ROADMAP. DEFINED. OPINIONS. VOICED. BUSINESS. TRANSFORMED. FORESIGHT. ALIGNED. PERFORMANCE. ENABLED. Annual Report

Transcription

1 ROADMAP. DEFINED. OPINIONS. VOICED. BUSINESS. TRANSFORMED. FORESIGHT. ALIGNED. PERFORMANCE. ENABLED. Annual Report

2 02 NASSCOM annual report NASSCOM, a not-for-profit organisation with an objective to build a growth led and sustainable technology and business services sector in the country. WHAT WE DO Set STRATEGIC DIRECTION for industry BEST PRACTICES, sharing and collaboration International PARTNERSHIPS and policy WORKFORCE development Incubate and BUILD NEW SECTORS BUSINESS. TRANSFORMED. twitter.com/nasscom in.linkedin.com/company/nasscom

3 NASSCOM annual report Content Message from the chairman p.04 p.05 Message from the president Executive Council p years of togetherness p.15 association overview p.10 Annual Review: 2014 Government Policy issues global trade development research p.18 p.22 p.24 events p.27 skills development p.30 diversity & inclusion initiative p.33 sectoral council p.35 Regional activities p.56 p.79 Member organisations member organisations Annual Report

4 04 NASSCOM annual report Message from the chairman Message from the chairman The last 11 months have been significant, with several new developments defining India and shaping NASSCOM s agenda. R. Chandrasekaran Chairman, NASSCOM Dear friends, It is my pleasure to Chair NASSCOM in its 25th year and be a part of the association s historic journey. What began as a small office in New Delhi, is now a phenomenal institution that has been nurtured by its Founders, Executive Council members and past Chairmen. The year , therefore, was dedicated to celebrating 25 years of NASSCOM. We did this by rolling out events across India where we thanked all our stakeholders and partners who have contributed to the success of NASSCOM and the IT- BPM industry. The last 11 months have been significant, with several new developments defining India and shaping NASSCOM s agenda. As the new government took charge and unveiled its plans for investment and growth, NASSCOM and the industry also aligned themselves with these national goals. The results have been positive. The industry performed well during the year and is expected to grow by 13 per cent in constant currency. Recognising the need for change in the dynamic industry landscape, NASSCOM initiated the repositioning of the IT-BPM industry from a cost arbitrage player to a strategic transformational partner. NASSCOM worked closely with leading global consulting firms to showcase how the sector was playing the role of a game changer for customers and helping them transform their businesses. NASSCOM also strengthened the Sectoral Councils it had set up in 2013, laying out the structure for governance and the targets to be achieved in The focus during the year was on expanding membership by reaching out to more and more IT-BPM organisations, especially start-ups and emerging organisations across Tier 1, 2 and 3 cities and townships of the country. In the area of global trade, NASSCOM continued to engage with international governments, attempting to resolve long-standing issues related to visas, mobility of skilled manpower and other industry concerns. NASSCOM s thrust on Japan and China during the year, will help the IT-BPM industry gain traction in these hitherto elusive markets. On the skills development front too, NASSCOM kept the momentum going, launching occupational standards and focusing on QP adoption through its IT-ITeS Sector Skills Council. The chamber s flagship initiative for smaller firms the 10,000 startups programme shifted gears and entered its next phase with the setting up of warehouses in Bengaluru and Kolkata along with new programs for mentorship and industry connect. Overall, NASSCOM focused on creating an enabling, easy-to-dobusiness in environment for the IT- BPM industry and on addressing the pain points of member and nonmember organisations. Going forward, NASSCOM will continue to look at the horizon, understand the digital transformation sweeping the world and outline the role that the Indian IT-BPM industry can play in this emerging realm. NASSCOM is already working with McKinsey to provide a fresh perspective on its 2020 vision. This will be a detailed research that we expect to release during We would like to thank all our member organisations for continuing to work with NASSCOM and supporting the organisation in all its endeavors.

