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India Is It


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India Is It

  1. 2. Indian IT Growing and proactively meeting changing market requirements <ul><li>Skill shortage </li></ul><ul><li>Lower costs </li></ul><ul><li>Legacy Migration </li></ul><ul><li>Enterprise wide IT </li></ul><ul><li>Y2K deadlines </li></ul><ul><li>New capabilities </li></ul><ul><li>ERPs </li></ul><ul><li>Faster time to market </li></ul><ul><li>Bus Continuity </li></ul><ul><li>Lower cost </li></ul><ul><li>Business alignment </li></ul><ul><li>Maximize leverage </li></ul><ul><li>Innovation </li></ul><ul><li>Scale </li></ul>70’s to early 90’s 94-98 99-2001 Mainstream today Scale & Complexity Value to Customer Offshore IT Companies <ul><li>Skilled workforce </li></ul><ul><li>Cost advantage </li></ul><ul><li>Legacy platform skills </li></ul><ul><li>Wider range skills </li></ul><ul><li>Legacy platform skills </li></ul><ul><li>Strong execution frameworks </li></ul><ul><li>Committed delivery </li></ul><ul><li>Quality excellence </li></ul><ul><li>R&D investments </li></ul><ul><li>Business Continuity </li></ul><ul><li>Project Management </li></ul><ul><li>Stable companies </li></ul><ul><li>Investments into Domain & Consulting skills </li></ul><ul><li>World class Infrastructure </li></ul><ul><li>Domain / consulting expertise </li></ul><ul><li>Innovation </li></ul><ul><li>New Technologies </li></ul><ul><li>Project Mgmt. Excellence </li></ul><ul><li>End-to-End Services </li></ul><ul><li>World Class Companies </li></ul><ul><li>World class Infrastructure </li></ul>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
  2. 3. 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
  3. 4. Some More Statistics <ul><ul><li>Strong optimism of the industry to achieve its aspired target of USD 60 billion in exports by 2010 </li></ul></ul><ul><ul><li>Domestic Market Growing @ of 22% </li></ul></ul><ul><ul><li>Exports Growing@34% </li></ul></ul><ul><ul><li>Growth of Software Product Companies </li></ul></ul>FY07 Vertical market exposure for industry exports Knowledge Professionals employed in the Indian IT-BPO sector
  4. 5. Hyderabad Bangalore Pune, Mumbai, Nagpur Noida Delhi Gurgaon Chandigarh Chennai Major IT Hubs Of India
  5. 6. Indian IT Industry
  6. 7. <ul><li>Proven Expertise in software development </li></ul><ul><li>English proficiency </li></ul><ul><li>Government Support </li></ul><ul><li>Cost advantage </li></ul><ul><li>Strong tertiary education </li></ul><ul><li>Process quality focus </li></ul><ul><li>Skilled workforce </li></ul><ul><li>Expertise in new technologies </li></ul><ul><li>Reasonable technical innovations </li></ul><ul><li>Reverse brain drain </li></ul><ul><li>Existing long term relationships </li></ul><ul><li>Leverage relationships in West to access APAC/Middle East markets </li></ul><ul><li>Indian domestic-market growth </li></ul>
  7. 8. <ul><li>Positioning & Brand management </li></ul><ul><li>Internal competition for resources </li></ul><ul><li>Shortage of Skilled resources </li></ul><ul><ul><li>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. </li></ul></ul><ul><li>Over-promise / Under-deliver </li></ul><ul><li>Inadequate data protection laws </li></ul><ul><li>Resume fudging and Limited use of National Skill Registry </li></ul><ul><li>Services still limited to ADM, Slow penetration in Software R&D, High end outsourcing work </li></ul>
