Involving the Indian Software Services Industry in the Free and Open Source Software World

Involving theIndian

SoftwareServices

Industry in theFree and Open

SourceSoftware World

Sachin Garg,Kshma Garg

Introduction

Free/Libre and OpenSource Software(FLOSS)

Economic Impact

FLOSS Activity

Where is FLOSSdeveloped?

FLOSS and India

Impact of LowIntensity FLOSSActivity

Indian ITSector andFLOSS

Foundation & FourPillars Strategy

Foundations

Pillars

Recommendations

Implementing the F &4P Strategy

Thank You

Involving the Indian Software ServicesIndustry in the Free and Open Source

Software World

Sachin Garg Kshma Garg

Navankur

21st November, 2009

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline

1 IntroductionFree/Libre and Open Source Software (FLOSS)Economic Impact

2 FLOSS ActivityWhere is FLOSS developed?FLOSS and IndiaImpact of Low Intensity FLOSS Activity

3 Indian IT Sector and FLOSSFoundation & Four Pillars StrategyFoundationsPillars

4 RecommendationsImplementing the F & 4P Strategy

5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Introduction

Issue: Indian IT Sector is not participating enough in theFree/Libre Open Source Software (FLOSS) World

Impact: India is unable to leverage the full potential ofFLOSS, which could make Indian industry and theIT sector uncompetitive, owing to missing out onthe innovative and financial benefits of FLOSS

Contribution: Develop an overarching strategy that the Indian ITServices companies could adopt so as toparticipate in the world of FLOSS

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

What is Free/Libre and OpenSource Software?

• Umbrella term describing software whose source code isreadily available and modifiable under several liberallicenses

• Model for collaborative work

• The Linux® kernel is amongst the best known FLOSS

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Economic Impact of FLOSS:EU Study I

November 2006 study by a consortium of research institutions.

The Impact of Free/Libre/Open Source Software onInnovation and Competitiveness of the EuropeanUnion

http://www.flossimpact.eu/• FLOSS applications are top rung products in terms of

market share in several markets.

• Reproducing existing base of FLOSS applications wouldcost almost €12 bn to reproduce internally. Code base hasbeen doubling every 18-24 months over the past eightyears.

• Europe’s FLOSS investment notinally ≈ €22 bn ≡ 20.5% oftotal software investment.

http://www.flossimpact.eu/

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Economic Impact of FLOSS:EU Study II

• By 2010, FLOSS-related• Services ≈ 32% share of all IT services• Economy ≈ 4% of European GDP

• FLOSS potentially saves industry over 36% in software R&Dinvestment that can result in increased profits or be moreusefully spent in further innovation.

• Increased FLOSS use may provide a way for Europe tocompensate for a low GDP share of ICT investment relativeto the US.

• FLOSS can encourage the creation of SMEs and jobs.

• Weighted by average income, India is the leading providerof FLOSS developers by far, followed by China.

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Economic Impact of FLOSS - IIMBStudy I

September 2009 study by Prof. Rahul De’ of IIM, Bangalore.

Economic Impact of Free and Open Source Software - AStudy in India.

http://www.iimb.ernet.in/~rahulde/RD_FOSSRep2009.pdf

• Study included multiple Indian IT user organisationsacross the spectrum

• Substitution of Proprietary Software with FLOSS canpotentially save

• ≈ Rs. 10,000 cr. (USD 2bn) in Direct Software,• ≈ Rs. 2,000 cr. (USD 740mn) in Complementary Software,

Costs

• Strong intangible, but unquantifiable benefits related toinnovating with FLOSS



Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

World Wide Open Source ActivityMap

Figure: Open Source Activity Map

http://www.redhat.com/about/where-is-open-source/activity/



Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

India on the Open Source ActivityMap

Figure: Open Source Activity Map




Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Open Source Index Ranks

CountryActivity Rank Environment Rank

Overall Government Industry CommunityEducation


France 1 1 25 3 15 18 18 17Spain 2 2 22 10 20 20 29 21Germany 3 4 19 5 16 14 23 18Australia 4 14 4 11 11 7 16 10Finland 5 19 1 18 5 12 5 8United Kingdom 6 7 15 7 8 8 13 4Norway 7 14 2 29 3 4 17 3Estonia 8 45 5 1 21 21 49 14United States ofAmerica

9 28 13 2 2 3 7 2

Denmark 10 12 8 31 4 2 9 6Japan 14 11 27 6 13 6 14 11People’s Republic ofChina

15 6 69 4 50 70 8 59

Singapore 16 34 3 21 14 35 1 22India 23 14 44 8 53 54 24 67Slovenia 24 34 6 47 23 24 43 20Thailand 25 8 51 30 59 69 28 43Malaysia 26 12 36 27 31 49 21 34




Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You






9 28 13 2 2 3 7 2


15 6 69 4 50 70 8 59





Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You






9 28 13 2 2 3 7 2


15 6 69 4 50 70 8 59





Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You






9 28 13 2 2 3 7 2


15 6 69 4 50 70 8 59





Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You






9 28 13 2 2 3 7 2


15 6 69 4 50 70 8 59

Singapore 16 34 3 21 14 35 1 22India 23 14 44

853 54 24 67

Slovenia 24 34 6 47 23 24 43 20Thailand 25 8 51 30 59 69 28 43Malaysia 26 12 36 27 31 49 21 34




Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You






9 28 13 2 2 3 7 2


15 6 69 4 50 70 8 59





Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Impact of Low Intensity FLOSSActivity

Areas with a Low Intensity of Free/Libre Open Source Softwareactivity are

• Split by the Digital Divide

• Unable to influence direction of Open Source Projects andtailor them to their needs

Therefore,

It is a problem, as local needs are not being met anddeveloping countries are consumers not creators ofopen source software.

http://www.zdnetindia.com/news/software/stories/135384.html



Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You





Therefore,





Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You





Therefore,





Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You





Therefore,





Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You





Therefore,





Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Indian IT Sector and FLOSS

Indian Information Technology Service Companies need toformally embrace FLOSS and be able to leverage its benefits. Bydoing so, they will

• reduce their costs,

• usher in colalboration across the enterprise,

• provide innovative, low-cost BoP solutions,

• leapfrog the competition,

• become a part of the FLOSS innovation ecosystem,

among other benefitsTo do so we propose an overarching strategy —

The Foundation and Four Pillars

that will enable the Indian Software Services Companies to trulyleverage FLOSS while moving forward.

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Foundation & Four Pillars Strategy

Cu

sto

mer

s

Co

rpo

rate

Inte

rnal

Em

plo

yees

IT Services Industry Accepting and

Using Free/Libre and Open Source

Software

Foundations for Free/Libre and

Open Source Software (FLOSS)

for the IT Services Industry

Foundations

Customers

Corporate Sponsor

Employee Pillar

Internal Use

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Foundations

The foundations for an effective FLOSS strategy include

• Strong Legal Support

• Sensitising Employees

• Compliance, including• Intellectual Property Management• Information Systems Management

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Customers

Customers can approach the IT Service Companies for FLOSSrelated work, either

• to use the service company and its engineers as anextended part of their organisation to develop/extendFLOSS, or

• to use the service company to extend their offering(s) usingFLOSS.

Need to ensure:

• adequate recognition is given to both the service companyand its engineers;

• ensure that all licensing requirements are met

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Corporate Sponsor

• providing sponsorship to FLOSS projects, events andorganisations

• providing infrastructural support like test-beds,web-hosting, software mirrors

• building excellence around open source that will result inthe development of new business models around FLOSS,as well as

• allowing employees to contribute to FLOSS therebychallenging them and keeping them engaged

• building internal excellence and technology leadership• innovations around FLOSS.

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Internal Use

• Build Internal Software Tools leveraging FLOSS. This is aperfect and perpetual mechanism to convert the

Infinite Bench → Infinite Productive Bench

• Use FLOSS alternatives to proprietary software. Not onlydoes this save money, but also allows the organisation tobuild solutions that could later be harnessed for clients

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Employees I

Employees may not feel challenged enough by their day-to-daywork. FLOSS provides avenues for such employees, keepingthem intellectually fit. Other advantages include:

• Gives employees a chance to work on projects close to theirhearts

• Employees hone their skills while not on the job

• Employees learn to participate in communities andcommunity building

This requires a well-thought out policy to prevent leakages ofthe company’s and its clients’ Intellectual Property. Some of thesalient features of such a policy would include:

• Transparency and honesty are key.

• Conflicts of Interest have to be minimized and carefullyscrutinised on a case-by-case basis.

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Employees II

• Client Clearance so as to ensure that the client is also awareof what the employees providing the service are doing.

• Nodal Agency to take care of all issues related to thegovernance of Free and Open Source Software be createdwithin the organisation.

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Outline





5 Thank You

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Implementing the Strategy —Policy

Create an “Open Source Policy” that takes the largerorganisational context in perspective, addressing

• usage of FLOSS infrastructure components to build outinternal capacity.