5 NASSCOM annual report Message from the PRESIDENT Message from the PRESIDENT To enhance awareness about IT and its criticality to key industry verticals, NASSCOM forged important partnerships with the healthcare sector and the government. R. Chandrashekhar President, NASSCOM has been an exciting time to be a part of NASSCOM. It has been a period of great learning, new initiatives and one where we have scaled existing programmes. NASSCOM sought the feedback of its members on its performance through a detailed and thorough Member Satisfaction Survey. We thank our member organisations for rating us as the best industry association and providing us with valuable feedback and suggestions that will be incorporated into our planning for The year was significant from the point of view of the Indian IT domestic market as well, which remained on NASSCOM s radar. To achieve our goals for this market and enhance awareness about IT and its criticality to key industry verticals, NASSCOM forged important partnerships with Nathealth for the healthcare segment and the government on the IT architecture for its Smart Cities, GSTN and other projects. In all these instances, NASSCOM orchestrated the importance of technology as a problem solver and driver of productivity in organisations. During the year, NASSCOM also held discussions with the government on the need to address current constraints in egovernance procurement. In an effort to support the Digital India initiative launched by the government in 2014, NASSCOM began work with the policy makers on a framework that will serve as a reference point for the initiative. NASSCOM Foundation launched its joint work with the industry on the National Digital Literacy Mission. In the last year, NASSCOM continued to introduce skills development programmes that were aimed at building a pipeline of middle management in the IT-BPM sector. It hosted training for middle managers, marketing professionals, GIC leaders and techies in an attempt to achieve this goal. As part of its Diversity and Inclusion focus, NASSCOM continued to promote best practices within this domain, through awareness programmes on Prevention of Sexual Harassment, Women in Leadership, Girls in Technology, and its Diversity Awards. The year saw NASSCOM engage with the central and state governments to solve problems related to paucity of public transportation, particularly in silicon hubs such as Gurgaon. NASSCOM increased its participation in discussions on global policy issues, helping shape government opinion through the Public Policy group of WITSA, where it was elected as Chair. Japan was the region of focus for NASSCOM in The association led a delegation to the island nation to meet up with key stakeholders. In the months ahead, NASSCOM will work with the Japan GIC Council and the government to deepen this engagement. It was additionally a year of innovation for the IT-BPM industry and NASSCOM continued to spearhead this effort through the programmes launched by its Product Council. Through the year, Indian start-ups displayed their innovative product through special platforms, conclaves and showcases hosted by NASSCOM. During , NASSCOM helped members remain abreast of technological and business trends by publishing more than 30 in-depth research reports on these subjects. We are glad to share that NASSCOM s Noida campus is taking shape and will become operational next year. NASSCOM will continue to expand its team and build its base of domain specialists over the next 12 months. I hope you will remain an active participant in the numerous initiatives NASSCOM is planning during 2015 and continue to lend support to our strategic and ambitious plans.

6 06 NASSCOM annual report EXECUTIVE COUNCIL office bearers Chairman, NASSCOM R. Chandrasekaran Vice Chairman, Cognizant Technology Solutions India Pvt.. Vice Chairman, NASSCOM B V R Mohan Reddy Founder, Chairman and Managing Director, CYIENT Limited President, NASSCOM R. Chandrashekhar NASSCOM executive council members Avinash Vashistha Chairman & Geography Managing Director (India), Accenture Shakti Sagar Managing Director, ADP India. Arun Seth Chairman, Alcatel-Lucent India. Aruna Jayanthi CEO, Capgemini India Pvt.. Dinesh Malkani President, CISCO India and SAARC Ashutosh Vaidya VP & GM Application and BPO, Dell International Services India Pvt.. Ravi Gururaj Chairman & Co-Founder, Frictionless Ventures Pvt.. Rajan Anandan Managing Director, Google India Pvt..

7 NASSCOM annual report EXECUTIVE COUNCIL Executive Council plays a key role in determining the strategic priorities for NASSCOM, find collaborative solutions to address industry challenges and build initiatives that will drive industry growth. Neelam Dhawan Managing Director, Hewlett-Packard India Pvt.. Suhas Bhide General Manager Global Delivery, IBM India Pvt.. V.K. Mathews Founder & Executive Chairman, IBS Group UB Pravin Rao Chief Operating Officer, Infosys Technologies. Dr. Mukesh Aghi Chief Executive, Larsen & Toubro Infotech. Bhaskar Pramanik Chairman, Microsoft Corporation (I) Pvt.. Arvind Thakur CEO & Joint Managing Director, NIIT Technologies. Raman Roy Managing Director, Quatrro Global Services Pvt. Vijay RatnaparkhE President & MD, Robert Bosch Engineering & Business Solutions. C P Gurnani Managing Director & CEO, Tech Mahindra Rishad Premji Chief Strategy Officer, Wipro Technologies (Wipro.) Keshav Murugesh Group CEO, WNS Global Services

8 08 NASSCOM annual report EXECUTIVE COUNCIL Immediate Past Chairmen Krishnakumar Natarajan CEO & Managing Director, MindTree. Natarajan Chandrasekaran CEO & Managing Director, Tata Consultancy Services. Past Chairmen Rajendra Singh Pawar Chairman & Co-founder Director, NIIT Group Harsh Manglik Former Chairman, Accenture (India) Pramod Bhasin Founder, Genpact India Pvt.. Som Mittal Former Chairman & President, NASSCOM Dr. Ganesh Natarajan Vice Chairman and CEO, Zensar Technologies Lakshmi Narayanan Vice Chairman, Cognizant Technology Solutions S Ramadorai Board Member, Tata Consultancy Services. Jerry Rao Founder & Former Chairman, MphasiS.

9 NASSCOM annual report EXECUTIVE COUNCIL The Past Chairmen Council functions as an advisory group to the Executive Council and focuses on the long-term vision and priorities for NASSCOM. Harish Mehta Chairman, Onward Technologies. Kiran Karnik Former President, NASSCOM Phiroz Vandrevala Board Member, Tata Consultancy Services. Atul K. Nishar Founder & Chairman, Hexaware Technologies. Raj Jain Chairman & Managing Director, RS Software (India). Saurabh Srivastava Chairman, Steria (India). K V Ramani Chairman & MD, Digital Holdings Pvt.. Ashank Desai Founder & Board Member, Mastek. F C Kohli Former Deputy Chairman, Tata Consultancy Services. N. R. Narayana Murthy Founder, Infosys Technology.

