note: bpm - business process management, usp - unique ... · source: nasscom; aranca research note:...

Source: NASSCOM; Aranca Research

Note: BPM - Business Process Management, USP - Unique Selling Proposition

Strong growth

opportunities

• The IT-BPM sector in India is estimated to expand at a CAGR of 9.5 per cent to USD300

billion by 2020. The sector increased at a CAGR of 25 per cent over 2000–13, 3-4 times

higher than global IT-BPM spend

Leading sourcing

destination

• India is the world’s largest sourcing destination, accounting for approximately 52 per cent

of the USD124–130 billion market. The country’s cost competitiveness in providing IT

services, which is approximately 3-4 times cheaper than the US continues to be its USP in

the global sourcing market

Largest pool of ready to

hire talent

• India’s highly qualified talent pool of technical graduates is one of the largest in the world,

facilitating its emergence as a preferred destination for outsourcing

Most lucrative sector for

investments

• The sector ranks fourth in India’s total FDI share and accounts for approximately 37 per

cent of total Private Equity and Venture investments in the country

• The engineering sector is delicensed; 100 per cent FDI is allowed in the sector

• Due to policy support, there was cumulative FDI of USD14.0 billion into the sector over April 2000 – February 2012, making up 8.6 per cent of total FDI into the country in that period

Growing demand

Source: Nasscom, Aranca Research

Note: SEZ stands for Special Economic Zone, BFSI stands for Banking, Financial Services and Insurance; E stands for Estimate, F stands for Forecast

Growing demand

• Strong growth in demand for exports from new verticals

• Expanding economy to propel growth in local demand

Global footprints

• IT firms in India have delivery centres across the world; as of 2012, IT firms had a total of 580 centres in 75 countries

• India’s IT & ITes industry is well diversified across verticals such as BFSI, telecom, retail

Policy support

• Tax holidays extended to the IT sector

• SEZ scheme since 2005 to benefit IT companies with single window approval mechanism, tax benefits,etc

Competitive advantage

• India has cost savings of 60– 70 per cent over source countries

• India remains a preferred destination for IT & ITeS in the world. With 52 per cent market share, India continues to be a leader in the global sourcing industry

• The country has a huge talent pool

2013E

Industry

value:

USD108

billion

2020F

Industry

value:

USD300

billion

Advantage

India

• By early 90s,

US-based

companies

began to

outsource work

on low-cost and

skilled talent

pool in India

• IT industry started to

mature

• Increased

investment in R&D

and infrastructure

started

• India increasingly

seen as a product

development

destination

• The number of firms

in India grew in size

and started offering

complex services

such as product

management and

go-to market

strategies

• Western firms set

up a number of

captives in India

Pre-1995

1995-2000

2000–05

2005 onwards

• Firms in India became

multinational companies

with delivery centres

across the globe (580

centres in 75 countries,

as of 2012)

• Firms in India make

global acquisitions

• The IT sector is expected

to employ about 3.0

million people directly

and around 9.5 million

indirectly, as of FY13

• India’s IT sector is at an

inflection point, moving

from enterprise servicing

to enterprise solutions


IT&ITeS sector

• Market Size: USD56.3 billion during FY13

• Over 78 per cent of revenue comes from the export market

• BFSI continued as the major vertical of the IT sector

• Market size: USD20.9 billion during FY13

• Around 85 per cent of revenue comes from the export market

Business Process

Management (BPM)

IT services


• Over 79 per cent of revenue comes from exports


• The domestic market accounts for a significant share

• The domestic market is experiencing growth as the penetration of

personal computers is rising in India

Hardware

Software products and

engineering services


Note: E - Estimates

Market size of IT industry in India (USD billion) India’s technology and BPM sector (including hardware) is

estimated to have generated USD108 billion in revenue

during FY13 compared to USD100.9 billion in FY12,

implying a growth rate of 7.4 per cent

The contribution of the IT sector to India’s GDP rose to

approximately 8 per cent in FY13 from 1.2 per cent in FY98

22 22 24 29 32 32

41 47 50

59 69 76

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013E

Domestic Export

Source: Bloomberg, Aranca Research

Note: 2012 (calendar year) revenues were

considered for all the companies

Market share of IT players based on revenues (2012) TCS is the market leader, accounting for about 10.1 per

cent of India’s total IT & ITeS sector revenue

The top six firms contribute around 36 per cent to the total

industry revenue, indicating the market is fairly competitive

Company name Market share

TCS 10.7 per cent

Wipro 7.2 per cent

Cognizant 6.8 per cent

Infosys 6.3 per cent

HCL Tech 4.2 per cent

Tech Mahindra 1.1 per cent

Source: Nasscom, Aranca Research; Note: E stands for Estimate

Growth in export revenue (USD billion)

