Indian Software

1
Indian Software Services Key Ingredients
for Success
2
National Goal

• Make India a Global Information Technology power
  and one of the largest generators and exporters
  of software in the world within 10 years.

3
Beginning .
Weighted Ranking
Factor Weight India Ireland SEGMENT
EXPERTISE 6 12 6 LABOR COST 4
4 - 8 LABOR SUPPLY 4
8 0 EASE OF BUSINESS 3 0 6 EASE OF
VISAS 3 - 3 3 ENGLISH SPEAKING
3 3 3 TECH. COMPETENCE 3
3 3 EDU. TRAINING 2 0 2 GOVT.
INCENTIVES 2 0 4 SECURITY 2
0 2 TELECOM INFRA. 2 - 2 4 DOMESTIC
MARKET 1 1 2 WEIGHTED AVERAGE
- 26 27
Ireland
India
Singapore
Israel
Philippines
China
Mexico
Hungary
Extract of a World Bank Report - 1991
4
Challenges to Growth

• Policy Creation
• Policy Implementation
• Operational Flexibility

5
Policy during 1991

• EOUs EPZs -
• - Not Very Congenial for Software Industries
• - Being implemented by the Commerce Ministry
• - Foreign Investment Promotion Board
• - Physical Boundary
• - Minimal Communication Infrastructure

Result Not Focused, lack of understanding, and
discrete approach
6
Software Technology Parks of India
A non-profit society set-up in 1991 by the
Ministry of Information Technology, Govt. of
India to
promote facilitate Software Exports from India
7
One Stop Shop
8
STPI Differentiators

• STP Scheme is being operated by the technical
  body
• Investment Approvals decentralized
• Most of the authoritaties are sub-Delegated to
  the Directors of the STPI Centers

• Result A De-Centralized Single Window
• Scheme

9
What is STP Scheme?

• Benefits
• Complete duty free import
• 100 foreign equity permitted
• No corporate income tax till 2010
• Dedicated Data Communication links
• Single window Government clearance
• Custom bonding and export certification provided
  at single point.

10
STPI Catalyst for Synergy

• Industry
• Academia
• Finance
• Government

11
STPI Spread across
Other Sub-Centers

• Dehradun
• Rourkela
• Madurai
• Tiruchirappalli
• Thirunelveli
• Pondicherry
• Vijayawada
• Tirupati
• Warangal
• Nasik
• Kolhapur

Srinagar
Mohali/Chandigarh
Noida
Shimla
Delhi - HQ
Jaipur
Guwhati
Lucknow
Bhilai
Kanpur
Indore
Gandhinagar
Kolkata
Nagpur
Navi Mumbai
Bhubaneshwar
Aurangabad
Under Implementation
Vizag
Pune
Hyderabad

• Gurgaon
• Gangtok
• Allahabad
• Agra
• Varanasi
• Meerut

• Jalandhar
• Durgapur
• Kharagpur
• Shillong
• Agartala
• Salem

Bangalore
Hubli
Mysore
Chennai
Manipal
Coimbatore
Mangalore
Thiruvananthapuram
Map Not to Scale
12
Exponential Growth of Software Industry
US in Million
13
India Vital Value Add
14
Indias Value Proposition on IT-Enabled

• Cost
• 40-60 cost reduction for
• offshored process
• Labour cost arbitrage, the
• reason for cost savings, likely to
• exist for the next 20-30 years

• Productivity
• Faster turnaround time
• - Time Zone difference
• - 24x7 service
• Learning curve effect
• centralization within company

• Quality
• Established methodologies and
• processes for better performance
• Well defined quantifiable metrics for
• quality process
• Access to highly-qualified skill pool

SourceMcKinsey
15
Quality vs Productivity in India
UK-based retail bank
US financial services company
No. of Correct transactions/ Total transactions
()
Total Satisfaction factor
Quality
No. of transactions/hour (indexed to UK)
Average speed of answer (Secs)
Productivity
SourceMcKinsey
16
Success Formula

• Investment C

• Telecom/Datacom Infrastructure
• Cluster Incubation Development
• Entrepreneurship and VC Funding
• Internationalisation of HR
• E-Governance
• Quality Systems Methods

17
Connectivity Exchange
International Fiber Landing Point
Intl.Fiber India to USA
STPI-Network Operations Center
Cyber Park
Bharti Metro Fiber
Server Farm
9 Satellite Dishes 4 Metro Fibers
Spectranet Metro Fiber
Reliance Metro Fiber
BSNL Metro Fiber
18
Enabling Clusters
Started Operation
13 Companies US 50.52 M Exports
.
Manipal
Incubation Center
24 Companies US 8.12 M Exports
Bangalore
Mangalore
Earthstation Location
Mysore
Infrastructures ITPL, Bangalore,
HITEC City Hyderabad,
Cyber Park Bangalore
19
Venture Capital Environment in Karnataka

• 12 Domestic Small Funds
• 16 Overseas Funds
• 28 Large Funds
• 50 of above Funds are Head Quartered in
  Bangalore
• Concept of Investor/Incubation Combo is picking up

20
Human Resources in Karnataka State

• Engineering Colleges 97
• Polytechnics 181
• Medical Colleges 27
• General Colleges 812
• Universities
  11
• Technical University 1
• Agricultural Universities 2
• Health University 1

10 Indian Graduates are produced in Karnataka
21
E-Governance Initiatives

• Mukya Vahini Decision Support System for
  Administration
• Bhoomi Nondani Land Records Computerisation
  Registration
• Khajane E-enabling of Treasuries through
  linking of 250 treasuries to manage the complete
  expenditure of the state
• Therige E-enabling Commercial Tax Offices and
  Outposts
• Reshme Online Transaction support for
  Sericulture Farming
• E-Seva One Stop bill payment center covering
  all utilities, taxes, etc

22
Sanjay _at_ inknowtek.com InKnowTech Pvt.
Ltd., A-306, STPI Complex, Electronics City,
Bangalore 561 229