IT Enabled Services

1
IT Enabled Services In the elite league
2
IT Enabled Services

• 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 US 42 bn (2001)
  to
• USD 133 bn (February, 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 Enabled Services

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

7
IT Enabled Services

• Market Size
• 2002-03 US 2.3 billion
• 2003-04 US 3.6 billion
• Growth 52

• Key driver of growth for Indian IT industry

8
IT and ITeS Market
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Segments in ITES-BPO Sector

• Medical transcription
• Legal database processing
• Digital content development
• or animation
• Online education
• Remote maintenance
• Engineering and Design

Specialised- Vertical specific
General

• Contact centres
• Telemarketing/pre-sales
• Consumer care
• Technical support
• Back office operations
• Data processing

10
BPO Services

• Sales to grow
• 2003 US 709 million
• 2006 US 2572 million
• CAGR 52

• Marketing to grow
• 2003 US 609 million
• 2006 US 2188 million
• CAGR 62

Source International Data Corporation (IDC)
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Changing Revenue Streams
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IT Enabled Services

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

13
Domestic ITES-BPO Service Providers
Wipro Spectramind HCL Technologies BPO EXL
Services Hinduja TMT Sutherland Technologies
ICICI OneSource Datamatics Technologies Epicente
r Technologies Hero Mindmine 24/7 Customer
14
Global ITES-BPO Players
GE Capital International Services (GECIS)
ADP Wilco
Standard Chartered
IBM
Microsoft
AOL
HealthScribeIndia
e-Serve International Ltd
JP Morgan Chase
Dakshe-services PvtLtd.(a part of IBM)
HSBC BPO unit
Hughes BPO Services
eFunds
American Express
Hewlett Packard
Dell
Computer Associates
Oracle
Deloitte Consulting
CapMarkOverseas Processing India
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IT Enabled Services

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

16
Outsourcing Destination

• Offering best combination of cost-quality-scalabil
  ity
• Global quality standards -Six sigma, COPC, ISO
  9001
• Healthy mix of MNCs and Indian companies
• More than 210 companies registered with NASSCOM

17
BPO on the rise
Share of ITES-BPO sector in total revenues of
Indias IT software services industry has
increased 1998-99 6.5 2003-04 29
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Grow with India

• ITES-BPO sector
• 2004 -05 ( Projected) US 5.1 billion
• Growth of 40

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IT Enabled Services

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

20
India Advantage
Low manpower costs
Capitalise on time zone difference
Reliable infrastructure
Low real estate costs
High quality
Vast pool of knowledge professionals
Prestigious institutes like IITs
Proficiency in English
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Competitive Cost
Manpower costs 70 - 80 lower than in US/UK
Source Industry Sources, Merrill Lynch, 2003
22
Growing Knowledge Pool
Source IMD Competitiveness Yearbook 2003
Source UN, Morgan Stanley
23
India Competitiveness
Productivity 20 higher
Quality 30 higher
24
Central Policy Advantage

• Tax breaks
• Bandwidth sharing between multiple entities
• Internet and IPLC connectivity on same LAN
• Duty-free imports of capital goods
• Income tax exemption on exports
• Fast track approval for projects
• Relaxation in regulations
• 100 FDI in Call Centers

25
State Policy Advantage

• Assignment of priority sector status
• Cheap power and real estate
• Concessions in taxes and various fees
• Latest technology for infrastructure
• Favourable legislation
• IT parks

26
India - An offshore destination
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IT Enabled Services

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

28
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
29
Contact in India
MAIT 4th Floor, PHD HouseOpp. Asian Games
VillageNew Delhi 110 016 Tel
26855487/26866976/26866976Fax [phone]Email
mait_at_vsnl.com
30
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