Total exports from the IT-BPM sector (excluding hardware) are estimated at USD76 billion during FY13; the industry rose

at a CAGR of 13.1 per cent during FY08-13E despite weak global economic growth scenario

Export of IT services has been the major contributor, accounting for 57.9 per cent of total IT exports (excluding hardware)

BPM accounted for 23.5 per cent of total IT exports during FY13

Sector-wise breakup of export revenue FY13E

22.2 25.8 27.3 33.5

39.9 43.9 9.9

11.7 12.4

14.1

15.9 17.8

8.8 10 10.4

11.4

13.0 14.1

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013E

IT services BPM Software products and engg. services

57.9% 23.5%

18.6% IT services

BPM

Software productsand engg. Services

CAGR: 13.1%


Notes: C&U - Construction & Utilities, T&T - Travel and Tourism, T& M - Telecom & Media, BFSI - Banking, Financial Services and Insurance

The figures mentioned are for IT and BPM only and do not include engineering services and hardware exports

Export revenue growth across verticals (USD billion)

BFSI is a key business vertical for the IT-BPM industry. It generated export revenue of around USD31 billion during FY13,

accounting for 41.0 per cent of total IT-BPM exports from India

Approximately 85 per cent of total IT-BPM exports from India is across four sectors: BFSI, telecom, manufacturing and

retail. The hitherto smaller sectors are expected to grow

Distribution of export revenue across verticals (FY13)

28

13 11

7 3

2 2

31

14 12

8 4 2 2

BF

SI

T &

M

Ma

nu

factu

rin

g

Reta

il

He

alth

ca

re

T &

T

C &

U

FY12 FY13

41%

18%

16%

10%

5% 3%

3%

BFSI

T & M

Manufacturing

Retail

Healthcare

T & T

C & U


Note: ROW is Rest Of the World, APAC is Asia Pacific

Geographic breakup of export revenue (USD billion)

US has traditionally been the biggest importer of Indian IT exports; over 60 per cent of Indian IT-BPM exports were

absorbed by the US during FY13

Non US-UK countries accounted for just 21.0 per cent of total Indian IT-BPM exports during FY12

Europe, one of the fast growing IT markets in 2012, is expected to emerge as a potential market as higher inclination

towards offshoring firms would increase demand for IT services

Distribution of export revenue across geographies (FY13)

42

12 8

5 2

47

13 9

6 2

US UK ContinentalEurope

APAC ROW

FY12 FY13

62%

17%

11%

8% 2%

US

UK

Continental Europe

APAC

ROW


Category Number of

players

% of total export

revenue

% of total

employees Work focus

Large sized 11 47-50% ~35-38%

• Fully integrated players offering full range of

services

• Large scale operations and infrastructure

• Presence in over 60 countries

Mid sized 85-100 32-35% ~28-30%

• Mid tier Indian and MNC firms offering services

in multiple verticals

• Dedicated captive centers

• Near shore and offshore presence in >30-35

countries

Emerging 450-600 9-10% ~15-20%

• Players offering niche IT-BPM services

• Dedicated captives offering niche services

• Expanding focus towards sub Fortune 500/

1000 firms

Small >4,000 9-10% ~15-18%

• Small players focussing on specific niches in

either services or verticals

• Includes Indian providers and small niche

captives

Global delivery

model

• The number of global delivery centres of IT firms in India reached 580, spreading out

across 75 countries, as of 2012

• As of 2009, over 150 centres were set up by various Indian IT firms in North America

Global sourcing hub • India continues to maintain a leading position in the global sourcing market. Its market

share increased to 52.0 per cent in 2012 from 50.0 per cent in 2011

Engineering offshoring • India is the most preferred location for engineering offshoring, according to a customer poll

conducted by Booz and Co

• Companies are now offshoring complete product responsibility

Patent filing

• Increased focus on R&D by IT firms in India resulted in rising number of patents filed by

them

• The number of patents filed by the top three IT companies increased to 858 in 2012 from

