The IT trend in Asia(India, Vietnam and

Singapore)

ByNara

Consultant to CICC SingaporeAOSS Program Coordinator

nara@asia-oss.net

Biography

• 1996 to date: Consultant with CICC, Singapore Office. In charge of Asia OSS Program and APEC Industrial Science & Technology database 　 development

• 1987 - 96: Developer and Program manager with Singapore National Computer Board

• 1985 - 87: Researcher with National University of Singapore

• 1977 - 84: Design & Development Engineer

MS from National University of Singapore and B.Tech from IIT, Madras

Workshop/Training Objectives

• To create To create a large number of OSS population in Asiaa large number of OSS population in Asia • Consolidate OSS Training Material developed as part Consolidate OSS Training Material developed as part

of Asia OSS training and workshop of Asia OSS training and workshop • Develop training material in new areas like Develop training material in new areas like

virtualization, OSS application and deployment virtualization, OSS application and deployment • Experience sharingExperience sharing• Establish networks with OSS community from IT Establish networks with OSS community from IT

industry in Asia (to increase industry and OSS industry in Asia (to increase industry and OSS community participation) community participation)

• Introduce Japanese IT developments to AsiaIntroduce Japanese IT developments to Asia

Asia OSS Training programs #1 Kuala Lumpur, Malaysia, March 2005 #2 Singapore, July 2005 #3 Sri Lanka, December 2005 #4 Thailand, January 2006#5 Chennai, India, May 2006#6 Mumbai, India, Aug 2006#7 Malaysia, Sept 2006#8 Yogyakarta, Indonesia, Feb 2007#9 Katmandu, Nepal, March 2007#10 Colombo, Sri Lanka, May 2007#11 Brunei, June 2007#12 Vietnam, July 2007#13 Bangkok, November 2007 #14 Philippines, November 2007#15 Chennai, India, Jan2008#16 Samerang, Indonesia, August 2008#17 Hanoi, Vietnam, September 2008#18 Kathmandu, Nepal, February 2009#19 Phnom Penh, Cambodia, February 2009

Asia OSS OSS Master Trainers Workshop

• Sixth Asia OSS Master Trainers Workshop in Singapore, 8 to 10 March, 2010 • Fifth AOSS Workshop in Kuala Lumpur, 3 to 5 December, 2008 • Fourth AOSS Workshop in Singapore, 8 to 10 October, 2008 • Third AOSS Workshop at Singapore from December 3rd to 7th, 2007 • Second AOSS Workshop at Kuala Lumpur from 5 to 9 February 2007 • First AOSS Workshop from September 11th to 15th, 2006

EvolutionEvolution

2005 2006 2007 2008

X

XX

XX

X

X

XX

X

X

XX

X

Training

W

WW

Workshop

Certification/ Franchising/ Licensing

W

XX

X

2008 200920082008

W

W

X

X

IndiaArea in sq km: 3,287,590Population in million: 1,200 (2009 est)GDP (PPP): $3.561 trillion (2009 est.)GDP - real growth rate: 6.5% (2009 est.)GDP - per capita (PPP): $3,100 (2009 est.)Labour force: 467 million (2009 est.)Exports: $165 billion (2009 est.)Imports: $253.9 billion (2009 est.)Exchange rate: 46.78 Indian rupees = 1 USD (2009)

*Indian middle class and rich account for 10 to 15%, about the population of Japan. Their living standards are comparable to Japanese middle class.

Source: CIA Fact Book & Indian govt.

India & Japan: Common Traits

• Two of the largest democracies in Asia• Friendly countries founded on a long history of

exchanges• Both are Free market economies• Similar Eastern culture• Excellent International Relations• Japanese companies expanding overseas can leverage

Indian resources

• Japanese solutions can have a large demand in India’s growing domestic market 　

Role of Oversea Indians

• Over 25 million Indians have settled oversea• In US alone 3 million Indians are residing• Wealth generated by Indian Silicon Valley entrepreneurs

is around 250 billion USD (Fortune magazine 2000)• Oversea Indians have started many IT firms such as

