Software exports-india

7/31/2019 Software exports-india

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Presented by Kamal BhallaMBA(IB)-3rd Sem.UBS Chandigarh

Professor in chargeDr Navdeep Kaur

Subject: WSSE

Software Exports-India


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Support &Maintenance

4%

Projects37%

Products &Packages

8%Training

2%Professional

Services39%

IT EnabledServices

10%

Projects

33%

IT EnabledServices

10%

Products &Packages

41%

Support &Maintenance

4%

ProfessionalServices

8%

Training4%

DOMESTIC EXPORT

Source : Nasscom

SOFTWARE INDUSTRY ACTIVITY BREAK UP


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61%

23%

4% 4% 2% 2% 4%

USA & CanadaEuropeS.E Asia

JapanW . AsiaAustralia & NZRest Of World

India is exporting software to over 95 countries

Source : Nasscom

DESTINATION OF INDIAN SOFTWARE EXPORTS


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Automatic route for foreign equity up to 100 percent insoftware and electronics, except aerospace and defence.

100% foreign investment permitted for exports, like: Electronic Hardware Technology Parks (EHTPs), Software Technology Parks(STPs), Free-Trade Zones/Export Processing Zones (EPZs) and Export Oriented Units (EOUs)

A number of states have developed their own IT policy topromote the development of software sector.

Tax holiday up to 2010 for IT units to be set up in SoftwareTechnology Parks

Tax holiday to R&D for up to 10 years. IT venture capital fund set up Simplification and liberalization of Export & Import Policy

INVESTMENT POLICY IN INDIA


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The concept of the STP Scheme was evolved in 1991, and enunciated thefollowing objectives:

To establish and manage infrastructure resources such as data communicationfacilities, core computer facilities, built-up space and other common amenities

To provide 'single window' statutory services such as project approvals, importcertification software valuation and certification of exports, for softwareexporters

To promote development and export of software services through technology assessments, market analyses, market segmentation and marketing support

To train professionals, and to encourage design and development in the field of software technology and software engineering

Software Technology Park (Scheme)


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Development of patches and

upgrades for core products Support migration to multiple

platform versions

Legacy product maintenance

Localization/ internationalization of core products

Development of specific modulesand offer testing services

Indian companies cancontribute towards Benefits to Global ISVs

Lower cost resources

Decrease time-to-market through 24x7development cycles

In-house team can focus on higher value-adding activities

Rapidly expand development capacitywithout fresh recruiting

Low-risk opportunity and plug skill gapsdue to emergence of new technologies

Offshore Product Development


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More than 60% of global majors are conducting productdevelopment from India

Top-tier ISVs adopt a captive model Mid-sized ISVs partner with Indian ITS vendors

Microsoft Intel Hughes Oracle SAP Novell Adobe

IBM Veritas Symantac Cadence i2 CA

Leverage the Offshore Model


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Address : PHD House (3rd Floor), Op Asian Games Village, New Delhi - 110 016Tel: 011-6965103, 6964463 Fax : 011-6853412E-mail : [email protected] Website: http://www.indiansources.com Contact Person: Mr. R.H. Naqvi, Executive Director Areas of Interest: Electronic goods, ComputerSoftware and related services.

(ECSE)Electronic & Computer Software ExportPromotion Council
mailto:[email protected],[email protected]?subject=Business%20Enquiry%20Through%20indiamart.comhttp://www.indiansources.com/http://www.indiansources.com/mailto:[email protected],[email protected]?subject=Business%20Enquiry%20Through%20indiamart.com


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(ECSE)Electronic & Computer Software ExportPromotion Council

Indias largest Electronics and IT trade facilitation organization.

Starting in 1989, with an export performance of US$ 200 million,ESC has successfully steered Indias Electronics and SoftwareExports to US$ 65 billion during 2010-11 with membership of over 2200exporters today.

ESC facilitates global interests of foreign companies interested inestablishing business linkages in India. ESCs excellent match making services help interested ICT companies to locate a reliablepartner in India for their business requirements.


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ESC operates through State, Regional, Sectoral andTerritorial Committees.

The ESC Committees comprise of leading exporters andsenior Government officials.ESC represents interests of Indian electronics and IT

sector at Joint Trade Committees of Ministry of

Commerce, Government of India as well as at JointBusiness Councils of various countries.

ESC Functioning


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ESC has built a strong membership base of over 2300manufacturers and exporters across the country covering the entire gamut of Electronics and SoftwareIndustry in the following areas :Consumer ElectronicsElectronic ComponentsInstrumentationTelecommunicationComputer Hardware and PeripheralsComputer Software and IT Enabled Services

ESC Membership


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ESC offers a varied set of services to its members foraccelerating exports.ESC implements foreign assisted developmentprogrammes to facilitate : Joint VenturesTechnical / Financial CollaborationsStrategic Alliances

ESC undertakes Market Research / Studies in major overseas markets.

