© Mindtree limited 2012

Presented at: Trends in Computer Education, 22-Feb-2013, Goa University

Raja Bavani, Chief Architect, Mindtree

Industry Trends and Challenges of

Next Generation IT Professionals

Agenda

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• Indian IT & BPO Key Trends

• Challenges (short term)

• Possible Improvements (medium term)

• Financial Year 2013 Outlook

• Global Uncertainties

• Media Buzz

• What Do Young Professionals Need?

• Discussions

Indian IT & BPO: Key Trends

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Aggregate revenue for the sector estimated to cross USD 100 billion mark [including hardware]

Industry continues its growth trajectory, with no visible competition in the near future; Growing impressively CAGR 2007-12 : 17 per cent

From 2009 to 2011, M&As increased 77 per cent CAGR to reach USD 4.5 billion

70 countries, 560 delivery centers –providing skills, domain, language and disaster recovery; non Indian employees – 5-6% for large firms

Fixed price contracts, cloud based solutions, productizing service

Changing model

Inorganic Growth

Global Footprint

Growth trends

Revenue

Direct employment expected to grow by over 9% to reach ~2.8 million, with over 230,000 jobs being added in FY2012 Employment

Source: NASSCOM

Aggregate Industry Revenue (> 100 Billion USD)

4

IT-BPO revenue aggregate

India’s share in global sourcing - 58 per cent in

2011, up from 55 per cent in 2010

IT services exhibiting fastest growth at 19 per

cent, BPO growing by 13 per cent, ER&D by 15

per cent

Maturing domestic market – key thrust area for

the industry – growth faster than exports

Domestic IT services growth at 17.8 per cent,

driven by localized strategies by service

providers

Domestic BPO - 16.9 per cent driven by

demand from new verticals and technology

platforms

Software products to grow by 13.3 per cent:

New wave of start-ups driving growth

Source: World Bank, NASSCOM

Estimated

Job Creation

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Direct Employment (’000) FY2012 Estimates

Indirect

Direct

Total Emp

~10.2mn

~2.8mn

~11.7mn

~8.9mn

Estimated

Source: World Bank, NASSCOM

Challenges (short-term)

• Delayed decision making - impacting refresh cycles and projects

• Volume growth higher, not reflected in revenue

• Rupee depreciation impact – pricing pressure

• Increased offshore component

• Investing in Cloud/platforms – doing more for less

• Differentiated growth for diverse industry segments and companies

• Maturity and value addition focus for R&D, GICs

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Source: NASSCOM

Possible Improvements (mid-term)

• GDP growth may increase in the second half

• Technology spending to go up driven by- new tech, emerging markets,

business models

• Increased adoption of global sourcing

• Future of technology services -combination of services, solutions and

platforms

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Source: NASSCOM

FY 2013 Outlook

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IT-BPO Export revenues* (USD billion)

FY2011 FY2012E FY2013P

Growth of 11-14% • FY2013 software and services growth forecast 11-14 per cent (USD)

• Revenue growth USD 8-10 billion

• Differentiated growth – across service lines and verticals

• Hiring – mix of campus and just in time; 100,000+ offers already made

59 68.7 76-78

786918

FY2011 FY2012E FY2013P

1030-1060

IT-BPO Domestic revenues (INR billion–excluding hardware)

Growth of 13-16%

• FY2013 software and services growth forecast 13-16 per cent;

• Revenue growth INR 110-140 billion

• Consumer, Government, SMB to be key growth drivers

• Software Product Start-ups creating innovative solutions for India

• Technology enabled social and financial inclusion

Source: NASSCOM

Global Uncertainties

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Economic Growth - Global GDP Growth estimate for 2012 - 2.5%

(2.8% in 2011); Euro area in mild recession

Employment & Households - Unemployment high, but signs of

recovery in US jobs, PMI and durables

Financial Conditions – Developed markets – fiscal consolidation,

credit stringency. Emerging Markets – Tight money, declining capital

flows, currency volatility

Corporates – Cash hordes, Buoyant earnings in US mainly driven

by overseas revenues.

Risks - Downside risks elevated (credit crunch in Eurozone); Upside

possibilities in US

Source: NASSCOM

Need for Specialization

10

Changing Customer Demands and focus on Digital

Transformation

Focus on Core Partner for Specialization

Choose where to compete and then how to compete

Building a specialist talent pool

Source: NASSCOM

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What do young professionals need?

Communication skills (verbal and written)

Interpersonal skills (relates well to others)

Teamwork skills (works well with others)

Analytic skills

Flexibility/adaptability

Detail-orientation

Creativity

Critical Thinking/Problem Solving

Organizational skills

Leadership skills

Lifelong Learning/Self Direction

Industry Knowledge

20

Honesty/integrity

Motivation/Initiative

Strong work ethic

Self-confidence

Friendly/outgoing personality

Tactfulness

Well-mannered/polite

Social Responsibility

Discussions

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India | USA | UK | Germany | Sweden | Belgium | France | Switzerland | UAE | Singapore | Australia | Japan | China

Raja Bavani

Raja_bavani@mindtree.com

www.mindtree.com/social