IT and ITeS vcvcMarch 2014

7/25/2019 IT and ITeS vcvcMarch 2014

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1 T

2 I

3 I

4 T


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2

In

US


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I

I

T


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20

1 T

2 W


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F

F

T

I


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Hardware


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M

O

B

M

A

M

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M

9 T

10


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15/65

6976

59

! 750

22 22 2 29 "2 "2

F#200$ F#2009 F#20!0 F#20!! F#20!2 F#20!"%

&o'e(ti) %*+ort

Source: ,a(()o'- Aran)a.e(ear)h

,o


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M


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/o'+any na'e Maret (hare

T/S !017 +er )ent

Wi+ro 712 +er )ent

/oni3ant 61$ +er )ent

Info(y( 61" +er )ent

H/4 Te)h 12 +er )ent

Te)h Mahindra !1! +er )ent


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19/65

Total e*+ort( fro' the ITBM (e)tor e*)l8din hardware are e(ti'ated at US&76 :illion d8rin F#!"; the ind8(try ro(e ata /Aor )ontri:8tor- a))o8ntin for 5719 +er )ent of total IT e*+ort( e*)l8din hardware

BM a))o8nted for 2"15 +er )ent of total IT e*+ort( d8rin

F#!"


20/65

BFSI i( a ey :8(ine(( =erti)al for the ITBM ind8(try1 It enerated e*+ort re=en8e of aro8nd US&"! :illion d8rin F#!"-a))o8ntin for !10 +er )ent of total ITBM e*+ort( fro' India

A++ro*i'ately $5 +er )ent of total ITBM e*+ort( fro' India i( a)ro(( fo8r (e)tor(? BFSI- tele)o'- 'an8fa)t8rin andretail1 The hitherto ('aller (e)tor( are e*+e)ted to row

%*+ort re=en8e rowth a)ro(( =erti)al( US& :illion &i(tri:8tion of e*+ort re=en8e a)ro(( =erti)al( F#!"

2$"! "@

5@ "@BFSI

!"! !2

!!7 $ " 2 2 2 2

BFSI

T&M

Manufacturing

Retail

Healthcare

T&T

C&U

F#!2 F#!"

!0@

!@

!6@

/ U!$@


21/65

Source: ,a(()o'- Aran)a .e(ear)h,ote(? /U /on(tr8)tion Utilitie(- TT Tra=el and To8ri('- T

M Tele)o' Media- BFSI

Banin-

Finan)ialSer=i)e( and

In(8ran)e The

fi8re( 'entioned are for IT and BM only anddo not in)l8de enineerin (er=i)e( and

hardware e*+ort(


22/65

US ha( traditionally :een the :ie(t i'+orter of Indian IT e*+ort(; o=er 60 +er )ent of Indian ITBM e*+ort( werea:(or:ed :y the US d8rin F#!"

,on USU )o8ntrie( a))o8nted for >8(t 2!10 +er )ent of total Indian ITBM e*+ort( d8rin F#!2

%8ro+e- one of the fa(t rowin IT 'aret( in 20!2- i( e*+e)ted to e'ere a( a +otential 'aret a( hiher in)linationtoward( off(horin fir'( wo8ld in)rea(e de'and for IT (er=i)e(


23/65

62@ AA/5 6

2 2

U

S U

/ontine

ntal

AA

/

.O

W%8ro+e

F#!2F#!"

!7@

.OW

Source: ,a


24/65

/ateory,8':er of @ of total e*+ort @ of total

Wor fo)8(+layer( re=en8e e'+loyee(

C F8lly interated +layer( offerin f8ll rane of

(er=i)e(

4are (i3ed !! 750@ D"5"$@ C 4are ()ale o+eration( and infra(tr8)t8reC re(en)e in o=er 60 )o8ntrie(

C Mid tier Indian and M,/ fir'( offerin (er=i)e(

in '8lti+le =erti)al(

Mid (i3ed $5!00 "2"5@ D2$"0@ C &edi)ated )a+ti=e )enter(

C ,ear (hore and off(hore +re(en)e in E"0"5

)o8ntrie(

C layer( offerin ni)he ITBM (er=i)e(

%'erin 50600 9!0@ D!520@C &edi)ated )a+ti=e( offerin ni)he (er=i)e(

%*+andin fo)8( toward( (8: Fort8ne 500C!000 fir'(

C S'all +layer( fo)8((in on (+e)ifi) ni)he( in

either (er=i)e( or =erti)al(S'all E-000 9!0@ D!5!$@

C In)l8de( Indian +ro=ider( and ('all ni)he)a+ti=e(

Source: ,a(()o'- Aran)a .e(ear)h


25/65


26/65

/hanin :8(ine((dyna'i)(

4are +layer( aininad=antae

,ew te)hnoloie(


27/65

/on(8'eri(ation of IT

%'eren)e of Tier II

)itie(

SMA/ te)hnoloie(- aninfle)tion +oint for

Indian IT

1


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C


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ri(e ata/A


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a 'a>or )ontri:8tor to do'e(ti)

de'and :y 20!"J!


