US Roadshow PPT by IT Secretary

8/14/2019 US Roadshow PPT by IT Secretary

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KeralKeral

aa

EmergingEmerging

TechnologTechnologyy

HubHub


2/36

In the 90s, the globalIn the 90s, the globaltechnology landscapetechnology landscape

was profoundly altered.was profoundly altered.Underlying this changeUnderlying this change

was the convergencewas the convergence

of communicationsof communicationsand computation; andand computation; and

the extraordinary rangethe extraordinary range

of exciting new hybridof exciting new hybrid

technologies & disciplinestechnologies & disciplinesthat this convergencethat this convergence

spawned.spawned.


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At the core of thisAt the core of this

transformationtransformationwas the Information Technologywas the Information Technology

revolution, leading torevolution, leading to

the emergence of a newthe emergence of a new

Knowledge SocietyKnowledge Society


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India Inc. - The MetamorphosisIndia Inc. - The Metamorphosis

The 90s alsoThe 90s alsosaw thesaw the

globalglobal

technologytechnology

map beingmap being

reshaped.reshaped.

By Y2K,By Y2K,India hadIndia had

emergedemerged

as theas the

dark horsedark horse

of theof the

global ITglobal ITindustry.industry.

By FY 2008By FY 2008

at currentat currentrates of growth,rates of growth,

India isIndia is

expected to beexpected to be

among theamong the

top 3top 3

countries incountries inthe worldthe world

in IT revenues,in IT revenues,

after theafter the

US & Japan.US & Japan.

By FY 2002By FY 2002

India hadIndia had

establishedestablished

itself as theitself as the

undisputedundisputed

frontrunnerfrontrunner

in softwarein software

services;services;

and is setand is set

to be theto be the

preeminentpreeminent

IT sourcingIT sourcing

hub in Asia,hub in Asia,

as service linesas service lines

becomebecome

commoditisedcommoditised

and off-shoringand off-shoring

becomesbecomes

increasinglyincreasingly

mainstreammainstream

BetweenBetween

1992-2002,1992-2002,

the Indianthe Indian

IT industryIT industry

grew at agrew at a

scorching pacescorching pace

of 43%of 43%every year;every year;

making itmaking it

the fastestthe fastest

growinggrowing

industryindustry

worldwide.worldwide.


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India Inc. - The leading Global IT/India Inc. - The leading Global IT/

Technology Sourcing HubTechnology Sourcing Hub

Pre-eminentPre-eminent

destination fordestination for

cross-bordercross-border

IT servicesIT services

Pre-eminentPre-eminent

destination fordestination for

cross-bordercross-border

IT servicesIT services

Culture forCulture for

ServicesServices

Culture forCulture for

ServicesServices

LocationLocation

attractivenessattractiveness

LocationLocation

attractivenessattractiveness

Long termLong term

sustainablesustainable

competitivecompetitive

advantageadvantage

Long termLong term

sustainablesustainable

competitivecompetitive

advantageadvantage

Strategic productStrategic product

Development andDevelopment and

R&D baseR&D base

Strategic productStrategic product

Development andDevelopment and

R&D baseR&D base

Leading globalLeading global

ITES (BPO) hubITES (BPO) hub

for high-valuefor high-value

activitiesactivities

Leading globalLeading global

ITES (BPO) hubITES (BPO) hub

for high-valuefor high-value

activitiesactivities


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Core CompetenciesCore Competencies

in New Technologiesin New Technologies

22ndnd largestlargest

pool of scientific/pool of scientific/

technical talenttechnical talent


pool of scientific/pool of scientific/

technical talenttechnical talent


English speakingEnglish speaking

manpower after USAmanpower after USA


English speakingEnglish speaking

manpower after USAmanpower after USA

Development costsDevelopment costs

in India averagein India average

40% less than US40% less than US

Development costsDevelopment costs

in India averagein India average

40% less than US40% less than US

High quality ofHigh quality of

service deliveryservice delivery

High quality ofHigh quality of

service deliveryservice delivery

IT Core competenciesIT Core competencies


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India - The pre-eminent South AsianIndia - The pre-eminent South Asian

destination for IT/ITESdestination for IT/ITES

China

India

Ireland

China

India

Mexico

IrelandAustralia

UKSingapore

Philippines

Low High Low High

Size of circle indicatesquantum of IT servicesexports(2000)

