India IT-BPM sector and Economic growth in Bengaluru. 4 August 2015 Ashok Pamidi

Transcription

1 India IT-BPM sector and Economic growth in Bengaluru 4 August 2015 Ashok Pamidi

2 About NASSCOM Driving thought leadership and collaboration for 25+ years Premier trade body and chamber of commerce of the IT-BPM firms in India Over 1900 members includes Indian firms, MNCs and GICs Access to an international network through 50 MoUs and linkages with 40 industry associations across the globe Policy Advocacy Industry Development Enabling Environment Global Trade Development E-Governance Emerging Companies Education & Skill Development Security Social Development

3 The IT BPM Global Sourcing Market has grown 5X over the last decade

4 ~ USD 100 billion Export Sector FY2015E IT-BPM Export revenues (USD billion) Y-o-Y Growth INR 13.9% Constant currency USD 13.1% Reported currency USD* 12.3% % Robust Industry growth meets NASSCOM guidance in constant currency terms Exports revenue growth estimated at 12.3 per cent in FY2015 in reported currency terms Segmented exports growtho IT services : 12.6 per cent; o BPM : 11 per cent; o ER&D and product development highest, at 13.2 per cent Outperforming Segments: o ER&D and product engineering, IS outsourcing, software testing, Analytics and F&A services o US, APAC, Telecom, Manufacturing and emerging verticals FY2014 FY2015E IT Services BPM S/W prod and ER&D H/w * Estimate 15% of industry revenues in non USD currency impacted by cross currency fluctuation E: Estimate 4

5 Ecosystem leadership: Over 50 delivery locations in India

6 Primary triggers for looking at global delivery of services Access to skills & new markets are emerging as key drivers for the industry Numbers will not tally up to 100 because of multiple responses

7 Mission critical factors for future delivery centre success converge around excellence in delivery, talent development to enhance service portfolio, and strengthening governance and management Global In-house Centers 3 rd Party Service Providers Numbers will not tally up to 100 because of multiple responses

8 The location evaluation parameters are both exhaustive and exclusive Evaluate roles that locations can play in a portfolio across 5 broad service lines; Transactional BPM, FAO, Knowledge Services, Tech. Services and ESO Draw up indicative service delivery inclinations and cost-risk correlations to across regions to aid mitigation Take the first step in developing a referencable study for member organizations to take data based location decisions

9 As organizations expand global delivery footprint the varying risk perceptions and strengths of locations underscores the need for greater focus on global location portfolio management

10 Operating cost index Expressed as indexed direct costs per FTE for BPM Services, covers only the cities that feature in the NASSCOM Tholons Service Location Atlas 1. The analysis covers a range of BPM services, specific services may see variations of operating costs per FTE 2. Ongoing costs only; excludes margins / mark-ups, initial investments, set-up costs, travel costs etc. 3. Does not take into impact of fiscal incentives

11 People: India, the second largest in the world in availability of emerging skills Big Data Video/Audio Privacy & Security Machine Learning NLP UI/UX India is almost on par with the US in mobility talent Big data/analytics, video/audio, UI/UX, privacy and security are skills which are fast growing Mobility Analytics SDN Low High Source: Zinnov Research & Analysis 1 1

12 Bengaluru, India Average Salary per month (in US$) Suggested portfolio role Notable companies Infosys Genpact Oracle Accenture Microsoft Wipro Services Delivery Inclination BPM FAO KPO ITO ESO Global Hub across service portfolios India s Silicon Valley contributes ~25% of the global exports. Bangalore has the highest number of multinational IT, research and development, electronics, and software companies Cisco Intel HP IBM Overall Estimated employment k Cost fact sheet Annual talent output Rentals (US$/sq. ft./mo.) BPM ITO ESO Benefits as component of Salary Indicative operating cost / FTE 18 25% USD 16-19k Source:, Tholons Analysis, NASSCOM, NSDC Rentals considered for Class A bare shell, Ongoing costs for a range of BPM services only; excludes margins / mark-ups, initial investments, set-up costs, travel costs etc. Does not take into impact of fiscal incentives

13 Bengaluru IT Hub moving towards periphery Bangalore distribution of IT Companies in IT hub. Represents Larger companies only.. Both GIC and Non GIC IT hubs Est of # companies Typical companies Est employment E city- hosur Road 175 Infosys, Wipro, HCL, Tech Mahindra, HP IT 2,75,000 Services, Robert Bosch, Siemens (R&D), Hinduja Global, Continental, SKF, L&T Engineering services, Ctient, Genpact Global village 30 Mindtree, Sasken 75,000 Embassy- Koramangla, Indranagar 90 Target, Yahoo, Goldman Sachs,IBM Services, Fidelity (BPM), Dell, Google, Amazon, 24x 7, Netapp Embassy- Manyata 70 Cognizant, IBM Labs, Philips, ANZ, Fidelity ( IT services, lowes corporation, Limited group) 90,000 75,000 Bannerghatta 25 Oracle, Accenture 75,000 White field- Bhagmane techpark 175 HP ( Global Business Services), EMC, Texas Instruments, Samsung, Wells Fargo, TCS, Unilever, Cap Gemini, ABB, Schneider, manhattan Associates, Tesco, Socite Generale, Xerox, Exxon Mobil( chemical), SAP labs, Mercedes Benz ( R&D), MU sigma Marathhalli- Sarjapur road 100 Wipro, Intel, Cisco, Sony, Walmart, JP Morgan, Microland, First source, Freescale, AMD, LG Software, Quest global, TAS Analytics, 1,10,000 90,000 Others 20 Shell Technology Services, 70,000 Est Total 685 8,60,000

14 Start-up Landscape

15 Start-up landscape driving innovation > 3,100 Start-ups in India 70+ Active VCs/PEs in 2014 > 800 Start-ups created every year Active Angels in 2014 $2.3+ Bn Funding since Incubators/ Accelerators Internet of Things Big Data & Analytics Augmented Reality Cloud Computing 35+ Start-Ups 350+ Start-Ups 30+ Start-ups 800+ Start-ups Wearable Tech, Home Automation and Fleet Management Big Data and Social Media Analytics Marketing & Advertising, Healthcare and Visualization Solutions BD&A, ERM, Comm./ Collaboration and Productivity Solutions Hardware EduTech AdTech HealthTech 30+ Start-Ups 190+ Start-Ups 100+ Start-Ups 30+ Start-Ups 3D Printing, Payment Solutions and Automation Technology Platform, Educational Content, Skills Development and Mobile Advertising, Marketing Analytics and Ad Campaign Management Search, ERM, Records Management NASSCOM 10,000 Start-ups enabling and catalysing ecosystem Source: Zinnov, NASSCOM

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