NASSCOM India Leadership Forum 2012

February 13, 2012

Mumbai

Our agenda for the day

• The Indian IT-BPO Industry

• Key trends

• NILF 2012: What to expect?

• Key Themes

• What’s new

3

Indian IT-BPO Sector-Resilient and Growing

Aggregate revenue for the sector estimated to cross USD 100 billion mark [including hardware]

Industry continues its growth trajectory, with no visible competition in the near future; Growing impressively CAGR 2007-12 : 17 per cent

From 2009 to 2011, M&As increased 77 per cent CAGR to reach USD 4.5 billion

70 countries, 560 delivery centers –providing skills, domain, language and disaster recovery; non Indian employees – 5-6% for large firms

Fixed price contracts, cloud based solutions, productizing serviceChanging model

Inorganic Growth

Global Footprint

Growth trends

Revenue

Industry continues to grow

Source: NASSCOM

Direct employment expected to grow by over 9% to reach ~2.8 million, with over 230,000 jobs being added in FY2012Employment

Aggregate industry revenue – USD 100 billion+(including hardware)

Note: E: EstimateSource: World Bank, NASSCOM

IT-BPO revenue aggregate

• India’s share in global sourcing - 58 per cent in 2011, up from 55 per cent in 2010

• IT services exhibiting fastest growth at 19 per cent, BPO growing by 13 per cent, ER&D by 15 per cent

• Maturing domestic market – key thrust area for the industry – growth faster than exports

• Domestic IT services growth at 17.8 per cent, driven by localized strategies by service providers

• Domestic BPO - 16.9 per cent driven by demand from new verticals and technology platforms

• Software products to grow by 13.3 per cent: New wave of start-ups driving growth

Industry adds ~2,30,000 jobs in FY2012

Direct Employment (’000) FY2012 Estimates

Indirect

Direct Total Emp

~10.2mn

~2.8mn

~11.7mn

~8.9mn

Note: E: EstimateSource: NASSCOM

7Apr 11, 2023

The year ahead….

Future outlook- Gradual Improvement

• Delayed decision making - impacting refresh cycles and projects

• Volume growth higher, not reflected in revenue

• Rupee depreciation impact – pricing pressure

• Increased offshore component• Investing in Cloud/platforms – doing

more for less

• Differentiated growth for diverse industry segments and companies

• Maturity and value addition focus for R&D, GICs

Challenging short- term scenario

• GDP growth may increase in the second half

• Technology spending to go up driven by- new tech, emerging markets, business models

• Increased adoption of global sourcing

• Future of technology services -combination of services, solutions and platforms

• 2007-12 turbulent phase, yet industry CAGR at 17 per cent;

• For 2020 vision – need 13 per cent CAGR from FY2013

Improved mid-term scenario

• Estimates for FY2013 factors current uncertainties • Will revisit mid-year once more data is available

FY2013 Outlook: Export revenues to grow by 11-14 per cent; Domestic to grow by 13-16 per centIT-BPO Export revenues* (USD billion)

FY2011 FY2012E FY2013P

Growth of 11-14%• FY2013 software and services growth

forecast 11-14 per cent (USD)• Revenue growth USD 8-10 billion• Differentiated growth – across service

lines and verticals• Hiring – mix of campus and just in

time; 100,000+ offers already made

59 68.776-78

E: Estimate, P: ProjectedSource: NASSCOM

786918

FY2011 FY2012E FY2013P

1030-1060

IT-BPO Domestic revenues*(INR billion) Growth of 13-16% •FY2013 software and services growth

forecast 13-16 per cent; •Revenue growth INR 110-140 billion •Consumer, Government, SMB to be key growth drivers

•Software Product Start-ups creating innovative solutions for India

•Technology enabled social and financial inclusion

* Excluding Hardware

10Apr 11, 2023

NILF 2012Celebrating the 20 years

From 100 million to 100 billion

NASSCOM India Leadership Forum 2012

• 20th edition

• 3 power packed days

• 120+ speakers

• 45+ sessions

• 1600+ delegates

• 25+ country representations

12

Structured Agenda – Four pillars

Source: NASSCOM

Global Uncertainties – Is Business Better than the Mood?

Sessions at NILF

Deciphering the New World (Dis) Order – How are businesses preparing for this.

Crisis of Confidence: Economic aftermath of a fractured Polity

Global IT Sourcing in 2012: Stagnant, shrinking or significant?

Euro Crisis: Aftermath & Resurrection

Economic Growth - Global GDP Growth estimate for 2012 - 2.5% (2.8% in 2011); Euro area in mild recession

Employment & Households - Unemployment high, but signs of recovery in US jobs, PMI and durables

Financial Conditions – Developed markets – fiscal consolidation, credit stringency. Emerging Markets – Tight money, declining capital flows, currency volatility

Corporates – Cash hordes, Buoyant earnings in US mainly driven by overseas revenues.