150 in 2009

Changing business

dynamics

• India’s IT market is experiencing a significant shift from a few large-size deals to multiple

small-size ones

• Delivery models are being altered, as the business is moving to capital expenditure

(capex) based models from operational expenditure (opex), from a vendor’s frame of

reference

Large players gaining

advantage

• Large players with a wide range of capabilities are gaining ground as they move from

being simple maintenance providers to full service players, offering infrastructure, system

integration and consulting services

New technologies • Disruptive technologies, such as cloud computing, social media and data analytics, are

offering new avenues of growth across verticals for IT companies

Growth in non-linear

models

• India’s IT sector is gradually moving from linear models (rising headcount to increase

revenue) to non-linear ones

• In line with this, IT companies in India are focusing on new models such as platform-based

BPM services and creation of intellectual property

Consumerisation of IT

• Global outsourcing is being used to drive fundamental re-engineering of end-to-end

processes

• Increased emphasis on beyond cost benefits

• IT firms in the current phase have moved up the value chain, providing innovation-led

growth to clients from SLA satisfaction and RoI calculations

Emergence of Tier II

cities

• Tier II and III cities are increasingly gaining traction among IT companies, aiming to

establish business in India

• Cheap labour, affordable real estate, favourable government regulations, tax breaks and

SEZ schemes facilitating their emergence as a new IT destination

• Giving rise to the domestic hub and spoke model, with Tier I cities acting as hubs and Tier

II, III and IV as network of spokes

SMAC technologies, an

inflection point for

Indian IT

• Social, Mobility, Analytics and Cloud (SMAC), a paradigm shift in IT-BPM approaches

experienced until now, is leading to digitisation of the entire business model

• IT vendors in India to generate USD225 billion from SMAC-related revenue by 2020

Note: SLA - Service Level Agreement; RoI - Return on Invesmtnet

Note: STPI stands for Software Technology Park of India, SEZ stands for Special Economic Zone

Growth

drivers

Talent Pool

Domestic

growth

Infrastructure

Global

demand

Policy

support

• Computer penetration

expected to increase

• Government likely to become

a major contributor to domestic

demand by 2013–14

• 4.7 million graduates are estimated to have been

added to India’s talent pool in FY13

• Strong mix of young and experienced professionals

• Global IT offshore

spending is expected to

rise at a CAGR of 8.0 per

cent during FY11–13

• Global BPM spending is

estimated to expand at a

CAGR of around 7.0 per

cent during FY11–13

• Tax holidays for STPI and

SEZs

• Procedural ease and single

window clearance for setting

up facilities

• Robust IT infrastructure across

various cities in India such as

Bengaluru

• Delivery centres spread across

various countries


Note: Small and Medium Business; E indicates estimated numbers

Domestic IT market by customer segment

(FY2013E)

Large enterprises account for a significant share of the IT

market and added USD15bn to domestic revenue in FY13

Expansion of Indian firms in global markets is

leading to increasing spend on IT for efficient and

cost-effective operations

SMB, another potential demand pool for IT services in

domestic market

Adoption of technology for enhancing product

visibility, reach and operational efficiencies is

leading to higher demand for IT services from SMBs

With 46 million units, India has the second largest

SMB base in the world

47%

26%

15%

12%

Large enterprises

SMB

Governement

Consumers

Total market = USD32 billion


Note: UT - Union Territory

Domestic revenue from IT and BPM (USD billion) Introduction of large eGovernance projects to provide better

services through IT and focus on the formation of the cyber

policy led to higher demand for IT and hardware from the

government

The Central Government and State/UT Government

allocated 0.9–1.2 per cent and 2.8–3 per cent,

respectively, of total budget on IT spend under the

12th Five Year Plan

Strong consumer demand for IT service and products:

Advent of smartphones, tablets, iPads,

Rising computer literate population

Enhanced Internet and mobile penetration

Growing disposable income strengthening consumer

purchasing power

15.5

FY13 FY15F FY20F

~22-23

~90-100


Note: Ovals indicate CAGR

Export revenue from IT and BPM (USD billion) Global IT-BPM spending to grow 5–6 per cent to nearly

