NASSCOM-Prayag - Market Traction Survey Data Sheet details

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@ the Confluence of hi-technology and market innovation

www.prayag.com

NASSCOM – Prayag

Market Traction Survey of Emerging companies

Survey Findings Data Sheet

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Outline

• How to read the Charts

• About the Survey

• Survey Findings

• List of Participants

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How to read the charts

• While % are labeled within the chart, the

number of responses for that option is

displayed on top/side of the bar/pie slide

• All % within the analysis are computed on

the universe of 21, even where there were

a substantial number of ‘No Responses’

• The total number of companies surveyed

was 21. However companies may not have

responded to all questions. Along with

every chart, we have indicated the number

of responses received for that particular

question

• Total Number of Responses:7

• 33% of respondents said that annual

sales had dropped in FY09 as

compared to FY08

14

3

3

1

Extent of drop in FY09 sales as compared to FY08

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Profile of Companies Surveyed

• Total Number of Responses: 21

• Profile of Respondents included:

• Product Software companies

• IT Security Services

• OPD & Testing Services

• IT Consulting Services

• Infrastructure Management Services

13

8

Product Company

Services Player

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Key Markets addressed by Participants


• The emerging companies surveyed primarily address India and North America as key markets

• High Priority target markets for:

• Service Providers: 87.5% of them have ranked North America as their main market

• Product Companies: 69% of them are targeting the domestic market

1312

9

6

2

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Survey Findings

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Impact of Downturn on Emerging Companies


• Participants expressed a mixed opinion on

the effect of recession on their business

• Overall 52% said that they were impacted

by the recession

• 62% of the Services companies said they are

affected

• 54% of product companies said they were

affected

10

11

8

Recession Impact


• Companies have experienced immediate effects like drop in Pipeline Traction or

Project Truncation

• This in turn has impacted revenues lines of a third of respondents

87

10

8

6

22

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Were Q-on-Q sales impacted?


• 71% of the companies did not share

data on quarterly sales impact, if any

• 29% said there had been a drop in

revenues during Q1FY09 as

compared to Q1 FY08

15

2

4

10

Were Y-on-Y sales impacted?

• Total Number of Responses:7

• 33% of respondents said that annual

sales had dropped in FY09 as

compared to FY0814

3

3

1

11


• Companies have expressed mixed

opinion on the effects of recession on

increase in price negotiations and

reduction in billing rates

• Close to 48% have experienced drops in

their billing rates

Drop in the Billing Rates

11

8

2

12

% change in the Billing Rates


• 62% of the companies surveyed did not reveal the percentage drop in their

billing rates due to the economic downturn

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1

11

2

13

Cutbacks in Recruitment

9

12


• Most companies (57%) continued to recruit

right through the period, taking advantage of

the availability of quality resources on the

job market

14

Employee Downsizing

1

20


• The large majority of the companies

surveyed did not downsize staff capacity

during the recession

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Trends in Annual Increments

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8 11


• A large number of companies (52%) did

offer increments to their employees but

a substantial number (38%) did not

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Trends in Annual Increments

6

4

1

10


• In companies that offered increments, the most common range of the

increase was between 5% and 20%

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Trends in Cost Optimization


• Many companies cut back on travel and employee entertainment activities

6

910

2

7

18

Are things getting better?

4

17


• Nearly 80% of the companies

interviewed expressed a positive

response on recovery trends.

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Q2FY10 Acceleration

5

15

1


• Nearly 70% of the companies

interviewed experienced sales

acceleration in Q2 FY10

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List of Participants

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List of Participating Companies

• OrangeScape Technologies Ltd.

• PK4 Technologies

• Infozech Software

• Acclaris Business Solutions Pvt Ltd

• Annik Technology Services Pvt. Ltd.

• Medsphere Technologies Pvt Ltd

• Nu Street Technologies

• Mindtree Limited

• Aujas Networks Pvt Ltd.

• SNS Technologies

• Appnomic Systems

• Infosoft Global

• ConnectM Technology Solutions Private

Limited

2. Praxis Softek Solutions Pvt. Ltd

3. Blue Star Infotech Limited

4. Sankhyaa Learning (P) Ltd

5. Sourcebits Technologies Pvt Ltd.

6. Eka Software Solutions

7. Savi Group

8. Srishti Software Applications Pvt. Ltd.

9. Prologic First India Pvt Ltd

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Thank You

For any queries on the survey, please get in touch with:Anita Mani

Prayag [email protected]