Perspective 2020: Transform Business, Transform India

1
Perspective 2020 Transform Business, Transform
India
Perspective 2020
Perspective 2020
Transform Business,
Transform Business,
Transform India
Transform India
2
PERSPECTIVE 2020 KEY MESSAGES
1
An unparalleled impact on the Indian economy in
the last 10 years
Demographic shifts will fuel the growth of new
sectors, markets, and service lines
2
80 of incremental growth will be driven by
opportunities outside the current core markets,
verticals and customer segments
3
4
Business services will account for 60 of the
total opportunity in 2020
80 per cent of incremental growth cannot be
captured solely through the current offshore and
low-cost proposition. Need for new business
models
5
1
The exports component of the Indian industry is
expected to expand three-fold and reach USD 175
billion and the domestic component will grow to
USD 50 billion by 2020. Additional USD 150
billion at risk
6
3
THE INDUSTRY HAS HAD AN UNPARALLELED IMPACT ON
THE INDIAN ECONOMY
47
4
PERSPECTIVE 2020 KEY MESSAGES
1
An unparalleled impact on the Indian economy in
the last 10 years
Demographic shifts will fuel the growth of new
sectors, markets, and service lines
2
80 of incremental growth will be driven by
opportunities outside the current core markets,
verticals and customer segments
3
4
Business services will account for 60 of the
total opportunity in 2020
80 per cent of incremental growth cannot be
captured solely through the current offshore and
low-cost proposition. Need for new business
models
5
3
The exports component of the Indian industry is
expected to expand three-fold and reach USD 175
billion and the domestic component will grow to
USD 50 billion by 2020. Additional USD 150
billion at risk
6
5
BY 2020, ASIA (INCLUDING JAPAN) WILL BYPASS
EUROPE IN THE GLOBAL ECONOMY
Regional share of global GDP
Per cent
2020 share
7
5
20
10
25
33
Estimates Source McKinsey Global Forces
research
6
WORK FORCES WILL DECLINE AND AGEING POPULATIONS
INCREASE IN KEY WESTERN COUNTRIES
54
Decrease in working age (15-60 years) population
Japan
Increase in retiree (60 years) population
United States
Millions of people
Millions of people
8
16
2008
2020
2008
2020
Current offshore base in India 1.6 million
Source UN population prospects, 2004 McKinsey
Global Forces research
7
PERSPECTIVE 2020 KEY MESSAGES
1
An unparalleled impact on the Indian economy in
the last 10 years
Demographic shifts will fuel the growth of new
sectors, markets, and service lines
2
80 of incremental growth will be driven by
opportunities outside the current core markets,
verticals and customer segments
3
4
Business services will account for 60 of the
total opportunity in 2020
80 per cent of incremental growth cannot be
captured solely through the current offshore and
low-cost proposition. Need for new business
models
5
6
The exports component of the Indian industry is
expected to expand three-fold and reach USD 175
billion and the domestic component will grow to
USD 50 billion by 2020. Additional USD 150
billion at risk
6
8
CURRENTLY UNTAPPED MARKETS WILL DRIVE ALMOST 80
OF INCREMENTAL GROWTH BY 2020
500
BFSI, telecom, retail, pharma, manufacturing,
travel
9
PERSPECTIVE 2020 KEY MESSAGES
1
An unparalleled impact on the Indian economy in
the last 10 years
Demographic shifts will fuel the growth of new
sectors, markets, and service lines
2
80 of incremental growth will be driven by
opportunities outside the current core markets,
verticals and customer segments
3
4
Business services will account for 60 of the
total opportunity in 2020
80 per cent of incremental growth cannot be
captured solely through the current offshore and
low-cost proposition. Need for new business
models
5
8
The exports component of the Indian industry is
expected to expand three-fold and reach USD 175
billion and the domestic component will grow to
USD 50 billion by 2020. Additional USD 150
billion at risk
6
10
BUSINESS SERVICES WILL ACCOUNT FOR 60 OF TOTAL
ADDRESSABLE MARKET OPPORTUNITY IN 2020
0
Business services
Total addressable market for global sourcing and
domestic outsourcing, 2020
USD billion
380-420
1,500-1,640
280-310
605-220
230-250
145-160
190-220
200-250
130-150
500
120-140
895-980
280
220
Growth in core markets

• New customer segments
• SMBs

• New verticals in developed countries
• Public sector
• Healthcare
• Media
• Utilities

• Domestic outsourcing market in new geographies
• Brazil
• Russia
• India
• China

• Core markets
• 2008
• 6 verticals (BFSI, telecom, retail, pharma,
  manufacturing, travel)
• North America, Western Europe, Japan
• Large enterprises

Total addressable market in 2020
Printing and publishing Source Global
Insight Gartner January 2009
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PERSPECTIVE 2020 KEY MESSAGES
1
An unparalleled impact on the Indian economy in
the last 10 years
Demographic shifts will fuel the growth of new
sectors, markets, and service lines
2
80 of incremental growth will be driven by
opportunities outside the current core markets,
verticals and customer segments
3
4
Business services will account for 60 of the
total opportunity in 2020
80 per cent of incremental growth cannot be
captured solely through the current offshore and
low-cost proposition. Need for new business
models
5
10
The exports component of the Indian industry is
expected to expand three-fold and reach USD 175
billion and the domestic component will grow to
USD 50 billion by 2020. Additional USD 150
billion at risk
6
12
PROVIDERS CAN CONSIDER MULTIPLE STEP-OUT
BUSINESS MODELS TO CAPTURE FUTURE OPPORTUNITIES
NOT EXHAUSTIVE
Independent verification and
validation Source McKinsey analysis
13
PERSPECTIVE 2020 KEY MESSAGES
1
An unparalleled impact on the Indian economy in
the last 10 years
Demographic shifts will fuel the growth of new
sectors, markets, and service lines
2
80 of incremental growth will be driven by
opportunities outside the current core markets,
verticals and customer segments
3
4
Business services will account for 60 of the
total opportunity in 2020
80 per cent of incremental growth cannot be
captured solely through the current offshore and
low-cost proposition. Need for new business
models
5
12
The exports component of the Indian industry is
expected to expand three-fold and reach USD 175
billion and the domestic component will grow to
USD 50 billion by 2020. Additional USD 150
billion at risk
6
14
AN OPPORTUNITY OF UP TO USD 150 BILLION COULD BE
AT RISK IN 2020 (1/2)
175
110-150
87
11
15
AN OPPORTUNITY OF UP TO USD 150 BILLION COULD BE
AT RISK IN 2020 (2/2)
65
12
32
24
2
FY 2008
16
SUCCESS WILL RELY ON CONCERTED ACTION ANCHORED ON
A FIVE-FOLD VISION
15