Size of circle indicatesquantity of knowledgeworkers

IT Enabled ServicesIT Services

Future Strengths

Size of IT

services Exports

Sustainabilityof costadvantage

Depth oftalent pool

Quality ofservice delivery

Conducivenessof regulatoryenvironment

LocationAdvantage

Infrastructure

Country risks/FDI incentives

Time zoneattractiveness

Geophysical zoneattractiveness

People Advantage

English language

Cost

Type of skills

Abundance

Current Strengths

Cost of Service delivery

Quality of service delivery

Regulatory environment

Russia


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Output of graduates in Life SciencesOutput of graduates in Life Sciencesamongst the highest in the worldamongst the highest in the world

Network of world-class R&D institutes Network of world-class R&D institutes frontier researchfrontier research

Rich local knowledge repositories andRich local knowledge repositories and

advanced legacy health care systemsadvanced legacy health care systems

Diverse and spectacular biological geneDiverse and spectacular biological genepool, including extant tropical rain forestspool, including extant tropical rain forests



BT Core competenciesBT Core competencies


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LargestLargest

entertainmententertainment

industry inindustry in

the worldthe world

LargestLargest

entertainmententertainment

industry inindustry in

the worldthe world

Natural location ofNatural location of

choice for multimedia,choice for multimedia,animation &animation &

digital contentdigital content

Natural location ofNatural location of

choice for multimedia,choice for multimedia,animation &animation &

digital contentdigital content

Media expansion &Media expansion &

absorption rateabsorption rate

among the fastestamong the fastest

growing worldwidegrowing worldwide

(both depth of(both depth of

penetration &penetration &range of spectrumrange of spectrum

coverage)coverage)

Media expansion &Media expansion &

absorption rateabsorption rate

among the fastestamong the fastest

growing worldwidegrowing worldwide

(both depth of(both depth of

penetration &penetration &

range of spectrumrange of spectrum

coverage)coverage)

Highest numberHighest number

of movies madeof movies madeHighest numberHighest number

of movies madeof movies made



ICE Core competenciesICE Core competencies


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India with its advanced cutting edge technicalIndia with its advanced cutting edge technical

capabilities is poised to become the prime hub forcapabilities is poised to become the prime hub for

the New Technologies of the Knowledge Societythe New Technologies of the Knowledge Society

India with its advanced cutting edge technicalIndia with its advanced cutting edge technical

capabilities is poised to become the prime hub forcapabilities is poised to become the prime hub for

the New Technologies of the Knowledge Societythe New Technologies of the Knowledge Society

Kerala at the extreme south is Indias trueKerala at the extreme south is Indias true

Knowledge Society with 100% literacy,Knowledge Society with 100% literacy,

advanced HDI & widespread technology diffusionadvanced HDI & widespread technology diffusion

Kerala at the extreme south is Indias trueKerala at the extreme south is Indias true

Knowledge Society with 100% literacy,Knowledge Society with 100% literacy,

advanced HDI & widespread technology diffusionadvanced HDI & widespread technology diffusion

India Hub for New TechnologiesIndia Hub for New Technologies

Information TechnologyInformation Technologyis the platform andis the platform and

motor for the newmotor for the new

TransformationalTransformational

Technologies of theTechnologies of thefuturefuture


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Kerala, IndiaKerala, India

BackdropBackdropBackdropBackdrop

Growth trendsGrowth trends

and prospectsand prospects

Growth trendsGrowth trends

and prospectsand prospects

CompetitiveCompetitive

AdvantagesAdvantages

CompetitiveCompetitive

AdvantagesAdvantages

GovernmentsGovernments

RoleRole

GovernmentsGovernments

RoleRole

IndustryIndustry

OverviewOverview

IndustryIndustry

OverviewOverview

The StatesThe States

Value PropositionValue PropositionThe StatesThe StatesValue PropositionValue Proposition


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Kerala The Knowledge Hub ofKerala The Knowledge Hub of

IndiaIndia

Universal literacyUniversal literacyUniversal literacyUniversal literacy

Large base of knowledge workersLarge base of knowledge workersLarge base of knowledge workersLarge base of knowledge workers

Highest density of Science &Highest density of Science &

Technology PersonnelTechnology Personnel

Highest density of Science &Highest density of Science &

Technology PersonnelTechnology Personnel

HDI comparable with westHDI comparable with westHDI comparable with westHDI comparable with west


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100% Digital Kerala100% Digital Kerala

