it enabled services in the elite league
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IT Enabled Services In the elite league. IT Enabled Services. India - An Overview Market and Growth Potential Players Opportunities Why India? Contact in India. India - An Introduction. Population States/UTs Geographical Area Languages recognised Business language - PowerPoint PPT PresentationTRANSCRIPT
March 2005
IT Enabled Services
In the elite league
March 2005
IT Enabled Services
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
India - An Introduction
Over 1 bn
35
3.3 mn sq kms
22
English
US$ 534
US$ 650 bn
Population
States/UTs
Geographical Area
Languages recognised
Business language
Per Capita Income**
GDP****(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)Source:CSO Statistics
March 2005
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
March 2005
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 R&D facilities in India
including GE, Delphi, Eli Lilly, HP, Heinz and Daimler
Chrysler
March 2005
IT Enabled Services
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
IT Enabled Services
Key driver of growth for Indian IT industry
Market Size
2002-03 US$ 2.3 billion
2003-04 US$ 3.6 billion
Growth 52%
March 2005
IT and ITeS Market
2002 - 03
2.4% of GDP
16% of exports
2008
7% of GDP
35% of exports
March 2005
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
Contact centres
Telemarketing/pre-sales
Consumer care
Technical support
Back office operations
Data processing
General
March 2005
BPO Services
Sales to grow2003 US$ 709 million2006 US$ 2572 millionCAGR 52%
Marketing to grow2003 US$ 609 million2006 US$ 2188 millionCAGR 62%
Source: International Data Corporation (IDC)
March 2005
Changing Revenue Streams R
elat
ive
impo
rtan
ce
thre
e ye
ars
late
r Banking / Finance Insurance
eCommerce Telecom Software
Airlines Medical/Entertainment FMCG/
RetailComputerManufacturing Pharmaceuticals
Chemicals Utilities Energy Equipment
Steel
Current relative importance
Low
Low High
High
March 2005
IT Enabled Services
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
Domestic ITES-BPO Service Providers
Wipro Spectramind
HCL Technologies BPO
EXL Services
Hinduja TMT
Sutherland Technologies
ICICI OneSource
Datamatics Technologies
Epicenter Technologies
Hero Mindmine
24/7 Customer
March 2005
Global ITES-BPO Players
GE Capital International Services (GECIS)
Standard Chartered
American Express
HSBC BPO unitHughes BPO Services
e-Serve International Ltd
IBM
Dakshe-services PvtLtd.(a part of IBM)
AOL
JP Morgan Chase
Computer Associates
Hewlett Packard
eFunds
HealthScribeIndia
ADP Wilco
CapMarkOverseas Processing India
Dell
Microsoft
OracleDeloitte Consulting
March 2005
IT Enabled Services
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
Outsourcing Destination
Offering best combination of cost-quality-scalability
Global quality standards -Six sigma, COPC, ISO 9001
Healthy mix of MNCs and Indian companies
More than 210 companies registered with NASSCOM
March 2005
BPO on the rise
Share of ITES-BPO sector in total revenues of India`s
IT software & services industry has increased
1998-99 6.5%
2003-04 29%
March 2005
Grow with India
Contribution of IT Enabled Services in total ITexports
1999-200020%
2000-200120%
2002-2003
33%
2001-200227%
ITES-BPO sector
2004 -05 ( Projected) US$ 5.1 billion Growth of 40%
March 2005
IT Enabled Services
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
India Advantage
Low manpower costs
High quality
Low real estate
costs
Capitalise on time zonedifference
Proficiency in English
Reliable infrastructure
Vast pool of knowledge
professionalsPrestigious institutes like IITs
March 2005
Competitive Cost
Breakup of Costs for India (USD Cost/ FTE)
52%
8%
20%
7%13%
Personnel
G&A Expense
Telecom
Property Rentals
Depreciation
Breakup of Costs for USA (USD Cost/ FTE)
73%
15%
3% 4% 5%Personnel
G&A Expense
Telecom
Property Rentals
Depreciation
Source: Industry Sources, Merrill Lynch, 2003
Manpower costs
70 - 80% lower
than
in US/UK
March 2005
ISO:9001:2000
Partnership Driver - Skilled Manpower
Global Growth in Working-AgePopulation (15~64) Over the Next
Six Years (Mln)
3 7 5
8 3
7 3
5 6
4 1
3 8
2 0
1 3
0 .0 4
-3
Availability of SkilledManpower, 2003
7.4
7.3
7.2
7.1
7.1
7.0
6.6
5.7
5.3
4.3
8.9
7.9
7.3
6.9
6.4
5.8
3.9
6.7
6.7
Growing Knowledge Pool
Source: IMD Competitiveness Yearbook 2003Source: UN, Morgan Stanley
March 2005
India Competitiveness
Productivity
20%higher
Quality
30%higher
March 2005
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
March 2005
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
March 2005
India - An offshore destination
73%
4% 4% 4% 2% 2% 2%
20%
0%
25%
50%
75%
March 2005
IT Enabled Services
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
Contact in India
National Association of Software and Service Companies (NASSCOM)
International Youth CentreTeen Murti MargChanakyapuriNew Delhi - 110021
Tel 91 11 23010199Fax 91 11 23015452 Email [email protected]
March 2005
Contact in India
MAIT
4th Floor, PHD HouseOpp. Asian Games VillageNew Delhi 110 016
Tel 26855487/26866976/26866976Fax 26851321Email [email protected]
March 2005
Contact in India
Confederation of Indian Industry (CII)
249-F, Sector 18, Udyog Vihar Phase IVGurgaon 122015
Tel 0091 124 5014060-67Fax 0091 124 5014080/5013874E mail [email protected]