10 POTENTIAL. TAPPED. BUSINESS. TRANSFORMED. GROWTH. REALISED.

11 NASSCOM annual report ASSOCIATION OVERVIEW NASSCOM s vision is to help the IT and ITenabled products and services industries in India to be trustworthy, respected, innovative, and society-friendly. ASSOCIATION OVERVIEW Transform Business, Transform India is the overall objective of NASSCOM and its member organisations. 25 years since establishment 1,800+ members 95% industry representation Mission Expand the IT-BPM footprint in India Build strategic partnerships The National Association of Software and Service Companies (NASSCOM) is the industry association for the IT- BPM sector in India. It was set up in 1988 and registered under the Indian Societies Act, A not-for-profit organisation funded by the industry, its objective is to build a growth-led, sustainable, technology and business services segment in the country. NASSCOM s membership has grown over the years and have enabled the association to spearhead initiatives and programmes to strengthen the sector in the country and globally. NASSCOM has also contributed to the development of two organisations the Data Security Council of India (DSCI), which is focused on security and the NASSCOM Foundation, which helps drive Corporate Social Responsibility (CSR) initiatives. NASSCOM is headquartered in New Delhi, India, and has offices in seven other cities Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, Pune and Thiruvananthapuram. Establish India as a hub for innovation and professional services Grow skill pool Harness benefits of ICT Drive inclusive and balanced growth

12 12 NASSCOM annual report ASSOCIATION OVERVIEW Members NASSCOM members are organisations in India engaged in the business of IT Services, BPM, Software Products, Engineering Design, Internet, ecommerce and Gaming. Organisations that provide services to the IT-BPM industry are institutional members of NASSCOM. India headquartered organisations, multinational service providers with an India presence, and Global In-house Centres (GICs) of foreign corporations are equally represented in the membership of NASSCOM. 64 Profile of Member Organisations Percentage of member organisations in each segment Citywise spread of Membership (percentage) IT Services BPM Product Engineering Other and R&D Services Bengaluru Chennai Hyderabad Kolkata Mumbai Pune NCR Trivandrum/Kochi Others 4 10 Member Distribution by Size (percentage) 72 Membership Strength (numbers) Large Medium Small Institutional Large: Organisations with gross revenue of over ` 200 Crores Medium: Organisations with gross revenues between ` Crores Small: Organisations with gross revenues of less than ` 50 Crores Institutional: Organisations that provide support services to the IT-BPM sector Dec-08 Dec-13 Jan-15

13 NASSCOM annual report ASSOCIATION OVERVIEW NASSCOM is engaging with a broad spectrum of academia, industry and governments to devise policies, curriculum and assessments that enhance employability and access to a skilled talent pool. Members spaning accross IT services I BPM I Software products I Engineering design I Internet I ecommerce I Gaming Activities NASSCOM undertakes several initiatives and works with multiple stakeholders within the global IT- BPM eco-system: Policy Advocacy NASSCOM collaborates with the Government of India at the centre and states to build a policy framework that is conducive to the growth of the IT-BPM industry in the country. Membership NASSCOM works closely with its member organisations, encouraging them to share best practices and experiences, and mentor smaller organisations that are still on the learning curve. Recognising that the expectations of its member organisations are growing, NASSCOM has built a strong regional and local connect with them. Industry Development NASSCOM undertakes several development initiatives to spur the growth of the sector.»» Research NASSCOM conducts industry research, surveys and studies on emerging IT-BPM trends and sector performance to provide factual perspectives on the industry and the growth opportunities ahead.»» Events NASSCOM organises national and international events to showcase new opportunities, collaborate, build thought leadership and facilitate networking.»» Sectoral Councils The councils launched by NASSCOM cater to the needs of diverse segments and build specific programmes that can help these sectors to realise their potential. The councils at NASSCOM include: IT Services The focus of the Council is to develop the Indian IT Services industry as a leader in creating value for customers worldwide. Business Process Management (BPM) The Council focuses on finding solutions for the policy, people and process challenges it faces. It also identifies new growth opportunities while showcasing the value-addition that the sector offers to the customers. Global In-house Centres (GICs) The Council focuses on the high-growth BPM industry, finding solutions for the policy, people and process challenges it faces. It also identifies new growth opportunities while showcasing the value-add that the sector offers to customers. Engineering Services The Council works with the industry to devise strategies that will drive the Engineering Research and Design (ER&D) sector, enabling it to emerge as a hub of global innovation. Products The Product Council aims to establish the Indian software product eco-system as a world-class source of high-value, innovative and next generation products. Its goal is to spotlight products which are enjoying robust sales traction and establishing category/ip leadership in both the domestic and international markets. Domestic IT Technology and business services are being increasingly adopted across governments, corporates and small and medium enterprises (SMEs). NASSCOM s focus is to engage with these stakeholders and launch initiatives that promote public-private partnerships and standards and recognise excellence in IT adoption. Global Trade Development Expanding partnerships in existing markets and building opportunities in new markets is a key priority for NASSCOM. This is being enabled through an effective engagement with international stakeholders, including governments, customers and associations on issues related to international policy, business partnerships, MoUs and business delegations.

