24310874 indian software industry

8/3/2019 24310874 Indian Software Industry

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INDIAN SOFTWARE

INDUSTRY



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Three decades of its evolution

Visionary companies built compilersand application software for localmarket requirement.

India excels in banking-

specific products.More than 300 startups inthe last 4 years.



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Last Year Fact

Indian SoftwareProduct Companies

Selling in India

USD 11.7 billion

Indian Software Product Market Landscape, FY2008

Indian SoftwareProduct CompaniesSelling Outside India

USD 40.3 billion

Indian Software ProductBusinesses Revenue

U S D

b i l l i o n

Note: * Includes overseas acquisition led revenue growth

Source: Zinnov Analysis

Global CompaniesSelling SoftwareProducts in India

USD 23.84 billion

IT/ITeS sector contributed to over 5.4 per centof India’s GDP in 2008-09, an increase from4.8 per cent in 2007-2008 BLUE:DOMESTIC

RED:EXPORT



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Market Overview

• Banking, Financial Services andInsurance (BFSI) verticalcontinues to account for thelargest share of exports at 31per cent.

• Telecom vertical accounts for second-largest share of the pieat 19 per cent.

• Other verticals such asmanufacturing, retail,media and

healthcare are rapidly gainingpace

REVENUE



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Some Major On-Going Project

q British Telecom awarded US$ 1 billion contract to Tech Mahindra.q General Motors awarded Wipro a five-year contract of the value of

US$ 300 million.q ABN Amro awarded a US$ 500 million five-year contract to TCS,

Infosys and Patni.q TCS and Satyam together signed a seven-year contract worth US$

145 million with Qantas Airlines.q SABMiller gave project to evaluate and improve the effectiveness of

its in-store shopper marketing campagins to Infosys.



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HOW IS THE INDIAN SOFTWARE

INDUSTRY MOVING UP THE VALUECHAIN.?



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Moving Up The Value-Chain

95% Of Revenue

WIPRO,TCS,HCL,INFOSYS ANDMINDTREECONSULTING



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Low End And Low Risk Job



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NASSCOM Initiatives

• National rollout of skill certificationthrough NAC (NASSCOM Assessmentof Competence)

• Carter of more then 1200 Firms• Help in Technology Innovation.• Gives Promotion and Global Exposure

to Indian SME’s• THEME THIS YEAR: “Survival &

Growth Strategies for Indian IT SMEs”.

NAC



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Government Incentives

Telecom sector deregulationq Sector deregulated in the mid and late 1990s to

allow private sector and MNC participation

q

Regulatory reform to allow adoption of newtechnologies

q Enable benefits of free market competitionImproved service quality and declining tariffs



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Government Incentives

Software Technology Parks of India(STPI) are set up to provide:

q Fiscal benefits like tax holidays toattract Investment into the industry

q Basic Infrastructureq Single-window clearances for

setting up



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Top Ten Indian Software Company



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Why Indian Software Industry is

On Hype???



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Points In Favor Of IndianSoftware Industry

q Host to more than 55 per cent of global SEI CMM Level 5 firms.

q Cost of an engineer is about 20 –40 per cent of comparable cost inEU and near about 60% of USA.

q

More than 70,000 SoftwareEngineering per year.

q India offers technical and languageskills with supportive governmentpolicies.

q High quality telecom infrastructure

with cost of connectivity decliningrapidly and service levels improvingsignificantly.



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OTHER SIDE OF THE COIN…..

REVENUE



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Challenges Faced…..



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IS BRANDING NECESSARY??????



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BRANDING STRATEGY

q So far, companies have reliedmore on vendor events, productmeets and their own websites toget in touch with potential clients.

q Increasing use exhibitions and

trade shows to showcase their products and create brandawareness.

q INFOSYS:“winning in a flatworld” in all investor and media

communication from mid-2006q HCL:adopting a high pitched,

mass media driven corporatebranding campaign

q TCS:“Experience Certainty”



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What Is The Future Of IndianSoftware Industry???



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Future In Search Engine…

q15 local search engines have emerged in thelast 2 years in the Indian market (Justdial,Guruji, Asklaila, Zatka.com, 123india.com,mapmyindia.com, tolmolbol.com etc)qYahoo and Microsoft have their R&D centers

in India,to get advantage of Indian Talent/Domain Expertise.qPercept Knorigin acquired Searchsize in 2008and ByIndia.com was acquired by Web2 Corpin 2006



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Future in BFSI sector…

q BFSI sector specific softwareproducts from Indian companiessuch as TCS, Infosys, i-flex, 3i-Infotech, Polaris, Nucleus Software,Omnesys, Lasersoft, Mindmill arepreferred by customers globally.

q Total VC Funding (Since 2004):USD 71 million.

q Oracle’s acquisition of I-flex is oneof the key examples to highlight therising BFSI expertise from India.



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24310874 indian software industry

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