Transcript IBSA - DATA Infocom LTD

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Key Messages
•
As a rapidly growing market and a key sourcing destination, India is
increasingly becoming the center of global commercial interest and
economic activity
•
IT-ITES, a poster-child for the new Indian economy, has grown by 25%
(CAGR) over the past decade; exports alone have grown by over 36%
(CAGR) over the same period
•
Sector growth driven by sustained demand, and increasing service line
depth and supply-side maturity based on strong fundamentals of abundant
talent/skill, quality and service delivery expertise at a sustained cost-value
proposition - reflecting India’s growing importance in the new world IT order
•
The future holds significant opportunity for India – much larger than the
aggressive targets set by the industry for itself; key stakeholders are
undertaking several initiatives to ensure that Indian IT-ITES achieves its full
potential
India is not just a land of mystics and wonders…
•
India’s GDP has grown at
nearly twice the global rate over
past 20 years
•
Steady annual growth in real
GDP, industrial production and
domestic demand of 5-6%
•
Sustained real growth in foreign
investment inflows (FDI and FII)
since economic liberalization
(1991)
•
Cumulative forex reserves of
~USD 140bn
Source: JM Morgan Stanley
FY06 GDP Growth in India is Amongst the Fastest in
the Region
Source: Citigroup
…but a growing economic superpower
Organisation for Economic Co-operation and Development
A maturing economy led by high growth in services…
•
Over the last decade the Indian economy has transitioned from an agrarian economy
to a predominantly services based economy
•
Key services sectors – Personal services, trade, hotels, banking, communications
and business services
Progressive liberalization and increasing investor confidence…
Sector
FDI / FII Limit*
Insurance
26%
Civil Aviation
49%
Private Banking
49%
NBFCs
49%
Trading
49%
Telecom
74%
IT-ITES
100%
Power (excl. atomic power)
100%
Hotel & Tourism
100%
Drugs and Pharma Mfg.
100%
Infrastructure (roads,
highways, ports, harbors)
100%
* Automatic approval
Source: Websites of Rating Agencies
Indian IT-ITES sector estimated to grow by 28% and account for
4.6-4.8%* of GDP in FY06
USD Billion
Share of GDP
4.6-4.8%
•
Indian IT-ITES sector revenue
to exceed USD 36bn in FY06 –
growing at a CAGR of over 25
percent over the past decade
•
Exports account for nearly twothirds of the total – growing at a
CAGR of over 36 percent over
the past decade
•
Industry employment to reach
1,287,000 – a net addition of
over 1 million employees over
the past six years alone
4.1%
3.5%
3.2%
2.9%
2.7%
1.9%
1.5%
1.2%
Source: NASSCOM
* Proportion of GDP denoted as a range after FY06 GDP revised upwards by CSO
Growth driven by service line depth,…
USD Billion
Source: NASSCOM
•
Demand for traditional services
remained strong
•
Emerging service lines such as
infrastructure outsourcing,
software testing, etc., in IT
outsourcing
•
Analytics, research and
functional outsourcing (F&A,
CIS and HR) in ITES-BPO
gained greater visibility
•
Engineering and R&D services
emerged as an independent
segment
…increasing supply-side maturity…
IT services exports lead, accounting for 35% of the total, growing
at 32-33% (FY06E)
Source: NASSCOM
ITES-BPO exports* to grow by 37%, estimated to reach USD 6.3bn
(FY06E)
* Reclassified to exclude services now included under engineering and R&D
Source: NASSCOM
Engineering and R&D, software products hold significant opportunity for
India – growing at 43% and 25% (CAGR FY 2003-06E), respectively
Leading prodoucts : Tally, Ebiz, Spamjadoo, Xgen,Finacle
Source: NASSCOM
Positive outlook for Indian IT-ITES; industry set to achieve targets
for 2010
60+
USD Billion
CAGR 26-27%
CAGR 24-25%
14-15
* Estimates for software and services only. Does not include estimates for hardware.
Source: NASSCOM
As global delivery matures, newer locations are emerging; however
India remains the undisputed leader
•
India maintains its distinctive
lead amongst offshore
destinations
•
Strong fundamentals will help
sustain India’s value proposition
–
–
–
•
28% of the suitable talent
available across all offshore
locations (outranks the next
destination by a factor of 2.5)
Keen emphasis on security and
quality
Sustained cost
competitiveness, gains from
increased productivity,
utilization and scale expansion
Key initiatives underway to
strengthen India’s value
proposition
India’s pillars of success – You can use this opportunity.
• Access to a large, growing pool of highly qualified talent
• A high degree of quality orientation and demonstrated service
delivery expertise
• Keen emphasis on information security reflected in the
comprehensive legal framework and elaborate security practices
supplemented by enabling intervention
• World class telecommunication infrastructure
• International standards in real estate and office facilities
• Enabling (and progressively improving) business environment
through strong government support; incentives, favorable
regulations and policy
…delivered at a sustained and compelling cost-value proposition
Five key areas that India is focused on, to sustain its lead
• Enhancing the talent pool advantage – focus on skill development to
better leverage the worlds largest working population
• Strengthening urban infrastructure in existing and emerging cities
and emphasis on proactive regulatory reform to facilitate greater
ease of doing business
• Driving a philosophy of operational excellence amongst industry
players to ensure that India based delivery sustains world leading
benchmarks in performance
• Catalyzing domestic market development
• Actively promoting an uncompromised agenda towards global free
trade
Jai Hind
Dr. Ajay Data,
CEO, Data Infocom Limited , INDIA
[email protected]