14 14 NASSCOM annual report ASSOCIATION OVERVIEW The 10,000 Start-ups Programme The 10,000 Start-ups Programme is aimed at incubating, funding and supporting 10,000 technology startups in India over the next ten years. The programme s vision is to foster entrepreneurship, build entrepreneurial capabilities at scale and strengthen early stage support for tech start-ups by bringing together key stakeholders of the eco-system including startup incubators/accelerators, angel investors, venture capitalists, startup support groups, mentors and technology corporations. Workforce Development Enhancing employability and access to a skilled talent pool is a critical enabler for India s competitiveness. NASSCOM is engaging with a broad spectrum of academia, industry and governments to devise policies, curriculum and assessments that achieve this objective. In order to enhance the employability of the talent pool in the country the NASSCOM IT-ITeS Sector Skills Council has launched the following programmes: NASSCOM Assessment of Competence (NAC): An assessment and certification framework that ensures a steady supply of quality professionals to meet the present and future requirements of the IT-BPM industry Global Business Foundation Skills (GBFS): Programme to help increase the industry readiness of students who intend to have a career with the BPM industry Foundation Skills in Information Technology (FSIT): Programme to help increase the industry readiness of students who intend to have a career with the IT industry NOS (National Occupational Standards) across verticals in the IT-BPM industry: Performance standards that individuals must achieve when carrying out functions in the workplace, together with specifications of the underpinning knowledge and understanding Enabling Environment NASSCOM has partnered with the industry to create specific programmes and awards that encourage innovation, security best practices and development of Tier II/III cities. Sustainability In order to promote balanced growth across India and build a sustainable IT-BPM industry, NASSCOM engages with its members on critical issues related to Corporate Social Responsibility (CSR), enhancing diversity, inclusive growth and Green IT. Award Programmes NASSCOM recognises and honours leaders and organisations for excellence and their outstanding contribution in building the IT-BPM industry. The National Skills Registry (NSR) NASSCOM in partnership with the industry, has developed the National Skills Registry (NSR), a unique national database of registered and verified knowledge workers in the sector. Launched in 2007, this database is managed and run by NSDL Database Management. (NDML), a fully-owned subsidiary of National Securities Depository. (NSDL). NSR aims to build a robust and credible information repository on the knowledge professionals in the IT-BPM sector. The benefits of NSR flow across to clients, service providers and employees. NSR has enhanced the value proposition of the Indian IT-BPM industry and raised the bar on security standards in pursuit of excellence and client satisfaction. Affiliated Organisations NASSCOM has contributed to the development of three organisations that focus on data security, Corporate Social Responsibility (CSR) and egovernance. The Data Security Council of India (DSCI) A not-for-profit organisation established in 2008 with the key objective of building a credible and committed body to uphold data privacy and security standards. The mission of DSCI is to build the trustworthiness of Indian organisations as global sourcing service providers and to send out a message to clients worldwide that India is a secure destination for outsourcing. Its aim is also to reiterate that in India, privacy and protection of customer data is enshrined in the global best practices followed by the industry. NASSCOM Foundation (NF) Was set up as a trust in It was instituted with the aim of using information and communication technologies for development (ICT for D), and to catalyse Corporate Social Responsibility (CSR) initiatives within the Indian IT-BPM industry. By implementing a diverse range of programmes, NF is taking information and communication tools to underserved communities across the country. It is also channelising the immense potential of the IT-BPM industry towards socio-economic development of the nation. The National Institute for Smart Governance (NISG) Incorporated in 2002, the National Institute for Smart Governance (NISG) is a Section 25 organisation set up in public-private partnership with NASSCOM, the Government of India and the Government of Andhra Pradesh. The key objective of the organisation is to catalyse the roll out of egovernance projects across the country.

15 NASSCOM annual report ASSOCIATION OVERVIEW Thanks to NASSCOM, India is now home to thought leaders, role models and inspirational stories when it comes to IT products and services. Happy 25th anniversary. Vijay Anand, Intuit India Dev Center In India, with India, for India and for the world. Masayoshi Tamura, Hitachi India NASSCOM pioneered the Indian IT industry and helped create a global colossus with USD 125bn revenue, USD 100bn exports, 3.5mn employed in a short period of 25 years! Globally one of the most successful industrial body! Mohandas Pai, Manipal global Congratulations to NASSCOM on its silver jubilee celebrations and the Indian IT industry would like to thank NASSCOM for its leadership and enablement as it works hard to help India be a major super power in the years to come. Pradeep Kar, Microland Limited

16 16 NASSCOM annual report ASSOCIATION OVERVIEW NASSCOM for being the Face of Indian IT Industry across the globe Inspiring Indians to be recognised globally as people with strong grey matter! Karthikeyan Natarajan, TechMahindra My sincere wish to build a strong relationship between Japan and India in IT industry and hope for the bright future! Yukio Takeyari, Sony The Soul of the Indian IT Industry. Sanjay Venkataraman, First Source Has radically transformed the way India is perceived across the globe. Srinivas Prasad, Philips NASSCOM has played a very significant role in India s global leadership position in IT and ITES. Rabindra Srikantan, ASM Technologies.