NationalNational

ILDILD

HubHub

NationalNational

ILDILD

HubHub

100% of100% of

telephonetelephone

exchanges digitalexchanges digital

100% of100% of

telephonetelephone

exchanges digitalexchanges digital

HighestHighest

telecomtelecomdensitydensity

HighestHighest

telecomtelecomdensitydensity

Cochin Communication Hub Cochin Communication Hub

SEA-ME-WE-3 & SAFESEA-ME-WE-3 & SAFEcable landings cable landings

abundant bandwidthabundant bandwidth

Cochin Communication Hub Cochin Communication Hub

SEA-ME-WE-3 & SAFESEA-ME-WE-3 & SAFEcable landings cable landings

abundant bandwidthabundant bandwidth

11stst wirelesswireless

districtdistrict

in the countryin the country

11stst wirelesswirelessdistrictdistrict

in the countryin the country

Universal OFCUniversal OFCconnectivityconnectivity

across Stateacross State

Universal OFCUniversal OFCconnectivityconnectivity

across Stateacross State


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100% Digital Kerala100% Digital Kerala

SEA-ME-WE IIISEA-ME-WE IIISEA-ME-WE IIISEA-ME-WE III

FLAGFLAGFLAGFLAG

SAFESAFESAFESAFE

InternationalInternational

bandwidthbandwidthInternationalInternational

bandwidthbandwidth

70% of Indias70% of Indias

data trafficdata traffic

flowing throughflowing through

CochinCochin

70% of Indias70% of Indias

data trafficdata traffic

flowing throughflowing through

CochinCochin

Mumbai

Cochin

Multiple, redundantMultiple, redundant

backbone servicebackbone service

provision throughprovision through

BSNL, Reliance, BhartiBSNL, Reliance, Bharti

Multiple, redundantMultiple, redundant

backbone servicebackbone service

provision throughprovision through

BSNL, Reliance, BhartiBSNL, Reliance, Bharti


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Kerala - Competitive AdvantagesKerala - Competitive Advantages

NNo.o.11

State in HumanState in HumanDevelopmentDevelopment

Indices (HDI)Indices (HDI)

by Planningby Planning

Commission, GoICommission, GoI

April 2002April 2002

State in HumanState in HumanDevelopmentDevelopment

Indices (HDI)Indices (HDI)

by Planningby Planning

Commission, GoICommission, GoI


In terms ofIn terms of

Peaceful &Peaceful &PristinePristine

EnvironmentEnvironment

In terms ofIn terms of

Peaceful &Peaceful &PristinePristine

EnvironmentEnvironment

State inState in

TechnologyTechnology

DiffusionDiffusion

Index,Index,


State inState in

TechnologyTechnology

DiffusionDiffusion

Index,Index,


State inState in

Law & OrderLaw & Orderand stableand stable

politicalpolitical

environment,environment,

Sept. 2000Sept. 2000

State inState in

Law & OrderLaw & Orderand stableand stable

politicalpolitical

environment,environment,

Sept. 2000Sept. 2000


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Kerala - Competitive AdvantagesKerala - Competitive Advantages

CII Study How the States are doing, September 2000CII Study How the States are doing, September 2000

Kerala Karnataka Tamil Nadu A P Mrashtra Delhi

Parameters

General Achievement 6 15 13 12 7 4

Infrastructure Penetration 5 12 4 10 11 1

Finance 6 7 4 10 2 1

Labour 8 11 1 3 4 9

Social Sector 2 10 4 13 6 1

Law & Order 1 10 8 12 9 11

Affluence 3 7 11 12 5 1

Education, Heallth Expenditure 1 8 5 12 4 3

Investment Attractiveness 5 10 6 8 3 1

Overall Composite Rank 3 10 6 12 5 1


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Key Initiatives by Indian GovtKey Initiatives by Indian Govt..

Assign priority sector status to ITESAssign priority sector status to ITES

and provide a debt-funding operationand provide a debt-funding operation Ensure consistency in taxation policyEnsure consistency in taxation policy Remove clause that prohibits changeRemove clause that prohibits change

in ownership of beneficial interest duein ownership of beneficial interest due

to denial of tax benefitsto denial of tax benefits

Remove key product-market barriers inRemove key product-market barriers in

high IT consulting sectors, i.e., retail,high IT consulting sectors, i.e., retail,

telecom and retail bankingtelecom and retail banking Appoint one nodal agency as theAppoint one nodal agency as the

clear owner of e-governance initiativesclear owner of e-governance initiatives Ensure availability of required infrastructure,Ensure availability of required infrastructure,

i.e., national expressways, airports, telecomi.e., national expressways, airports, telecom

connectivity etc.connectivity etc.

