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’s70’s to early 90’s 94-9894-98 99-200199-2001 Mainstream todayMainstream today

Scale & Complexity

Valu

e t

o C

usto

mer

Offshore ITCompanies

– Skilled workforce– Cost advantage– Legacy platform skills

– Skilled workforce– Cost advantage– Legacy platform skills

– Wider range skills– Legacy platform skills– Strong execution frameworks– Committed delivery

– 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

– 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

– Domain / consulting expertise– Innovation– New Technologies– Project Mgmt. Excellence– End-to-End Services– World Class Companies– World class Infrastructure

Integration Newand Legacy

Large Scale Application Dev.

Legacy Maintenance

Whatnext

Total OutsourcingTotal Outsourcing

ExecutionExcellence

ExecutionExcellence Customer

Satisfaction

CustomerSatisfaction Cost

Competitiveness

CostCompetitiveness Change

Management

ChangeManagement GDM

GDM

Medium Large Application Projects

ERP/CRM e-Business

IT StrategyBPO / ITO

Y2K

Large ScaleMaintenance

Staff Augmentation

Indian IT Industry:- Current Analysis

“India IT Industry grows by 31% in 2006, projected to cross 100 B USD in 2011”Source:- IDC

India IT/ ITeS Industry Size, 2007-12

 2007(Million USD)

2008(Million USD)

2009(Million USD)

2010(Million USD)

2011(Million USD)

2012(Million USD)

CAGR07-12

Domestic Hardware & Others 12235 14352.5 16707.75 19183.5 21637.5 24139.5

14.60%

Domestic IT Services

5230 6332.5 7629.75 9172.75 10958.5 12993.25

20.00%

Domestic Packaged Software 2046 2520.25 3079.75 3717.5 4447.5 5282.25

20.90%

Domestic ITeS Market

2992.5 4339.25 5857.75 7439.5 8704.25 10009.75

27.30%

Domestic IT/ ITeS Market 22503.5 27544.25 33275 39513.25 45747.75 52424.5

18.40%

IT/ IteS Exports Revenue 39148.5 46535.5 54526.75 62521.75 71166.5 80069.5

15.40%

India IT/ ITeS Industry Size 61652.25 74079.75 87801.75 102034.75 116914.25 132494

16.50%

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

CompaniesFY07 Vertical market exposure for industry

exports

Knowledge Professionals employed in the Indian IT-BPO sector

HyderabadHyderabad

BangaloreBangalore

Pune, Mumbai,Nagpur

Pune, Mumbai,Nagpur

NoidaNoida

DelhiDelhi

GurgaonGurgaon

ChandigarhChandigarh

ChennaiChennai

Major IT Hubs Of IndiaMajor 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

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.

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 20081. Lower Worldwide IT Spending

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

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

4. “Application Appliances” will go mainstream

5. A Flood of Web gadgets extends the mobile Internet

6. All mobile network operators will join the Open Internet

7. Social networking will drive “Eureka 2.0” software and sites

8. Key IT players will morph themselves

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

10.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 2.01. 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.

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

3. Virtualization will become mainstream in 2008 as it gains wide-scale adoption4. Uptime, availability and performance management of infrastructure and applications to be at the core

of innovation. 5. The Digital Experience for the Indian consumer to hit the next level. Fixed-line broadband to emerge as

a dominant trend in 2008.6. Fixed Mobile Convergence (FMC) will signal the onset of a new battle in the Indian telecom sector7. Web 2.0 market in India to take off in 2008, shakeouts and a possible string of consolidations to follow.8. Security: Heightened business risk perceptions and security concerns will drive increased investments

into a range of enterprise-wide and client-centric devices and applications.9. 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.

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