17 NASSCOM annual report ASSOCIATION OVERVIEW Kudos to NASSCOM for being a trailblazer and a catalyst to help establish the Indian IT Industry globally. Anurag Mehrotra, CMS Indian IT s SILVER bullet NASSCOM. Rama K, Tarang Tech NASSCOM helped all of us to come together as a team, and gave us the power and identity with which the whole world recognises Indian IT. Vijay Ratnaparkhe, Robert Bosch NASSCOM has played a very significant role in India s global leadership position in IT and ITES. Rabindra Srikantan, ASM Technologies. NASSCOM is an Indispensable partner that enables ANZ to retain the high velocity edge through support in Networking and Benchmarking. Sridevi Pankajam, ANZ

18 INNOVATION. ENCOURAGED. BUSINESS. TRANSFORMED. SKILLS. ENHANCED.

19 NASSCOM annual report NASSCOM is deeply involved in the Digital India and skilling India consultations, making suggestions and offering a platform for the Industry. Recognition of IT sector Promote Innovation Support IT sector ANNUAL REVIEW: 2014 We are working with both the union and state governments of India to create a policy and regulatory climate conducive to the growth of the IT-BPM industry. Government policy issues NASSCOM continues to be in forefront, highlighting concerns and working with both, the industry and the government towards a better environment. Industry inputs and support in this process has been critical. We are working with both the union and state governments of India to create a policy and regulatory climate conducive to the growth of the IT-BPM industry in the country. It is indeed heartening that the suggestions related to leveraging ICT for growth, easing regulatory and compliance burden for businesses in general and for start-ups and small organisations in particular, are today the centre piece of various government initiatives. The government s focus on streamlining business environment, NASSCOM shared a comprehensive 5-pronged agenda when the new government took over: Enable innovation and support entrepreneurship Foster an ecosystem and initiatives that accelerate growth of product, small and start-up firms Promote growth and global competitiveness of IT industry Build new markets and expand core markets; skill development, employment creation Improve business environment in India for investment and operations Maximally leverage ICT and innovation to improve governance and achieve national development goals Create impact and develop domestic market Futuristic policies that catalyse emergence of the digital economy

20 20 NASSCOM annual report and a commitment to leverage technology, in particular ICT, for realising development goals, offer significant opportunities for the Industry. NASSCOM is deeply involved in the Digital India and skilling India consultations, making suggestions and offering a platform for the Industry to showcase the transformative impact, global capabilities as well as concerns related to business conditions to the Government of India. Several announcements and clarifications related to existing policies have been made in the last one year, taking into account the issues raised and associated recommendations made by NASSCOM. The highlights of our key engagements with the government and their outcome are as follows: I. Budget Recommendations The pre-budget discussions and recommendations made to the government have been targeted to enable the IT industry to map a sustained growth plan, and suggest how best global competencies of the ICT sector can be leveraged for growth and development goals. The success of the flagship initiatives of the government Digital India and Make in India offers tremendous opportunities for the innovation driven technology industry, and the success also hinges on the sustainability and continued growth of the technology driven sector. Hence, factors that can potentially restrict growth and innovation and necessary aspects to promote a growth oriented business environment for existing players, innovation driven start-ups and SMEs were shared. Further suggestions were made to encourage adoption and migration to digital economy, thereby helping government leverage the inherent transparency and traceability of online transactions. Some of the salient recommendations by NASSCOM are: Addressing regulatory and tax challenges for technology startups and SMEs, like:»» Ambiguous software product taxation including dual levies and implementation issues adding to the burden»» Difficulties in access to funding for low asset based firms»» Investor s difficulties related to regulations and taxations discouraging investors Incentives for technology startups and SMEs:»» Extend provisions on deduction for employment and skill development (Section 80JJAA), R&D credits»» Suggestions for new provisions like offsetting manpower training cost, deferred tax credits for start-ups Interest rates on penalty for service tax, for amount under litigation, should be rationalised Towards Make in India:»» In recognition of the transformative impact of IT, extend incentives to the Indian industry for adoption and implementation of IT tools for efficiency enhancement, ensuring sustainability and global competitiveness for the success of the Make in India programme.»» Revoke exclusion of expenses towards software tools for R&D from weighted deduction under the DSIR guidelines to encourage adoption of advanced R&D Policy revisions/clarifications for expansion of the industry:»» Exports Foreign Tax Credit policy, drawback scheme for services and carry backward of business losses»» Domestic business Align royalty definition with international practices, clarify POPS rules, revisit amendments made in CENVAT rules, restore lower TDS rates on fees for technical services and clarify transfer pricing related issues some of which were addressed in the last budget but details are awaited»» Prevailing conditions and prerequisites for participating in government programmes are onerous. Further, SMEs face stiff barriers in the eligibility criteria. There is a need to revisit and refine the procurement process for government projects Several long pending issues that require clarifications to minimise disputes were also raised and it was agreed that the industry will leverage the recently constituted High Level Committee for the purpose of a resolution II. Developments related to Transfer Pricing The Union Budget in May 2014 announced significant changes in the Transfer Pricing regulations, incorporating suggestions to ensure certainty and predictability like rollback of APA and introduction of globally aligned statistical methods like Interquartile range method to compute Arms length pricing. NASSCOM has been working on transfer pricing issues for some time, and we welcome the announcement and await the detailed guidelines. III. SEZs operations and revival plans The Union Budget in May 2014, in response to several representations both at the Centre and State, clarified administrative procedure for SEZ refunds, allowing for upfront exemptions. NASSCOM has also submitted feedback on operational issues and need to address them at the earliest, and also made suggestions for changes in the SEZ Act for incorporation in the SEZ revival plans. One of the key suggestions made was to allow

