Indian IT Industry

1
Indian IT Industry Vast Growth Potential
2
IT Industry

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

3
India - An Introduction

• Population
• States/UTs
• Geographical Area
• Languages recognised
• Business language
• Per Capita Income
• GDP

Over 1 bn 35 3.3 mn sq kms 22 English US
534 US 650 bn
(at factor cost at current prices) 1USD43.54
INR (as on July 4, 2005)
SourceCSO Statistics
4
India - Fast pace Growth

• Largest democracy
• 4th largest economy by PPP index
• 6th largest energy consumer
• ForEx reserves skyrocket from USD 42 bn (2001)
  to
• USD 133 bn (2005)
• GDP growth to continue between 6-8
• 3rd largest economy by 2050 Goldman Sachs
• Leading in IT BPO
• Oil Gas and Biotechnology sunrise industries

5
India - Leading the world

• Hero Honda - largest manufacturer of motorcycles
• Moser Baer - among the top three media
  manufacturers
• in the world
• Pharmaceutical Industry - 4th largest in world
• Walmart, GAP, Hilfiger sources more than
• USD 1bn worth apparel from India
• 100 Fortune 500 have set RD facilities in India
• including GE, Delphi, Eli Lilly, HP, Heinz
  and Daimler
• Chrysler

6
IT Industry

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

7
Huge and Growing IT Market
Size (2002-03) US 24 billion Growth rate
28
CAGR (since 1999) 46
Share of IT and BPO 1.4 of GDP 2008
projection 7
Exports projected (2003-04) US 12 billion to
grow at 26-28

Employment Over 650,000 (Second largest
employer in IT services sector)
8
Future Growth Potential
9
Growth in Domestic Outsourcing
Alignment to domain knowledge needs
10
Moving up the Value Chain
Consulting
Embedded software
Network Security
Network Management
Package Implementation
E-business applications
Web Enabling legacy
Facilities management
Maintenance
Unix-based coding
Client / Server
Internet
Mainframe
1960
Aligned to technology needs
11
Growth of the Offshore Model
of software export
Alignment to business needs
12
Potential Domestic Hardware Market 2010
US 44 billion
By Value Addition
By Product Segment
50
6.9
40
5.4
30
10.2
US Billion
20
37.4
6.9
6.6
21.8
10
8.3
-
Finished Product
Sub-assembly manufacture from components
Product Manufactured from sub-assembly
Total Market USD 44 Billion
IT Hardware.
Consumer Electronics
Telecom
Others
Imports
Locally Manufactured
Value Addition
13
Potential Hardware Exports
USD 25 billion
Exports manufacture by Value addition
Exports by Value Chain
14
1.4
5
12
10
4.5
8
11
US Billion
1.1
13.0
6
3.2
4
7.1
7
2
2.9
0
2
Products Assemblies
Products Assembly manufacture from sub-assembly
Sub- assembly manufacture from components
Total Exports USD 25 Billion
OEM ODM
Design Services
Products
Components
Local
Imports
Value Addition
14
Focus Areas

• Utilities
• Transportation
• Healthcare
• Financial Services
• Telecom Equipment
• Manufacturing Industries

Targeting new verticals
Beyond traditional sectors
15
IT Industry

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

16
Indian Players
TCS Wold leading IT consulting services
and business process outsourcing company
Infosys Provides consulting and IT services to
clients globally as partners
Wipro Serves over 300 global leaders and is
worlds first PCMM, CMMi and CMM Level 5
company
17
MNC Presence
MNCs contribution to export revenues from IT
services
23.5
18
MNC presence in India
19
MNC presence in India
20
IT Industry

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

21
Invest in India

• Skills
• Quality
• Domain
• Policy
• Infrastructure
• Risk

22
Invest in India
India attracts second highest private equity
investment in Asia
23
Invest in India
Advancing on the value chain

• Package Software Implementation
• System Integration
• R D Engineering
• Network Management

24
Partner with India
Venture funding activities
2001 - 02 USD 1,100 million 2007 - 08 USD
10,000 million
Venture funding activities to increase 9 folds by
2007-08
25
Export from India
Product Services
26
Export from India
Professional Services
27
Export from India
Outsourcing Services
28
IT Outsourcing - Expanding Opportunities

• Software development outsourcing
• Product development outsourcing

29
Destination India
Offshoring of outsourcing
30
IT Industry

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

31
The India Advantage
Quality manpower
Pro active policy framework
Specialised organisations and facilities
State-of-the-art infrastructure
High quality services
32
The Intellectual Advantage
India is today a mature region for IT offshore
work
33
The Knowledge Advantage
Highly qualified pool of IT professionals
Large pool of highly talented software
professionals
34
The Cost Advantage
Costs for offshore work 30-50 lower than in
US/Europe
35
The Infrastructure Advantage

• Standardisation Testing and Quality
  Certification (STQC) programme

One-stop solution to all quality requirements of
electronics industry

• Software Technology Parks

No corporate income tax up to March 2010
Exemption from local duties and taxes
Up to 100 foreign equity permitted
Single window government clearance
Single point custom bonding and export
certification
36
The Policy Advantage
Evolving regulatory regime

• IT Act 2000
• EOU status extended to hardware
• manufacturing units
• USD 2580 mn to be spent on e-Governance
• initiatives
• Priority sector status given by banks
• Export processing zones established
• 487 information communication centres

37
IT Industry

• India - An Overview
• Market and Growth Potential
• Players
• Opportunities
• Why India?
• Contact in India

38
Contact in India
National Association of Software and Service
Companies (NASSCOM) International Youth
CentreTeen Murti MargChanakyapuriNew Delhi -
110021Tel [phone]Fax [phone]
Email info_at_nasscom.org
39
Contact in India
MAIT 4th Floor, PHD HouseOpp. Asian Games
VillageNew Delhi 110 016 Tel
26855487/26866976/26866976Fax [phone]Email
mait_at_vsnl.com
40
Contact in India
Confederation of Indian Industry (CII) 249-F,
Sector 18, Udyog Vihar Phase IV Gurgaon
122015 Tel [phone]-67 Fax [phone]
5014080/5013874 E mail s.ray_at_ciionline.org