Copyright NASSCOM 2008

India Inc.
An Overview of the IT-BPO Sector in India
October, 2008
NASSCOM
Copyright NASSCOM 2008
About NASSCOM
2

Apex body for the IT-BPO setor i! I!di"

P#"ys " #e"di!g ro#e i! tr"de de$e#op%e!t& po#iy "d$o"y

"!d rese"rh

'eprese!ti!g o$er (200 IT "!d BPO o%p"!ies )i!#*di!g

I!di"! o%p"!ies& g#ob"# o%p"!ies i!#*di!g +S o%p"!ies
"!d "pti$e e!ters, -hih %".e *p %ore th"! /01 of the
I!di"! IT-BPO i!d*stry2

Me%bership "o*!ts for o$er /01 of exports "!d " %"3ority

of the 2 %i##io! professio!"#s e%p#oyed i! the setor
Copyright NASSCOM 2008
Agenda
1. The rise of the
Indian economy
The Indian economy at a glance
Drivers of raid gro!th
22 4y!"%is of the
I!di"! IT-BPO
i!d*stry
52 S*st"i!i!g I!di"6s
$"#*e propositio!
Current trends
"uture outloo#
Talent availability
Cost cometitiveness
$is# management
%usiness environment
3
Copyright NASSCOM 2008
India "act Sheet
Demograhics
&oulation )bi##io!, (2(5
Pop*#"tio! gro-th )1, (27
8"bor fore )%i##io!, 0(7
8ess th"! 50 ye"rs )1, 02
+rb"!i9"tio! )1, 28
'conomy
:4P )!o%i!"#& +S; bi##io!, ((<(
I!f#"tio! )1, )A*g2 08, (2
=is"# 4efiit )1 of :4P, 027
=4I )+S; bi##io!, 52
=orex reser$e )+S; bi##io!& >*# 08, 50<
Social(Develomental
8iter"y )1, 7(
+!e%p#oy%e!t )1, <22
I!f"!t %ort"#ity )per (000, 5?27
8ife expet"!y )ye"rs, 7820
Transort(Telecom
P"sse!ger "rs )%i##io!, (5
T-o -hee#ers )%i##io!, 05
Mobi#e *sers )%i##io!, 2/0
I!ter!et *sers )%i##io!, 02
Trade
@xports )+S; bi##io!, (0/
I%ports )+S; bi##io!, 2?0
Top 5 export %"r.ets +S )(51,
+A@ )(01,
Chi!" )<1,
Top 5 i%port p"rt!ers Chi!" )((1,
S"*di Ar"bi" )81,
+A@ )71,
")*+ unless indicated other!ise
So*resA IB@=& @I+& 'BI& CIA f"t boo.
4
,ro!ing Domestic Mar#et
Copyright NASSCOM 2008
Indian 'conomy at a ,lance
The Indian economy has e-erienced raid gro!th buoyed by a shift from an
agriculture to a services.led economy
The Indian economy has e-erienced raid gro!th buoyed by a shift from an
agriculture to a services.led economy
India
Develoing
/orld
Average
Develoed
/orld
Average
$eal ,D& gro!th
&ercentage0 1111.2**3
Changing Comosition of India4s ,D&
So*reA +sd"2go$ So*reA 'BI
5
01
201
?01
701
801
(001
")+* ")1* ")*2 ")*+
Agriculture Industry Services
1+5
115
675
Copyright NASSCOM 2008
022
52
") 11 ")*+
(/
2/0
111+ 2**+
8ey drivers of ,ro!th
8ifti!g of i%port restritio!s
Stre"%#i!i!g of t"riff str*t*re
4e-#ie!si!g "!d re-dereg*#"tio! of setors&
e2g2& Te#eo%& Ci$i# A$i"tio!& I!fr"str*t*re
Progressi$e e"se of =4I "ps
=ree-%"r.et o%petitio! dri$i!g osts do-!
"!d B*"#ity *p
Telecom e-amle
Subscriber base
9millions:
;ong distance tariffs
9<S= er min:
0270
0205
111+ 2**+
&rogressive liberali>ation from 1111
Imact
+ps*rge i! i!ter!"tio!"# i!$est%e!t
0200x
(0x
So*reA Merri## 8y!h
"DI gro!th
9<S= billion:
So*reA Mi!istry of Co%%ere
(70x
$ating &re.411 2**+
M"xi%*%
exise d*ty
(001 2?1
M"xi%*%
i%port d*ty
?001 (01
'-amles
6
The raid gro!th of the Indian economy has been driven by a uni?ue combination
of rogressive liberali>ation@
The raid gro!th of the Indian economy has been driven by a uni?ue combination
of rogressive liberali>ation@
Copyright NASSCOM 2008
8ey drivers of ,ro!th
@in an inherently lo!er.cost A high volume economy
@in an inherently lo!er.cost A high volume economy
Inherent lo!er.cost economy
,ood(
Service
&rice in
<S 9<S=:
'?. rice in
India 9<S=:
Pe". %obi#e
r"te )per %i!2,
02? 0200
T"xi )per .%, (255 022
S.i##ed #"bor C
%"!*f"t*ri!g
)per ho*r,
20 (20
022
?20
1113 2**3
<S(India ,D& 9&&&: ratio
&rice comarison <S vs. IndiaB
D I!di"ti$e b"sed o! r"!ges
S*st"i!ed &&&B
"d$"!t"ge
7
D A p*rh"si!g po-er p"rity exh"!ge r"te eB*"#i9es the p*rh"si!g po-er of differe!t *rre!ies i! their ho%e o*!tries for " gi$e!
b"s.et of goods2
Indian middle.class household gro!th
2**2.2**6
(720
SourceC Morgan Stanley
16.D million households 9E+*
million eole: added over F years
. greater than the oulation of
<8G
Copyright NASSCOM 2008
Summary of #ey messages

