INDIA: AN EVOLVING GLOBAL TECHNOLOGY HUB

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AN OPENING CAVEAT

This talk is based on my: Academic experience as a faculty, project mentor Expert talks at various Institutes for faculty and

students Review and session chair experience for various

conferences Industry experience as Competency and Training

Head Discussions with people in industry

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ROADMAP

Background Current Manpower capability Outsourcing IT industry … Government contribution Summary

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5,000 year old ancient civilization 325 languages spoken – 1,652 dialects 18 official languages 29 states, 5 union territories 3.28 million sq. kilometers - Area 7,516 kilometers - Coastline 1.3 Billion population.

5600 dailies, 15000 weeklies and 20000 periodicals in 21 languages with a combined circulation of 142 million.

GDP $576 Billion. (GDP rate 8%)

Parliamentary form of Government Worlds largest democracy. Worlds 4th largest economy.

World-class recognition in IT, bio-technology and space.3rd largest standing army force, over 1.5Million strong.

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DID YOU KNOW?

India exports software to around 90 countries. The National Stock Exchange (NSE) is the third largest

stock exchange in terms of number of transactions. Bombay Stock Exchange (BSE) is the world’s largest

stock exchange in terms of number of listed companies with more than 5000 companies.

India has the second-largest pool of Scientist and Engineers in the World.

Available international comparisons show that India has the second-largest number of telephone subscribers in the world (among 222 countries).

Mobile tariffs in India are the second lowest in the world after Bangladesh.

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THINK INDIA, THINK TIMES

CHANGING BEHAVIOURAL PATTERNS A fast life today – longer working hours, need for more money Lack of time – for society, family, etc Growing individualism, growing distance between people On the positive side, a more exciting life, richer with information and

experiences – specially exciting for women Technology had undoubtedly created a wow effect More facilities: telecom,

services, entertainment, conveniences, comforts – making life easier  Loan facilities make it easier to access these  People were changing, all of them, in one way or another Families independent – and alone; growing individualism Children growing up more aware, smarter, not shy Women more independent – mentioned happily by women, somewhat

defensively by men  Changes on the work front, caused optimism as well as tension Job opportunities for young men and women are available mainly in

metros Source: The Economic Intelligence Group

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INDIA: TECHNOLOGY SUPERPOWER (1) Geneva-based STMicroelectronics is one of the largest

semiconductor companies to develop integrated circuits and software in India.

Texas Instruments was the first to open operations in Bangalore, followed by Motorola, Intel, Cadence Design Systems and several others.

80 of the World’s 117 SEI CMM Level-5 companies are based in India.

5 Indian companies recently received the globally acclaimed Deming prize for rigorous total quality management (TQM) practices.

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INDIA: TECHNOLOGY SUPERPOWER (2)

15 of the world's major Automobile makers are obtaining components from Indian companies.

New emerging industries areas include, Bio-Informatics, Bio-Technology, Genomics, Clinical Research and Trials.

World-renowned TQM expert Yasutoshi Washio predicts that Indian manufacturing quality will overtake that of Japan in 2013.

Flextronics, the $14 billion global major in Electronic Manufacturing Services, has announced that it will make India a global competence centre for telecom software development.

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INDIA: TECHNOLOGY SUPERPOWER(3)

Over 100 MNCs have set up R&D facilities in India in the past five years. These include GE, Bell Labs, Du Pont, Daimler Chrysler, Eli Lilly, Intel, Monsanto, Texas Instruments, Caterpillar, Cummins, GM, Microsoft and IBM.

India’s telecom infrastructure between Chennai, Mumbai and Singapore, provides the largest bandwidth capacity in the world, with well over 8.5 Terabits (8.5Tbs) per second.

With more than 250 universities, 1,500 research institutions and 10,428 higher-education institutes, India produces 200,000 engineering graduates and another 300,000 technically trained graduates every year.

Besides, another 2 million other graduates qualify out in India annually.

The Indian Institute of Technology (IIT) is among the top three universities from which McKinsey & Company, the world's biggest consulting firm, hires most.