USD2 trillion by 2013

Global sourcing to rise at a faster pace of 9–11 per cent to

USD124–130 billion in 2013

Emergence of SMAC would provide USD1 trillion market by

2020

Emerging economies are likely to be a major contributor to

IT spend growth

IT spend in emerging economies to grow 3-4 times

faster than advanced economies

The BRIC IT market is estimated at USD380–420

billion by 2020

Emerging segments are expected to drive growth of Indian

IT-BPM exports

48

~106-111

FY11 FY14F

Core and non core segment’s growth prospects

22 11 1.2 7.6 3.2 3.1

35

15 2

13 5.5 5.5

CA

DM

ER

&D

IT c

onsu

ltin

g

IS s

ou

rcin

g

Kn

ow

led

ge

serv

ice

s

So

ftw

are

testing

FY13E FY16F

Core segments Emerging segments 17%

10%

19%

20%

20% 21%


Note: Graduates includes both graduates and post graduates

Graduates addition to talent pool in India

(in millions)

Availability of skilled English speaking workforce has been a

major reason behind India’s emergence as a global

outsourcing hub

India added around 4.7 million graduates to the talent pool

during FY13

Growing talent pool of India has the ability to drive the R&D

and innovation business in the IT-BPM space

3.2 3.5

3.7 4.0

4.4

4.7

FY2008 FY2009 FY2010. FY2011 FY2012 FY2013E


Training expenditure by Indian IT-BPO sector About 2 per cent of the industry revenue is spent on training

employees in the IT-BPM sector

40 per cent of total spend on training is spent on training

new employees

A number of firms have forged alliances with leading

education institutions to train employees

24%

6%

13%

27%

19%

11%

Salaries for inhousetraining staff

External training (newrecruits)

External training (existingemployees)

Recruitment cost

Employee welfare

Other costs


Note: NAC - Nasscom Assessment of Competence, IIIT - Indian Institutes of Information Technology

Short term

Medium term

Long term

• Enhance over all yield of employees

• Improve employability

• Expand to tier 2 cities

• Lower skill dependence

Objectives Initiatives

• Industry to enhance investment in

training

• Use NAC and NAC – Tech to assess

employability of talent pool

• Identified new tier 2 locations

• Bring down investment on training

• Develop specialist and project

management expertise

• Launched the National Faculty

Development Programme to increase

suitability of Faculty

• Aiding industry access to specialist

programmes offered by independent

agencies

• Expand education capacity

• Promote reforms in education

• Expansion of higher education

infrastructure; 20 new IIITs to be set up

by the government

• Programme to increase PhDs in

technology

Source: Nasscom, Aranca Research, STPI

As of FY2011, 6,554 STPI units were operational, while

5,564 units have exported IT services and products. During

FY11, STPI units accounted for approximately 76.0 per cent

of total IT exports

IT-SEZs have been initiated with an aim to create zones

that lead to infrastructural development, exports and

employment

Characteristics of STPI and SEZ in India

Parameters STPI SEZ

Term 10 years 15 years

Fiscal benefits

• 100 per cent tax

holiday on export

profits

• Exemption from

excise duties and

customs

• 100 per cent tax

holiday on exports

for first five years

• Exemption from

excise duties and

customs

Location and

size restrictions

• No location

constraints

• 23 per cent STPI

units in tier II and

III cities

• Restricted to

prescribed zones

with a minimum

area of 25 acres

Source: Nasscom, E&Y, Aranca Research

IT sector employment distribution in Tier I and

Tier II/III cities

1,821 1,615

175

3,230

2008 2018E

Tier I locations Tier II/III locations

Trends in tier II and III cities

• 43 new tier II/III cities are emerging as IT delivery

location; this could reduce pressure on leading

locations

• Cost in newer cities is expected to be 28 per cent

lower than leading cities

• Lower cost and attrition, affordable real estate and

support from local government, such as tax breaks,

STPI and SEZ schemes, are facilitating this shift of

focus

• Over 50 cities already have basic infrastructure and

human resource to support the global sourcing and

business services industry

• Some cities are expected to emerge as regional hubs

supporting domestic companies

Source: Zinnov, Nasscom, Aranca Research

Number of GIC’s in India

2000 2005 2010 2012

~180

450+

700+ 750+

Key highlights

• Global In-House Centers (GIC), also known as captive

centers, are one of the major growth drivers of the IT-

BPM sector in India

• As of FY2012, the captive segment accounted for 16-

18 per cent of the IT-BPM industry revenue

• The impact of the segment goes beyond revenue and

employment, as it helped in developing India as a R&D

hub and create an innovation ecosystem in the country

• Within the captive landscape, ER&D/SPD

(Engineering Research & Development /Software

Product Development) is the largest sub-segment

• Companies from North America and Europe are major

investors in the captive segment in India, accounting

for over 90 per cent of captives in the country

Source: Venture Intelligence, Nasscom, Aranca Research

PE-VC investments in IT & BPM (USD billion)