As a large stable democracy !ith a raidly gro!ing

mar#et based on sound fundamentals0 India has
become a leading center for global sourcing of
goods and services

India4s gro!th is driven by a uni?ue combination of a

rogressive free.mar#et olicy0 a lo! cost structure0
and a sustained demograhic advantage
8
Copyright NASSCOM 2008
Agenda
(2 The rise of the I!di"!
eo!o%y
The I!di"! eo!o%y "t " g#"!e
4ri$ers of r"pid gro-th
2. Dynamics of the
Indian IT.%&O
industry
52 S*st"i!i!g I!di"6s
$"#*e propositio!
Current trends
"uture outloo#
T"#e!t "$"i#"bi#ity
Cost o%petiti$e!ess
'is. %"!"ge%e!t
B*si!ess e!$iro!%e!t
9
Copyright NASSCOM 2008
Current ,lobal <ncertainties
10

Sig!s of +S S#o-do-! post s*b-pri%eE i%p"t o! other

eo!o%ies

@o!o%i i!st"bi#ity
C
Oi# risis& food pries& i!f#"tio!& *!st"b#e *rre!ies&
$o#"ti#ity i! sto. %"r.ets et2

Co!er!s o$er +S e#etio!E fortho%i!g I!di"!

e#etio!s

Co!str"i!ts -ithi! I!di" o! t"#e!t& i!fr"str*t*re et2

Copyright NASSCOM 2008
&ositive gro!th in ")*+ under clouds of uncertainty
=F0? =F00 =F07 =F0< =F08
21.6
2+.D
73.F
F+.1
6F.*
7.65
F.15
F.35
D.25
D.D5
725
715
215
2+5B
<S= billion0 ercentage
Indian IT.%&O Sector
'e$e!*e Aggreg"te "!d Sh"re of :4P
@xports
4o%esti
Pere!t"ge of :4P
S*st"i!ed export
gro-th C re$"#id"tes
stro!g f*!d"%e!t"#s
'e$e!*e "ggreg"te "s
" pere!t"ge of :4P
o!ti!*es to rise
So*reA NASSCOM
11
B Domestic $evenue AdHusted for Currency
Copyright NASSCOM 2008
020
?2/
82?
(820
020
72?
(02/
252(
G"rd-"re
Prod*t 4e$
"!d @!gg
Ser$ies
BPO
IT Ser$ies
=F2008
=F200<
All segments gre! !ell in ") *+
1**5 I <S= 6F billion
Domestic
Mar#et
'-orts 62.665
7F.7+5
*Incl!"# pro!ct !"$"lop%"nt &n! "ngin""ring
** N"gligi'l"
(21
(81
<01
?01
2<20
1
521
281
Sourcing model
%&O
ITB
:#ob"# C"pti$es
:#ob"# Pro$iders
I!di"! Pro$iders
DD
2/1
501
281
So*reA NASSCOM So*reA NASSCOM
12
FOF
gro-th
13
=F0/ o*t#oo.A Soft-"re "!d ser$ies re$e!*e to gro- by
2(-2?1E exports to re"h ;00b!
=F0/ soft-"re "!d ser$ies
gro-th fore"st 2(-2?1 )+S4,
'ee!t re$ers"# i! IN'
"pprei"tio! tre!ds pro$ides "!
extr" *shio!& if s*st"i!ed it -i##
o!trib*te to higher IN' gro-th
I!re"sed fo*s o! ost "!d
prod*ti$ity i! the reessio!"ry
e!$iro!%e!t is #i.e#y to f*e#
de%"!d for offshore ser$ies
4o%esti story re%"i!s stro!g&
tho*gh s*st"i!ed i!f#"tio! %"y
be " %edi*%-ter% ris.
;5/27
So*reA NASSCOM
;72-7?
;0220
=ig*res %"y $"ry s#ight#y d*e to ro*!di!g off
+S4 Bi##io!
IN'H+S4
??2/ ?022 ?5
(ro)th o* 21+24,
-Crr"ncy
A!.#t"!/
Copyright NASSCOM 2008
8ey drivers of gro!th in ") *1
The Indian IT.%&O industry is actively building on its leadershi osition to deliver
beyond cost benefits to global buyers
0
20
?0
70
80
(00
200? 200<
8ey benefits driving comanies to offshore
P
e
r

