Indian IT Industry (Information Technology)

OVERVIEW ON INDIAN IT INDUSTRY (Information Technology Industry)

IT Industry

IT - ITES Industry
(USD 100.7 Bn)

Internet

Telecom Industry

IT Services & Software

Exports
(USD 69.1 Bn)

Hardware Industry

ITES - BPO Market

Domestic
(USD 31.7 Bn)

India is the 4th largest IT market in Asia Pacific IDC Study

Evolution of IT-ITES Industry

High import duty Execution of lower end services Presence of few player Modest beginning of software exports

Lower import duties Formation of STPs Growth in exports

Phase IV Phase III

Offshore provisioning of services Formation of ODC Indian firms establish their credibility Execution of higher end services ITeS-BPO sector steadily maturing

Phase II

Phase I

Detailed overview:
Improved access and delivery of services, bridging technological divide, e-governance solution, CSR activities 7.5 of Indias GDP 15% of total exports 10% of Indias service sector revenues

Socially responsible & inclusive

Contributing to Indias economy

30x increase in patents filed in last 5 years Growing R&D spend

Creating innovation platform

IT-BPO Sector in India

Driving balanced Regional development

Contributing to state GDP Enhancing education system Employment generation Infrastructure creation

58% of workforce from tier II/III cities 31% are women,74%are below 30 years, 5% from economically backward classes

Empowering the diverse human Assets

putting India on the Global map Presence in 95 countries, with over 600 global delivery 60,000 + foreign nationals employed 20 + cross border acquisition 750 + captives

Source : Nasscom

INDIA S TOTAL IT-ITES INDUSTRY

IT-BPO Revenues
USD Billion Export Domestic GDP (in %)

69
59 47 22 6.4 2008 2009 22 6.7 2010 50 24 6.5 2011 29 7.1 2012

41

32
7.5

IT+BPO+HW = 100.8 B USD.

Source : Nasscom

SCOPE IN INDIAN IT-ITES INDUSTRY

Indian IT Industry

software Software Products

Infrastructure Products Enterprise Application Software

IT services Project Oriented Services IT Consulting

System Integration

ITeS-BPO
Customer Interaction Services Financing & Accounting

Engineering & R&D services

IT Outsourcing

Training & Support Hardware development & Support Software Development & Support IT Education & Support

Application Management

IS Outsourcing

HR Services
KPO Services LPO Services

CADM
Network Consulting and Integration
Software Testing

Others(SOA, web services, Ecommerce)

Top 20 IT Player (2011-12)

S.No. 1 2 3 4 5 6 7 8 9 10 Company name
Tata Consultancy services Infosys Ltd Wipro Ltd HCL Technologies Ltd Mahindra IT & Business Services Mp hasis Ltd i-Gate Larsen & Toubro infotech Ltd Syntel Ltd CSC India

S.No. 11 12 13 14 15 16 17 18 19 10

Company name
Polaris Software Lab Ltd MindTree Ltd Zensar Technologies Ltd Infotech Enterprises Ltd Hexaware Technologies Ltd KPIT Cummins Infosystems Ltd Honeywell Technology Solutions Lab NIIT Technologies Ltd 3i Infotech Ltd Infinite Computer Solutions (India) Ltd

Source : Nasscom

IMPORTANT IT-CENTERS

New Delhi, Gurgaon, NOIDA

Mumbai Pune

Hyderabad
Bangalore Chennai

Qualified workers
High Hong Kong UK Ireland India Philippines

Location Attractiveness
Infrastructure Foreign Direct

Investment Incentives & Country Risk Time zone attractiveness China Lo Lo

Mexico

Workforce Capability
Skill Sets, Language

High

Proficiency Quality of work / work ethic Cost Differential

Source: STC, New Delhi

Size of circle corresponds to Number of Qualified Workers

Emergence in Rural Market

About 50 rural BPOs employ 5,000 people. The 2015 projections put out by 11 rural BPOs are staggering about 1,000 centres and 150,000 employees. Logic behind cost cutting. Rising wage costs coupled with the labour crunch in India led to outsourcing destinations such as China and Philippines competing for ITeS/BPO market share with even lower costs. Companies have either started outsourcing work to rural areas or are running pilot rural BPO projects. The low cost of operations and lower employee attrition levels are key benefits that these companies derive from rural operations. Rural BPOs have marked the return of cost arbitrage, which seemed to have been extinguishing from Indian ITeS and BPO companies.
Source : Nasscom

