Indias strengths and potential in software development

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Indias strengths and potential in software
development
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Indian IT-BPO Industry

• FY 2006-07 witnessed a revalidation of the IT
  Industry-BPO growth story, driven by a maturing
  appreciation of Indias role and growing
  importance in global services trade.
• Industry performance was marked by sustained
  double digit revenue growth levels with the
  revenue aggregate growing by nearly ten times
  over the past ten years.

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Industry Performance

• Positive market indicators include large
  unaddressed white-spaces and the unbundling of
  IT-BPO mega-deals with increasing shares of
  global delivery.
• Exports continue to lead.
• Domestic market breaking out of the historical
  hardware-linked growth pattern

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Growth Trends

• Contribution to GDP in FY 2007 was 5.4 from 4.8
  last year.
• MNC investments reached an unprecedented scale
  over USD 10 billion announced in FY2006-07, to be
  invested over the next few years.

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Indian IT-BPO sector growing at 28 industry
aggregate to reach USD 47.8bn, direct employment
to exceed 1.6 million in FY2007
Tenfold growth over a decade
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Market Share
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Employment figures Software and Services Sector
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Industry is on track to reach the targeted USD 60
billion in software and services exports by 2010
USD Billion
60
TOTAL
PERIOD
CAGR
10 YR TARGET
ACHIEVED
REQUIRED
Includes IT Software and Services, ES and
ITES-BPO
13-15
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Service and software exports remain the mainstay
of the sector FY2007 export growth estimated at
32.6 percent

• Software and services (IT-BPO) exports to exceed
  USD 31 billion in FY2007, against a forecast of
  USD 30-31 billion
• Steady growth observed across all segments
• Over 1.2 million professionals directly employed
  in the exports segment alone

FY2007 export growth to exceed earlier forecasts
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While BFSI and Hi-tech / Telecom remain the key
verticals Manufacturing, Retail, Media,
Utilities and Healthcare also growing
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Domestic market also beginning to pick-up to
grow by 21 percent in FY2007 and reach USD 15.9
billion

• Software and services now outweigh hardware
  spends
• FY2007 growth estimated at 21 percent, estimated
  to reach USD 15.9 billion
• Increasing corporate IT spends and outsourcing
  adoption are key drivers

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USD 15.9 billion
20
Growth
30
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Industry is on track to reach the targeted USD 60
billion in software and services exports by 2010
USD Billion
60
TOTAL
PERIOD
CAGR
10 YR TARGET
ACHIEVED
REQUIRED
Includes IT Software and Services, ES and
ITES-BPO
13-15
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Significant headroom for growth, less than 15
percent of the export market captured till date
domestic market breaking out of hardware linked
growth patterns
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Indian IT-BPO is on track to meet industry
aspirations targeted actions can extend Indias
leadership to unprecedented proportions

• Strong demand outlook, under-penetrated service
  lines and increasing emphasis on the role of ICT
  and innovation to be key drivers of growth
• Global benchmarks in expected performance and
  increasing competition will continue to drive IT
  adoption in the domestic market
• Stakeholders continue working towards timely and
  coherent execution of initiatives to address
  growing supply-side concerns
• Special emphasis on greater inclusiveness will
  contribute to long-term payoffs will
  structurally strengthen India as an ICT-enabled
  society
• Targeted actions driving a concerted effort to
  leverage its growing role as a key market,
  investment destination and strategic partner can
  further extend Indias IT-BPO leadership to
  unprecedented proportions

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Going Forward

• India is working towards
• Augmenting Talent Supply
• Creating world class infrastructure
• Strengthening information security
• Enhancing operational excellence
• Providing regulatory support
• Catalyzing domestic market development
• Fostering an ecosystem for innovation

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• Thank You