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Indian IT BPM sector in India   2013 - A Summary
 

Indian IT BPM sector in India 2013 - A Summary

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NASSCOM reaffirms its commitment to facilitate the industry’s growth towards ...

NASSCOM reaffirms its commitment to facilitate the industry’s growth towards
its 2020 vision. This report assesses various factors relating to the Indian IT-BPM sector performance and key trends in the current fiscal year (FY2013), reviews the key components of India’s value proposition and provides a view on the outlook projected for the global and the Indian IT-BPM sector. This annual report is the only one of its kind assemblage of facts and indicators, and an apogee of NASSCOM’s research efforts throughout the year.

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    Indian IT BPM sector in India   2013 - A Summary Indian IT BPM sector in India 2013 - A Summary Document Transcript

    • IT-BPM Sector Key Trends THE IT-BPM SECTOR IN INDIA Strategic Review 2013 IT ServicesSoftwareProducts OSPD BPM Knowledge Services Engineering
    • Copyright ©2013International Youth Centre, Teen Murti Marg, ChanakyapuriNew Delhi - 110 021, IndiaPhone: 91-11-23010199, Fax: 91-11-23015452Email: research@nasscom.inFirst Print: February 2013Published byNASSCOM, New DelhiDesigned & Produced byCreative Inc.Phone: 91-11-41634301Printed atP.S. Press ServicesNASSCOM is the premier trade body as well as the Chamber of Commerce of the IT-BPM sector in India. It is a not-for-profitorganisation and has emerged as the authentic voice of this industry in India. It is also the single reference point for allinformation on IT industry in India. NASSCOM publishes an annual edition of its Strategic Review to disseminate the lateststatus of the industry.DisclaimerThe information contained herein has been obtained from sources believed to be reliable. NASSCOM disclaims all warrantiesas to the accuracy, completeness or adequacy of such information. NASSCOM shall have no liability for errors, omissions orinadequacies in the information contained herein, or for interpretations thereof.The material in this publication is copyrighted. No part of this report can be reproduced either on paper or electronic mediawithout permission in writing from NASSCOM. Request for permission to reproduce any part of the report may be sentto NASSCOM.Usage of InformationForwarding/copy/using in publications without approval from NASSCOM will be considered as infringement of intellectualproperty rights.
    • IT-BPM Sector Key TrendsFOREWORD 2012 turned out to be another year where uncertainty was the only thing that was certain. Persistent economic weakness continued to sap our abilities to address environmental challenges. But shocks are more than just natural phenomenon and, as events since 2008 show, they are increasingly systemic – transcending boundaries between geographies, markets and polities. In an interdependent, fast moving world, uncertainties are amplified – exposing many and insulating few. This presents new challenges for public and private sectors which need to be more agile and able to experiment with different development solutions in the face of rising complexity and improbabilities. This in turn is the new role of technology in general, to enhance customer capabilities, help open untapped markets, drive transformation and create a positive impact on business outcomes. The Indian IT-BPM industry has remained a global powerhouse because it has not remained a stationary target. It has exhibited rapid evolution in terms of expanding their vertical and geographic markets, attracted new customer segments, transformed from technology providers to strategic business partners, and offering a considerably wider spectrum of services over the years. What is emerging as a crucial differentiator going forward is the Indian industry’s ability to deliver enterprising solutions- IP driven, multi-platform and productised services. At the same time, the industry is leading the drive to design solutions incorporating social, mobile, analytics and cloud technologies to provide innovative, enterprising answers to the unique challenges of this decade.The industry is