Cont
Challenges in rural market under-developed infrastructure facilities lack of power and poor telecommunication Transportation education, and other support facilities. Technological penetration including telecom coverage has improved to a great extent in rural India. Since its early days, the regional development are; cities where the ITeS/ BPO companies have established base seem to have developed better infrastructure Moreover, IT-BPO intensive states have 100% higher broadband penetration and 50% higher tele-density than the national average and account for 75% of the SEZs.

DESTINATION OF INDIAN SOFTWARE EXPORTS

USA & Canada Europe S.E Asia Japan W . Asia Australia & NZ Rest Of World

4%

4% 2% 2% 4%

23%
61%

India is exporting software to over 95 countries

Source : Nasscom

Indians Talent Pool in IT-ITES Industry

% of professional from different stream
6% 6% 13% post grad art grad

commerce
10% 38% science other grad 13% 15% engineering grad engg. Diploma grad

Source : Nasscom

A LARGE POOL OF ENGINEERS COME OUT EVERY YEAR

Automobile
Architecture Civil

Agriculture
Chemical Mechanical

Instrument
Electronics & Telecom

Textile
Electrical

182,810 163,740

113,410
99,290 36,660 14,670 9,290

8,250
3,820 2,020

Source : Department Of Education

MANPOWER : NO. OF IT PROFESSIONALS:

No. of it professional
6395
4384 6764 7205 7558

2007-08

2008-09

2009-10

2010-11

2011-12

Source : Nasscom

Comparative contribution Of IT in different sectors

in % 21 11 6 14 22 15

PROJECTIONS FOR VARIOUS SOFTWARE SECTORS

Figures in Trillion USD

e-business hardware

8.8 1.6 1.3 0.645 2.9 1.7 1.8 1 0 2 4 2016 2012 6 8 10

IT services
software

Source : Forrester-Nasscom

INDIAN SOFTWARE INDUSTRY PROJECTION 2015

Software Exports From India Domestic Software Industry in India

12 1.4
2008 2015 ( Target )

32%
FY2008

41%

2015 ( Target )

Figures are in Billion US $

120

Total Software Industry Projection 2015

1.4
FY2008 2015 ( Target )

Source : Nasscom- McKinsey

Government Initiatives
Industry experts believe that increase in Government spends over egovernance projects would be a major driver of growth for Indian IT/ITES space. The Government of India has also undertaken a project that aims to provide high quality broadband access to village Panchayats through National Optical fibre network by 2014. The process is in progress and is projected to be very beneficial, especially for the SMEs. Infosys has recently inked an agreement with Government of Madhya Pradesh for setting up a development centre in Indore and is awaiting response from Government of West Bengal for setting up a centre in Kolkata as well.

Career after MBA in IT - ITES sector

IT and ITES- If a Fresh Management graduate has specialization in Systems, he can be recruited as : Quality/Testing Manager HR Manager ERP Consultant Sales/Pre-Sales Business Analyst Business Solutions Developer Solutions Architect (from a business point of view) or Project Manager. If you apply in ITES sector, you can be recruited as an Operations Manager.

Job Opportunity
Information technology still ranks among the best careers for the future. Technology has already enriched itself in many areas, and the widespread development and spread of technology such as mobile computing and increased internet speeds in the coming years provide maximum prospects for new jobs. The specific information technology jobs expected to grow most include: data communications analysts and network systems administrators, to establish and maintain the increased connectivity. These professions have an expected growth rate of 53.6 percent in the coming decade technical support specialists. More and more people depend on technology increases job prospects for this profession by 45 percent data mining that provides businesses with high quality data regarding customer behavior simulation development, providing solutions such as live simulations for virtual treatment of patients, gaming, training, conferences, and others systems security specialists and computer forensics, with demand increasing with more people committing to personal and financial data online