Establish a body comprising industry,Establish a body comprising industry,

academia and the govt. to deviseacademia and the govt. to devise

standards for IT educationstandards for IT education Introduce software related courses inIntroduce software related courses in

all engg./science courses for oneall engg./science courses for one

semester yearsemester year

Key Initiatives by Kerala Govt.Key Initiatives by Kerala Govt.

Labour law issues addressed to enableLabour law issues addressed to enable

24x7x52 service24x7x52 service

E-governance a priority - long termE-governance a priority - long term

IT architecture and roadmap forIT architecture and roadmap for

implementationimplementation

Availability of adequate civicAvailability of adequate civic

infrastructureinfrastructure Major infrastructure thrustMajor infrastructure thrust Encourage and promote EnglishEncourage and promote English

language teaching at all levels andlanguage teaching at all levels and

especially in graduate courses toespecially in graduate courses to

meet the short-term needs ofmeet the short-term needs of

the ITES industrythe ITES industry

Expedite unfinishedExpedite unfinished

agenda in regulationagenda in regulation

Expedite unfinishedExpedite unfinished

agenda in regulationagenda in regulation

Drive growth ofDrive growth of

domestic marketdomestic market

Drive growth ofDrive growth ofdomestic marketdomestic market

Proactively addressProactively address

infrastructure andinfrastructure and

talent issuestalent issues

Proactively addressProactively address

infrastructure andinfrastructure and

talent issuestalent issues

Governments role to ensure successGovernments role to ensure success

for the IT / ITES industryfor the IT / ITES industry


18/36

Kerala - Visionary & ReformistKerala - Visionary & Reformist

Government InitiativesGovernment Initiatives

Key Government thrust areasKey Government thrust areas Examples of specific actionsExamples of specific actions

Creating a pro-enterprise,Creating a pro-enterprise, > Comprehensive overhaul & rationalisation> Comprehensive overhaul & rationalisation

regulatory & frameworkregulatory & framework of labour laws.of labour laws.

facilitating investmentfacilitating investment

Single window for IT/ITESSingle window for IT/ITES > 1> 1stst custom-made regulatory frameworkcustom-made regulatory framework

for 24 x 7 x 52 IT/ITES operationsfor 24 x 7 x 52 IT/ITES operations..Establishing Kerala as aEstablishing Kerala as a > IIITM-K as Regional centre of excellence> IIITM-K as Regional centre of excellence

global centre for excellenceglobal centre for excellence > Focused training for BPO & ITES.> Focused training for BPO & ITES.

in HRin HR > Exclusive ITES habitat in Cochin.> Exclusive ITES habitat in Cochin.

> Educational Grid for e-Learning.> Educational Grid for e-Learning.

> International Business School at Cochin.> International Business School at Cochin.

Establishing internationallyEstablishing internationally > 100% Digital Kerala initiative launched.> 100% Digital Kerala initiative launched.

competitive IT infrastructurecompetitive IT infrastructure > Dedicated E-governance Grid.> Dedicated E-governance Grid.

& environment& environment > Carrier Neutral Facility.> Carrier Neutral Facility.

> International consultants for Master Plan> International consultants for Master Plan & Business Development.& Business Development.


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Regulatory Framework Regulatory Framework

Implementation of GovernmentImplementation of Government

InitiativesInitiatives

LabourLabour

LawsLawsLabourLabour

LawsLaws

OthersOthersOthersOthers

ProceduresProceduresProceduresProcedures

24x7x52 service by declaring the ITES sector24x7x52 service by declaring the ITES sector

a public utility service' under the Industrial Disputes Act, 1947.a public utility service' under the Industrial Disputes Act, 1947.Allow women and younger people (in the age group 18-21 to work at night.Allow women and younger people (in the age group 18-21 to work at night.Allow flexible working hours and staggered timings.Allow flexible working hours and staggered timings.Permit use of contract/part-time employees. On a continuing basis.Permit use of contract/part-time employees. On a continuing basis.Facilitate termination of services with fair compensation.Facilitate termination of services with fair compensation.

