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INDIA – Information Technology
Presentation to : Tuesday Business Network, PragueJanuary 8, 2008
Ratnesh MathurEmail : [email protected]: +420-731146275
INDIA – Information Technology
• Infosys – an introduction
• Indian IT Industry
• IT in India – an Opportunity to Collaborate
Infosys Corporate Overview – Global technology company with a proven track record
500+ Clients & 72000+employees500+ Clients & 72000+employees
0
100
200
300
400
500
600
1999
2000
2001
2002
2003
2004
2005
2006
2007
No. of c
lients
0
10000
20000
30000
40000
50000
60000
70000
80000
No. of e
mploy
ees
3.1 bn in Revenues and growing3.1 bn in Revenues and growing
68.3 121 203414 545
7541063
1590
2152
3090
0
500
1000
1500
2000
2500
3000
3500
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Rev
enue
s (U
S$
Mn)
Global RecognitionGlobal Recognition
• Over $28 Bn in market capitalization on the NASDAQ ( as of March 31 2007)
• 53 continuous quarters of growth in top & bottom-li ne since going public
• Zero debt company with sound cash reserves, and a d e-risked operating model
• 93% repeat business as on March 31 2007 as compared to 92% during previous year.
• Strong client addition - added 34 clients during the quarter ended March 31 2007.
Sustained revenue growth + Value growth – Creating value for
stakeholders
Diversified Shareholding Pattern Diversified Shareholding Pattern
44%
39%
17%
Promoters
Institutional Investors
Others
Abo
ut In
fosy
s
Infosys – Offerings for various Industries
• IT Services – Application Services, Architecture Services, Infrastructure Services, Independent Validation Services, Information Management, Packaged Services, Systems Integration
• BPO Services – Customer Service Outsourcing, Finance & Accounting, Knowledge Services, H R Outsourcing, Order Management, Procurement Outsourcing, Industry Solutions
• Engineering Services – Product Design & Development, Product Engineering, Process Engineering & Plant Operations, Lifecycle Management
• Consulting Services
• Finacle – Universal Banking Solution
• Aerospace and Defense• Automotive• Banking and Capital Markets
Communication Services• Consumer Packaged Goods• Discrete Manufacturing• Education• Energy• Healthcare• High Technology• Hospitality and Leisure• Insurance• Life Sciences• Media and Entertainment• Gaming• Publishing Studios and Networks• Resources Retail Transportation
Services Airlines Parcel Express & Logistics Railroads Utilities
Abo
ut In
fosy
s
Infosys in the Czech Republic
Poland (800 BPO FTE in Lodz)
• Availability of skilled labor –Education, Language, IT
• Economic & Political stability
• Suitable location in the very center of Europe
• High FDI – Several IT MNCs have hubs
• Attractive government investment incentives
• Czech Rep. is a member of EU
• Low-cost location in central Europe
Location Rationale
Infosys Proposition
• Multi-lingual processing ability (German, Russian, French, Polish)
• European affinity and fit
• Office infrastructure ready to cater for your every need
• Country contingency site
Brno
Brno
• Set up in 2004
• 300 BPO FTE inBrno & 30 ITO FTE in Prague
Abo
ut In
fosy
s
Global Delivery – Nearshoring & Offshoring CombinationA
bout
Info
sys
Global delivery footprint services various clients operations and provides world languages and local expertise:
Transformational promise to customers is designed to deliver value beyond cost arbitrage
European BPO Centers:
- Near-shore Front-End
- Language Skills
- Cultural compatibility
- Same Timezone
- On-site support
- Local Management
Indian BPO Centers:
- Off-shore Back-End
- Domain Expertise
- Back-End Scalability
- Local Management
�-----�
The BIG Picture 1 - Infosys in Indian IT Industry Context
• 2007 – Infosys Revenue – Approx 6% of Indian IT Industry
• 2007 – Infosys Headcount – Approx 4.5% of Indian IT Industry
• 2007 – Top 6 Indian IT Companies (TCS, Wipro, Infosys, Cognizant, Satyam, HCL) – Approx. 50% of Indian IT Industry
• Indian Software Industry – Approx 65% of Worldwide Software Services
Indian IT Industry – ITO & BPO
• USD 47.8 billion in 2007 – Expected to grow to USD 75 billion industry by 2010
• Global Markets – FY06 – Europe (25.1%), Americas (67.1%), Rest (7.6%)
• Employment FY07 – 1.63 Million – ITO (33%), BPO (34%), Prod & R&D(8.6%), Dom(25%)
190,000 230,000 284,000
430,114522,250
670,000
830,000
1,058,000
1,630,000
1,293,000
3.0 3.3 4.25.9 5.8
8.310.2
13.2
15.9
1.8 2.74.0
6.27.7
13.3
31.9
6.3
18.3
24.2
9.8
FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07E
DOMESTIC MARKET
EXPORTS
1.2% 1.4%1.8%
2.6%2.8%
3.2%3.6%
4.1%
4.7%
5.4%
4.8
6.0
8.2
12.1
13.5
16.1
21.6
28.5
37.4
47.8
of GDP
190 ,000 230, 000 284, 000
430, 114522,250
670,000
830,000
1,058, 000
1, 630,000
1, 293,000
USD Billion
3.0 3.3 4. 25.9 5. 8
8. 310. 2
13.2
15. 9
1. 8 2.74. 0
6. 27.7
13. 3
31.9
6.3
18.3
24. 2
9. 8
FY 98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07E
DO MES TIC M ARK ET
EXP ORTS
3.0 3.3 4. 25.9 5. 8
8. 310. 2
13.215. 9
1. 8 2.74. 0
6. 27.7
13. 3
31.9
6.3
18.3
24. 2
9. 8
FY 98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07E
DO MES TIC M ARK ET
EXP ORTS
3.0 3.3 4. 25.9 5. 8
8. 310. 2
13.215. 9
1. 8 2.74. 0
6. 27.7
13. 3
31.9
6.3
18.3
24. 2
9. 8
FY 98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07E
DO MES TIC M ARK ET
EXP ORTS
Direct Employment
* NASSCOM 2007 data
Foreign Companies : R&D Labs in India
Established in 2002 with just two people, has scaled up to 20 specialists today. Plans exist to double its headcount by the beginning of 2004. Is totally dedicated to high-level research on futuristic technologies, with special focus on emerging markets.Bangalore.
