Contribution of India's IT Industry to Economic Progress

Revenue GDP Global Sourcing Industry - - - - - - - - - -> $100 billion - - - - - - - - - -> 1.2% (1988) - - - - - - - - - -> 51% (2009) - - - - - - - - - -> 2.8 million Direct 8.9 million Indirect Employment (New) - - - - - - - - - -> 230,000 Jobs 7.5% (2012) 58% (2011)

Employment (Current)

Contribution of India's IT Industry to Economic Progress

Domestic revenues - - - - - - - - - -> $31.7 billion (2012), 9%

Export revenues -----------Geographical Focus

- - - - - - - - - -> $69.1 billion (2012), 16% - - - - - - - - - -> consistent demand from the US

- ->

- ->

Vertical Markets

- - - - - - - - - -> broad based demand across traditional segments

Contribution of India's IT Industry to Economic Progress

Top 5 players in ITES

TCS Wipro Infosys Cognizant Genpact - - - - - - - - - -> $536 million - - - - - - - - - -> $465 million - - - - - - - - - -> $294 million - - - - - - - - - -> $200 million - - - - - - - - - -> $134 million

ITES Present Market Scenario

Domestic IT-BPO revenue - expected to grow at almost 17 per cent in FY2012.

Growth Factors
Demand from consumers and enterprises, governments technology infrastructure initiatives and availability of world class telecom infrastructure and services IT-BPO in India is steadily increasing Domestic BPO segment is expected to grow by 17 % in FY2012 - to reach Rs 148 billion Direct employment within the domestic IT-BPO sector expected to grow by 7 % Creating immense job opportunities in Tier II and Tier III cities

ITES Recent Trend

ITES and BPO companies vying for the smaller cities where they are promised Better infrastructure, State-of-the-art office spaces and Skilled manpower. Of late, the tier II cities like Pune, Kolkata and Hyderabad have made business opportunities and infrastructural development like never before. Tier III cities - close proximity to the most happening cities like Delhi, Mumbai, Bangalore Now it is the turn of the Tier III cities or the smaller cities as corporate sector target them as 'India's Next Destination Cities'.

Key Drivers
Strong economic growth Rapid advancement in technology infrastructure Competitive organizations Enhanced focus by government Emergence of business models that help provide IT to new customer segments

Impact on Indias Growth

Impact on Indias Growth

IT-BPO sector - Growth catalyst through active direct and indirect contribution Employment and better standard of living Transformed Indias image from slow moving economy to global player in providing world class technology solutions and business services. Industry has helped India transform from a rural and agriculture-based economy to a knowledge based economy.

Key Growth Drivers

Growing middle class Consumer spending Technology innovation Increasing adoption of technology Telecom by consumers Focused Government initiatives

Knowledge Professionals

Organizational Efforts Groundwork

Premier source of mass employment across the country. Organizations were required to equip their employees with new set of skills Foreign language capabilities, global business process knowledge, sales and marketing skills, research (business, market, financial) and business analytics. Service providers are effectively utilizing Indias talent pool by designing large scale talent re-engineering initiatives and employee engagement activities. This is enabling the industry to provide both end-toend and high-end value-added services across sectors

ITES
Indias talent base expanding rapidly with an annual addition of nearly 4.4 million graduates and postgraduates in FY2012 India retains its dominant position as the leading country to churn out Ready-to-hire pool of graduates, ~400,000500,000, in 2011 Internally, supply side is taking several employee engagement initiatives to retain human capital retention/performancebased bonuses, rewards & recognitions, career development plans, up/cross-skilling, CSR initiatives, etc. Industry-NASSCOM-Government initiatives to enhance longterm employability through finishing schools, mentorship programmes, setting up industry benchmark (NASSCOM Assessment of Competence) and IT-BPO Sector Skill Council (SSC) initiative

Global In-House Centres

Global In-House centres (GIC) have played a key role in the IT-BPO sectors phenomenal growth story, establishing proof of concept and branding India as a global sourcing destination. The sement, miniscule till 2003, has witnessed tremendous development in the last 7 years growing at a Compound Annual Growth Rate of 22 per cent, employing close to 4 lakh people and contributing to 1 per cent of India GDP.

 Their impact on India extends beyond revenues and employment- playing a leading role in developing an R&D and product culture, spearheading initiatives to develop affordable products for emerging markets and creating entrepreneurship opportunities.

Quality
An increasing number of IT-BPO companies continue to adopt global standards such as ISO 9001 (for Quality Management) and ISO 27000 (for Information Security). India based centres account for the largest number of quality certifications achieved by any single country.

 Over the last three years, there has been an 18 percent increase in the number of IT-BPO companies acquiring quality certifications; 30 percent increase in performance certifications; 20 percent increase in security certifications. Most companies who have acquired quality certifications have invested in acquiring level 4 and 5 certifications exhibiting greater sophistication.

Engineering & R&D Services (ER&D)

The engineering design and products development segments generated export revenues of USD 10 billion in FY2012; growing by about 14 per cent, driven by increasing use of electronics, fuel efficiency norms, convergence of local markets, and localised products.

 The Indian IT-BPO industry has invested significantly to strengthen their customer outreach and build engineering capacity and capability not only across new and existing verticals but also across the full spectrum of product development value chain

 ITES sector includes services ranging from call centers, claims processing, medical transcription, e-CRM, SCM to back-office operations such as accounting, data processing, and data mining.