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Introd8)tion of lare ee)t( to +ro=ide :etter(er=i)e( thro8h IT and fo)8( on the for'ation of the )y:er+oli)y led to hiher de'and for IT and hardware fro' theo=ern'ent

The /entral


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A=aila:ility of (illed %nli(h (+eain worfor)e ha( :een a'a>or rea(on :ehind IndiaG( e'eren)e a( a lo:alo8t(o8r)in h8:

India added aro8nd 17 'illion rad8ate( to the talent +oold8rin F#!"


34/65

A:o8t 2 +er )ent of the ind8(try re=en8e i( (+ent on trainin Trainin e*+endit8re :y Indian ITBO (e)tore'+loyee( in the ITBM (e)tor

0 +er )ent of total (+end on trainin i( (+ent on traininSalarie( for inho8(e

!!@ trainin (taffnew e'+loyee(

2@ %*ternal trainin newre)r8it(

A n8':er of fir'( ha=e fored allian)e( with leadin !9@ %*ternal trainin e*i(tined8)ation in(tit8tion( to train e'+loyee( e'+loyee(

6@ .e)r8it'ent )o(t

%'+loyee welfare



35/65

Short ter'

Medi8' ter'

4on ter'

O:>e)ti=e(

1 %nhan)e o=er all yield of e'+loyee(

2 I'+ro=e e'+loya:ility

3 %*+and to tier 2 )itie(

4 4ower (ill de+enden)e

5 Brin down in=e(t'ent on trainin

6 &e=elo+ (+e)iali(t and +ro>e)t 'anae'ente*+erti(e

7 %*+and ed8)ation )a+a)ity

8 ro'ote refor'( in ed8)ation

Initiati=e(

1 Ind8(try to enhan)e in=e(t'ent in trainin

2 U(e ,A/ and ,A/ J Te)h to a((e((e'+loya:ility of talent +ool

3 Identified new tier 2 lo)ation(

4 4a8n)hed the ,ational Fa)8lty&e=elo+'ent rora''e to in)rea(e(8ita:ility of Fa)8lty

5Aidin ind8(try a))e(( to (+e)iali(t+rora''e( offered :y inde+endentaen)ie(

6 %*+an(ion of hiher ed8)ationinfra(tr8)t8re; 20 new IIIT( to :e (et 8+ :ythe o=ern'ent

7 rora''e to in)rea(e h&( in te)hnoloy


36/65

ource: ,a(()o'- Aran)a.e(ear)h,ote? ,A/ ,a(()o' A((e(('ent of /o'+eten)e- IIIT Indian In(tit8te( of Infor'ation Te)hnoloy

A( of F#20!!- 6-55 STI 8nit( were o+erational- while5-56 8nit( ha=e e*+orted IT (er=i)e( and +rod8)t(1 &8rinF#!!- STI 8nit( a))o8nted for a++ro*i'ately 7610 +er)ent of total IT e*+ort(

ITS%( ha=e :een initiated with an ai' to )reate 3one(that lead to infra(tr8)t8ral de=elo+'ent- e*+ort( ande'+loy'ent

/hara)teri(ti)( of STI and S% in India


37/65

ara'eter( STI S%


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Ter' !0 year( !5 year(

C !00 +er )ent ta* C !00 +er )ent ta*holiday on e*+ort holiday on e*+ort(

+rofit( for fir(t fi=e year(

Fi()al :enefit(C %*e'+tion fro' C %*e'+tion fro'

e*)i(e d8tie( and e*)i(e d8tie( and

)8(to'( )8(to'(

C ,o lo)ation

)on(traint( C .e(tri)ted to

4o)ation and +re()ri:ed 3one(

(i3e re(tri)tion( C 2" +er )ent STI with a 'ini'8'

8nit( in tier II and area of 25 a)re(

III )itie(

Source: ,a(()o'- Aran)a.e(ear)h- STI

Trend( in tier II and III )itie(

1 " new tier IIIII )itie( are e'erin a( IT deli=ery

lo)ation; thi( )o8ld red8)e +re((8re on leadin lo)ation(

2 /o(t in newer )itie( i( e*+e)ted to :e 2$ +er )ent lowerthan leadin )itie(

3 4ower )o(t and attrition- afforda:le real e(tate and(8++ort fro' lo)al o=ern'ent- (8)h a( ta* :rea(- STIand S% ()he'e(- are fa)ilitatin thi( (hift of fo)8(