Established in 1996 with 10 people, has scaled up to 895 people today, and will be further scaled up to 1,000 before the end of 2003. Works on developing software for Philips products. Almost all Philips products that use software have some contribution from this centre. It is the largest software centre for Philips outside Holland. Innovation Campus, Bangalore.
Established in November 1998 with 100 people, the Lab swill be scaled up to 1500 by the end of 2004. That will double 3000 staff by middle of 2006. It is the largest single-location R&D lab for SAP outside Walldorf, Germany. Nearly 10 percent of SAP's total R&D work is carried out from the Indian lab. Labs India, Bangalore.
Established in 2001. Works on all IBM software like WebSphere, DB2, Lotus, Tivoli and Rational. The centre has added many new areas of activities such as middleware and business intelligence.
Software Lab, Bangalore, Pune.
Established in 1988 with 20 people, has scaled up to 1,000 today. Drives nearly 60 percent of the company’s global development delivery.
R&D Centre, Bangalore and Mumbai.
Established in mid-1999 with 20 people, has scaled up to 500 people today. Does work mainly on Sun's software which includes Solaris and Sun One.
India Engineering Centre,Bangalore
The Bangalore centre was established in 1994; the Hyderabad one in 1999. Oracle’s largest development centre outside the US currently has 6,000 staff. Does work on Oracle's database products, applications, business intelligence products and application development tools, besides other activities.India Development Centre, Bangalore,
Hyderabad.
Established in 1984. The centre started with just 20 people, now has 900 people working on VLSI and embedded software, which goes along with a chip or into the chip.
R&D Centre, Bangalore
HighlightsR&D Centre
INDIAN IT COMPANIES :Europe Expansion Beyond Sales Hubs –Apart from Czech Republic some New EU Delivery Centers
BPO ITO
Hungary BudapestGenpact, E&Y, PwC, Hewitt
IBM, CapGemini, TCS,
Slovakia Bratislava Accenture, PwC IBM, CapGemini, TCS,
Bulgaria SofiaOutsourcing Partners Int'nl
Romania BucharestAccenture, Wipro, Genpact, E&Y
IBM, CapGemini
Lithuania Vilnius IBM, E&YEstonia Tallin IBM, PWCLatvia Riga PwC
Warsaw Hewitt IBM, AccentureKrakow IBM IBM, CapGemini
WroclawGenpact, Capgemini
Poland
Indian IT Delivery in Europe – Infosys, TCS, Wipro, Genpact, WNS,Satyam (Romania), Zensar (Poland), HCL (Poland) ….. Already live …
Growth Rationale of Indian IT - Continous Value: Commitment
Nature of Engagement
Nature of
Relationship
Simple Complex
Stage 1
•On site
staffing
•Hourly
rates
•Client
Managed
Projects
Stage 2
•On site
teams
staffing
•Hourly
rates
•Client
Managed
Projects
Stage 3
•On site-
offshore
Projects
• Project
Fees. Effort
based
• S/W Co
project
mgmt with
Client
oversight
Stage 4
•Offshore
Development
Centres. Dedicated
facilities
• Master Rate
Contract.
Project wise
Effort estimated
• S/W Co
Project
management
•Program Mgmt
by client
Stage 5
•Global
Delivery
Model. Near shore facilities.
• Master Rate
Contract.
Effort + Fixed
Fee Projects
• S/W Co
Program
management.
Solution
Development
•Intellectual
capital transfer
begins.
Next Stage
•Collaborative
Problem
Solver.
• Master Rate
Contract.