e
!
t
"
g
e

o
f

r
e
s
p
o
!
s
e
s
Cost
S"$i!gs
Proess
redesig!
Speed to
%"r.et
Aess to
S.i##s
So*reA 4*.e Offshori!g 'ese"rh Net-or. )O'N,
,lobal delivery
model
Innovation
&rocess
maturity
'-ansion of delivery net!or#
to include nearshore and
onshore centres
&rovision of 2F-3 services
'nd.to.end rocess delivery
caabilities
Active service.level
imrovement
&rocess reengineering
e-ertise
Service innovation e.g.0
customi>ation for ne! mar#ets
Active I& creation J increased
filing of atents
8ey value.add initiatives
14
Copyright NASSCOM 2008
7(1
(81
(21
71
21
,eograhical sread diversified
<S
<8
Continental
'uroe
1
A&AC
2
$O/
1**5 I <S= 71.F billionB
30
!S
!"
Continenta#
$%ro&e
APAC
'3
())
3*
&ercentage
")2**3
CA+, -.200'-0/
-.200/
-.200'
Indian IT-BPO $0&ort1 2rew at a CA+, of 3) over -.200'-0/
01cl!"# h&r!)&r" "1port#
1 2op 3 contri"# incl!" ("r%&ny -3245,/5 N"th"rl&n!# -32,/5 S)it6"rl&n! -31,/
2 2op 3 contri"# incl!" A#tr&li& -3145,/5 7&p&n -3145,/5 &n! Sing&por" -3143,/
'uroe0 A&AC and Middle 'ast mar#ets gro!ing raidly
'uroe0 A&AC and Middle 'ast mar#ets gro!ing raidly
So*reA NASSCOM
15
Copyright NASSCOM 2008
%an#ing0 "inancial
Services0 Insurance and
Ki.tech ( Telecom
account for nearly 6*5
of Indian IT.%&O e-orts
Manufacturing and retail
are other large sectors
Airlines0 media0
healthcare and utilities
are some emerging high.
gro!th sectors
Ne! verticals reduce deendency
")2**3
* 01cl!"# h&r!)&r" "1port#
Lertical mar#et e-osure for industry e-orts is !ell balanced across several
mature and emerging sectors
Lertical mar#et e-osure for industry e-orts is !ell balanced across several
mature and emerging sectors
%"SI
F*5
Ki.tech ( Telecom
115
Manufacturing
1D5
$etail
+5
Media0 &ublishing and
'ntertainment
75
Construction and <tilities
F5
Kealthcare
75
Airlines and
Transortation
75
Other
D5
So*reA NASSCOM
16
Copyright NASSCOM 2008
Industry rogressing to offer end to end service
Coverage
Pere!t"ge of f*## ser$ie
$evenue Slit by Service Offered
-.2008$
'-ort gro!th is also being suorted by increasing breadth and maturity of the