List of emerging technologies

Emerging technology

status

Potentially marginalized technologies

Potential applications

Related articles

4G cellular First commercial communication LTE networks broadband deployed in Sweden Ambient intelligence Artificial brain theory Research

Pervasive computing

Mobile broadband, mobile TV, 3D-TV

Neurological disease's treatments, Human decision, analysis, etc. Creating intelligent devices

Blue Brain Project Progress in artificial intelligence

Artificial intelligence

Theory experiments

Atomtronics

theory

Augmented Reality
Cyber

diffusion

Emerging memory technologies T-RAM , Z-RAM TTRAM, CBRAM SONOS RRAM, Racetrack memory, NRAM

In development

Current memory technologies

Fourth-generation optical discs(3D optical data storage Holographic data storage)

Research, prototyping

All other mass storage methods/devices, magnetic tape data storage, optical data storage

Storing and archiving data previously erased for economic reasons

Holographic Disc stores Ultra HD big Electronic IT companies are interested in this technology it has bigger capacity than Blu-ray Disc 10x times more than optical storage

General-purpose computing on graphics processing units

Diffusion of non standardized methods

CPU for a few specialized uses

Order of magnitude faster processing of parallelizable algorithms

Machine augmented cognition, exocortices

Diffusion of primitive amplifications; working prototypes of more; theory, experiments on more substantial amplification

Libraries, schools, training, pocket calculators

Machine translation

Diffusion[

Human translation of natural languages, in areas where misunderstanding is non-critical and language is formalized Biotic vision and perception, including humans

Easier and cheaper cross-cultural communication

Machine vision

Research, prototyping, commercialization

Biometrics, controlling processes (e.g., in driverless car, automated guided vehicle), detecting events (e.g., in visual surveillance), interaction (e.g., in humancomputer interaction), robot vision

Computer vision, pattern recognition, digital image processing

Mobile collaboration

Development, commercialization

Traditional videoconferencing systems

Extends the capabilities of video conferencing for use on hand-held mobile devices in real-time over secure networks. For use in diverse industries such as manufacturing, energy, healthcare.
Many electronics devices, integrated circuits Smaller, faster, lower power consuming computing

Optical computing

Theory, experiments; some components of integrated circuits have been developed

Many electronics devices, integrated circuits

Quantum computing

Theory, experiments, commercializati on

Atomtronics, Electronic computing, optical computing, quantum clock

Much faster computing, for some kinds of problems, chemical modeling, new materials with programmed properties, theory of hightemperature superconductivity and superfluidity

Quantum cryptography

Commercializat ion

Secure communication s
Smartstores - RFID based self checkout (keeping track of all incoming and outgoing products), food packaging, smart shelves, smart carts.

Radiofrequency identification

Diffusion of high cost[ Barcode

Introduction
Founded in 1981 Founded by N R Murthy, Nandan Nilekhani, S Gopalakrishnan Headquater at Banglore

Employees strength of 155,629 according to NASDAQ

From a capital of US$ 250, it has grown to become a US$ 6.825 billion company with a market capitalization of approximately US$ 30 billion It has offices in 29 countries , 64 offices and 68 development centers in India and abroad and 1,45,088 employees of 85 nationalities as on December 31, 2011.

Delivers IT-enabled business solutions to enable Global 2000 companies to build their enterprises of tomorrow.

Infosys has strategic alliances with key players in all the segments to provide best services at optimal cost..
Key Alliances of Infosys:

Infosys rich client base enables it to leverage the best practices followed in other accounts.
Sample client base

To summarize, the strengths of people, process and technology converge seamlessly within Infosys to fulfill your end to end IT needs.