39/65

4 O=er 50 )itie( already ha=e :a(i) infra(tr8)t8re andh8'an re(o8r)e to (8++ort the lo:al (o8r)in and:8(ine(( (er=i)e( ind8(try

5So'e )itie( are e*+e)ted to e'ere a( reional h8:((8++ortin do'e(ti) )o'+anie(

IT (e)tor e'+loy'ent di(tri:8tion in Tier I andTier IIIII )itie(

"-2"0

!75

!-$2! !-6!5

200$ 20!$%

Tier I lo)ation( Tier IIIII lo)ation(

Source: ,a(()o'- %#- Aran)a .e(ear)h

ey hihliht(

1


40/65

2A( of F#20!2- the )a+ti=e (e'ent a))o8nted for !6!$ +er )ent of the ITBM ind8(try re=en8e

3 The i'+a)t of the (e'ent oe( :eyond re=en8e ande'+loy'ent- a( it hel+ed in de=elo+in India a( a .&h8: and )reate an inno=ation e)o(y(te' in the )o8ntry

4 Within the )a+ti=e land()a+e- %.&S& %nineerin.e(ear)h &e=elo+'ent Software rod8)t&e=elo+'ent i( the lare(t (8:(e'ent

5 /o'+anie( fro' ,orth A'eri)a and %8ro+e are 'a>orin=e(tor( in the )a+ti=e (e'ent in India- a))o8ntinfor o=er 90 +er )ent of )a+ti=e( in the )o8ntry

,8':er of


41/65

The IT BM (e)tor )ontin8ed to attra)t % and / in=e(t'ent( in 20!2- a))o8ntin for a (inifi)ant +ro+ortion in ter'( of=ol8'e aro8nd "7 +er )ent and =al8e a++ro*i'ately 0 +er )ent

al8e in)rea(ed at an i'+re((i=e 6$1 +er )ent o=er 20!!e/o''er)e a))o8nted for "! / deal( in 20!2

A:o8t 6 +er )ent of / deal( in India were in the (oftware- internet and 'o:ile ind8(try

Two of the lare(t % deal( in the (e)tor d8rin 20!2 were?

L MoranG( :8yo8t of MModal US&!-!00 'illionBain /a+ital-


42/65

,ew eora+hie(

,ew

)8(to'er ,ew =erti)al( (e'ent(

1 SMB( ha=e IT (+end of a++ro*i'ately US&2"0J 250

:illion- :8t )ontri:8te >8(t 25 +er )ent to IndiaG( IT

re=en8e

2 The e'eren)e of new (er=i)e offerin( and :8(ine((

'odel( wo8ld aid in ta++in 'aret +rofita:ly and

effi)iently

1 B.I/ nation(- )ontinental %8ro+e- /anada and La+an

ha=e IT (+endin of a++ro*i'ately US&"$0J20 :illion

2Ado+tion of te)hnoloy and o8t(o8r)in i( e*+e)ted to

'ae A(ia the (e)ond lare(t IT 'aret

3


43/65

Traditional =erti)al( i1e1 BFSI- tele)o' and 'an8f)at8rin- )ontin8e to re'ain the lare(t in ter'( of IT ado+tion- and aree*+e)ted to row at an a=erae of !5 +er )ent

I'+le'entation of )lo8d en=iron'ent and 'o:ility way forward for traditional =erti)al(

%'+ha(i( on other e'erin =erti)al( (8)h a( ed8)ation- health)are and retail to aid rowth in IT fir'( in India

Shift fro' IT ado+tion infra(tr8)t8re- a8to'ation and diiti(ation to ('art IT 'ar( f8t8re trend of (er=i)e( ine'erin =erti)al(


44/65


A( IT i( in)rea(inly ainin tra)tion in SMBG( :8(ine((a)ti=itie(- the (e)tor offer( i'+re((i=e rowth o++ort8nitie(and i( e(ti'ated at a++ro*i'ately US&2"0J250 :illion :y2020

Maret (i3e of other +rore((in =erti)al( :y 2020US& :illion


45/65

In a :id to red8)e )o(t-o=ern'ent( a)ro(( theworld are e*+lorin

o8t(o8r)in and lo:al(o8r)in o+tion(

Te)hnoloie(- (8)h a(

tele'edi)ine-'Health-re'ote'onitorin(ol8tion(and)lini)alinfor'atio

n (y(te'(- wo8ld )ontin8eto :oo(t de'and for IT(er=i)e a)ro(( the lo:e

IT (o+hi(ti)ation in the8tilitie( (e'ent and theneed for (tandardi(ation ofthe +ro)e(( are e*+e)ted todri=e

250

90

5$ 25

!7

de'and

&iiti(ation of)ontent

andin)r

ea(ed)onne)ti=ity i(leadin to a ri(ein IT ado+tion:y 'edia

SM

B

IT and ITeS vcvcMarch 2014

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