Transcript TML Corporate Overview

India as outsourcing destination –
Key milestones
George Anthony
VP & CTO
Tech Mahindra Limited
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Agenda
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Introduction
Key statistics
India outsourcing – Milestones
Current Challenges
China-India model
Growth is at fast pace (Offshore based outsourcing)
IT Exports
90
80
70
60
$ Billion
50
40
30
20
10
0
India
China
Philippines
Russia
2000
2002
3
8
0.25
2
0.25
0.4
0.25
0.75
2005
50
10
2
1.5
2008
80
25
8
3
* NASSCOM, McKinsey, Forrester, Aberdeen, neoIT
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IT-ITES Sector performance
USD billion
IT Services
-Exports
-Domestic
ITES-BPO
-Exports
-Domestic
Engineering Services and R&D,
Software Products
-Exports
-Domestic
Total Software and Services Revenues
Of which, exports are
Hardware
Total IT Industry (including Hardware)
Source - NASSCOM
4
FY 2004
10.4
7.3
3.1
3.4
3.1
0.3
2.9
FY 2005
13.5
10.0
3.5
5.2
4.6
0.6
3.9
FY 2006E
17.5
13.2
4.3
7.2
6.3
0.9
4.8
2.5
0.4
16.7
3.1
0.7
22.6
3.9
0.9
29.5
12.9
5.0
21.6
17.7
5.9
28.4
23.4
6.9
36.3
Outsourcing Drivers & India advantages
Cost Savings/
Containment
Skills
Shortage
Specialist
Requirements
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Focus
OUTSOURCING
DRIVERS
Quality
Time to Market
Total Outsourcing Proposition
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New application
Development & Mgmt
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Technology
Consulting
Business
Applications
Sustenance
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Application
Optimization
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Strategic Consulting
Infrastructure
Management
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Process
Consulting
Infrastructure
Optimization
Infrastructure Set up
& Provisioning on a
pay-by-use basis
India’s Competitive advantage
Performance
1
Abundant
Talent
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• India has 28% of suitable talent among all cost
competitive offshore locations
• Key stakeholders are taking initiatives to
further enhance India’s talent proposition
Quality &
2 Scaleable
Infrastructure
• Significant primary infrastructure is being built in
leading centres
• ~ 25 million sq feet of Class A real estate was
available in 2005
• End-to-end network uptime for India and other
offshore locations vis-à-vis US levels (~99.95%)
Operational
3
Excellence
• India based players have managed to maintain
quality and cost leadership vis-à-vis other
countries
Conducive
4 Business
Environment
• India’s business environment is competitive
with those in other countries
• Key government policy interventions have
catalyzed growth
Growing
5 Domestic IT/
BPO Market
• Increase in domestic spending on IT
Critical
Ingredients of
India’s success
= Low
Highlights
= High
Source: Nasscom-McKinsey Report 2005
The Outsourcing Value Chain
E2E
Ownership
Risk and Ownership
Systems
Outsourcing,
Product
Testing
Application
Outsourcing
Fixed Price
Projects
T&M
Projects
Professional
Services
Level of Maturity
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Managed
Services,
Product
Sales linked
revenue
India as a Pivot in GDM
Low Cost Global Delivery Player
Worldwide Offshore IT Services Share
by Region, 2004
2.1% 1.7%
3.3%
3.8%
4.5%
2.3%
6.8%
75.5%
Total = $9.8 Bn.
India
CEE
Philippines
Latin America
China
Canada
MEA
Others
India well established on the Global Outsourcing Stage
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Source: IDC and Forrester
Leading to 2nd Generation Outsourcing
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Key Challenges
 Attrition
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Pure-play, MNC, Captive, Product Engineering, R&D
Ambitious growth plans
 Costs are going up
 Quality of resources
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China-India model
 China IT Outsourcing industry is emerging
 Advantages of China
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Great Infrastructure, Huge domestic market, Better living
conditions, increasing engineering graduates
 Adoption of best practices from INDIA outsourcing
model
 COMPLEMENTARY and SYNERGESTIC model
between China and India
 CHINA is important in our growth strategy
 Working model
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Overview
Tech Mahindra
Financials
Revenue US$ Mn.
217.3
225
Global Reach
150
130
91
59
75
8
15
23
165
112
39
 People from diverse culture and nationalities
 Global Fortune 500 customers
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Telecom Expertise
 Annualized Revenue of US$ 290
Million*
 Global JV of BT Group Plc.(43%) &
Mahindra & Mahindra (57%)
 Effective & Proven Solutions for players in telecom ecosystem
 Developing business solutions & consulting capabilities
 Multiyear partnerships, preferred vendor status, partners in key
transformations
People and Services
 18 years of focused IT experience
exclusively in the Telecom domain
 Wide range of services right from IT
Consulting to Operations Outsourcing
Process & Quality Leadership
 Proven mASTERTM Service Delivery Framework
 Integrated Business Management System comprising SEI CMM Level 5 &
ISO9001:2000, BS7799 adherent practice
 Customer benefits:
 Predictable high quality results
Consistently delivered on time & budget
 Over 9,500 dedicated resources
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Thank You
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