End-to-end services

Addressing your complete landscape High Confidence Levels in Delivery and Relationship Sustainable Learning Curve Advantages

Ability to scale

Best People, Low Attrition and steep ramp-up capability

Global Presence and matured Delivery Models SEI CMMI Level 5 Processes and high quality focus

Quick Time to Market, Lower Costs Quality Delivered by a very few Companies worldwide

Express /Logistics Domain and diverse Technical Competence

Sound Methodologies, Repeatability

What it brings to YOU

What we offer

Tata Consultancy Services

Introduction
Type Traded as Founded Founder(s) Headquarters Area served Key people Revenue Profit
Employees
Parent

public company It service and consulting 1968 J R D Tata Mumbai, Maharastra, India Worldwide Cyrus Mistry(chairman), N.Chandrasekaran (Ceo,MD) US$ 10.17 billion (2012) US$ 2.2 billion (2012) 263,637 (2012) Tata Group CMC Limited, TCS China,TRDDC WWW.tcs.com

Subsidiaries Website:

History (2000 to present)

By 2004, TCS's e-business activities were generating over US$500 million in annual revenues. On 25 August 2004 TCS became a publicly listed company. In 2005 TCS became the first India-based IT services company to enter the bioinformatics market. In 2006 TCS designed an ERP system for the Indian Railway Catering and Tourism Corporation. In 2008 TCS undertook an internal restructuring exercise which aimed to increase the company's agility. TCS entered the small and medium enterprises market for the first time in 2011, with cloud-based offerings. On the last trading day of 2011, TCS overtook RIL to achieve the highest market capitalisation of any India-based company. In the 2011/12 fiscal year TCS achieved annual revenues of over U$10 billion for the first time

Products and services TCS and its subsidiaries provide a wide range of information technology-related products and services including application development; business process outsourcing; capacity planning; consulting; enterprise software; hardware sizing; payment processing; software management; and technology education services.[ Service lines TCS' services are currently organised into the following service lines (percentage of total TCS revenues in the 2011/12 fiscal year generated by each respective service line is shown in parentheses): Application development and maintenance (44.75%); Asset leverage solutions (3.84%); Assurance services (7.45%); Business intelligence (4.55%); Business process outsourcing (11.04%); Consulting (2.58%); Engineering and Industrial services (4.62%); Enterprise solutions (11.11%); and IT infrastructure services (10.06%).

 Operations: As of 31 March 2012, TCS had 183 offices across 43 countries and 117 delivery centers across 21 countries. At the same date TCS had a total of 58 subsidiary companies. Locations: India, South America, North America, Dubai, Australia and Europe Innovation Labs: In 2007, TCS launched its Co-Innovation Network, a network of TCS Innovation Labs, startup alliances, University Research Departments, and venture capitalists. In addition to TRDDC, TCS has 19 Innovation Labs based in three countries. TCS' Co-Innovation Network partners include Collabnet, Cassatt, academic institutions such as Stanford, MIT, various IITs, and venture capitalists like Sequoia and Kleiner Perkins

Acquisition
Name Acquisition date Activities Country of HQ Value Headco unt(at acquisiti on)

Airline Financial Support Services India (AFS)

Aviation Software Development Consultancy India Phoenix Global Solutions Swedish Indian IT Resources AB (SITAR)

January 2004

BPO

India

$5.1 m

316

May 2004

IT Services

India

n/a

180

May 2004

BPO

India

$13 m

350

May 2005

IT Services

Sweden

$4.8 m

n?/a

Pearl Group FNS Tata Infotech

Oct 2005 Oct2005 Feb 2006

Insurance

United Kingdom $94.7 m $26 m n/a $13.0 m

950 190 n/a 35

Core Banking Australia Product IT Services India IT Services Australia

TCS Nov 2006 Management TKS-Teknosoft Nov 2006 Citi Global Services Limited Supervalu Services India 8 October 2008

Banking Product BPO

Switzerland
India

$80.4 m
$505 m

115
12,472

8 October 2010

Supervalu USA self Software Service company

India

612

Wipro Limited

Wipro Limited (formerly Western India Products Limited is an Indian global IT services and consulting company headquartered in Bangalore, India. Established in 1945 by Mohamed Hasham Premji As of 2012, Wipro is the second largest IT services company by turnover in India Employing about 120,000 people worldwide as of December 2011.

Provides outsourced research and development, infrastructure outsourcing, business process outsourcing (BPO) and business consulting services. The company operates in three segments: IT Services, IT Products, Consumer Care and Lighting.
It is 9th most valuable brand in India according to an annual survey conducted by Brand Finance and The Economic Times in 2010.