21 NASSCOM annual report NASSCOM represented the Indian IT-BPM industry in the Indo-European conference on ICT-related patents, as a part of the joint work program between DeitY and EPO. services to access domestic market, at par with access offered to sale of goods to DTA. IV. Intellectual Property Rights NASSCOM is working with DeitY, Intellectual Property Owners (IPO), Ministry of Human Resource Development (MHRD) and Department of Industrial Policy and Promotion (DIPP) on IPR related issues relevant to the sector. We will work with DeitY to implement and help in outreach of the patent facilitation programme (E-SIP-II). NASSCOM represented the Indian IT- BPM industry in the Indo-European conference on ICT-related patents, held at the European Patent Office (EPO) headquarters in Munich on 7 November 2014, as a part of the joint work programme between DeitY and EPO. NASSCOM is a member of the Copyright Enforcement Advisory Committee set up by MHRD, that examines issues related to enforcement and how can it be improved across the country in consultation with the enforcement agencies. V. Digital Economy and Policy Implications To encourage growth of ecommerce, taxation on digital transactions should be in the least, at par with the physical world, if not reduced to facilitate adoption and migration to technology enabled platforms. a. Online payments Continuing our efforts in streamlining the online payment environment to ensure that recurring payments for subscription to internet enabled based products and services are possible in a manner that is acceptable and the norm around the world, we have made representations to the RBI on the issue. The RBI has acknowledged the issue and we await a simplified single authentication, which will allow easy recurring payments with adequate safeguards. b. Regulations for Cloud Communication Service Providers and issues related to ecommerce As cloud enabled services grow in India, NASSCOM has been interacting with the government on how regulations should be adapted, modified or clarified to prevent operational hassles. In continuation of this, a guidance paper was made available to Cloud Communication Service Providers, highlighting essential contract terms to ensure compliance with Telecom Regulatory Authority of India (TRAI) regulations. The contents were prepared in discussion with the regulators taking care of their concerns and also drawing from best practices from other sectors. The Industry has been referring to it, as they draft client contracts. VI. Companies Act NASSCOM has been sharing industry feedback related to the various provisions of the Companies Act that add to the compliance burden, and need simplifications. NASSCOM Foundation is taking lead in the area of Corporate Social Responsibility (CSR) and associated guidelines and rules. Along with industry, we are working closely with the Ministry of Corporate Affairs (MCA) in suggesting changes and processes for a smooth adoption of the CSR mandate in the IT sector. VII. Start-up and Software Product Policy Initiative Specific issues specific to technology start-ups have been taken up across ministries for resolution. This includes working with Ministry of Finance, DeitY, Ministry of Micro, Small & Medium Enterprises (MSME), MCA, Ministry of Commerce etc. The categories under which recommendations are being made encompass taxation, regulatory compliance, investor issues and proposal for a comprehensive framework for incentives and support. State IT Policies NASSCOM has been actively engaged in developing and refining the IT policy of several states. We have been engaged with the state governments of Karnataka, Rajasthan, Maharashtra, Chhattisgarh, Haryana, Tamil Nadu, Andhra Pradesh and Gujarat on policy issues and have made suggestions on the various policy frameworks. The suggestions made by NASSCOM are based on comparative study of the state IT policies and areas where industry requires support, identified based on consultations with members and expert opinions.

22 22 NASSCOM annual report Global Trade Development NASSCOM worked extensively across various markets on policy issues and working on removing hurdles that industry faces in the emerging markets. During 2014, NASSCOM adopted twin pronged approach to focus on developed and emerging markets, safeguarding and promoting interests of the Indian IT-BPM industry in these regions, exploring new opportunities, addressing policy challenges and attempting to reduce the impact of the protectionist measures. To achieve the above, NASSCOM worked extensively across various markets on policy issues especially related with mobility of skilled resources and visa challenges in developed markets and working on removing hurdles that industry faces in the emerging markets. Endeavour was to leverage the Government of India s (GOI s) bilateral and multi-lateral engagements, forums and dialogues to make headway in these regions and alter any negative perceptions that exist about India and the Indian IT industry. At the same time, NASSCOM flagged off joint research projects with leading international institutes, universities and think tanks on various issues. It invited to India key influencers and policy makers and helped shape media opinion on the topics of relevance for the sector. Here is the snapshot from the Action plan implemented by NASSCOM region-wise: USA Played critical factor in ensuring that S. 744 bill has not been taken up by the House, nor have the negative provisions in the legislation been included in other such House sponsored legislation NASSCOM with GOI s combined efforts ensured that the President Obama s recently released Executive Order contained nothing that targeted or would harm Indian interests in the initial release, but the work has not done and L1 guidance could serve as tripwire going into the future Setup core committee to deal with legislative risks in the US, assimilated data on visa rejections, commissioned analytical papers with coverage not limited to macroeconomic trends and liberally sharing it with all stakeholders in the US and India Commissioned a study to quantify contribution made by the Indian industry in the US to be released in 2015 Risks in 2015: Likelihood of discrete, high skill legislation advancing separately has increased Senator Grassley will chair the Senate Judiciary Committee, a known critic L1 guidance as fallout from Executive Order (EO) may curb L1 visa usage further Canada NASSCOM worked closely with the Government of India to collect data on the fallout of the new ICT regulations while continuing its effort to minimise the impact of LMO changes announced in late 2013 Participated in atleast two consultations launched by the Canadian Authorities inviting suggestions on the Migration Policy, the last one being on new Audit framework to be adopted by CIC Hosted a roundtable meeting in New Delhi with the Canadian Immigration Minister with members NASSCOM has suggested for a need to have Worker Mobility Agreement between two nations to facilitate skills transfer. Such an agreement can serve as confidence building measure before larger trade agreement i.e. FTA is signed Leveraging negotiations around FTA file to counter the policy hurdles for a long-term solution UK Maintaining watching brief on immigration issues using our good relationships to identify and shape emerging issues Contracted NEISR, a leading local think tank to write six analytical papers on behalf of NASSCOM to steer the discussion on sensitive topic such as inward migration debate during the stage of manifestos creation in the election year