The Indian IT-BPM sector is estimated to aggregate revenues of USD 108 billion inre-shaping itself FY2013, with exports touching USD 75.8 billion, growing at 10.2 per cent. During this period, direct employment is expected to reach nearly three million, an addition ofto maintain 188,300 employees, while indirect job creation is estimated at 9.5 million. Domestic IT-BPM services revenue is expected to grow at 14.1 per cent to gross ` 1,047 billionits growth in FY2013. Strong economic growth, rapid advancement in technology infrastructure,trajectory. Its increasingly competitive Indian organisations, enhanced focus by the government and emergence of business models that help provide IT to new customer segments are keyoutlook remains drivers for increased technology adoption in India.bright and NASSCOM reaffirms its commitment to facilitate the industry’s growth towards its 2020 vision. This report assesses various factors relating to the Indian IT-BPMthe sector will sector performance and key trends in the current fiscal year (FY2013), reviews the keyremain a game components of India’s value proposition and provides a view on the outlook projected for the global and the Indian IT-BPM sector. This annual report is the only one of itschanger in kind assemblage of facts and indicators, and an apogee of NASSCOM’s research efforts throughout the year. We trust you will find the report useful and we welcome yourthis decade. feedback and comments. Som Mittal President Nasscom Strategic Review 2013 1
    • IT-BPM Sector Key Trends About NASSCOM Delhi Kolkata Chennai Pune u s tr y r Hyderabad ind e Mumbai Years of f ve NASSCOM 95 % o Thiruvananthapuram n u es Bengaluru d tere gis Over 1,400 Re members 2000x growth 1998 Represents IT, BPM, (USD 0.05 billion) - ER&D, Products Indian Societies Act 2012 (USD >100 billion) Established: 1988 What we do Set Strategic Best practices, International Incubate and direction for sharing and partnerships Workforce build new development sectors industry collaboration and Policy Activites and Member Exclusive Policy Global Trade Advocacy Development Entrepreneurship Domestic IT Membership Industry Enabling Engagement Development Environment Sustainability Network with multiple stakeholders Engage, strategise through specific through international delegations sectoral forums and initiatives and events Peer learning and sharing, Build brand and Access research and mentor emerging organisations leadership thought leadership Affiliated Organisations:2 NaSSCOM Strategic Review 2013
    • IT-BPM Sector Key TrendsGlobal economic outlook continues to be cautious… Global economic outlook – Cautious optimismGDP growth rates for 2012-2013, per cent Global sourcing market size USD billion 4.9 3.9 Total sourcing market 3.6 3.5 (ITO, BPM) – grew 3.5 3.5 ~2X global IT spend 3.3 3.2 ~9% April-2012 July-2012 October-2012 January-2013 114-118 124-130 Forecasted in 70-72 76-80 2012 2013P 44-46 48-50 …Austerity measures affect technology spend: ~5 per cent growth in 2012 BPM IT Outsourcing BPM IT Outsourcing Worldwide IT-BPM spend USD billion Global IT-BPM market recorded growth of 4.8 per cent in 2012 2011 2012 2011: USD 1.8 trillion* ~7 per cent growth; 2012: USD 1.9 trillion* new users from rising lower/middle 2011 Segment growth remains class in emerging markets; datacentre 748 2012 positive, bolstered by IT consolidation 797 outsourcing and F&A services Hardware USD billion 269 278 IT Services 627 156 Packaged Software 3.9% 648 164 3.4% Hosted application IT Services Business Process Management 3.3 per cent management growth; industry and hosted 222 went through major 268 infrastructure 2.2% services recorded Grew 3.3 per cent; 4.9 per cent transformation, applications and growth (slightly from basic SOA to 158 highest growth services built around above industry the way software average); platform is delivered (SaaS). Support & Project IT third platform Training Based Outsourcing (social, mobile, solutions, bundling The disruption to Services analytics/big data BPM with analytics, pricing and platform and cloud) mobile enablement delivery models of business accelerated software BPM Growth areas processes – deliver spending 5.5% remained more value beyond cost profound in 3.7% procurement and Grew ~4 per cent; primary F&A where there drivers include technological 6.4% has been a strong 1,311 advances, competitive landscape platform play 1,350- 58 3.5% 1,400 (deconsolidation in automotive) and 48 consumer preferences (for e.g., in 31 ER&D medical devices, low-cost products 23 for emerging markets) 10.5% 3 * Excluding ER&D Growth Customer HR HRO F&A ProcurementSource: Booz & Company, Everest Research, Forrester, Gartner, IDC, IMF NASSCOM Care 2012 Nasscom Strategic Review 2013 3