Facilitate single-window clearance for establishing an ITES unit in the stateFacilitate single-window clearance for establishing an ITES unit in the stateAllow ITES companies to repatriate money abroad for sales and marketingAllow ITES companies to repatriate money abroad for sales and marketing

by removing requirement for inward remittancesby removing requirement for inward remittancesReinstate benefits with respect to remuneration received for services renderedReinstate benefits with respect to remuneration received for services rendered

outside India under Section 80 RRA of IT Actoutside India under Section 80 RRA of IT Act

Assign priority sector status to ITES and provide a debt-funding optionAssign priority sector status to ITES and provide a debt-funding optionKerala Venture Fund established for start-upsKerala Venture Fund established for start-upsBusiness and Technology IncubatorsBusiness and Technology Incubators

AreaArea


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Keralas Value PropositionKeralas Value Proposition

60% cost reduction60% cost reductionfor off-shore processfor off-shore process

Labour cost arbitrage,Labour cost arbitrage,

the reason for cost savings,the reason for cost savings,

likely to exist for the nextlikely to exist for the next

20-30 years.20-30 years. Lowest attritionLowest attrition

60% cost reduction60% cost reductionfor off-shore processfor off-shore process

Labour cost arbitrage,Labour cost arbitrage,

the reason for cost savings,the reason for cost savings,

likely to exist for the nextlikely to exist for the next

20-30 years.20-30 years. Lowest attritionLowest attrition

Faster turnaroundFaster turnaroundtimetime

Time zoneTime zone

differencedifference 24x7 service24x7 service Learning curveLearning curve

effecteffect

Faster turnaroundFaster turnaroundtimetime

Time zoneTime zone

differencedifference 24x7 service24x7 service Learning curveLearning curve

effecteffect

InfrastructureInfrastructure Advanced telecoms Advanced telecoms

best in the countrybest in the country Excellent connectivityExcellent connectivity 3 airports3 airports Lowest power/Lowest power/

bandwidth costsbandwidth costs

InfrastructureInfrastructure Advanced telecoms Advanced telecoms

best in the countrybest in the country Excellent connectivityExcellent connectivity 3 airports3 airports Lowest power/Lowest power/

bandwidth costsbandwidth costs

Indias 1Indias 1stst & only& onlyCOPC companyCOPC company

3 CMM Level 53 CMM Level 5

companiescompanies PerformancePerformance

ExcellenceExcellence

InitiativeInitiative

Indias 1Indias 1stst & only& onlyCOPC companyCOPC company

3 CMM Level 53 CMM Level 5

companiescompanies PerformancePerformance

ExcellenceExcellence

InitiativeInitiative

QualityQualityQualityQuality

CostCostCostCost QualityQualityQualityQuality

KeralasKeralas

ValueValue

PropositionProposition

KeralasKeralas

ValueValue

PropositionPropositionProductivityProductivityProductivityProductivity


21/36

Industry OverviewIndustry Overview

AsiasAsias

largestlargest

IT Park atIT Park at

Trivandrum,Trivandrum,

TechnoparkTechnopark

AsiasAsias

largestlargest

IT Park atIT Park at

Trivandrum,Trivandrum,

TechnoparkTechnopark

IndustryIndustry

domains -domains -

hardware &hardware &telecoms,telecoms,

software &software &

software servicessoftware services

& ITES& ITES

IndustryIndustry

domains -domains -

hardware &hardware &telecoms,telecoms,

software &software &

software servicessoftware services

& ITES& ITES

MultinationalMultinational

representationrepresentation

fromfrom

USA,USA,

Germany,Germany,

Japan,Japan,

France, UKFrance, UK

MultinationalMultinational

representationrepresentation

fromfrom

USA,USA,

Germany,Germany,

Japan,Japan,

France, UKFrance, UK

More than 55More than 55

companiescompanies

includingincluding3 CMM Level 5,3 CMM Level 5,

2 CMM Level 3,2 CMM Level 3,

10 ISO 900110 ISO 9001

companiescompanies

More than 55More than 55

companiescompanies

includingincluding3 CMM Level 5,3 CMM Level 5,

2 CMM Level 3,2 CMM Level 3,

10 ISO 900110 ISO 9001

companiescompanies


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Legacy System Evolution (5 Companies)Legacy System Evolution (5 Companies) Web EnablingWeb Enabling Porting/ConversionPorting/Conversion Development, MaintenanceDevelopment, Maintenance