23 NASSCOM annual report NASSCOM flagged off joint research projects with leading international institutes, universities and think tanks on various issues. Appointed a new NASSOM UK Council and Chair to provide direction and steer NASSCOM strategy EU ICT directive update:»» ICT Directive adopted by the European Parliament in 2014 a major achievement for NASSCOM and its members»» NASSCOM to join Commission s new Labour Migration Platform in 2015 joint industry/policymaker forum to guide EU debate on high-skilled migration Free movement of data:»» NASSCOM/DSCI played pivotal role in commissioning of experts group dialogue from EU and India to find solutions from the Data Adequacy directive»» Exploring Model India clauses as the way out to mitigate risks of the data security and adequacy directive»» Leveraging FTA negotiations to find long-term solution to policy hurdles Japan Formed a Special Interest Group (SIG) for Japan under the aegis of its GIC initiative to focus on investments from Japan NASSCOM s President led a delegation of more than 15 firms to Japan, coinciding with the Prime Minister s trip Formalised chapter of member organisations in Japan Working on detailed action plan that can be implemented to strengthen revenues from Japan with support from GoI China Conducted a very large and successful buyer-seller meet in China involving members and over 35 state-owned enterprises (SOEs) in partnership with the Government of India. A separate workshop was conducted with the MIIT of China for members to facilitate the entry of Indian corganisations bidding for large government orders for regulatory hurdles Working on detailed action plan that can be implemented to strengthen revenues with support from GoI Australia Worked with local coalition partner(s) to keep IT profiles out of mandatory Labour Market Test (LMT) A big win for NASSCOM and its members when our submission was accepted by Australian Immigration Authorities advocating keeping IT profiles out of mandatory LMT Totalisation treaties Some estimate that NASSCOM s efforts in this space have brought in savings of more than USD 200 mn annually 1 Working very closely with MOIA and EPFO 2 on the issue of Totalisation Treaty that helps each expat worker of the industry NASSCOM interacted with the MOIA 1 to shortlist countries for these treaties and with EPFO to operationalise them A workshop on the Totalisation Treaty was organised for NASSCOM members with MOIA 1, EPFO 2 and Ministry of Labour in Delhi Others Took up issue of the exorbitant housing allowance for foreign employees through a bilateral forum in Switzerland Singapore raised the issue of ever increasing minimum wages for foreign workers on ICT visa through FTA review (CECA) Successfully led a delegation of Indian firms to the Nordics. The delegation met with the top 40 CIOs of the region as part of the CIOs conference Participated in the BITKOM- NASSCOM conference in Germany Commissioned a report with Avasant for Africa that will focus on eight countries and help assess the size of the opportunity 1) MOIA: Ministry of Overseas Indian Affairs 2) EPFO: Employee Provident Fund Organisation

24 24 NASSCOM annual report ReSEARCH Repository of insights that tracks industry trends, growth opportunities and best practices. Substantiating Business Impact by Global In-house Centres Evolution of the global IT-BPM industry Global delivery centres and the evolving role of locations Snapshots: Americas, Europe, APAC, the Middle East and Africa Implications on organisations and locations Implementing the GIC Executive Agenda for Talent and Leadership Aligning HR with business priorities Building next-gen and senior leaders Leveraging employee value proposition and brand Extending reach and impact of talent programmes May, 2014 May, 2014 Global Operating Platforms Equip GIC Leaders to Better Handle GOP Challenges Drive a clear, consistent vocabulary around GOPs and its elements Help leaders recognise risks of purely evolutionary approach to GOPs Cost Competitiveness of Global In-house Centres India s cost competitiveness vis-àvis other offshore locations Initiatives to further improve cost competitiveness Presents a parameterised cost model Focus on structural, governance/ process, leadership and mindset changes May, 2014 May, 2014 GICs in India Delivering Excellence Onward and Beyond Desi Products Videshi Markets Indian Software Products Building Global Businesses Overview of India s GIC landscape FY Perspectives on being successful in the global markets May, 2014 Highlights trends driving GICs journey up the value chain Highlights India s cost advantage and further value addition June, 2014 Educate Indian technology product firms on addressing global markets from India Best practices around market focus, product development/ management, marketing, global sales, customer support, IT & operations and funding