    • IT-BPM Sector Key Trends The year of transformation for the IT-BPM industry Exports mainstay of the industry, domestic market growing IT-BPM revenue break-up USD billion Hardware 13 IT services > 50 billion Domestic ER&D & 108 Software 18 BPM > 20 billion Exports 101 Products 88 32 21 69.4 73.9 32 BPM Domestic 29 market growing higher 21.9 23.8 than exports 59 69 76 IT Services 56 47.5 50.1 Exports grow double- digit >10 per cent in FY2013 FY2009 FY2010 FY2011 FY2012 FY2013E FY2013E Player diversity Industry landscape 47-50 per cent of revenue Large-sized ~35-38 per cent of (~ USD 1 billion) total employees 16-18% 32-35 per cent of revenue Mid-Sized ~28-30 per cent of (USD 100 million–1 billion) GIC total employees Emerging (USD ~9-10 per cent of revenue 12-14% ~15-20 per cent of 10–100 million) 67-70% total employees MNC ISP 9-10 per cent of revenue Small/Start-Ups FY2012 ~15-18 per cent of total employees (<=USD 10 million) IT-BPM: Highest impact sector for India Relative to India’s GDP ~8% ~7% FDI share Grew > 6X in the last 15 years Ranked 4th in India’s total FDI share Relative to India’s exports 23-25% PE/VC investments usd 3.2 Accounts for 37%, of the total IT-BPM exports > 6X in the last 15 years billion investments in India Direct employment 3 One of largest organised private sector ~380 Cross border acquisitions (FY2008-12) employers in India million Share in Global sourcing market 52% 580 Offshore delivery centres ISP: Indian Service Provider, MNC: Multinational Company, GIC: Global In-house Centre Source: NASSCOM4 NaSSCOM Strategic Review 2013
    • IT-BPM Sector Key TrendsIndia’s IT-BPM industry: Resiliance in challenging timesDemand surge in Europe, the highlight of the year Emerging regions US RoW APAC Traditional markets comprising US and UK contribute > 70% of exports 2.2% 7.8% Continental Europe Y-o-Y growth: UK: 10.8% 2% 11.4% Continental Europe: 7% 9.9% 12% APAC: 10.7% Despite uncertainty, Europe 61% 18% 17.1% UK and RoW driving growth APAC revenues deflated due to dollar appreciation, 61.5% actual volume growth significantly high Pipeline for Europe remains strong as the region opens FY2010 up to IT as an enabler for increasing profitability FY2013E and growthIT-BPM exports by serviceline Vertical-wise* break-up Mature outsourcing Integrated, Changing business verticals – BFSI, end-to-end services models, solutions Const & Utilities manufacturing and across segments, new service offerings – around disruptive 3% telecom contributed technologies and T&T MPE over 75 per cent XaaS, mobile-enabled verticalised structures of exports and verticalised key enablers 3% 2% Healtcare 5% Others Hardware <1% 2% ER&D, Sw. Prod. 19% Retail BFSI BPM 23% 10% 41% IT services 58% FY2013E Total 100% FY2013E Manufacturing 16% Hi-tech/Telecom 18% 100%=USD 76 billionE: Estimate; *Excludes hardware exportsT&T: Travel & Transportation, MPE: Media, Publishing & Entertainment; Others: Include Government, EducationSource: NASSCOM Nasscom Strategic Review 2013 5
    • IT-BPM Sector Key Trends IT services increasingly driven by IS outsourcing, BPM by knowledge based services IT services: Software testing and IS outsourcing fastest growing segments IT services 100% = USD ~44 billion mainstay Fastest growing 37% <1% Highest 1% value-add 14% 17% 1% 11% 6% 7% 3%3% Hw IT Network IT SI Sw Software Others Application IS CAD deploy/ education consulting Consulting Deploy/ Testing Management outsourcing Support and & integration Support training BPM Exports: Value addition and analytic key drivers 100% = USD 18 billion Customer Interaction Finance & Accounting Firms increasingly focus 41% HR Outsourcing 23% on analytics-based Others Market insights; verticalisation 2% redefining FAO business 2% Research 6% Other Horizontals 1% Procurement Data & Logistics 1% Management Vertical-specific BPO Services 11% Business 14% Research USD 42% 3.2 billion Legal services 18% Analytics Knowledge Services 21% 18% Horizontal services, contributing about 86 per cent, Need to make continues to be the informed data- largest segment driven business in BPM decisions and predict customer behaviour driving growth E: Estimate6 NaSSCOM Strategic Review 2013