  8. 9. <ul><li>Huge Untapped Market for “ Indian Software Product Companies” </li></ul><ul><ul><li>According to Software Magazine 500, Total worldwide revenues in 2006 for companies in the Software 500 list were $394 billion </li></ul></ul><ul><ul><li>UK is expected to double its software product market by 2010 to £6.44bn </li></ul></ul><ul><li>Indian Software Product Industry on Take Off Path </li></ul><ul><ul><li>Graduating to “ Made In India” Brand </li></ul></ul><ul><li>Growth of Indian Domestic Market </li></ul><ul><ul><li>Supposed to be $30 Billion By 2010 </li></ul></ul><ul><ul><li>Growth of IT lead investment in Retail, BFSI and Travel </li></ul></ul><ul><li>Enough room for expanding into Non-US Geography </li></ul><ul><ul><li>China </li></ul></ul><ul><ul><li>Europe </li></ul></ul><ul><li>Disruption in Technology and Delivery models, present huge growth opportunity </li></ul><ul><ul><li>Web2.0 </li></ul></ul><ul><ul><li>Product Development 2.0 </li></ul></ul><ul><ul><li>Travel 5.0 </li></ul></ul><ul><ul><li>Deploying Product in SaaS mode </li></ul></ul><ul><ul><li>Government regulation </li></ul></ul><ul><li>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. </li></ul>
  9. 10. <ul><li>Rising Wages & Staff Attrition </li></ul><ul><ul><li>20 – 40% attrition rate </li></ul></ul><ul><li>Rise of China, Croatia, Romania and other lower cost destinations nations </li></ul><ul><li>Inflating Cost Of Infrastructure </li></ul><ul><li>US Slowdown and slow penetration of Indian Companies into Non-US and Europe market </li></ul><ul><li>Appreciating Rupee Vs Dollar and other Currency </li></ul>
  10. 11. 10 Mega-Trends for IT in 2008 <ul><li>Lower Worldwide IT Spending </li></ul><ul><li>IT Vendors will ‘Double Down” on their investments in the emerging markets </li></ul><ul><li>The IT market will jump feet-first into “everything as a service” </li></ul><ul><li>“ Application Appliances” will go mainstream </li></ul><ul><li>A Flood of Web gadgets extends the mobile Internet </li></ul><ul><li>All mobile network operators will join the Open Internet </li></ul><ul><li>Social networking will drive “Eureka 2.0” software and sites </li></ul><ul><li>Key IT players will morph themselves </li></ul><ul><li>The buzz around Green IT will turn out to be more than hype </li></ul><ul><li>Key companies may get acquired </li></ul><ul><li>Tremendous Opportunity and Threats for Indian IT Industry and Services need to evolve in Line with Trends for 2008 </li></ul>
  11. 12. Indian IT key predictions for 2008:  <ul><li>According to IDC, 2008 would be beginning of Growth Phase 2.0 </li></ul><ul><li>2008 will set the stage for Growth Phase 2.0 </li></ul><ul><ul><li>The India domestic IT market will transform significantly with the existing IT infrastructure evolving both in technology terms and depth of penetration. </li></ul></ul><ul><li>vendors reach out to new geographies (beyond BRIC) for growth, India would continue to remain the centre of attraction. </li></ul><ul><li>Virtualization will become mainstream in 2008 as it gains wide-scale adoption </li></ul><ul><li>Uptime, availability and performance management of infrastructure and applications to be at the core of innovation. </li></ul><ul><li>The Digital Experience for the Indian consumer to hit the next level. Fixed-line broadband to emerge as a dominant trend in 2008 . </li></ul><ul><li>Fixed Mobile Convergence (FMC) will signal the onset of a new battle in the Indian telecom sector </li></ul><ul><li>Web 2.0 market in India to take off in 2008, shakeouts and a possible string of consolidations to follow. </li></ul><ul><li>Security: Heightened business risk perceptions and security concerns will drive increased investments into a range of enterprise-wide and client-centric devices and applications. </li></ul><ul><li>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. </li></ul><ul><li>Worldwide IT spending growth will decline, with a significant U.S. market downside risk </li></ul>
  12. 13. Thank You