Business Applications (13 Companies)Business Applications (13 Companies) Custom Projects for Banks/ Insurance/ Health/Custom Projects for Banks/ Insurance/ Health/

Shipping/Travel/RetailShipping/Travel/Retail Internet Technologies (15 companies)Internet Technologies (15 companies) Enterprise Network SolutionsEnterprise Network Solutions

Web Design & HostingWeb Design & Hosting Web Based MultimediaWeb Based Multimedia Intranet Based MISIntranet Based MIS E-Business ColutionsE-Business Colutions

Industry Overview. ServicesIndustry Overview. Services


23/36

Telecom (3 Companies)Telecom (3 Companies)

Transaction Billing SolutionsTransaction Billing Solutions

Maintenance & Application DevelopmentMaintenance & Application Development

Embedded Systems (4 Companies)Embedded Systems (4 Companies)

Board Support Packages (BSPs) & DeviceBoard Support Packages (BSPs) & Device

DriversDrivers

Real-time Operating SystemsReal-time Operating Systems

Firmware Development ServicesFirmware Development Services Assembly, C C++; Embedded Java ProgrammingAssembly, C C++; Embedded Java Programming

DSP Firmware, Software & AlgorithmsDSP Firmware, Software & Algorithms



24/36

IT Enabled Services (7 companies)IT Enabled Services (7 companies)

BPO including Online/Offline ProcessingBPO including Online/Offline Processing

Call CentersCall Centers

Medical/Legal TranscriptionMedical/Legal Transcription

GISGIS

Animation (3 companies)Animation (3 companies)

2D/3D Animated Content for Films/2D/3D Animated Content for Films/

Advertising/ EducationAdvertising/ Education

CAD/CAM Services (7 companies)CAD/CAM Services (7 companies)

High-end Design & ModelingHigh-end Design & Modeling



25/36

PlatformsPlatforms

IBM MainframeIBM Mainframe

COBOL, Assembler, PL/1COBOL, Assembler, PL/1

DB2, CICS, IDMS, IMS, WASDB2, CICS, IDMS, IMS, WAS

Client-serverClient-server

Oracle, SQL Server, InformixOracle, SQL Server, Informix

VB, Delphi, C, C#, VC++, Power BuilderVB, Delphi, C, C#, VC++, Power Builder

LinuxLinux

Web TechnologiesWeb Technologies

Java, .Net, XML, EJB, WebsphereJava, .Net, XML, EJB, Websphere


26/36

Key ClientsKey Clients

North AmericaNorth America

Sun, IBM, Cisco, EDS, Costco, Safeway, Toys RSun, IBM, Cisco, EDS, Costco, Safeway, Toys RUs, Alstom, PriceWaterhouseCoopers,Us, Alstom, PriceWaterhouseCoopers,ConvergysConvergys

JapanJapan

Hitachi, Toshiba, NIT, Mazda, Yamaha, Yazaki,Hitachi, Toshiba, NIT, Mazda, Yamaha, Yazaki,ISO, Deutsche BankISO, Deutsche Bank

EuropeEuropeShell, European Space Agency, Dutch Ministry ofShell, European Space Agency, Dutch Ministry ofTransport, KPN, EDS, Philips, KPN/DutchTransport, KPN, EDS, Philips, KPN/DutchTelecom, Motorola, Siemens, IBM, IMG, SwissairTelecom, Motorola, Siemens, IBM, IMG, Swissair


27/36

Leading global players leveragingLeading global players leveraging

Keralas services capabilitiesKeralas services capabilities

Company Description

SwissairSwissairSwissairSwissairThe IT subsidiary of the Swissair Group, IBS has a 400-person captive ODCin Kerala focusing on providing solutions for airline businesses, airportoperations and cargo handling.

The IT subsidiary of the Swissair Group, IBS has a 400-person captive ODCin Kerala focusing on providing solutions for airline businesses, airportoperations and cargo handling.

US TechnologiesUS TechnologiesUS TechnologiesUS TechnologiesHas an Indian subsidiary, US Software, which offers IT solutions to 12Fortune 500 companies.

Has an Indian subsidiary, US Software, which offers IT solutions to 12Fortune 500 companies.

ComcraftComcraftComcraftComcraftHas set up Toonz Animation which does work for Pepsi, Coke and Nestle.A Global award winner in animation and digital content, Toonz is the 1st digital studio in India.