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INDIANS ABROADA snapshot of Indians at the helm of leading Global

businesses

The Co-founder of Sun Microsystems (Vinod Khosla), Creator of Pentium Chip (Vinod Dahm),

Founder and creator of Hotmail (Sabeer Bhatia), Chief Executive of McKinsey & Co. (Rajat Gupta)

President and CFO of Pepsi Cola (Indra Nooyi) President of United Airlines (Rono Dutta)

GM of Hewlett Packard (Rajiv Gupta) President and CEO of US Airways (Rakesh Gangwal)

Chief Executive of CitiBank (Victor Menezes),Chief Executives of Standard Chartered Bank (Rana Talwar)

Chief Executive officer of Vodafone (Arun Sarin) President of AT & T-Bell Labs (Arun Netravali)

Vice-Chairman and founder of Juniper Networks (Pradeep Sindhu) Founder of Bose Audio (Amar Bose)

Founder, chip designer Cirrus Logic (Suhas Patil ) Chairman and CEO of Computer Associates (Sanjay Kumar)Head of (HPC WorldWide) of Unilever Plc. (Keki Dadiseth)

Chief Executive Officer of HSBC (Aman Mehta)Director and member of Executive Board of Goldman Sachs (Girish Reddy)Chief Economist of the International Monetary Fund (Raghuram Rajan)

Former CTO of Novell Networks (Kanwal Rekhi)

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THINK INDIA, THINK TIMES

IT SERVICES

IT services:

Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, Knowledge networking , Infrastructure Management Services, Software testing, Service-oriented architecture and Web services.

IT enabled services: Data analysis and database consulting, HR & admin outsourcing,

Digital media and content development (E-learning, content, publishing, entertainment, etc.),CAD/CAM design, Animation, Bio-informatics, Off-shore financial services, Real-estate management – security services

Others R&D across industry verticals – semiconductor, technology, drug

research, etc. , Legal/advisory services for MNCs

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FEATURES OF INDIAN IT INDUSTRY

Adaptable and has the capability to reinvent itself Strengthen innovation and skilled talent pool in the country. Continued focus on moving-up the value chain, Rising technology spends particularly by the Government Differential investments in areas such as cloud computing,

etc. Resilient and sustainable growth Contributes to India’s GDP Drives growth of the economy, in terms of employment,

export promotion, revenue generation and standard of living.

Substantial exports of the Indian software and services considerable revenues from the domestic market

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INDIA: R&D LABSR&D Centre Highlights

R&D Centre, Bangalore

Established in 1984. The centre started with just 20 people, now has 900 people working on VLSI and embedded software, which goes along with a chip or into the chip.

India Development Centre, Bangalore, Hyderabad.

The Bangalore centre was established in 1994; the Hyderabad one in 1999. Oracle’s largest development centre outside the US currently has 6,000 staff. Does work on Oracle's database products, applications, business intelligence products and application development tools, besides other activities.

India Engineering Centre, Bangalore

Established in mid-1999 with 20 people, has scaled up to 500 people today. Does work mainly on Sun's software which includes Solaris and Sun One.

R&D Centre, Bangalore and Mumbai.

Established in 1988 with 20 people, has scaled up to 1,000 today. Drives nearly 60 percent of the company’s global development delivery.

Software Lab, Bangalore, Pune.

Established in 2001. Works on all IBM software like WebSphere, DB2, Lotus, Tivoli and Rational. The centre has added many new areas of activities such as middleware and business intelligence.

Labs India, Bangalore.

Established in November 1998 with 100 people, the Lab swill be scaled up to 1500 by the end of 2004. That will double 3000 staff by middle of 2006. It is the largest single-location R&D lab for SAP outside Walldorf, Germany. Nearly 10 percent of SAP's total R&D work is carried out from the Indian lab.

Innovation Campus, Bangalore.

Established in 1996 with 10 people, has scaled up to 895 people today, and will be further scaled up to 1,000 before the end of 2003. Works on developing software for Philips products. Almost all Philips products that use software have some contribution from this centre. It is the largest software centre for Philips outside Holland.

Bangalore.

Established in 2002 with just two people, has scaled up to 20 specialists today. Plans exist to double its headcount by the beginning of 2004. Is totally dedicated to high-level research on futuristic technologies, with special focus on emerging markets.

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INDIA’S POSITION IN THE OUTSOURCING MARKET

o Dominant position as the leading outsourcing market as compared to other emerging economies.

o A majority of the companies in India have already aligned their internal processes and practices to international standards such as ISO, CMM, and Six Sigma. This has helped establish India as a credible sourcing destination.

o Many Indian companies have acquired quality certifications with 82 companies certified at SEI CMM Level 5 - higher than any other country in the world.

o TCS, Infosys and Wipro maintained their position as the top 3 exporters in the Nasscom Top 20 IT software and services exporters rankings.