• Information Systems policies that are too often builtaround the usage of proprietary software in theorganisation;

• a FLOSS friendly procurement policy;

• advocating the usage of FLOSS within the organisation;

• client education — work with clients to solve theirproblems, at times suggesting FLOSS alternatives ratherthan a custom solution

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Implementing the Strategy —Open Source Office

Create an “Open Source Office” that

• serves as a nodal office responsible for clearing all FLOSSrelated activity in the organisation

• is a whole-time effort, operating at the highest, preferablythe CTO, level;

• draws on the services of a cross-functional pool of people;

• serves as the convenor for an organisation wide “FLOSSSteering Committee”

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Implementing the Strategy —FLOSS Steering Committee

A High Level “FLOSS Steering Committee” should be setup that

• Consists of senior executives across the organisationrepresenting the key business functions — HumanResources, Finance, Legal, Operations, Quality,Information Technology, Manufacturing, CorporateCommunications etc.;

• Formulates policy and analyses the impact of FLOSS on theorganisation based on data provided by the nodal agency;

• Is empowered to take wide-ranging decisions quickly;

• Nominates representatives for the cross-functional FLOSSteam forming the core of the nodal agency.

Involving theIndian

SoftwareServices




Introduction


Economic Impact

FLOSS Activity


FLOSS and India




Foundations

Pillars

Recommendations


Thank You

Thank You

Questions?

[email protected]

mailto:[email protected]

Involving theIndian

SoftwareServices




Indian ITSector

Market Size

Evolution of the Sector

SWOT Analysis

Outline

6 Indian IT SectorMarket SizeEvolution of the SectorStrengths, Weaknesses, Opportunities & Threats Analysis ofthe Sector

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis

Indian IT-BPO Industry

Data from NASSCOM http://www.nasscom.org/Nasscom/templates/NormalPage.aspx?id=55816

• Indian IT-BPO industry FY2009 estimated revenues:USD 71.7 bn

• IT software and services industry: USD 60 bn

• Employment: Direct: 2.23mn, Indirect 8mn

• 1.2% of GDP (FY1998) – 5.8% of GDP (FY2009)

• Share of Total Exports: < 4% (1998) – ≈ 16% (2008)

http://www.nasscom.org/Nasscom/templates/NormalPage.aspx?id=55816

http://www.nasscom.org/Nasscom/templates/NormalPage.aspx?id=55816

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis

Exports

• Revenues are estimated to gross USD 47.3 bn in FY2009,accounting for 66% of the total IT-BPO industry revenues.

• US is the largest market with 60% share.

• European market driving incremental growth—UK (CAGR41.4%), Continental Europe (CAGR 51.4%)(FY2004-FY2008)

• Banking, Financial Services and Insurance segment (BFSI)remains the biggest sector with over 41% of total revenues

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis

Domestic Market

• Presents a significant opportunity as IT spending in India isgrowing at a pace faster than any other country in the AsiaPacific region.

• Domestic IT-BPO revenues expected to grow ≈ 20% toreach INR 1,113 bn (> INR 1 lakh crores) in FY2009

• Hardware spend (the largest segment) growth moderated

• Domestic IT services are expected to grow by 20% inFY2009, driven by

• increased acceptance of IT as a growth enabler, and• a competitive tool for Indian corporations looking to

compete in an increasingly globalised environment.

• 35 mn strong SMB segement expected to drive futuregrowth

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis

Outline


Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis

Indian IT Sector - Phases

Time

Val

ue

Ad

dit

ion

Body Shopping

Onsite

Offshore

Projects

Consulting

IP Focused Development

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis

Outline


Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis

Indian IT Sector - SWOT Analysis

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths

H Mature Industry — sub-

stantially high on the Value

Chain

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain

H Strong and Vibrant domestic IT

market

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain


market

Weaknesses

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain


market

WeaknessesH Productivity is not keeping

the desired pace

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain


market


the desired pace

H Skewed structure — small

number of large firms

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain


market


the desired pace



H Manpower supply constraints

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain


market


the desired pace




Opportunities

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain


market


the desired pace




Opportunities

H Global vendors playing in

the domestic market

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain


market


the desired pace




Opportunities


the domestic market

H Leapfrog opportunities. These

require strategic direction and

long-term thinking

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain


market


the desired pace




Opportunities


the domestic market



long-term thinking

H Bottom of Pyramid Innovation

Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain


market

Threats


the desired pace




Opportunities


the domestic market



long-term thinking


Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain


market

Threats

H Rising factor costs resulting in

lowering advantages on the

cost-arbitrage alone


the desired pace




Opportunities


the domestic market



long-term thinking


Involving theIndian

SoftwareServices




Indian ITSector

Market Size


SWOT Analysis


Strengths



Chain


market

Threats

H Rising factor costs resulting in

lowering advantages on the

cost-arbitrage alone

H Emerging Competition:

LatAm, East Europe, China


the desired pace




Opportunities


the domestic market



long-term thinking


Business

Involving the Indian Software Services Industry in the Free and Open Source Software World