ICTs in Governance&

Job ( and Wealth) Creation

By

Dr T.H. CHOWDARY Director: Center for Telecom Management and Studies

Chairman: Pragna Bharati (intellect India )Former: Chairman & Managing Director

Videsh Sanchar Nigam Limited &Information Technology Advisor,

Government of Andhra PradeshT: +91(40) 5567-1191/ 2784-6137(O) 2784-3121®

F: +91 (40) 5567-1111, 2789-6103hanuman.chowdary@tcs.com

thc@satyam.com Talk @ Montessori Mahila Kalasala, Vijayawada : 2 Sept 2006

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ICTs in Governance (1/3)

• Governments (Union & State) are collecting and spending 30% of our GDP

• There are schemes on which upto Rs. 100,000 crores were spent but not completed even after 5 to 10 years

• Comptroller & Accountant General of India is writing history after history of waste and non-productive outlays

• Computerised MIS on nation-wide telecom network

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The Cost of Delay: Rs. 50,000 cr.

Total Projects 742 ( 216 hit by cost overrun)

Railways Power Atomic Energy

Urban Development

Coal Petroleum

No. of Projects

256 62 10 18 100 30

Projects hit by cost overrun

149 9 2 4 13 13

Original cost (Rs. crores)

25,175 3,527 3,527 4,976 529 24,406

Extent of cost overrun

91.5% 87.7% 87.7% 115.9% 52.2% 29.6%

(Source: Indian Express 31/8/2006)

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ICTs in Governance (2/3)

• Since 1997 Pioneered by GOs of AP, KN and TN, all governments have programs of ICT use in government work.

• G2C: eg: e-Sevas, Land records, CARD• G2B: eg: e-procurement • G2G: eg: Filing tax returns, jail reservations• G2G: eg: e-MIS; Treasuries, video conferencing• G2B: eg: banking, purchases

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ICTs in Governance (3/3)

• Union & state governments are investing about Rs. 3000 cr/year on various e-governance projects

• Eventually we must have e-elections– Registration ( no enrollment)

– Electioneering ( TV & Radio channels, Toll free interrogation)

– Balloting • (i) 80% saving on (ii) & reduction of need for black money

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ICTs for Wealth and Employment

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Software Export Industry

734 1,0851,750

2,6503,900

5,5006,800

8,000

10,000

12,500

16,560

1995-96

1996-97

1997-98

1998-99

1999-2000

2000-'01

2001-02

2002-03

2003-04

2004-05

2005-06

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Employment in Indian IT sector*,’000

0200400600800

10001200140016001800

2000 '01 '02 '03+ '04+

Call-centers (ITES) Software Multinational operations

(* Years ending March; + Estimate@ break-up: NA)

2 mln@

‘06

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A.P’s Software and ITES Exports

• In 2004-2005 Exports surged by 64.5%

Year 2007 2006 2005 2004 1996

Volume (in Rs. Cr. ) 17,000 12,521 8,270 5,025 65of Exports

Visakhapatnam Units 37; Exports Rs. 70crVijayawada Units 13; Exports Rs. 24 Cr• Number of direct employees 1,60,000 adding

30,000 to 40,000 per year

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PROSPECT- I T ENABLED / CREATED SERVICES & EMPLOYMENT (INDIA)

GROSS WORLD PRODUCT IN THE YEAR 2010 US $ 40 TCONTRIBUTION FROM SERVICES (60%) OF GWP US $ 24 TINDIA'S SHARE @ 10% US $ 2.4 TEMOLUMENTS COMPONENT (15% TO 50%) US $ 360 TO US $ 1200 bEMOLUMENTS/EMPLOYEE/YEAR US $ 5000NO OF JOBS (360/1200) b = 72 to 240 million 5 K

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2001 2002 2003 2005 2006

1.5% 1.9% 2.82% 3.8% 5.0%

India’s share in software exports in the over all global market

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Share of India in GlobalBPO & KPO Markets

Year 2003-’04 2010-’11 BPO 36% 55%

KPO 56% 71% Leaders:

Eng. Design Basic Data Biotech & Search Pharma

Integration &Mgment

400m $ 300m $ 280Education coming up

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Not only, BPO but KPO

• GE Capital International Services (Gecis Global)

– Started in India 1997 with 300– Now was 17,000 in several countries – In India – 12,000 ( > 70%) (2,300 in R&D

alone)

• Tutors from India – Career Launcher (Delhi) 20,000 US students taking e-tuitions

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Foreign Companies Engaging Indian intellect (1/2)

• Motorola – 1700 employees• 40% of software in its mobiles developed

in India • The Internet browser and multi-media

messaging system conceived and developed for 3G and GSM and engineer

• The software going into US cars is being developed here in India .

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Foreign Companies Engaging Indian intellect (2/2)

• GE – Largest R&D center outside USA is in India in Bangalore with 2300 researchers, double that in Shanghai

• GE put in $ 80 mln in the Bangalore R&D facility

• GE’s Bangalore R&D field for 260 patents in the USA (37 already approved)

• Boeing USA is outsourcing Aircraft design to Russia ( $ 120/ Hr)

• Russians are outsourcing parts of the design to HAL (BG) at $ 30/Hr

• Gorbachev went to USA to recommend Moscow as Bangalore’s rival!

• An Indian retained does the work of 2 or 3 Europeans;

does not take 6 weeks of holidays & costs one-fourth

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Some foreign companies’ employees in India

GE Caps GE Dev IBM Oracle EDS Texas

16,000 1,800 10,000 6000 3,500 900

Intel JP Morgan HUWAI Siemens Motorola

1,700 1,200 1,500 2000 1,500

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ICT-enabled Employment in Rural areas

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Work taken to Villages: GramIT

• While US, EU, Oceania outsource to Hyderabad, Hyderabad out-sources to villages.

• Satyam Computers & Byraju Foundation• 200 Resident village graduates ( BA, B.Com, B.Sc)

trained in Ameringlish; imparted computer & Internet skills

• Satyam (Hyderabad HQ) outsourced its own internal work (pay-roll, accounting; travel; training; MIS

• Satisfied,work from abroad moved to villages

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Work taken to Villages: GramIT (2)

• Broad-band telecom (optical fiber) 512 kbps extended from point of presence (POP) to work-site by PMP wireless

• Called Gram ITs, these offer transaction processing services ( accounting, bulk mlng; records digitisation, reminder and follow-up and travel support.

• A whole Gram IT can be dedicated to a customer (like twinning of cities across continents; city com@Gram.IT twinning

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Work taken to Villages: GramIT (3)

• Gram IT-team contributed part of profits for village development scheme designed by them – Independent and local initiative

• Rural Pressure group to demand and get quality infrastructure and services such as roads, retailing, education, health

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Billionaires in the IT & Software Sector

Name Co Wealth in $ bln Rs. cr

Bill Gates Microsoft 50 2,30,000

Paul Allen Microsoft 22 1,01,200

Michael Dell Dell Corporation 17.1 78,600

Larry Ellison Oracle 16 73,600

Steve Balmer Microsoft 13.6 62,500

Ajim Premji Wipro 13.3 61,180

Sergey Brin Google 12.9 59,340

Larry Page Google 12.8 58,880

Pierre Omidyar E-Bay 10.1 46,460

Hasso Plattner SAP 6.4 29,440

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Dhanyawad:Thank You