Has set up Toonz Animation which does work for Pepsi, Coke and Nestle.A Global award winner in animation and digital content, Toonz is the 1 st digital studio in India.

Hays DocHays DocHays DocHays DocHas set up a support center for its European document managementoperations.

Has set up a support center for its European document managementoperations.

24x7Customer24x7Customer24x7Customer24x7CustomerCustomer services for 1 of the top 2 global financial; long-distance telco; carrental and hotel chain companies.

Customer services for 1 of the top 2 global financial; long-distance telco; carrental and hotel chain companies.


28/36

Aggressive growth byAggressive growth by

ITES companies in KeralaITES companies in Kerala

ExampleExample Year of set upYear of set up Area of OperationsArea of Operations Status / Future PlansStatus / Future Plans

IBSIBS 1997 Aviation Industry solutionsEmployee base has grown from20 to 375. Revenues have grownfrom USD 5 mn to USD 10 mn.

US SoftwareUS Software 1999 Finance, Retail, Bankingsolutions Employee base has grown from20 to 400 - to increase to1000 by Y2003.

NeSTNeST 1991 Networking and softwaresolutionsEmployees 3000. Plans tobecome a USD 250 mn Co.by Y2005.

SunTecSunTec 1997Finance Industry solutions Plans to grow to USD 1000 mn

plus by Y2005.


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EndorsementsEndorsements

A lesser known aspect of KeralaA lesser known aspect of Keralais that below the lush greenis that below the lush green

landscape and serene backwaterslandscape and serene backwaters

lie a plethora of optical fibrelie a plethora of optical fibre

cables that service two-thirdscables that service two-thirds

of Indias entire data trafficof Indias entire data traffic

CB Richard EllisCB Richard EllisMay 2002May 2002

A lesser known aspect of KeralaA lesser known aspect of Keralais that below the lush greenis that below the lush green

landscape and serene backwaterslandscape and serene backwaters

lie a plethora of optical fibrelie a plethora of optical fibre

cables that service two-thirdscables that service two-thirds

of Indias entire data trafficof Indias entire data traffic

CB Richard EllisCB Richard EllisMay 2002May 2002

Kerala is the best-networkedKerala is the best-networked

state in the country and offersstate in the country and offers

the best possible connectivity.the best possible connectivity.

Keralas new IT policy is aKeralas new IT policy is a

radical one. The special attentionradical one. The special attentionto the ITES industry is ato the ITES industry is a

particularly welcome move.particularly welcome move.

NASSCOMNASSCOM

December 2001December 2001

Kerala is the best-networkedKerala is the best-networked

state in the country and offersstate in the country and offers

the best possible connectivity.the best possible connectivity.

Keralas new IT policy is aKeralas new IT policy is a

radical one. The special attentionradical one. The special attentionto the ITES industry is ato the ITES industry is a

particularly welcome move.particularly welcome move.

NASSCOMNASSCOM

December 2001December 2001

Technopark offered completeTechnopark offered complete

facilities, state-of-the-artfacilities, state-of-the-art

communication and an inspiringcommunication and an inspiring

ambience. We were fullyambience. We were fully

operational within six monthsoperational within six monthsof our decision. The added plus forof our decision. The added plus for

us has been the wealth of talent inus has been the wealth of talent in

Kerala. We're delighted to be here."Kerala. We're delighted to be here."

Toonz AnimationToonz Animation

January 2000January 2000

Technopark offered completeTechnopark offered complete

facilities, state-of-the-artfacilities, state-of-the-art

communication and an inspiringcommunication and an inspiring

ambience. We were fullyambience. We were fully

operational within six monthsoperational within six months

of our decision. The added plus forof our decision. The added plus for

us has been the wealth of talent inus has been the wealth of talent in

Kerala. We're delighted to be here."Kerala. We're delighted to be here."

Toonz AnimationToonz Animation

January 2000January 2000

"This is an exciting concept."This is an exciting concept.IT is a crucial element of the future,IT is a crucial element of the future,

both in the private sector & asboth in the private sector & as

applied to Government. If Kerala canapplied to Government. If Kerala can

marshal its current advantagesmarshal its current advantages

and market them successfully,and market them successfully,

the future will be bright."the future will be bright."

Ambassador of USA to IndiaAmbassador of USA to IndiaFebruary 2002February 2002

"This is an exciting concept."This is an exciting concept.IT is a crucial element of the future,IT is a crucial element of the future,

both in the private sector & asboth in the private sector & as

applied to Government. If Kerala canapplied to Government. If Kerala can

marshal its current advantagesmarshal its current advantages

and market them successfully,and market them successfully,

the future will be bright."the future will be bright."

