Presentation by: VIKRAM TIWATHIA CHIEF INFORMATION OFFICER CONFEDERATION of INDIAN INDUSTRY...

Presentation by:

VIKRAM TIWATHIA

CHIEF INFORMATION OFFICER

CONFEDERATION of INDIAN INDUSTRY

FOSTERING INDIAN

ICT

TO GLOBAL REACH

GLOBALISATION

Population Growth - 6 b to 7.5 b fuelling global demand.

Economic Expansion

Growth of World Trade

Growth of Services Sector

OECD Labour Shortages.

Capital Flows

Implications and Options for India

Trade in Goods & in Services

Capital Flows and FDI

Technology.

Global IT & ITES Industry

Global Demand (IT + ITES)847 (2004) 1082 (2007)

Source: IDC Research

All figures are in billion USD

Offshore-able Market634 (2004) 836 (2007)

Offshored Market39.6 (2004) 74 (2007)

• IT Services pie expanding at 5-6%, BPO at 10-11%

• Offshoring of IT services expanding faster

Indian IT & ITES Industry

Source: NASSCOM

14-15

60+

USD Billion

CAGR 26-27%

CAGR 24-25%

Source: NASSCOM

* Estimates for software and services only. Does not include estimates for hardware.

1.7 1.9 2.5 2.6 3.03.9

4.86.0

2.64.0

6.27.7

9.6

12.8

17.7

23.6

FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY10P

DOMESTIC MARKET*

EXPORTS*

CAGR achieved during 2000-06: 31.0%

CAGR needed during 2006-10: 25.7%

Data Applications are Central to Connectivity & Business Models

• Need to combine voice and data to realize full potential of ICTs.

• Voice centric networks will be inadequate for mass delivery of services like education,health, entertainment, governance etc.

• Current internet and broadband subscriber base is largely urban and far short of policy targets.

• Rural coverage is minimal

• Low uptake of data & differentiated services

• Enormous global economies of scale (for example, those associated with 3G & BWA technologies) will be essential for providing affordable broadband connectivity.

Main Benefits that ICT can bring to India’s low income economy

Source: CII Accenture Study “Making the Connection”

Improved Access to Education

Improved Access to Information

Improved employment & business opportunities

Greater accountability of govt & local bodies

Improved Access to health care

Improved opportunities for opportunities

Improved Access to media & entertainment

Improved Access to commercial products & services

others

Sectors that would benefit most from ICT –enabled growth

TelecommunicationBasic farmingProcessed farm productsEducation/ trainingBanking & FinanceBasic business process sourcingHealth care

RetailVocational skilled/ semi skilled services

Others - Manufacturing

Media & EntertainmentOther - ServicesOthers - Agriculture

India’s Network Readiness Index Ranking

• Let competitive Markets flourishLet competitive Markets flourish• Bring Bring long term clarity, coordination and transparency in long term clarity, coordination and transparency in

policy makingpolicy making• Reform Reform spectrum policyspectrum policy to unleash the potential of to unleash the potential of

wireless technologies in the creation of both connectivity wireless technologies in the creation of both connectivity and capacityand capacity

• Improve the Improve the enforcement of regulatory and judicial enforcement of regulatory and judicial processesprocesses

• Promote Promote innovative business models in rural areasinnovative business models in rural areas• Stimulate ICT demand by Stimulate ICT demand by speeding up ICT adoptionspeeding up ICT adoption in in

Government procurement, taxation and services at all Government procurement, taxation and services at all levels to deliver effective governancelevels to deliver effective governance

• Promote greater ICT adoption in Promote greater ICT adoption in health, educationhealth, education etc to etc to enhance the value of ICT connectivity and servicesenhance the value of ICT connectivity and services

THANK YOU

Vikram TiwathiaConfederation of Indian Industry vikram.tiwathia@ciionline.org