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INDIA: BPOo The domestic BPO sector is expanding rapidly (McKinsey & Co.).

o The outsourcing includes a wide range of services including design, architecture, management, legal services, accounting and drug development and the Indian BPOs are moving up in the value chain.

o There are more than 200 call centers in India with a turnover of $2 billion and a workforce of 150,000.

o Moe than 100 of the Fortune 500 are now present in India compared to 33 in China.

o Cummins of USA uses its R&D Centre in Pune to develop the sophisticated computer models needed to design upgrades and prototypes electronically and introduce 5 or 6 new engine models a year.

o Business Week of 8th December 2003 has said "Quietly but with breathtaking speed, India and its millions of world-class engineering, business and medical graduates are becoming enmeshed in America's New Economy in ways most of us barely imagine".

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EFFORTS MADE BY THE GOVERNMENT

The GoI has recognized the importance of IT-ITES and Electronics hardware manufacturing in the country, both for strategic and economic reasons, and has released vision documents and draft policies for these key sectors, over the past year.

The “Draft National Policy on IT” seeks to achieve the twin goals of bringing the full power of IT within the reach of the entire country and harnessing the capability and human resources available locally, to enable India to emerge as the Global Hub and Destination for IT-ITES by 2020.

The “Draft National Policy on Electronics” envisions creating a globally competitive industry, including Nano-electronics, to serve both the domestic and international markets.

The GoI has also constituted an Empowered Committee to identify suitable technology and investors, for setting up Semiconductor Fabrication facilities in the country.

Implementation of government-sponsored projects and e governance initiatives, such as the UID project, National Knowledge Network, etc., are expected to boost demand for IT in the country.

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THINK INDIA, THINK TIMES

MAJOR OVERSEAS ACQUISITIONS IT/ Software/ BPO Megasoft Saksoft Wipro Many more…………

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THINK INDIA, THINK TIMES

INTERNATIONAL PERCEPTIONS OF INDIA

“India's highly educated workforce, management talent, rule of law, transparency, cultural affinity and regulator environment are more favourable than China's.” A T Kearney FDI index report

India is an interesting combination, world-class talent that can speak English and a strong technological expertise.Tony Wright, Chairman, Lowe Worldwide

 "The courageous reforms have led to enormous economic growth in India.With a growth rate of over eight percent, India ranks at the top even in this very difficult period globally." Gerhard Schroeder Ex -Chancellor Germany  

"The economic dominance of the US is already over. What is emerging is a world economy. India is becoming a powerhouse very fast."Peter Drucker Management Guru

"India's success rate vis-a -vis Britain's in the entrepreneurial scenario is a lot higher. I'm going to go back and work towards this" HRH Prince Charles during his recent visit to India

Our relations with India are stronger than ever, bilateral trade is improving, an increasing number of Indian students are coming to the UK. Gordon Brown, Prime Minister of Britain

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THINK INDIA, THINK TIMES

INTERNATIONAL PERCEPTIONS OF INDIA What's struck me is the energy and restless ambition in India.

You can actually, tangibly feel the drive... Peter Knapp, Executive Creative Director Landor Associates

India is light years ahead in terms of the market potential and the potential for the company (Boeing) to come together as an enterprise and grow. Q.R. Thomas, President Boeing India

Like people study political science, culture, public health, economics, law and medicine, students in Harvard will now study India as a subject." Lawrence Summers, President, Harvard University

"With the Indian economy showing 8-9 per cent growth over the years, more and more Japanese investors are becoming keen to invest in this emerging market.“

Yoshihiro Hasegawa, Chief Representative Daiwa Securities SMBC Co Ltd

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Dr Abdul Kalam, Ex- President of India, father of India’s space, missile and satellite programme and

author of “India 2020 Vision”.

“I have three visions for India.”

“ In 3000 years of our history people from all over the world have come and invaded us, captured our lands, conquered our minds. From Alexander onwards. The Greeks, the Turks, the Moguls, the Portuguese, the British, the French, the Dutch, all of them came and looted us, took over what was ours. Yet we have not done this to any other nation. We have not conquered anyone. We have not grabbed their land, their culture, their history and tried to enforce our way of life on them. Why? Because we respect the freedom of others. That is why my first vision is that of FREEDOM. I believe that India got its first vision of this in 1857, when we started the war of independence. It is this freedom that we must protect and nurture and build on. If we are not free, no one will respect us. “ My second vision for India is DEVELOPMENT. For fifty years we have been a developing nation. It is time we see ourselves as a developed nation. We are among top 5 nations of the world in terms of GDP. We have 10% growth rate in most areas. Our poverty levels are falling. Our achievements are being globally recognized today. Yet we lack the self-confidence to see ourselves as a developed nation, self-reliant and self-assured I have a THIRD vision. India must stand up to the world. Because I believe that unless India stands up to the world, no one will respect us. Only strength respects strength. We must be strong not only as a military power but also as an economic power. Both must go hand-in-hand.”

QUESTIONS?

Reference: Internet