GICs…….

Leadership in Digital Era

NASSCOM … Enabling transformation…

2

Skill & Workforce Development

Digital Eco system

Research & Thought Leadership

Enterprise ConnectsPolicy Advocacy

Global Partnerships &

Affiliation

Strategic Direction Capacity Development Market Access

• Technical resource pool

• Enabled the Eco System

• Industry capacity

• New Knowledge roles

• Entrepreneurial Eco system

• Innovation - Digital natives

Enable

Digital Hub

• 25 year young, “not for profit” trade body and chamber of commerce to build

the collective industry capacity for IT & BPM from India

• Enabled successful establishment of IT Industry

3

MARKET: Most attractive BUSINESS INFRASTRUCTURE-

Excellence in delivery

INNOVATOR- Taking the lead in

driving growth for customersSKILLS – Digital hub

>150

billion

Mid-income households-

among the biggest globally

>75 %Population with <35 years

of age

13thLargest consumer market

~8-10XEntry level wages-lesser

compared to source countries

~640Number of GDCs, in >78

countries

>16,000Diverse supplier landscape,

>7,000 digital-centric

~1.5

Lakh

Digitally skilled people

employed in India

5.8

million

Talent composition, 2X

growth in 5 years

~1

millionTechnical output- engineers

annually

>450Firms focusing on emerging

technologies; IoT, Big

Data/analytics

>3,100Start-ups innovating for

futuristic technology areas

Patents filed:out-of-the-box

solutions aiding client business

India: A matchless business partner

LEADING GLOBAL

SOURCING NATION

55 per cent Global sourcing share

>1,500

Source: NASSCOM

1990-20001980-1990

2000-2010

Indian IT-BPM industry- Always evolved to stay ahead of competition

Share in

services exports

2010 onwards

Value addition

Revenue1

(USD billion)

Employees1

(million)

No. of firms1

GDP share1

Low-end support

& development

T&M pricing

Standardisation,

productivity improvement

Non-critical functions

Project-based

Fixed cost, T&M

End-to-end services

Strategic partner; non-linear

growth

Pay-as-you-use

Higher End Services

Digital transformation

Domain specific services

SMAC, innovation

Outcome based

1 >8 ~78 ~146

0.06 0.34 2.3 3.5

~1% 1.8% 6.1% 9.5%

<5% 10.5% 26% >38%

<1,000 ~2,000 10,000-12,000 >16,000

Share in global

sourcing1 - - 47% 55%

Cost arbitrage Collaboration Value additionBusiness

outcomes

Tipping pointY2K

Global delivery

modelSMAC

Source: NASSCOM1 Data given for FY1991, FY2000, FY2010, FY2015

Key Challenges

• Globally changing knowledge roles

• Enhancing the employability

• Managing the Aspirations

• Skilling for new leadership changes

COMPOSITION

100% = ~5.35 million

(2014-15E)

Post Graduates

3 yr Engg Diploma/

MCA

4 yr Engg Degree

Science Graduates

Commerce Graduates

Arts + Other

Graduates

Other Graduates

Note: ** NASSCOM estimates based on past trends in annual enrollments / intake and outturn