    • IT-BPM Sector Key TrendsIncremental growth coming from emerging technologiesfor OSPD, products and ER&DSoftware products driven by SMAC TechnologyUSD billion Vendor-Customer relationship: Focus of 1.6 Offer consulting services – product development 1.5 Software product, technology roadmap around SMAC Co-innovate products technologies Products Extended marketing team for 1.4 clients 1.2 Cloud technology OSPD expanding access ISVs traditional to larger customer clients; demand base and driving FY2012 FY2013E emerging from demand for hosted non-IT, Industrial applications clientsER&D account for ~15 per cent of exports; to cross USD 11 billion Application optimised storage, miniaturisation, energy efficiency Others* 20% Telecom 30% Energy Mobile-cloud, 4% device and network Medical devices FY2013E convergence 3% Consumer Electronics Semicond. Homecare solutions, 5% 20% medical robotics, Aerospace Auto wearable 6% 12% technologies Optoelectronics, Connectivity, sensors/MEMs device convergence, digitisation Sustainability, Energy efficiency, safety Convergence, electronics efficiency, miniaturisation Green energy, driving force integrated avionics, for ER&DE: Estimate electronic content* Includes Computing Systems, Construction/Heavy Machinery, Industrial Automation, InfrastructureSource: Zinnov, NASSCOM Nasscom Strategic Review 2013 7
    • IT-BPM Sector Key Trends Domestic IT-BPM: Consumerisation driving demand Domestic IT-BPM Domestic IT-BPM: Break-up by Segment Revenue ` billion ` billion 1,533 1,745 Demand for notebooks, tablets, iPads, Data storage, FY2013E 1,745 FY2012 FY2013E analytics, datacentres for IT infra 615 698 Hardware FY2013E 13.5% FY2012 1,533 Driven by SI, IS 589 674 outsourcing, Cloud services FY2011 14.5% IT Services 1,321 14.0% 180 205 Driven by FY2010 demand for Software 1,139 Products 14.0% ent-app, cloud mobility FY2012 167 FY2009 148 Demand for 1,003 BPM 12.7% Analytics, HRO India’s Connected Consumers: We are increasingly social! Telecom subscribers: Social network users: Broadband subscribers: Households with internet access: 921 million >70 million 15 million 29 million (Second largest in the world after China) Mobile subscribers: Facebook users: Internet subscribers: 75 per cent of netizens: 891 million 65 million 24 million <35 years of age Mobile internet users: (Third largest country Internet users: 150 87.1 million (est.) on Facebook) million (est.) Online retail: PC installed base: LinkedIn users: Online Indians: >37 million 25 million 18 million >120 million unique visitors (As of 2011; Zinnov’s (Second largest user base (Third largest after US (3 of 5 online Indians visit online Enterprise Mobility report) after US) and China) retail sites; growth of 43 per cent) Source: comScore, IAMAI, IMRB, socialbakers.com, TRAI, NASSCOM8 NaSSCOM Strategic Review 2013
    • IT-BPM Sector Key TrendsIndia: Four segments driving technology adoption IT Spending in Enterprises IT Spending in Government IT Spending by Consumers IT Spending by SMBs ` billion ` billion ` billion ` billion 6% ~11% ~22% ~13.5% 262 217 454 812 230 400 183 720 12 20 FY 13E 20 FY 12 20 12 12 FY 13E 20 20 20 FY 13E FY 13E FY 20 20 FY FY SMBs •  nnovation, I New Products Consumers •  educing Costs R • Online Transactions •  nable Competitiveness E Government •  nfotainment I • Increase Reach Enterprises • Increase Transparency •  Tailing e • Expansion and Innovation • Lower Pilferage  • Connectivity Boost Revenue • Cost Optimisation Collection •  nhance Competitiveness E • Implement Reforms  • Increase Reach • Increase ReachDomestic IT-BPM End-user Trends •  reater focus on software G • Increased need for  • Convergence and  •  ndia, a launch pad for I and services – process custom application connected devices global products automation, innovation, development analytics •  rowing demand for G •  nhanced adoption E • Solutions around cloud  smartphones, tablets, of cloud, cluster area •  I and managed services S and mobility iPads, etc. network dominate • Shared IT infrastructure  •  rowing eContent – G •  MAC being leveraged S •  loud seeing greater C music, books, news, for differentiation traction • Use of GIS, RFID, GPS,  education, games, etc. biometrics, smart card, •  ncreasingly adopting I •  etail, energy, healthcare - R etc. •  emand for D websites and SEO to intensifying IT adoption eCommerce, gaming, market themselves mobile applications and competeSource: NASSCOM Nasscom Strategic Review 2013 9
