Transcript No Slide Title

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
Population
Over 1 bn
States/UTs
35
Geographical Area
3.3 mn sq kms
Languages recognised
22
Business language
English
Per Capita Income**
US$ 534
GDP**
US$ 650 bn
**(at factor cost & at current prices)
1USD=43.54 INR (as on July 4, 2005)
March 2005
Source:CSO Statistics
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
 Market Size
2002-03
US$ 2.3 billion
2003-04
US$ 3.6 billion
 Growth
52%
 Key driver of growth for Indian IT industry
March 2005
IT and ITeS Market
2.4% of GDP
2002 - 03
16% of exports
7% of GDP
2008
35% of exports
March 2005
Segments in ITES-BPO Sector
SpecialisedVertical specific
General
 Medical transcription
 Contact centres
 Legal database processing
 Telemarketing/pre-sales
 Digital content development
 Consumer care
or animation
 Online education
 Remote maintenance
 Engineering and Design
March 2005
 Technical support
 Back office operations
 Data processing
BPO Services
 Sales to grow
2003
2006
CAGR
US$ 709 million
US$ 2572 million
52%
 Marketing to grow
2003
US$ 609 million
2006
US$ 2188 million
CAGR
62%
Source: International Data Corporation (IDC)
March 2005
Changing Revenue Streams
High
Relat
ive
impo
rtanc
e
three
years
later
Low
Low
March 2005
Current relative importance
High
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
ICICI OneSource
HCL Technologies BPO
Datamatics Technologies
EXL Services
Hinduja TMT
Epicenter Technologies
Hero Mindmine
24/7 Customer
March 2005
Sutherland Technologies
Global ITES-BPO Players
GE Capital International Services (GECIS)
IBM
Standard Chartered
HealthScribeIndia
AOL
e-Serve International Ltd
ADP Wilco
Microsoft
JP Morgan Chase
Dakshe-services PvtLtd.(a part of IBM)
Hughes BPO Services
American Express
Deloitte Consulting
eFunds
Dell
Oracle
HSBC BPO unit
Hewlett Packard
Computer Associates
CapMarkOverseas Processing India
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
March 2005
1998-99
6.5%
2003-04
29%
Grow with India
ITES-BPO sector
 2004 -05 ( Projected)
US$ 5.1 billion
Growth of 40%
Contribution of IT Enabled Services in total IT
exports
1999-2000
20%
2002-2003
33%
2000-2001
20%
2001-2002
27%
March 2005
IT Enabled Services
India - An Overview
Market and Growth Potential
Players
Opportunities
Why India?
Contact in India
March 2005
India Advantage
Capitalise
on time zone
difference
Low manpower
costs
Reliable
infrastructure
High quality
Prestigious
institutes
like IITs
March 2005
Vast pool of
knowledge
professionals
Low
real estate
costs
Proficiency in
English
Competitive Cost
Breakup of Costs for India (USD Cost/ FTE)
13%
Personnel
7%
G&A Expense
Manpower costs
Telecom
52%
20%
Depreciation
8%
70 - 80% lower
than
Property Rentals
Breakup of Costs for USA (USD Cost/ FTE)
in US/UK
3% 4%
5%
Personnel
15%
G&A Expense
Telecom
Property Rentals
73%
Source: Industry Sources, Merrill Lynch, 2003
March 2005
Depreciation
Growing Knowledge Pool
Source: UN, Morgan Stanley
March 2005
Source: IMD Competitiveness Yearbook 2003
India Competitiveness
Productivity
Quality
20%
higher
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
75%
73%
50%
25%
20%
4%
4%
4%
2%
2%
2%
March 2005
O
th
er
pp
in
es
Ph
ili
y
H
un
ga
r
az
il
Br
el
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us
si
a
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Ch
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In
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0%
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 Centre
Teen Murti Marg
Chanakyapuri
New Delhi - 110021
Tel 91 11 23010199
Fax 91 11 23015452
Email [email protected]
March 2005
Contact in India
MAIT
4th Floor, PHD House
Opp. Asian Games Village
New Delhi 110 016
Tel 26855487/26866976/26866976
Fax 26851321
Email [email protected]
March 2005
Contact in India
Confederation of Indian Industry (CII)
249-F, Sector 18,
Udyog Vihar Phase IV
Gurgaon 122015
Tel 0091 124 5014060-67
Fax 0091 124 5014080/5013874
E mail [email protected]
March 2005