Risks - Downside risks elevated (credit crunch in Eurozone); Upside possibilities in US

Era of Hyper Specialization

Sessions at NILF

Source: IMF, NASSCOM

Changing Customer Demands and focus on Digital Transformation

Focus on Core; Partner for Specialization

Choose where to compete and then how to compete

Building a specialist talent pool

Era of Hyper specialisation – the changing landscape

People Beyond. Case for Alternate Business Models

Co-Innovating with the IT Provider

Hyperspecialisation and emergence of new leaders

BPO Next

Source: IMF, NASSCOM

Leadership in Uncertain Times

Sessions at NILF

Source: IMF, NASSCOM

Leveraging global talent and skills

Building a Leadership Pipeline across the organisation

Leading the Millennials: New Champions need to shed yesterday’s logic

The Future of Work: The emerging global skills challenge

Solving the Trust Problem

Taking Indian Leadership to the World: Crisis favors the cautious

Source: IMF, NASSCOM

Managing Change

The Growth Imperative

Emerging Opportunities

Sessions at NILF

Majority of Incremental Growth will be driven from emerging opportunities

Emerging Geographies and verticals – key growth opportunities

Indian domestic market – hotbed for innovation

Niche opportunities – key enabler

Tapping the US Healthcare Market

Cloud Impact on Global Sourcing

Ecosystem for India’s Dream Project - UID

Big data for bigger decisions & better business

Future of Technology Keynotes

Invisible Computing: Interacting with the Future Now!

Pranav Mistry, MIT

Entertainment & Technology: The twain shall meet!

Darcy Antonellis, Warner Bros

Make way for next billion networked machines-on-wheels

Venkatesh Prasad, Ford

Zero to Zetta

Padmashree Warrior, Cisco Systems

Creative Keynotes

Cross Generational Leadership: Growing Up with a LeaderAbhishek Bachhan, Filmstar

Is social media making the nation state irrelevant: The rise of Blogistan?Shekhar Kapoor, Film maker

The story of technology and innovation – on and off the pitchSir Richard Hadlee, Former Cricketer

19Apr 11, 2023

Experimenting with new formats

• Gurukul: Industry leaders in a mentoring session with SME’sTheme: The break-through moment Mentors:

o Rajendra S Pawar, Chairman and Co-founder, NIIT Groupo Ajai Chowdhry, Founder & Chairman, HCLo Nandan Nilekani, Entrepreneur & currently chairman, UIDAI

• Analysts corner: interactive session to discuss changes in the sourcing sectorRevolution Admist Evolution: The Top 10 Game Changers for IT and Sourcing ; Speaker: Helen Huntley, GartnerThe Story of Outsourcing Innovation, Stephanie Moore , Forrester

• Country sessions• Rethinking Japan – Towards a Formidable Future•Chinovation and Indovation: Competition or Co-opetition•Emerging Markets – engine for global growth• InnovationNext : Germany-India Partnership

20Apr 11, 2023

…and continuing with the successful ones

• Master Class workshops Building Leadership - Marshall Goldsmith, Executive Coach Go To Market on Web 2.0 - Andy Mulholland, Global CTO, Capgemini

• Idea Incubator – People Beyond: A case for Alternate business models

Roundtables and PanelsWomen in TechnologyCyber Security: Alarm Bells Ringing

• Track sessions to deliberate on domain specific issues

21Apr 11, 2023

Global Participation

Delegates from across 25 countries• Americas - US, Canada, Colombia, Brazil• Europe - Belgium, France, Germany, Netherlands,

Poland, Sweden, UK• APAC & Middle East - Australia, New Zealand, China,

Japan, Hong Kong, Malaysia, Mauritius, Philippines, Sri Lanka, Singapore, Taiwan

• Africa - South Africa, Kenya, Ghana

Executive Presence

22Apr 11, 2023

•P Chidambaram, Minister for Home Affairs•Kapil Sibal, Minister of Communications & IT, HRD•Jyotiraditya Madhavrao Scindia, Minister for State, Commerce & Industry•Prithviraj Chavan, Chief Minister of Maharashtra•Nandan Nilekani, Chairman, UID Authority•Kumar Mangalam Birla, Chairman, Aditya Birla Group•Rajiv Bajaj, Managing Director, Bajaj Auto•Chanda Kochar, CEO, ICICI•Shikha Sharma, MD & CEO, Axis Bank Limited•Marshall Goldsmith, Executive Coach & Author•Deepak Malhotra, Harvard Business School

23Apr 11, 2023

Structured Networking

24Apr 11, 2023

Awards and Recognition

Thank You

25Apr 11, 2023