service ortfolio.
'-ort gro!th is also being suorted by increasing breadth and maturity of the
service ortfolio.
??1
221
51
(1
81
?1
(81
C*sto%er
I!ter"tio! I
S*pport
=i!"!e I
Ao*!ti!g
G*%"! 'eso*res Mg%t2
Pro*re%e!t Ser$ies
J!o-#edge
Ser$ies
Other
Gori9o!t"#
Ser$ies
Lertical.
secific %&O
Services
1**5 I <S= 1*.7 billion
BPO EXAMPLE
20
(0
(0
(?
((
?2
5?
50
?8
22
82
<7
<5
(00
?2
C*sto%er I!ter"tio! I
S*pport
=i!"!e I Ao*!ti!g
J!o-#edge Ser$ies
Pro*re%e!t Ser$ies
G*%"! 'eso*res
M"!"ge%e!t
Best i! #"ss 200< Medi"! 200< Medi"! 200?
So*reA NASSCOM
So*reA NASSCOM
17
Copyright NASSCOM 2008
(2(
(27
020
820
(27
222
<2/
((20
BPO
Soft-"re
IT Ser$ies
G"rd-"re
=F2008
=F200<
Domestic Mar#et continues to sho! traction
Domestic
Mar#et
'-orts 62.665
7F.7+5
Domestic mar#et is gaining momentum0 driven by overall economic gro!th0
increased adotion of technology and outsourcing
Domestic mar#et is gaining momentum0 driven by overall economic gro!th0
increased adotion of technology and outsourcing
1**5 I <S= 6F billion
'"pid eo!o%i
gro-th
I!re"sed
o!s*%ptio! of goods
"!d ser$ies
:ro-th i! teh-re#"ted
spe!ds by e!terprises
I!ter!et o!!eti$ity
So*reA NASSCOM
??1
581
?51
??1
18
2/1
251
2/1
501
+S4 IN'
:ro-th i!D
D 4iffere!e bet-ee! gro-th i! +S4 "!d IN' d*e to i%p"t of forex h"!ges )IN' "pprei"tio!,
Copyright NASSCOM 2008
5<8
?00
005
<00 7/0
870
4o%esti M"r.et
BPO @xports
IT @xports
Kealthy emloyment gro!th
Direct 'mloyment M***s
Indirect Direct Total
'mloyment
+.1* mn
6.+mn
E2mn
")2**3 ")2**+
Direct emloyment to reach nearly 2 millionN indirect Hob creation estimated at 6.+
million
Direct emloyment to reach nearly 2 millionN indirect Hob creation estimated at 6.+
million
")2**+ estimates
Industry directly
emloys O2 million
rofessionals
Over 1.D million in
the e-orts
segmentN a yoy
increase of E265
Indirect
emloyment
multilier
estimated to be 7.
F-0 translating to
E6.+ million
additional HobsB
So*reA NASSCOM
So*reA NASSCOM
19
Copyright NASSCOM 2008
Domestic technology adotion is gro!ing raidly J across
enterrise as !ell as household consumers