    • IT-BPM Sector Key Trends Customers: Cost to innovation – Technology providers to strategic business partners Change in customer’s business requirements Drive innovation Focus on overall Democratisation Real-time insights from end customer experience and service of empowerment and predicability point of view replacing product play in customers and through analytics in the customer value internal employees proposition Industry moving up the value chain, initiating non-linear play and extending cost advantage High Initiate non-linear Moving up Value Play Offerings – Chain Products, Platforms, Non-Price Value Software assets, Offerings – Consulting and Solution Accelerators SI, Specialised voice Through – Global delivery and workforce Extending Cost Advantage Offerings – RIM, Testing, BPM Through – Changing employee mix, pyramid, tier II/III Low High Cost Low Industry offering Enterprising solutions- IP led, multi-platform, productised services Service Parameters Delivery Pricing Resourcing Markets Impact parameters Enterprise Services Custom/people-driven, Input-based, Build to order, Developed Cost India-centric, linear T&M vertical-specific geographies, Fortune 500, BFSI+ Telecom Enterpris-Ing Capacity/IP-driven, Pay as you go, fixed, Integrated, Developed + developing Cost, revenues, Solutions global delivery, multi- gainshare end-to-end, SMAC geographies, Fortune profits, cash flows platform, customer- 500+ SMBs, all centric, transformative verticals Source: Wipro Ltd, NASSCOM10 NaSSCOM Strategic Review 2013
    • IT-BPM Sector Key TrendsIndustry looking to expand both customer base and focusGlobalisation, domain and innovation key focus Follow the Customer Million Dollar Clients* Global Network (nos) 75* 1,827 52* 1,398 2008 2012 2008 2012 •  irms continually growing their global F presence to leverage resources, skills – •  teady increase in number of million dollar S multi-location suppliers clients despite slowdown* Number of countries present Verticalisation-BPM per cent Strong Demand Pipeline* Non-Top Exports from Verticalised Services five Client Contribution 30-32% 84% 22-24% 82% 2008 2012 2008 2012 •  erticalisation emerging as key differentiator – V •  irms expanding beyond large clients – many F firms offering end-to-end services across offer focused solutions for emerging, SMBs and specific verticals start-ups…And driving innovation and differentiation IP Filed Top three IT Firms Solutions around SMAC* Offering Niche Solutions SMB-per cent of IT-BPM revenue 3% 858 40% 13% 8% FY2008 2012 2012 FY2013 76 2008 2008 •  MB customers emerging as a key S •  umber of patents filed by Indian N •  irms deploying SMAC offerings as F growth engine with suppliers adopting IT organisations grew at CAGR adoption increases across both large SMB-specific strategies – pricing, 83 per cent enterprises and SMBs dedicated sales teams/channels, etc.* Percentage of top 100 IT-BPM firms in India offering solutions around SMAC technologies* Based on the data of top-four IT-BPM firmsSource: Industry reporting, secondary sources, press releases, company websites, NASSCOM Nasscom Strategic Review 2013 11
    • IT-BPM Sector Key Trends ~3 million workforce contributing to industry growth Direct Employment (’000) 7% Foreign nationals employed >100,000 Indirect ~9.5 mn 640 601 FY2013E 917 879 2,776 2,964 FY2012 1,407 Direct ~3.0 mn 1,296 ~30-35% FY2012 FY2013E women employees IT Service Export BPM Exports IT-BPM Domestic Industry Skill Base Talent Output Three-year Engineering Other Specialists Postgraduates Diploma/MCA (Doctors, Lawyers, PHDs) 6% 6% 3% Others Graduates Others 4% 9% Financial Specialists Science Graduates) (CAs/CPAs) 5% 12% Postgraduates Commerce Graduates (Includes MBAs) 12% 14% Engineering Four-year Engineering Graduates) 30% Diploma Degree 16% Graduates (except Art + Other Graduates Engineering) 46% 36% FY2013E FY2013E Total Total 2.9 million 4.74 million Most diverse World’s largest E: Estimate skill base employable pool Source: NASSCOM12 NaSSCOM Strategic Review 2013