The IT & BPM sector continued to attract PE and VC investments in 2012, accounting for a significant proportion in terms

of volume (around 37 per cent) and value (approximately 40 per cent)

Value increased at an impressive 68.4 per cent over 2011

eCommerce accounted for 31 VC deals in 2012

About 64 per cent of VC deals in India were in the software, internet and mobile industry

Two of the largest PE deals in the sector during 2012 were:

JP Morgan’s buyout of M*Modal (USD1,100 million)

Bain Capital, GIC investment in Genpact (USD1,000 million)

In 1Q13, the industry attracted 26 deals at a value of USD105 million

Share of IT-BPM in PE-VC investments

0.8

1.9

3.2

2008 2011 2012

184

379

484

393

58 25 32 40

2009 2010 2011 2012

Number of deals Share of IT-BPM

Source: All the figures are taken from International Data

Corporation (IDC) and Nasscom and are FY10 estimates

Notes: SMB - Small and Medium Businesses

• BRIC nations, continental Europe, Canada and

Japan have IT spending of approximately

USD380–420 billion

• Adoption of technology and outsourcing is

expected to make Asia the second largest IT

market

• Government, healthcare, media and utilities have

IT spend of approximately USD190 billion, but

account just 8 per cent of India’s IT revenue

• A number of sectors are expected to depend on

technology and service providers to reduce the

cost to serve • SMBs have IT spend of approximately USD230–

250 billion, but contribute just 25 per cent to India’s

IT revenue

• The emergence of new service offerings and

business models would aid in tapping market

profitably and efficiently

New verticals New

customer segments

New geographies

Growth trend of traditional verticals

Traditional verticals i.e. BFSI, telecom and manufcaturing, continue to remain the largest in terms of IT adoption, and are

expected to grow at an average of 15%

Implementation of cloud environment and mobility way forward for traditional verticals

Emphasis on other emerging verticals (such as education, healthcare and retail) to aid growth in IT firms in India

Shift from IT adoption infrastructure, automation and digitisation to smart IT marks future trend of services in

emerging verticals

Growth trend of emerging verticals

128 80

339

195

126

506

243

193

595

BFSI Telecom Manufacturing

FY10 FY13E FY15F

17.2

11.6

4.4

34.5

17.5

8.7

39.5

24.8

9.7

Education Healthcare Retail

FY10 FY13E FY15F



Note: SMB - Small and Medium Business

Market size of other progressing verticals by 2020

(USD billion)

As IT is increasingly gaining traction in SMB’s business

activities, the sector offers impressive growth opportunities

and is estimated at approximately USD230–250 billion by

2020

In a bid to reduce cost, governments across the world are

exploring outsourcing and global sourcing options

Technologies, such as telemedicine, mHealth, remote

monitoring solutions and clinical information systems, would

continue to boost demand for IT service across the globe

IT sophistication in the utilities segment and the need for

standardisation of the process are expected to drive

demand

Digitisation of content and increased connectivity is leading

to a rise in IT adoption by media

250

90

58 25

17

SMB Government Healthcare Utilities Media


Note: Size of bubble indicates market size,

*CAGR and market size for Big data/analytics is till 2015

Growing technologies future growth Emerging technologies present an entire new gamut of

opportunities for IT firms in India

SMAC provide USD1 trillion opportunity

Cloud represents the largest opportunity under SMAC,

increasing at a CAGR of approximately 30 per cent to

around USD650–700 billion by 2020

Social media is the second most lucrative segment for IT

firms, offering a USD250 billion market opportunity by 2020

Cloud

Social Media

Enterprise mobility

Big data/analytics*

10%

20%

30%

40%

50%

60%

0 200 400 600 800

CA

GR

till

20

20

Market size USD billion


Emerging geographies to drive the next growth phase for IT firms in India

BRIC provides USD380–420 billion opportunity by 2020

Focus on building local credible presence, high degree of domain expertise at competitive costs and attaining operational

excellence hold key to success in new geographies

Countries offering growth potential to IT firms

Country IT spend India’s penetration Key segments

Canada USD63 billion ~1.5 per cent Enterprise applications, cyber security, healthcare IT