8"rgest "!d f"stest gro-i!g IT
o*tso*ri!g %"r.et i! the regio! i! 200<
I!re"si!g PC "doptio! "!d i!ter!et
pe!etr"tio! "ross ho*seho#ds
)i! Mi##io!,
Copyright NASSCOM 2008
'nhancing ,lobal Delivery caabilities
Significant addition of onshore resence
enabling firms to offer end.to.end service
caabilities
&rogressive near.shore
e-ansion to enhance
Pfollo!.the.sunQ and
Pmulti.lingualQ caabilities
Over 33 citiesB
across more than
2D countries
,lobal Delivery "ootrint of Indian IT.%&O "irms
* 01cl!"# In!i&n citi"# 8 In!i&
'-anding ,lobal Delivery caabilities comlemented by a !idening service
ortfolio is heling roviders deeen client relationshis
'-anding ,lobal Delivery caabilities comlemented by a !idening service
ortfolio is heling roviders deeen client relationshis
21
Copyright NASSCOM 2008
Summary of #ey messages
The Indian IT.%&O mar#et continues to gro! at a robust ace desite
the current global uncertaintiesN ho!ever there is a need to !atch
closely
/hile e-orts remains the mainstay0 the domestic mar#et is gaining
momentum
/ith the industry maturing0 it is !ell distributed across a breadth of
services and verticals
/hile <S and <8 continue to be the dominant mar#ets0 Continental
'uroe has e-hibited strongest gro!th over the last t!o years
,oing for!ard0 the Indian IT.%&O industry is oised to e-and
significantly on the bac# of its strong fundamentals and global head.
room
22
Copyright NASSCOM 2008
Agenda
(2 The rise of the I!di"!
eo!o%y
The I!di"! eo!o%y "t " g#"!e
4ri$ers of r"pid gro-th
22 4y!"%is of the
I!di"! IT-BPO
i!d*stry
7. Sustaining India4s
value roosition
C*rre!t tre!ds
=*t*re o*t#oo.
Talent availability
Cost cometitiveness
$is# management
%usiness environment
23
Copyright NASSCOM 2008
Is India4s value roosition sustainableR
PKigh attrition and !age inflation@ is India4s talent ool
running dryRQ
Talent availability
Cost
cometitiveness
$is# management
%usiness
environment
Common ?uestions...
P/ith cost increases0 is India still cost cometitiveRQ
PKo! have ?uality and security standards maturedRQ
P/hat is the geo.olitical ris# e-osureRQ
P/ill olicy and infrastructure #ee ace !ith the industry4s
raid gro!thRQ
24
Copyright NASSCOM 2008
Talent Availability A Crunch
India has large talent caacity. There is a need to ma#e them emloyable.
Technical
,raduates
M***s
Non.technical
,raduates
M***s
Annual Outut
)ear Net emloyee
addition 9M***s:
=F 08 58/
=F 07 528
=F 00 25?
IT.%&O Demand
So*reA NASSCOM
So*reA NASSCOM
25
Press*re Poi!ts