    • IT-BPM Sector Key TrendsIndia emerging as hot-bed for technology start-upsFast maturing start-up Entrepreneurship on the riseecosystem 400 450 32% Serial 335 Entrepreneur 162 Operational 57% Start-up (First Venture) 2005 2009 2011 2012Number of start-ups 11% Potential EntrepreneurBengaluru, NCR leading the VC/Angel investment drivingstart-ups destination growth Hyderabad 3% Chennai 6% Pune 3% Others 10% Ot 6.2 rs he Mumbai 10% 2 Clean.7 43.0% Delhi/NCR 32% tech Internet Bengaluru 36% 3.1 Finance FY2012 3.1 M 6.1% Healthcare ile ob 1 uc % ion s Se .4% ftw % ce Ed 5.4 at e ar rvi So 0.8 9 1 ITDistribution by citiesEmerging opportunities driving growth Cloud/Big Data/Other emerging 32% 29% technologies Education 21% Business Productivity 18% Social Media 18% 18% Communication 14% Websites & online 14% Mobile eCommerce 14% Devices/OEM / 11% Tools IT services Healthcare 11% listings Hardware Domain Focus by Start-upsSource: NASSCOM, Zinnov Nasscom Strategic Review 2013 13
    • IT-BPM Sector Key Trends Indian providers are creating new business streams, enabling consumerisation and enhancing process through mobility New business streams, consumerisation and process efficiency: Building blocks of enterprise mobility Profitable Market Embracing Newer Opportunities •  lobal addressable market to reach around G Enterprise • Mobile enterprise application platform USD 140 billion by 2020, a CAGR of ~15% Mobility •  obile device management; internal app store M •  orth America to remain the largest N market; APAC to grow fastest at ~21% • Embedded platforms for mobile •  ndia, expected to be a big market; I •  ystem integration expertise and consulting S capabilities need to be aligned strategically •  obile VAS services for telcos M India: A Distinctive Market •  obile-enabled business processes M •  eaching customers at POS (m-payment, R m-commerce, m-retail, m-banking) •  ew revenue streams (surveillance and N monitoring, eGovernance, patient care, supply chain) Advanced Analytics for distilling better Intelligence gained from customer and enterprise data • Global market to grow at 45% annually to reach ~USD 25 billion by 2015 • North America to provide the major opportunities •  ndian market to grow from ~USD 200 million in 2012 to ~USD 1.0 billion in I 2015, a CAGR of ~83% The Next Big Market 1 •  nfrastructure, big data management and storage; I Infrastructure-as-a -Service (IaaS) •  mplementation and analytics tools I •  elivering real-time insights and end-to-end data analytics D Big 2 •  dvanced visualisation applications A Data •  dvanced analytics (predictive and descriptive modelling and optimisation) A Immense Opportunities •  ext generation sequencing and mapping N •  ehavioural/sentiment analysis B The New Frontier 3 for Innovation Source: NASSCOM14 NaSSCOM Strategic Review 2013
    • IT-BPM Sector Key TrendsIndian Enterprises are leveraging cloud to monetiseBusiness (cost and productivity) and identify new deliverymodels (innovation) Monetising existing resource baseThe global cloud Indian providers are considerably enhancing their revenue generating potential byopportunity monetising the existing resources 01expected to • Leveraging cloud as Business Process-as-a-Service reach USD650-700 billion • Cloud-enabled processes/solutions through pay-per-use-modelwhile domesticopportunity to Developing new industry specific applicationsreach USD 15-18billion by 2020 Cloud computing offers significant potential to innovate and achieve market facing differentiation• Global SaaS to be  largest segment contributing USD 02 • Scalable test beds for cloud-specific software testing and management • Virtualised and cloud-ready hardware; Infrastructure-as-a-service, computing platforms  and datacentres 230-245 Building new business models• IaaS and PaaS  to touch USD Indian organisations are modifying their