Europe USD230 billion <1.5 per cent IT sourcing, BPM, IS outsourcing, CAD

Japan USD235 billion <1 per cent CRM, ERP, Salesforce automation, SI

Spain USD26 billion <1.5 per cent IT sourcing, SI

Mexico USD29 billion ~4 per cent IT sourcing, BPM

Brazil USD47 billion ~2 per cent Low level application management, artificial intelligence, R&D

China USD105 billion <1 per cent Software outsourcing, R&D

Australia USD48 billion ~4 per cent Procurement outsourcing, infrastructure software & CAD

Source: TCS website and Annual Report, Aranca Research

Segment-wise revenue breakdown (FY13)

66% 5%

12%

3%

3%

13%

IT solutions andservices

Engineering andindustrial services

Infrastructureservices

Global consulting

Asset leveragesolutions

Business processoutsourcing

Tata Consultancy Services

Established in 1968, Tata Consultancy Services (TCS) is

an Information Technology (IT) services, consulting and

business solution company . It provides end-to-end

technology and technology-related services to global

enterprises. The company’s business is spread across

the Americas, Europe, Asia Pacific, and Middle East and

Africa (MEA).

Achievements:

• 2013: Won Best Performing Consultancy Brand award

in Europe

• 2013: Received Red Hat North America Awards for

System Integrator Partner of the Year

• 2012: TCS China ranked amongst the top 10 global

services providers in China

• 2012: TCS BaNCS won Xcelent Customer Base

Awards 2012


Number of customers Financial performance (USD billion)

6.0 6.3

8.2

10.2

11.6

1.4 1.7 2.3

2.8 3.1

FY09 FY10 FY11 FY12 FY13

Revenue Operating profit

214

76

42 25

5

458

208

143

81

27 8

522

245

170

99 43

14

556

277

196

115

48 16

USD1million+

USD5million+

USD10million+

USD20million+

USD50million+

USD100million+

FY5 FY11 FY12 FY13

1968 2001 2003 2005 2007 2009 2011 2013

Energy resources

& Utilities

Consolidation of

market position

through CMC

acquisition

Expansion of

geographic

presence

1968

India’s first

software service

company

Issue of an IPO in

the market in India

and raised USD1.2

billion in 2004

FY03

Became the first

software company

in India to cross

USD1 billion

revenue

FY13

USD11.6

billion revenue

Life Sciences &

Healthcare

Manufacturing

Media &

Entertainment

Retail and consumer

packaged goods

BFSI

Acquisition of IT

service firm Alti in

France in 2013

With a brand value of over

USD1 billion, TCS

consolidates position as

one of the largest IT

players

FY13

Active client

base: 1,156

New clients:

153


Source: HCL Technologies website and Annual Report,

Aranca Research


32%

24%

20%

19%

5% Custom applicationservices

Infrastructure services

Enterprise applicationservices

Engineering & R&Dservices

Business services

HCL Technologies

Established in 1991, HCL Technologies Ltd is an IT

services company providing enterprise and custom

application, business transformation, infrastructure

management, business process outsourcing and

engineering services. The company’s network of 26

offices is spread across the US, Europe and Asia Pacific

Achievements:

• 2013: Won IT Europa, European IT Excellence

Awards and Asia Pacific Enterprise Leadership Award

2013

• 2012: Received Market Facing Innovation award at the

NASSCOM Innovation Awards, 2011

• 2011: Received Operational Excellence & Quality

award at BPO Excellence Awards 2010–11

Source: HCL Technologies website and Annual Report,

Aranca Research


1,879 2,228

2,560

3,452

4,345

3,459

250 317 321 438 656

682

FY08 FY09 FY10 FY11 FY12 9MFY13


386

152

92

44 25 14 10

422

187

98

51 29 15 10

USD1million+

USD5million+

USD10million+

USD20million+

USD30million+

USD40million+

USD50million+

31-Mar-12 31-Mar-13

1997 1998 1999 2000 2002 2004 2006 2008 2010 2011 2012 2013

Life Sciences &

Healthcare

Organic growth

through prudent

strategies

Diversification of

business and

geography mix

1997

Established with

spun-off HCL’s

R&D business

Adoption of non-

linear strategy;