T"#e!t is tr"i!"b#e C !eed to %".e the%

e%p#oy"b#e
4e%"!d fro% other setors i!re"si!g
Tier 5 o##eges yie#ds #o-
Copyright NASSCOM 2008
Comrehensive &lan for ma#ing India4s large talent base
PemloyableQ
$ecogni>ing this imerative0 the industry is roactively !or#ing on several
initiatives to strengthen India4s long.term cost advantage
Short Term
Medium Term
;ong Term
'nhance overall yield
Imrove emloyability
'-and to tier 2
locations
;o!er s#ill deendence
ObHectives Initiatives
Industry to enhance investments in training
'ntry.level assessment for %&O and IT0
finishing schools C Through NAC0 NAC.Tech
Ne! locations identifiedN govt4s engaged
;o!er training
investment
'nhance secialist and
roHect management
e-ertise
Add education caacity
&romote education
reform
"aculty Develoment &rogramC to increase
the suitability of teachers
"acilitating industry access to secialist
rograms offered by indeendent agencies
'-ansion of higher.education
infrastructureC government to set.u 2* ne!
IIITs
&rogram to increase &hDs in technology
NASSCOM LC fund focused on technology
innovation
26
Copyright NASSCOM 2008
Overcoming Talent Crunch C Suly !ill not be a
constraint in future
So*re A BC:
F3
Mn
11
Mn 3
Mn
7Mn
DMn
7Mn
India
%angladesh
&a#istan
Iran
%ra>il
Me-ico
&hiliines
DMn
FMn
Lietnam
2Mn
Tur#ey
.1*
Mn
China
.6
Mn
$ussia
DMn
Indonesia
1Mn
Malaysia
*Mn
Ireland
Israel
*Mn
Ira?
2Mn
.1
Mn
C>ech
$eublic
FMn
'gyt
.13Mn
<S B
.2 Mn
<8
.2 Mn
Italy
.7 Mn
"rance
.1 Mn
Saan
B .D.6 m
in 2*1*
,lobal !or#ing age oulation 2*2*
/ith an increasing imbalance in the global !or#force0 India4s demograhic
advantage is li#ely to be a #ey driver of future gro!th
/ith an increasing imbalance in the global !or#force0 India4s demograhic
advantage is li#ely to be a #ey driver of future gro!th
27
Copyright NASSCOM 2008
Cost Cometitiveness is sustainable@
Desite cost increases0 India continues to leverage its cost structure to deliver a comelling
cost advantage. Additionally0 India4s long.term cost advantage is li#ely to remain robust.
;oaded Costs er IT "T' .a.
2**30 <S= M***s
So*reA @$erest& NASSCOM
28
2**3 2**+ 2**1 2*1* 2*11 2*12 2*17 2*1F 2*1D
India T 2+8
<S T 1**8
E
6
3
5
E
6
*
5
E
D
7
5
E
3
2
5
Cost S"$i!g
&roHected cost comarison0 2**3.2*1D <S=
CA,$ increases
T 75
/age T 1D5 Other T D5
/age T 1*5 Other T D5
/age T D5 Other T D5
So*reA NASSCOM esti%"tes
Copyright NASSCOM 2008
Industry is resonding !ell to economic ressures
29

K".e *p "## / %o!ths "go -he! +S4 to*hed 's2 5/

=o*s o! prod*ti$ity& effiie!y& reso*re *ti#i9"tio!

K"ge %oder"tio!& red*ed #"ter"# hiri!g& red*ed

"ttritio!

More effiie!t "sset *ti#i9"tio! C re"# est"te& IT et

@xp"!sio! i!to tier 2H5 ities

These imrovements !ill have lasting imact over
yearsG
Copyright NASSCOM 2008
F7 tier 2(7 Delivery locations identified
%angalore 765
Mumbai0
&une
1D5
Chennai 1D5
Ne! Delhi0 Noida0
,urgaon
135
Kyderabad 1F5
The industry is !ell sread across multile locations. Tier 2(7 cities emerging
The industry is !ell sread across multile locations. Tier 2(7 cities emerging
Others 75
So*reA NASSCOM
30

;eader Cities
Ne! 'merging
Cities
< e!ters "o*!t for o$er /01 of exports
?5 tier 2H5 ities e%ergi!gE -i## red*e
press*re o! these e!ters
O! "! "$er"ge& osts i! tier 2H5 ities is 281
#ess th"! #e"der ities
By 20(8& it is fore"sted th"t ?01 of IT-BPO
exports -i## origi!"te fro% !o!-#e"der
#o"tio!s

