© Mindtree limited 2012
Presented at: Trends in Computer Education, 22-Feb-2013, Goa University
Raja Bavani, Chief Archite...
Agenda
2
• Indian IT & BPO Key Trends
• Challenges (short term)
• Possible Improvements (medium term)
• Financial Year 201...
Indian IT & BPO: Key Trends
3
Aggregate revenue for the sector estimated to cross USD 100
billion mark [including hardware...
Aggregate Industry Revenue (> 100 Billion USD)
4
IT-BPO revenue aggregate
India’s share in global sourcing - 58 per cent i...
Job Creation
5
Direct Employment (’000)
FY2012 Estimates
Indirect
Direct Total Emp
~10.2mn
~2.8mn
~11.7mn
~8.9mn
Estimated...
Challenges (short-term)
• Delayed decision making - impacting refresh cycles and projects
• Volume growth higher, not refl...
Possible Improvements (mid-term)
• GDP growth may increase in the second half
• Technology spending to go up driven by- ne...
FY 2013 Outlook
8
IT-BPO Export revenues*
(USD billion)
FY2011 FY2012E FY2013P
Growth of 11-14% • FY2013 software and serv...
Global Uncertainties
9
Economic Growth - Global GDP Growth estimate for 2012 - 2.5%
(2.8% in 2011); Euro area in mild rece...
Need for Specialization
10
Changing Customer Demands and focus on Digital
Transformation
Focus on Core Partner for Special...
11
12
13
14
15
16
17
18
19
What do young professionals need?
Communication skills (verbal and written)
Interpersonal skills (relates well to others)
...
Discussions
21
India | USA | UK | Germany | Sweden | Belgium | France | Switzerland | UAE | Singapore | Australia | Japan | China
Raja Ba...
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Industry Trends and Challenges of IT Professionals

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Presented at: Trends in Computer Education, 22-Feb-2013, Goa University

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Industry Trends and Challenges of IT Professionals

  1. 1. © Mindtree limited 2012 Presented at: Trends in Computer Education, 22-Feb-2013, Goa University Raja Bavani, Chief Architect, Mindtree Industry Trends and Challenges of Next Generation IT Professionals
  2. 2. Agenda 2 • Indian IT & BPO Key Trends • Challenges (short term) • Possible Improvements (medium term) • Financial Year 2013 Outlook • Global Uncertainties • Media Buzz • What Do Young Professionals Need? • Discussions
  3. 3. Indian IT & BPO: Key Trends 3 Aggregate revenue for the sector estimated to cross USD 100 billion mark [including hardware] Industry continues its growth trajectory, with no visible competition in the near future; Growing impressively CAGR 2007-12 : 17 per cent From 2009 to 2011, M&As increased 77 per cent CAGR to reach USD 4.5 billion 70 countries, 560 delivery centers –providing skills, domain, language and disaster recovery; non Indian employees – 5-6% for large firms Fixed price contracts, cloud based solutions, productizing service Changing model Inorganic Growth Global Footprint Growth trends Revenue Direct employment expected to grow by over 9% to reach ~2.8 million, with over 230,000 jobs being added in FY2012Employment Source: NASSCOM
  4. 4. Aggregate Industry Revenue (> 100 Billion USD) 4 IT-BPO revenue aggregate India’s share in global sourcing - 58 per cent in 2011, up from 55 per cent in 2010 IT services exhibiting fastest growth at 19 per cent, BPO growing by 13 per cent, ER&D by 15 per cent Maturing domestic market – key thrust area for the industry – growth faster than exports Domestic IT services growth at 17.8 per cent, driven by localized strategies by service providers Domestic BPO - 16.9 per cent driven by demand from new verticals and technology platforms Software products to grow by 13.3 per cent: New wave of start-ups driving growth Source: World Bank, NASSCOM Estimated
  5. 5. Job Creation 5 Direct Employment (’000) FY2012 Estimates Indirect Direct Total Emp ~10.2mn ~2.8mn ~11.7mn ~8.9mn Estimated Source: World Bank, NASSCOM
  6. 6. Challenges (short-term) • Delayed decision making - impacting refresh cycles and projects • Volume growth higher, not reflected in revenue • Rupee depreciation impact – pricing pressure • Increased offshore component • Investing in Cloud/platforms – doing more for less • Differentiated growth for diverse industry segments and companies • Maturity and value addition focus for R&D, GICs 6 Source: NASSCOM
  7. 7. Possible Improvements (mid-term) • GDP growth may increase in the second half • Technology spending to go up driven by- new tech, emerging markets, business models • Increased adoption of global sourcing • Future of technology services -combination of services, solutions and platforms 7 Source: NASSCOM
  8. 8. FY 2013 Outlook 8 IT-BPO Export revenues* (USD billion) FY2011 FY2012E FY2013P Growth of 11-14% • FY2013 software and services growth forecast 11-14 per cent (USD) • Revenue growth USD 8-10 billion • Differentiated growth – across service lines and verticals • Hiring – mix of campus and just in time; 100,000+ offers already made 59 68.7 76-78 786 918 FY2011 FY2012E FY2013P 1030-1060 IT-BPO Domestic revenues (INR billion–excluding hardware) Growth of 13-16% • FY2013 software and services growth forecast 13-16 per cent; • Revenue growth INR 110-140 billion • Consumer, Government, SMB to be key growth drivers • Software Product Start-ups creating innovative solutions for India • Technology enabled social and financial inclusion Source: NASSCOM
  9. 9. Global Uncertainties 9 Economic Growth - Global GDP Growth estimate for 2012 - 2.5% (2.8% in 2011); Euro area in mild recession Employment & Households - Unemployment high, but signs of recovery in US jobs, PMI and durables Financial Conditions – Developed markets – fiscal consolidation, credit stringency. Emerging Markets – Tight money, declining capital flows, currency volatility Corporates – Cash hordes, Buoyant earnings in US mainly driven by overseas revenues. Risks - Downside risks elevated (credit crunch in Eurozone); Upside possibilities in US Source: NASSCOM
  10. 10. Need for Specialization 10 Changing Customer Demands and focus on Digital Transformation Focus on Core Partner for Specialization Choose where to compete and then how to compete Building a specialist talent pool Source: NASSCOM
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  20. 20. What do young professionals need? Communication skills (verbal and written) Interpersonal skills (relates well to others) Teamwork skills (works well with others) Analytic skills Flexibility/adaptability Detail-orientation Creativity Critical Thinking/Problem Solving Organizational skills Leadership skills Lifelong Learning/Self Direction Industry Knowledge 20 Honesty/integrity Motivation/Initiative Strong work ethic Self-confidence Friendly/outgoing personality Tactfulness Well-mannered/polite Social Responsibility
  21. 21. Discussions 21
  22. 22. India | USA | UK | Germany | Sweden | Belgium | France | Switzerland | UAE | Singapore | Australia | Japan | China Raja Bavani Raja_bavani@mindtree.com www.mindtree.com/social

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