Ambassador of USA to IndiaAmbassador of USA to IndiaFebruary 2002February 2002


30/36

Source: NASSCOM-McKinsey StudySource: NASSCOM-McKinsey Study

Size of circle correspondsSize of circle corresponds

to the number of qualifiedto the number of qualified

workers in that countryworkers in that country




Capability of Workers

Capability of Workers

Qualification/capabilities

Foreign languages,

primarilyEnglish

Quality of work/workethics

Cost differential

The People FactorThe People Factor

High

Low

High

India

UK

Australia

Ireland

Holland

Singapore

Hong Kong

Philippines

Mexico

China

KeralaKeralaKeralaKerala

Low


31/36

India

UK

Australia

Ireland

Holland

Singapore

Hong Kong

Philippines

Mexico

China

KeralaKerala

LocationLocation

AttractivenessAttractiveness

InfrastructureInfrastructure

CommunicationCommunication

BasicBasicinfrastructureinfrastructure

Trivandrum, Kochi

Rated as #2 and #3respectively. Bestcities in India to do

business in

Business Today Study

(Dec 2001)

Trivandrum, Kochi

Rated as #2 and #3respectively. Bestcities in India to do

business in

Business Today Study

(Dec 2001)

The Infrastructure FactorThe Infrastructure Factor


High

Low

HighLow








32/36

High

Low

HighCapability of Workers

Location

Att

ractiv

eness

India

UK

Australia

Ireland

Holland

Singapore

Hong Kong

Philippines

Mexico

China

KeralaKeralaKeralaKerala

LocationLocation



- Communication- Communication

- Basic Infrastructure- Basic Infrastructure

Country Risk/FDICountry Risk/FDIIncentivesIncentives

- Attractive Incentives- Attractive Incentives

- Political incentives- Political incentives

Time ZoneTime Zone


LocationLocation



- Communication- Communication

- Basic Infrastructure- Basic Infrastructure

Country Risk/FDICountry Risk/FDIIncentivesIncentives

- Attractive Incentives- Attractive Incentives

- Political incentives- Political incentives

Time ZoneTime Zone


Keralas PositionKeralas Position







workers in that countryworkers in that country Low


33/36

Kerala - Key BenefitsKerala - Key Benefits

A Bouquet of Services from ITES to EmbeddedA Bouquet of Services from ITES to EmbeddedSystems.Systems.

Reliable and redundant data connectivity optionsReliable and redundant data connectivity options

Good air connectivity with USA/Europe Singapore /Good air connectivity with USA/Europe Singapore /Middle EastMiddle East

Stability of operations:Stability of operations:

Lowest employee attrition rates in IndiaLowest employee attrition rates in India

Kerala rated 1Kerala rated 1stst in Law & Order in Indiain Law & Order in India

Stable Government, stable policiesStable Government, stable policies

Risk of natural disasters/war minimalRisk of natural disasters/war minimal

Green environs, soothing ambience One of the 50Green environs, soothing ambience One of the 50

must-see destinations of a lifetime - Nationalmust-see destinations of a lifetime - NationalGeographic TravelerGeographic Traveler

Excellent local manpower pool highest HDI in IndiaExcellent local manpower pool highest HDI in India

Excellent HR practicesExcellent HR practices


34/36

Kerala - Business OpportunitiesKerala - Business Opportunities

OffshoreOffshore

SoftwareSoftware

DevelopmentDevelopment

OffshoreOffshore

SoftwareSoftware

DevelopmentDevelopment

ProductProduct

MarketingMarketingProductProduct

MarketingMarketing

BusinessBusiness

ProcessProcess

OutsourcingOutsourcing

BusinessBusiness

ProcessProcess

OutsourcingOutsourcing

OnsiteOnsite

ConsultingConsultingOnsiteOnsite

ConsultingConsulting

JointJoint

Ventures/Ventures/

StrategicStrategic

AlliancesAlliances

JointJoint

Ventures/Ventures/

StrategicStrategic

AlliancesAlliances


35/36

KeralKeralaaEmerging ICTEmerging ICT

HubHubin South Asiain South Asia


36/36

Thank YouThank You

Documents

US Roadshow PPT by IT Secretary