ESC Service Portfolio


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New Delhi,Gurgaon, NOIDA

Mumbai Pune

Hyderabad

Bangalore

Chennai

Major IT Centers-India


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Why India ?


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WHY INDIA ?

Infrastructure Foreign Direct Investment

Incentives & Country Risk Time zone attractiveness

Location Attractiveness

Workforce Capability Skill Sets, Language Proficiency Quality of work / work ethic Cost Differential

LoLo

High

High

India

Mexico

China

Hong KongIrelandUK

Philippines

Source: STC, New Delhi Size of circle corresponds toNumber of Qualified Workers


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No. Of Graduates

A large pool of engineers come out every year


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Large pool of skilled and university trained technical manpowermatching global standard

Manpower costs in India are a quarter of internationals costs Relatively well developed supporting infrastructure Usage of latest software tools and a variety of computer hardware

platforms Large number of research and development organizations and design /

development centres India ranks as the most competitive supply of skilled Information

Technology professionals today and is the preferred supplier of software solutions to the developed world, led by the US.

Advantage India


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205 of the Fortune 1000 companies out sourced software requirements to

India.

Of the 32 companies worldwide having SEI-CMM Level 5 certification thehighest quality standard in software, 16 are Indian companies.

38% of e-commerce startups of 1999 in Silicon Valley by Indians.

50-100 portals being launched in India every month.

170 Indian software companies have already acquired quality certification: ISO 9000/SEI.

Large pool of software professionals, proficient in English.

More


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Abundant investment opportunities exist in the following thrust areas inIndia :

Satellite-based Communication Communication Infrastructure Gateways Wireless Software Development IT-enabled Services IT Education IT-enabled education Optical Fiber Cable Data Centers & Server Farms

Opportunities


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Software Products Export


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FY2012 is a landmark year while the Indian IT-BPO industry weathered uncertainties in the global business environment, this isalso the year when the industry is set to reach a significant milestone aggregate revenue for FY2012 is expected to cross USD 100 billion.

Aggregate IT software and services revenue (excluding hardware) isestimated at USD 88 billion

Indian IT-BPO Industry- FY2012


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Key Highlights 2012


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Milestone year for Indian IT-BPO industry-aggregate revenues cross the USD100 billion mark, exports at USD 69 billion

Within the global sourcing industry, India was able to increase its market sharefrom 51 per cent in 2009, to 58 per cent in 2011, highlighting Indias continuedcompetitiveness and the effectiveness of India-based providers deliveringtransformational benefits

Export revenues (including Hardware) estimated to reach USD 69.1 billion inFY2012 growing by over 16 per cent; Domestic revenues (including Hardware)at about USD 31.7 billion, growing by over 9 per cent

Software and services revenues (excluding Hardware), comprising nearly 87 percent of the total industry revenues, expected to post USD 87.6 billion inFY2012; estimated growth of about 14.9 per cent over FY2011

Within Software and services exports, IT services accounts for 58 per cent, BPOis nearly 23 per cent and ER&D and Software Products account for 19 per cent

Key Highlights 2012


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Contd..

The industry continues to be a net employment generator - expected toadd 230,000 jobs in FY2012, thus providing direct employment to about2.8 million, and indirectly employing 8.9 million people

As a proportion of national GDP, the sector revenues have grown from

1.2 per cent in FY1998 to an estimated 7.5 per cent in FY2012 The industrys share of total Indian exports (merchandise plus services)increased from less than 4 per cent in FY1998 to about 25 per cent inFY2012

While the global macroeconomic scenario remained uncertain, theindustry exhibited resilience and adaptability in continually reinventing itself to retain its appeal to clients

Embracing emerging technologies, increased customer-centricity,deepening focus on new markets, adopting new business models aresome successful growth strategies followed by the industry


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Software: During 2010-11, sales had increased by 17.1 per cent and PAT by 15 per

cent.

For the year ending March 2012, the industrys sales are expected togrow by 20.5 per cent and further to increase by 18.5 per cent during2012-13.

Growth in sales will be mainly driven by an increase in volumes of ITcompanies.

PAT is expected to grow by 13.1 per cent in 2011-12 and 14.2 per cent in2012-13. In spite of a healthy growth in sales, the industrys margins are

expected to remain under pressure due to higher wage bill andincreased tax provisioning.

Economic survey 2011-12


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Overall Growth Performance IT-ITES Sector


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Top 20 IT-BPO Export Companies, Top 15 BPO Export Companies and

Top 20 IT-BPO EmployersSurvey conducted annually-NASSCOM members and the participating companies

Industry Rankings by NASSCOM


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Top 20 IT Companies- India


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