Source: NASSCOM

Addressing Talent Crunch

5

Key Enablement

• PM Skills Mission ; 17 Sector Skill Council

• NASSCOM –SSC for IT/ITES

• Delinking Employment & Education; Skilling

for Employment, NOS

• Expand to tier 2 locations

• Specialist and Digital leadership program

Internet of

Things

Big Data &

Analytics

Augmented

Reality

Cloud

Computing

Hardware

Wearable Tech, Home

Automation and Fleet

Management

3D Printing, Payment

Solutions and Automation

Big Data and Social

Media Analytics

BD&A, ERM, Comm./

Collaboration and

Productivity Solutions

Marketing & Advertising,

Healthcare and

Visualization Solutions

30+

30+350+35+ 800+

EduTech

Technology Platform,

Educational Content, Skills

Development and

190+

AdTech

Mobile Advertising,

Marketing Analytics and Ad

Campaign Management

100+

HealthTech

30+

Search, ERM, Records

Management

Start-up landscape driving innovation

Start-ups created every year> 800

Funding since 2010$2.3+ Bn

Active VCs/PEs in 201470+

Incubators/ Accelerators80+

Start-ups in India> 3,100

Source: Zinnov, NASSCOM

NASSCOM 10,000 Start-ups enabling and catalysing ecosystem

62+ Active Angels in 2014550+

Start-ups: DNA

NurtureDiscover Accelerate

Spread

Awareness

Promote

Whitespaces

Bring

Entrepreneurship

in Mainstream

Events and

Workshops

Virtual Learning

Mentorship

Incubation/

Angel Funding

Industry

Connections

Corporate

Acceleration

8

GIC world

GICs in India: An overview

>1,000

USD

>19bn

745k

59%

14%

Number of GICs in India

GIC revenue

Number of employees

Share of ER&D/SPD GICs (largest segment)

GICs with >1,000 employees

Note: ER&D/SPD = Engineering and Research & Development/Software Products

GIC landscape in India

GICs by Headquarter location, FY2015

68%

24%

4%

3%

1% North America

Europe

Japan

APAC

RoW

Number of GICs by category, FY2015

35%

24%

14%

10%

11%

6% Bengaluru

Mumbai/Pune

NCR

Chennai

Hyderabad

Tier II/III

Headcount range of GICs, FY2015Location wise split, FY2015

3%6%

59%31%

IT

BPM

ER&D/SPD

Hybrids

57%21%

8%

14%

<200

200-500

500-1,000

>1,000

Note: 100% = 1,026 nos.

Set-up

Ramp-up

Value Addition

Breakthrough

Innovation

Prove the concept1. Key

Focus

Cost Arbitrage &

Mature Delivery

Business Impact &

Thought leadership

Competitive

advantage for the

Enterprise

2. Value

Delivered

• Anchor function teams

• Multiple pilots / transitions

• Defined processes

• Predictable delivery

• Process efficiency

• Capacity augmentation

• Process efficiency

• Enhanced client

experience

• Revenue augmentation

• Global products & service

lines

• IP creation

3. Ops Model • Often shared services• High vertical integration • Matrix organization

• New delivery models

• Integral part of a global

network

• GIC another location

• Efficiency utilization,

Quality, Attrition

GICs are at different stages of a Innovation

Cost ArbitrageAccess to talent

Deep integration & Domain Expertise

Access to local markets & Co-

location

7. Advantages

4. People • Rely on expats;

Experiment with

different people profiles

6. Metrics• Savings, Time-to-

transition

• Development of local

leaders

5. Stakeholders • Function Heads for pilot

services;1-2 senior

leaders as ‘Champions’

• Global function heads

• Select business heads

• CEO/Management/Board

• Senior business leaders

• Clients• Regional / Global

function heads

• Subject matter experts

• Global leadership teams

• Client experience

• # global leaders

• Business focussed

leaders

• No. of new products

• No. of patents filed

Phase 1 Phase 2 Phase 3 Phase 4

2010 to 2015: The GIC journey

Silo-ed functioning

India: An offshoring option

Limited Functions

Operations Excellence

Cost Arbitrage

Integrated with global

teams

India: An imperative

Expanded Functions

COE for Digital Innovation

Cost + Business Value

2010 2015

13

Developing GIC into CoE

Run as a start up & Leverage Start up Eco System

Enabling Digital Leadership

Contribute to NPS

GICs Focussed on

Enabling Digital Charter for the Global Enterprises

Enabling new knowledge roles

Healthcare GICs…

Typical Work in COE

1. Technology Support

• IT Operations; Applications Development & Deployment

• Transformation of IT from Systems of Records to Systems of Change

• Digital enablement

2. Back Office and KPO/ Analytics

• Unified customer experience management

• Efficacy/ Analytics

• Regulatory Reporting

• Claims Payment system, health records management

3. R&D

• Platform for Digital healthcare

• Reverse Engineering

4. Leverage external innovation eco system

14

Some Healthcare GICs…

15

Thanks

2015