formation of JVs and

alliances

FY06

Signed the

largest ever

software service

deal with DSG

FY12

Revenue

crossed USD4

billion

Media

Retail & Consumer

Packaged Goods

Telecom

Manufacturing

Financial Services

Acquisition of

Capitalstream and

AXON Group

USD100 million+

clients reached 5

FY09

Launch of

IPO

Source: HCL Technologies website and Annual Report, Aranca Research

Source: Infosys website and Annual Report,

Aranca Research


34%

22%

20%

24%

Financial services &Insurance

Manufacturing

Energy utilities,Communication andServices

Retail, Consumerpackaged goods,Logistics and LifeSciences

Infosys Limited

Established in 1981, Infosys Limited is engaged in

consulting, engineering, technology and outsourcing

services. The company’s end-to-end services include

consulting and system integration. It operates through 30

offices across India, the US, China, Australia, the UK,

Canada and Japan.

Achievements:

• 2013: Ranked first in the annual Euromoney Best

Managed Companies in Asia survey

• 2013: Received NASSCOM Business Innovation

Award 2013 for Infosys Edge

• 2012: Identified as an innovation leader in KPMG’s

Global Technology Innovation Survey 2012


5.0 4.8

6.0

7.0 7.4

1.7 1.6 1.8 2.0 1.9

FY09 FY10 FY11 FY12 FY13


399

190

132

233

97

16

448

213

137

231

84

15

USD1million+

USD5million+

USD10million+

USD20million+

USD50million+

USD100million+

2012 2013

Source: Infosys website and Annual Report,

Aranca Research

1981 1991 1993 1995 1997 1999 2002 2006 2010 2012

Logistics and

Distribution

Organic growth

Large client

acquisitions

1981

Founded in

Pune with an

initial capital of

USD250

Expansion across

the world and

offshore business

1993

Launched

IPO

FY13

USD7.4 billion

turnover

Industrial

manufacturing

Healthcare,

Pharmaceuticals &

Biotech

Financial service

Automotive

Aerospace, Defense

&

Airlines

Acquisition of

Lodestone Holding

AG

Strong diversified

client base of 798

clients

1999

Reached USD100

million and listed

on NASDAQ

Source: Infosys website and Annual Report, Aranca Research

National Association of Software and Services Companies

(NASSCOM) Address: International Youth Centre Teen Murti Marg, Chanakyapuri,

New Delhi – 110 021

Phone: 91 11 2301 0199

Fax: 91 11 2301 5452

E-mail: [email protected]

APAC: Asia Pacific

BFSI: Banking, Financial Services and Insurance

BPM: Business Process Outsourcing

CAGR: Compounded Annual Growth Rate

C&U: Construction & Utilities

FDI: Foreign Direct Investment

GOI: Government of India

INR: Indian Rupee

IT&ITeS: Information Technology-Information Technology Enabled Services

NAC: Nasscom Assessment of Competence

RoI: Return on Investment

ROW: Rest Of the World

SEZ: Special Economic Zone

SLA: Service Level Agreement

SMB: Small and Medium Businesses

STPI: Software Technology Parks of India

T&M : Telecom & Media

T&T: Travel and Transport

USD: US Dollar

USP: Unique Selling Proposition

UT: Union Territory

Wherever applicable, numbers have been rounded off to the nearest whole number

Year INR equivalent of one US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

Exchange Rates (Fiscal Year)

Year INR equivalent of one US$

2005 45.55

2006 44.34

2007 39.45

2008 49.21

2009 46.76

2010 45.32

2011 45.64

2012 54.69

2013 54.45

Exchange Rates (Calendar Year)

Average for the year

India Brand Equity Foundation (“IBEF”) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The

same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium

by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in

any manner communicated to any third party except with the written approval of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEF’s knowledge and belief, the

content is not to be construed in any manner whatsoever as a substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation.

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on

the part of the user due to any reliance placed or guidance taken from any portion of this presentation.

note: bpm - business process management, usp - unique ... · source: nasscom; aranca research note:...

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