businesses and operating models to leverage maximum synergies from cloud 140-150 billion and USD 40- 45 billion, respectively 03 • Self-service BPM platform models enabled by cloud and automated service delivery  mechanisms • Licensed to subscription based software deployment models Social Media Analytics: Newer Opportunities to expand market toUSD 6.4 billion by 2016 Consulting to customers World-class technology to easily adopt social solutions to address media and work closely customers’ social with clients to evolve media requirements strategies, roadmap and and integrate with implementation to enhance CRM initiatives, BI, Technology Consulting business effectiveness Customer Analytics Solutions Media engagement Insights and analysis solutions for a services based on real-time engagement customer feedback, brand on a global scale proficiency to gauge with further insights Engagement Analytics and Solutions BI offeringsSource: Press Release, IndustryPress, NASSCOM Nasscom Strategic Review 2013 15
    • IT-BPM Sector Key Trends India’s value proposition built across five parameters 60-70% ~36-37% more cost-efficient of world than US Human Capital Cost Competitive Largest Optimum cost employable pool Operational flexibilities, Diverse efficiencies background Agility Experience and domain expertise 15-20% more cost-efficient than Strong Ecosystem next lowest cost country Competitive infrastructure 43 Focus on untapped Tier II/III cities potential locations Industry presence 40% 580 ODCs across entire of top 100 firms offer across 75 spectrum SMAC solutions countries Customer Focus Scalability, Security Customer centric business outcomes Mature global delivery network End-to-end services Business continuity, Niche and domain security capabilities governance ~78% increase in patents filled over 2009-2012 World’s No. 1 Sourcing Destination - 52 per cent share Source: Everest Research, NASSCOM16 NaSSCOM Strategic Review 2013
    • IT-BPM Sector Key TrendsIndia: Only country to offer full spectrum of IT-BPM services Customers World Presence Verticals Portfolio Players Portfolio Ownership Profile Full Gamut of ServicesIndia continues to be the lowest cost location for IT-BPM servicesOperating cost per FTE for IT Services: ADM 2012 USD ‘000/per annumOperating cost per FTE for BPM Services: Transactional F&A 2012 USD ‘000/per annum o st ey la ai tro uru r II Pau l ape terr Kua pur ngh est Me ila gal Tie gue ne har Ben US Sao Pra Bud Mo Lum Sha Buc Ma nSource: Everest Research, NASSCOM Nasscom Strategic Review 2013 17
    • IT-BPM Sector Key Trends Global tech spend set to improve – grow ~6 per cent in 2013… Global Technology Spend Indian IT-BPM Revenues* growth per cent USD billion 6% Growth 5% 5% 12-14% 13-15% 7.5 5.4 Hardware 84-87 6.6 6.5 6.8 Software 3.3 76 22-24 BPM 5.3 5.4 IT Services 4.9 4.2 4.6 19 3.3 FY2012 2014P 2013E FY2013E FY2014P FY2013E FY2014P Exports Domestic Stakeholders’ five-point agenda • Reinvent business models Expand beyond core • New verticals, geographies, markets 5 customers • Foster robust domestic demand • Improve infrastructure Establish • Strengthen corporate governance India as trusted hub for 4 • Improve risk management and security products • Encourage global branding GOVERNMENT ACADEMIA • Incubation and mentorship Hub for technology INDUSTRY • Access to funding enterpreneurship NASSCOM 3 • Capability development • Market access Developing a • Improve quality of education high calibre 2 • Scale up tertiary education talent pool • Improve curriculum and faculty quality Build India • Strengthen intellectual property framework as global • Create Centres of Excellence innovation 1 • ICT solutions for healthcare, education, financial hub services, public services *Exclude hardware; E: Estimate; P: Projection Source: Computer Weekly, Everest REsearch, NASSCOM Forrester, Gartner, IDC, IMF, NASSCOM18 NaSSCOM Strategic Review 2013
    • IT-BPM Sector Key TrendsNotes:
    • IT-BPM Sector Key TrendsNotes:
    • IT-BPM Sector Key TrendsCopyright ©2013Published byNASSCOM, New DelhiDesigned & Produced byCREATIVE INC.Phone 91-11-41634301
    • International Youth CentreTeen Murti Marg, ChanakyapuriNew Delhi 110021, IndiaT 91-11-23010199 F 91-11-23015452research@nasscom.inwww.nasscom.in