Effort + Fixed
Fee Projects+
Risk Reward
Model
• S/W Co
Program
management
• Joint
Intellectual
capital
development.
Co-developing
requirements
Tight-Integrated
Loose-
Temporary
Software Industry Continuous Value Add
The BIG Picture 2 - IT in the Indian Context
• Indian IT Industry :USD 48 Billion revenue in 2007 –Contributes 5.4% of India’s GDP – Was only 1.8% of GDP in 2000
• Indian IT Industry : Employment of 1.6 Million – Employs only 0.15% of India’s Population in 2007
• Indian IT Industry :May create 200,000 NEW jobs in India each year – 54% of India’s 1.1 billion population is less than 25 years of age (Every 12th person on Earth !)
Role of IT in India – Solution for driving Development
CRISIS in RURAL INDIA – 70% India lives in Villages
• Decline in growth rate in food production
• Beginning of wheat imports• Widespread indebtedness of farmers
• 40% of farmers want to quit farming (NSSO)
• Not achieving UN Millennium Development Goal in the area of hunger and poverty reduction
• Persistence of farmers’ suicides
VISION 2020 – Every Village a Knowledge Center
President
Vision2020 - Abdul Kalam – Ex-President of India Sponsored
Vision2020 – PURA : Literacy & Learning Revolution launched to cover 27 States & 200 Districts of India
• Enlightened Citizenship
• Moral Leadership
• Enlightened Citizenship
• Moral Leadership
• Telecom• Internet• E-Governance• Tele-medicine• Tele-education
• Ring Road
• Rail
• Public Infrastructure
• Ring Road
• Rail
• Public Infrastructure
• Warehouse• Agro-Industries• Markets• Hospital• Micro Power Plant• Coop. Product
Mktg .
• Schools • IRS Imagery for
- Land & Crop Mgmt- Water Mgmt- Forest Mgmt- Environment
• Proactive Health care• Manufacturing
PURA PURA –– Providing Urban Amenities in Rural AreasProviding Urban Amenities in Rural Areas
JOINT PRIVATE – PUBLIC EMPOWERED BODIES
10-15 Village Clusters
- 10-200 Billion Euro investment
- Business Proposition
- Employment for 3000 persons
- Beneficiaries : 30,000 – 100,000
people
Physical ConnectivityPhysical Connectivity
Electr
onic
Electr
onic
Conne
ctiv
ity
Conne
ctiv
ity
Knowledge
Knowledge
Connectivity
Connectivity
Economic Connectivity
Spiritual Connectivity
www.presidentofindia.nic.in
Connectivity for Billion people is the KeyConnectivity for Billion people is the Key
Knowledge GRID
PURA GRID
Hea
lth
GR
ID
E-G
over
nanc
e G
RID
www.presidentofindia.nic.in
FIBER BROAD BAND with GIGABITNETWORK CONNECTED to
STATE/DISTRICT/BLOCK LEVELEDUSAT/Satellite for Remote &
Difficult Areas
Wi-MAX forLast Mile Access
E-GovernanceGRID
Central/State Central/State GovernmentsGovernments
Health CareGRID
Healthcare/Healthcare/Medical Medical
InstitutionsInstitutions
KnowledgeGRID
Universities Universities InstitutionsInstitutions
PURAGRID
Rural PURARural PURAClustersClustersGRIDGRID
Societal GRID Connectivities
www.presidentofindia.nic.in
Value Addition
CORE Competence ofIndustries from
India and EU
CORE Competence ofIndustries from
India and EU
HUMAN RESOURCES
• Skilled Youth• Knowledge
Expertise • Connectivity
HUMAN RESOURCES
• Skilled Youth• Knowledge
Expertise • Connectivity
WO
RLD
K
NO
WLE
DG
E
PLA
TF
OR
M
Missions Transform Nations Towards Peace and Prospe rity
MISSIONSEnergy,
Agro Food,
Water,
Infrastructure
Disaster
Management,
Education &
Healthcare
Tec
hnol
ogy
Tec
hnol
ogy
Kno
wle
dge
Kno
wle
dge
www.presidentofindia.nic.in
VIRTUAL KNOWLEDGE
PARK
WORLDCLASSPRODUCTS And SYSTEMS
LOCATE Knowledge
Reach the Peak
Live in the land of Peace
Road to a Prosperous India – Mass Collaboration
BIG opportunities to collaborate in India’s IT journey ahead :
A) Contribute to the PURA projects –• Discover the fortune at the bottom of the pyramid – Scale for SMEs• Entry into India’s most de-regulated & growing industry• Large & expanding IT talent pool• Success transfer of new technologies to new markets
B ) Outsourcing –• Experienced western economies to Nearshore destinations• International (including Nearshore destinations) to India• Urban India to Rural India
Thank You
Looking to Collaborate : RATNESH MATHUR
• Connect on www.linkedin.com• Meet me in Brno Centrum• Email : [email protected]• Phone: +420-731146275• Skype : Indoeuropeans