing work

Positioning & Brand management

Internal competition for resources

Shortage of Skilled resources

The National Association of Software and Service Companies (NASSCOM) said in a recent report the outsourcing industry was expected to face a shortage of 262,000 professionals by 2012.

Over-promise / Under-deliver

Inadequate data protection laws

Resume fudging and Limited use of National Skill Registry

Services still limited to ADM, Slow penetration in Software R&D, High end outsourcing work

Huge Untapped Market for “ Indian Software Product Companies” According to Software Magazine 500, Total worldwide revenues in 2006 for companies in the Software 500 list were $394 billion UK is expected to double its software product market by 2010 to £6.44bn Indian Software Product Industry on Take Off Path Graduating to “ Made In India” Brand Growth of Indian Domestic Market Supposed to be $30 Billion By 2010 Growth of IT lead investment in Retail, BFSI and Travel Enough room for expanding into Non-US Geography China Europe Disruption in Technology and Delivery models, present huge growth opportunity Web2.0 Product Development 2.0 Travel 5.0 Deploying Product in SaaS mode Government regulation India's share in the global software and services industry is around 3%, provides the Indian IT sector with huge potential to grow going forward.

Huge Untapped Market for “ Indian Software Product Companies”

According to Software Magazine 500, Total worldwide revenues in 2006 for companies in the Software 500 list were $394 billion

UK is expected to double its software product market by 2010 to £6.44bn

Indian Software Product Industry on Take Off Path

Graduating to “ Made In India” Brand

Growth of Indian Domestic Market

Supposed to be $30 Billion By 2010

Growth of IT lead investment in Retail, BFSI and Travel

Enough room for expanding into Non-US Geography

China

Europe

Disruption in Technology and Delivery models, present huge growth opportunity

Web2.0

Product Development 2.0

Travel 5.0

Deploying Product in SaaS mode

Government regulation

India's share in the global software and services industry is around 3%, provides the Indian IT sector with huge potential to grow going forward.

Rising Wages & Staff Attrition 20 – 40% attrition rate Rise of China, Croatia, Romania and other lower cost destinations nations Inflating Cost Of Infrastructure US Slowdown and slow penetration of Indian Companies into Non-US and Europe market Appreciating Rupee Vs Dollar and other Currency

Rising Wages & Staff Attrition

20 – 40% attrition rate

Rise of China, Croatia, Romania and other lower cost destinations nations

Inflating Cost Of Infrastructure

US Slowdown and slow penetration of Indian Companies into Non-US and Europe market

Appreciating Rupee Vs Dollar and other Currency

10 Mega-Trends for IT in 2008 Lower Worldwide IT Spending IT Vendors will ‘Double Down” on their investments in the emerging markets The IT market will jump feet-first into “everything as a service” “ Application Appliances” will go mainstream A Flood of Web gadgets extends the mobile Internet All mobile network operators will join the Open Internet Social networking will drive “Eureka 2.0” software and sites Key IT players will morph themselves The buzz around Green IT will turn out to be more than hype Key companies may get acquired Tremendous Opportunity and Threats for Indian IT Industry and Services need to evolve in Line with Trends for 2008

Lower Worldwide IT Spending

IT Vendors will ‘Double Down” on their investments in the emerging markets

The IT market will jump feet-first into “everything as a service”

“ Application Appliances” will go mainstream

A Flood of Web gadgets extends the mobile Internet

All mobile network operators will join the Open Internet

Social networking will drive “Eureka 2.0” software and sites

Key IT players will morph themselves

The buzz around Green IT will turn out to be more than hype

Key companies may get acquired

Tremendous Opportunity and Threats for Indian IT Industry and Services need to evolve in Line with Trends for 2008

Indian IT key predictions for 2008: According to IDC, 2008 would be beginning of Growth Phase 2.0 2008 will set the stage for Growth Phase 2.0 The India domestic IT market will transform significantly with the existing IT infrastructure evolving both in technology terms and depth of penetration. vendors reach out to new geographies (beyond BRIC) for growth, India would continue to remain the centre of attraction. Virtualization will become mainstream in 2008 as it gains wide-scale adoption Uptime, availability and performance management of infrastructure and applications to be at the core of innovation. The Digital Experience for the Indian consumer to hit the next level. Fixed-line broadband to emerge as a dominant trend in 2008 . Fixed Mobile Convergence (FMC) will signal the onset of a new battle in the Indian telecom sector Web 2.0 market in India to take off in 2008, shakeouts and a possible string of consolidations to follow. Security: Heightened business risk perceptions and security concerns will drive increased investments into a range of enterprise-wide and client-centric devices and applications. IT Solutions (hardware + software + services) delivery will witness change in 2008 with pockets of success and growing awareness setting the stage for wider market adoption. Fast-maturing Small and Medium Business (SMB) segment to be a key driver. Worldwide IT spending growth will decline, with a significant U.S. market downside risk

According to IDC, 2008 would be beginning of Growth Phase 2.0

2008 will set the stage for Growth Phase 2.0

The India domestic IT market will transform significantly with the existing IT infrastructure evolving both in technology terms and depth of penetration.

vendors reach out to new geographies (beyond BRIC) for growth, India would continue to remain the centre of attraction.

Virtualization will become mainstream in 2008 as it gains wide-scale adoption

Uptime, availability and performance management of infrastructure and applications to be at the core of innovation.

The Digital Experience for the Indian consumer to hit the next level. Fixed-line broadband to emerge as a dominant trend in 2008 .

Fixed Mobile Convergence (FMC) will signal the onset of a new battle in the Indian telecom sector

Web 2.0 market in India to take off in 2008, shakeouts and a possible string of consolidations to follow.

Security: Heightened business risk perceptions and security concerns will drive increased investments into a range of enterprise-wide and client-centric devices and applications.

IT Solutions (hardware + software + services) delivery will witness change in 2008 with pockets of success and growing awareness setting the stage for wider market adoption. Fast-maturing Small and Medium Business (SMB) segment to be a key driver.

Worldwide IT spending growth will decline, with a significant U.S. market downside risk

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