Cognizant in India.• Oversea remittance more than 30 billion USD or 3% of

GDP• Help Indian firms to get IT business• Transfer oversea technology to Indian companies• Support Training programs for Indian Professionals• Consume Indian made products/services

ICT Key data (million)

Millions

Telephones (2008) 383.9

Internet users (2008) 51.8

Broadband subscribers (2008) 5.3

PCs in use (2009 estimate) 100.0

Source: ITU& Govt working papers

IT Industry (FY2008)

Billion USD oku JPY

Total 73.4 66,291

Exports of Software & Services 50.4 45,519

Domestic Market 23.0 20,773

Source: Dataquest

IT Professionals in 2007-8

No. of Professionals

IT Services and Software Exports 865,000

BPO Exports 704,000

Domestic Market 427,000

Total 1,996,000

Source: NASSCOM

India Domestic Market

Source: Indian Ministry of IT

0

10,000

20,000

30,000

40,000

50,000

Oku JPY

2003-4 2004-5 2005-6 2006-7 2007-8 2008-9.

Year

Software Exports

Profile of IT firms• Top 5 Indian IT groups registered 41% growth in FY2007 and they

are expected to maintain this trend.• More than 500 firms (both Indian as well as MNC owned captives)

had acquired quality certifications• 85 companies certified at Software Engineering Institute (SEI),

Carnegie Mellon Capability Maturity Model (CMM) Level 5, higher than any other country.

• On Top 100 IT firms analysis:– TCS is no 1 with revenue of 5.6 billion USD and 126,150 IT

Professionals– WIPRO with revenue of 5.2 billion USD– Infosys with revenue of 4.4 billion USD and 104,850 IT

Professionals– HP India with revenue of 3.4 billion USD and 31,656 IT

Professionals– IBM India with revenue of 2.6 billion USD and 76,000 IT

Professionals

TCS Trivandrum Photos

TCS Profile

WIPRO: Operations

WIPRO: Profile

Infosys

Top 10 IT firms by revenue

Domestic IT Services by Key Vertical Markets

Government & Education

14%

Retail & Wholesale

1%Financial Services

31%

Manufacturing29%

Communications & Media

17%

Others8%

Source: Indian Ministry of IT

Source: DataQuest – Internal Reports

Export Destination for IT Products/Services

Latin America

4%

Rest of the World

7%

Asia Pacific

6%

Europe31%

North America

52%

Market Potential

• Japan is leading in IT industry (especially hardware related systems). PC and Broad band penetration is still to catch up in India. So, lot of potential for Japanese investment, goods and services, to enhance Indian IT infrastructures.

• Growth of domestic demand for hardware and IT services was 44% and 43% during FY2007 and the trend is expected to continue in future. [NASSCOM-IDC Study]

• As per McKinsey study, luxury market would be USD 30 billion (32,306 oku JPY) by 2015. Increasing Indian middle class population looking for high quality goods and services from Japan

• Win-win situation to combine Japanese hardware with Indian software

Major National Projects Coming up!

• Multi-Purpose National Identity Cards (MNIC) to be issued to 1 billion citizens after the next census in 2011.

• National e-Governance Plan (NeGP) covering 27 Mission Mode Projects and eight support components to be implemented at Central, State and Local Government levels, at an estimated cost of 10,650 oku JPY over five years.

• Establishment of 100,000 broadband internet enabled Common Service Centres in rural areas of the country [Project value 1,529 oku JPY]

• State Wide Area Networks across the country with a total outlay of 879 oku JPY over a period of five years.

• State Data Centres at an estimated cost of 453 oku JPY

Source: DQ and Unpublished survey

Average Salary of IT Professionals

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

Less than 2 yearsexperience

2 to 5 years experience 10 years and moreexperience

JP

YAll Professionals

Top 10%

Top 1%

Tier Two cities

• 48 Software Park cities• 5 are in Tier 1 Cities:

Bangalore, Chennai, Delhi, Hyderabad and Mumbai.

• Other Parks in Tier 2 cities: Ahmedabad, Allahabad, Jaipur, Kolkata, Ranchi, Nasik, Mysore, Thirupati, Visakhapatnam, Coimbatore, Trichy and Kochi.