'mloyment Distribution Amongst
;ocation Categories 9M***s:
(&//7
8&0<?
2
Non-Leader
Leader
(
CA,$
?01
701
5?1 5?1
(01 (01
L(8M
L220M
NoteA (2 8e"der #o"tio!s "re B"!g"#ore& Che!!"i& Gyder"b"d& Jo#."t"& M*%b"i& NC' )4e#hi& Noid"& :*rg"o!& ="rid"b"d,& P*!e
22 Ass*%i!g " o!ser$"ti$e gro-th i! e%p#oy%e!t "t (01 CA:' o$er !ext de"de
Copyright NASSCOM 2008
Information Security A $is# Management
Standards
&hysical
security
&ersonnel
security
Co%p#i"!e -ith g#ob"# st"!d"rds
e2g2& ISO 2<00(& CoBIT
Co!tr"t*"# s"feg*"rds& rob*st
BCPH4' p#"!!i!g
Net!or#
security
;a!s
Se*re desig!& do*%e!t"tio! I
i%p#e%e!t"tio! of !et-or. e2g2&
fire-"##& "!ti$ir*s e!ryptio!
Iso#"tio! of se!siti$e "re"s
Aess o!tro# syste%s e2g2& CCTN
s*r$ei##"!e& se*rity g*"rds
B".gro*!d he.s
No!-dis#os*re "gree%e!ts
Co%p#i"!e -ith i!ter!"tio!"# #"-s
Stre!gthe!i!g of I!di"! #eg"# syste%
M"xi%*% ISO 2<00( ertifi"tio!s
obt"i!ed g#ob"##y
4"t" Se*rity Co*!i# for%ed
4o*%e!ted se*rity po#iies o$eri!g
*se of i!for%"tio!& %obi#e o%p*ti!g&
*ser "ess
'ob*st "!d *!ifor% best pr"ties
N"tio!"# S.i##s registry )NS', to
f"i#it"te perso!!e# b".gro*!d he.s
Cyber se*rity tr"i!i!g "!d "-"re!ess
A%e!d%e!ts to stre!gthe! the IT At
2000 "!d I!di"! Pe!"# Code bei!g
e!"ted
ObHectives Initiatives(Imact
In addition0 the industry continues to evolve its already high standards for data
security and I& rotection.
31
Copyright NASSCOM 2008
%usiness 'nvironment
S'Us are e-ected to build on the success of ST&I at a larger scale
IT S'Us
Other S'Us
IT.%&O Sector Accounts for the Kighest Number
of &roosed S'Us 9TotalV I D32:
S'U highlights
Ter% (0 ye"rs
=is"#
be!efits
(001 t"x ho#id"y for first 0
ye"rs& 001 for !ext 0 ye"rs& "!d
*p to 001 for b"#"!e 0 ye"rs
@xe%ptio! fro% exise d*ties&
ser$ie "!d s"#es t"xes
8o"tio!
"!d si9e
'estrited to presribed 9o!es -ith
" %i!i%*% "re" of 20 "res
Other Proed*r"# e"se& si!g#e--i!do-
#e"r"!e
So*reA NASSCOM& C8SA
32
Sector Current status ") *3
send
9<S= bill.:
'o"ds (01 of !"tio!"#
high-"ys fo*r-#"!ed
A$er"ge speed #ess
th"! 00 .%Hhr
<28
Te#eo% I!di" h"s do!e -e##
here2 A$er"ge per %i!
ost dere"sed by /01
o$er < ye"rs
22(
Airports Top 7 "irports )O<01 of
tr"ffi, *rre!t#y
o$erstrethed
5
Po-er Gigh ost of e#etriity&
#osses d*e to theft
(02<
Copyright NASSCOM 2008
Summary of #ey messages
$educing roduct ( service life cycles
Demograhic shifts A !ar for talent !ill drive innovation A increased globali>ation
of services
India4s talent ool largeN needs focused attention A yield imrovementN imrove
emloyability
India4s value roosition strong and sustainable. In site of inflationary ressures0
cost advantage to continue. Moreover0 oeration efficiencies !ill have a lasting
effect
,lobal focus on information security A rivacy driving more robust rocesses
&roactive government olicy is heling address e-isting infrastructure gas.
"urther0 S'Us !ill ta#e over from ST&I in roelling industry gro!th.
&roviders are maturing their service delivery caabilities to actively deliver value.
adds through global delivery models0 rocess e-ertise0 and innovation
33
Copyright NASSCOM 2008
TGANJ FO+