25 NASSCOM annual report Talentscape IT-BPM Industry Insights From Aon Hewitt s Best Employers Study Benchmarks IT-BPM sector visa-vis overall industry across Employee, High Performance Culture, Leadership and Employer Brand Gives recommendations for more improved performance India SMB Market Monetising Emerging Opportunities Focuses on importance of SMBs to Indian IT-BPM sector Analyses opportunity from this segment Roadmap for stakeholders to monetise the opportunity July, 2014 July, 2014 Industrialisation of Analytics in India: Big Opportunities, Bigger Outcomes Covers global and Indian analytics market and trends Focuses on how to drive increased adoption among enterprises in India and roadmap to achieve this India s IT-BPM Talent Trends: Annual HR Survey 2014 NASSCOM survey analysis to assess hiring trends and provide an outlook for FY2015 July, 2014 July, 2014 July, 2014 Indian Enterprise Software Products: On Accelerated Growth Path Enterprise Software Product Excellence Matrix Recognises Indian software products across defined categories which have achieved strategic approach and excellence to growth Enterprise applications is the third in the horizontal segment category series post the successful completion of analytics and mobility segments August, 2014 Verticalisation of Software Products: Enabling Create Stronger Value Propositions Verticalised software is enabling identification of whitespaces to penetrate in near-saturated markets and accelerate growth in new markets Report highlights key verticalised software products in the Indian market Emerging Delivery Locations in India: The Rising Tide Examines changes that have taken place in select ten Challenger cities in the last few years Enable decision makers to make their medium to long-term growth strategies A Report on Vadodara Highlights key advantages of Vadodara as an emerging IT-BPM location Evaluates parameters to help decision makers in their medium to long-term growth strategies September, 2014 September, 2014

26 26 NASSCOM annual report Quarterly Industry Review September 2014 Covering key parameters and insights on Indian IT-BPM industry performance, and global outsourcing landscape Global Services Outsourcing Atlas With increasing industry maturity, the global delivery model has moved from leveraging mostly offshore locations to a harmonious network of delivery centers with capabilities that drive strategic global impact September, 2014 October, 2014 BPM Industry An Exciting Journey Ahead NASSCOM BPM Survey Findings-2014 Highlights strengths and attributes of the industry, changing customer expectations Evolving technology trends and the resultant transformational opportunities across service offerings/delivery models, pricing, talent and operating models Indian IT-BPM Industry: Collaborating for growth Deep dive into different collaborative partnership models between small and big technology providers to integrate their service offerings and propose something unique to the clients October, 2014 November, 2014 Financing Requirements Study for MSMEs in IT-BPM sector Analysis of funding challenges faced by IT SMEs in India Identifies impact of existing financing options including Bank finance, VC/ PE, government schemes Identifies recent initiatives taken to promote funding to IT start-ups/ early stage SMEs Tech Start-ups in India: A Bright Future In-depth details about the Indian Technology Start-ups landscape November, 2014 January, 2015 Quarterly Industry Review December 2014 Covering key parameters and insights on Indian IT-BPM industry performance, and global outsourcing landscape December, 2014 February, 2015 The IT-BPM Sector in India Strategic Review 2015 Analyses Indian IT-BPM industry performance for FY2015 (IT services, BPM, ER&D and product development, software products, ecommerce) Highlights supply-side firms digitisation strategies (with case examples) to deliver differentiation to customers Showcases India s value proposition as the leading sourcing location Provides short-term outlook for the industry For download/purchase of the reports Log on to

27 NASSCOM annual report EVENTS Over 7,500 delegates participated across the national events and rated NASSCOM events as one of the best places to catch new trends, network and seek collaboration opportunities. Industrialisation of analytics, Brand India as the next big global hub for analytics and Big Data, Thought leadership in the field of Analytics, etc. Additionally, participants shared best practices on processes, tools and technologies and brainstormed on how India s analytics talent could be built. Analytics start-ups demonstrated their offerings at the conference, reaching out to over 500 delegates from more than 200 organisations. National Events The year saw NASSCOM roll out a series of events that significantly enhanced the visibility and branding of the IT-BPM industry. These events brought likeminded people from the industry on a common platform to devise strategies for the sector s growth, share best practices, showcase achievements and new trends, build thought leadership and connect with global and local customers through speaking engagements. During the year, NASSCOM organised its annual conferences covering various industry subsegments. These included the GIC Conclave, HR Summit, Engineering Summit, Product Conclave, the Game Developers Conference and a series of events around Big Data and Analytics and Infrastructure Management. Over 7,500 delegates participated across the national events and rated NASSCOM events as one of the best places to catch new trends, network and seek collaboration opportunities. NASSCOM GIC Conclave NASSCOM rolled out the 4th edition of its GIC Conclave in April, 2014 in Pune, focusing on key issues such as the evolving GIC maturity model, developing the leadership and talent agenda for GICs, enabling a global operating platform, costcompetitiveness strategies in the new normal, positioning GICs as centers of innovation excellence, etc. 125 GICs, 40 speakers and 500 delegates from 10 countries participated in the conclave. NASSCOM Big Data Summit The second edition of NASSCOM s Big Data Summit 2014 took place in June, 2014, in Hyderabad. The key themes at the conference were NASSCOM HR Summit NASSCOM rolled out the 11th edition of its HR Summit in July, 2014 in Chennai. Discussions at the summit were focused on issues related to the future of business and HR impact, skilling and re-skilling imperatives, relevance of digital media, working with Gen Y, nurturing a creative workforce, performance management and the five disruptive forces shaping the world of work. 350 companies, 50 speakers and 700 delegates participated in the summit.