Tier Two cities: Advantages

• Low operating cost for IT firms (30 to 40%)• Low house rent, around 20% of Tier One cities• Attrition rates in IT companies below 10%• Tier 2 cities are located near Universities, so

better knowledge pool and skill-set availability• Low data entry and transmission costs• Better social and living environment• Airports are being improved and some are

becoming International airports (ex: Kochi)

Industry Trends• Enterprises will consolidate IT infrastructure to reduce capital

expenditure and overheads as virtualisation across key infrastructure technology products and solutions like servers and storage, networking and desktops takes off.

• Enterprises, across a range of industries, will leverage on their existing IT infrastructure for greater competitive advantage by deploying innovative, high-value solutions.

• A number of firms will adopt cloud computing and launch green technologies or green initiatives to accelerate business recovery and growth.

• Establishment of green and intelligent cities/ special economic zones (SEZs) across the country.

• e-Governance and economic Stimulus Spending will continue to invigorate government/ public sector IT spending to new levels in 2010. Large scale e-governance projects to witness increased adoption of Document Management Services (DMS) and digital imaging technologies, notably scanners.

India as R&D centre

• Microsoft Research Labs• SAP Labs• IBM’s Software Labs• HP labs• Philips Innovation Campus• Ericsson-WIPRO• Ericsson-TCS• GE-Satyam Computer Services Ltd• HP – IISc Bangalore• Lucent - Finolex

Perceived Barriers are just Myths

• Language (Indians are multilingual)• Food• Immigration Formalities• Distance (illusion)• Indians are Westward looking and western

trained (So Indians are more global and outward looking)

• Work culture• Project management (Many Foreign firms

employ local Project managers and CEOs)• Systematic thinking vs Lateral thinking

Word of caution

• Highly diversified country: 325 languages (1652 dialects)

• Urgent need of establishing transparency and accountability within the governmental departments

• Largest English speaking nation in the world (only 80% can speak/understand English)

• Land of contrasts: Richest and Poorest • Wide variation in cost of living and living

conditions

Land of contrasts

Vietnam

GDP (PPP): $258.2 billion (2009 est.)GDP - real growth rate: 5.3% (2009 est.)GDP - per capita (PPP): $2,900 (2009 est.)Labour force: 43.87 million (30 April 2009 est.)Exports: $56.55 billion (2009 est.) Imports: $68.8 billion (2009 est.)Exchange rates (2009) : 17,741dong (VND) = 1USD

Source: CIA Fact Book

ICT Key data

Millions

Population (2008) 87.10

Internet users (2008) 20.83

Broadband subscribers (2008) 2.05

Total telephone subscribers (2008) 99.59

Source: ITU

IT Industry

• 2000 million USD• 80,000 IT graduates (2007 estimate) + 9,000

added per year• Japanese companies and American companies

including PriceWaterhouseCoopers, IBM, Daiwa, Fuji, and Cisco have all invested in training workers for their Vietnamese operations.

Source: Vietnam Internet Network Information Center

Vietnam

Source: Vietnam Internet Network Information Center

Vietnam

Source: Vietnam Internet Network Information Center

Vietnam

Source: Vietnam Internet Network Information Center

Vietnam

Source: Vietnam Internet Network Information Center

IT Geography

• Hanoi and Ho-Chi-Minh City remain the largest IT concentrations within the country.

• Software parks are also found elsewhere throughout the country.

• Ho-Chi-Minh City has within it two technology parks: Saigon Software Park and Quang Trung Software Park.

Vietnam: Information and Communication Technology (ICT)

Development Project

• Start date September 2005• Infrastructure services for private sector

development• Small and medium enterprise support• Regulation and competition policy• Administrative and civil service reform• Other accountability/anti-corruption

IT Policies

• 1995: Information Technology master plan (IT2000) lays the foundation for a dynamic information technology industry by the year 2000

• 1997: First e-commerce law is passed as Vietnam finally gets access to the Internet

• 2000: State plan for development of IT software industry - 1.2 Billion dollars U.S. to build the infrastructure, including the training of 25,000 software developers

IT Diffusion

• Internet cafes are exceptional for expanding Internet/Computing diffusion to the rural parts of Vietnam.

Singapore stands out

• Fourth on the Networked-Readiness Index (NRI) of the Global Information Technology Report 2008-2009, which was produced by the World Economic Forum (WEF)

Singapore

GDP (purchasing power parity): $235.7 billion (2009 est.)GDP - real growth rate: -2.1% (2009 est.)GDP - per capita (PPP): $50,300 (2009 est.)Labor force: 43.03 million (2009 est.)Exports: $268.9 billion (2009 est.) Imports: $245 billion (2009 est.)Exchange rates: 1 USD = 1.45 SGD (2009),

Source: CIA Fact Book

ICT Key data

Millions

Population (2008) 4.62

Internet users (2008) 3.37

Broadband subscribers (2008) 1.00

Total telephone subscribers (2008) 8.23

Source: ITU

Infocomm Industry

2007 2008

Revenue (S$billion) 51.7 58.1

Annual Growth (%) 13.8 12.4

Domestic Revenue (%) 35 39

Export Revenue (%) 65 61

Source: IDA

Infocomm Manpower & Diffusion

2007 2008

Infocomm Manpower 130,400 139,000

Annual Growth (%) 8.9 6.6

Households with Access to Computer (%)

79 80

Business Broadband Adoption (%) 52 65

Source: IDA

IT Policies

• National Computerization Plan, 1980 implemented by National Computer Board

• National IT Plan 1986• IT2000 (1992) Vision for Intelligent Island• Connected Singapore Master Plan (launched

March, 2003)• Infocomm 21 - New vision of twenty-first century• Intelligent Nation 2015 (iN2015) announced in

2006.

iN2015

• Achieve various economic and social benefits through more sophisticated and innovative use of infocomm technologies.

• A three-fold increase in infocomm export revenue to S$60 billion

• Create 80,000 new jobs• 90% home broadband usage• Next-generation national infocomm infrastructure

(NGNII)

ICT Skills Development• $55 million ICT skills initiative unveiled by the minister in February.• S$20 million to boost the country's ICT skills [July 2009]• iLEAD (infocomm leadership and development program) offering

local or overseas attachments or specialized training to ensure the availability of expertise in new growth areas. 1,000 graduates would be involved in the two programs.

• National Infocomm Competency Framework (NICF) - roadmap articulates the competency requirements of key infocomm jobs

• New iRural initiative to promote Singapore-based ICT solutions for rural communities in emerging markets ・ first consortium formed under this initiative clinches two projects in India and Peru worth S$10 million, and targets S$300 million in sales.

• Top five strategic technologies in 2010 for the Singapore ICT industry are: cloud computing, mobile applications, software-as-a-service, virtualisation and green IT.

• The government continued to roll out its ambitious cross-governmental Standard Operating Environment (SOE) initiative.

Source: IDA and Singapore Information Technology Report

ICT Score card• 66% of the population are conversant in the use of PCs.• 61% of households have at least one computer and about 50

percent have Internet access.• 48% of the population are dial-up Internet users.• All public schools have broadband access.• 7,000 public broadband access points.• The national communications infrastructure has 99 percent

island-wide broadband coverage available for access, through ADSL, cable, fibre optic and wireless connections.

• 91.6% of Internet users aged 15 years and above use it for email and chat, 74.6 percent for information retrieval, 40.3 percent for web applications and 39.8 percent for news or webcast.

• Telephones are found in 97% of households and mobile phones are used by 74.7 percent of the population.

Revenue Profile

Computer Access

Broadband Access

Top 5 IT trends for 2009

• Virtualization• Cloud Computing• Consolidation 　 and Centralization• Consumerization of IT• BYOC (Bring Your Own Computer)

- Green Data Centres are of increasing importance to companies as energy prices continue to increase, storage and processing demands growing, at times in unpredictable ways.

- Traditional Microsoft applications are losing ground to more open-source, mobile and wireless solutions as strategic technologies.

Email　for　feedback　&　more　information:　nara@asia-oss.net