Transcript Japan and India

The IT trend in Asia
(India, Vietnam and Singapore)
By
Nara
Consultant to CICC Singapore
AOSS Program Coordinator
[email protected]
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 a large number of OSS population in Asia
• Consolidate OSS Training Material developed as part
of Asia OSS training and workshop
• Develop training material in new areas like
virtualization, OSS application and deployment
• Experience sharing
• Establish networks with OSS community from IT
industry in Asia (to increase industry and OSS
community participation)
• Introduce 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
Evolution
Certification/
Franchising/
Licensing
Workshop
W
W
W
W
W
W
X
X
X
X
2005
X
X
2006
X
X
X
X
X
2007
Training
X
X
X
X
X
X
2008
X
X
2009
India
Area in sq km:
3,287,590
Population 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)
Internet users (2008)
Broadband subscribers (2008)
PCs in use (2009 estimate)
Source: ITU& Govt working papers
383.9
51.8
5.3
100.0
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
IT Services and Software Exports
No. of
Professionals
865,000
BPO Exports
704,000
Domestic Market
427,000
Total
1,996,000
Source: NASSCOM
India Domestic Market
Software Exports
Oku JPY
50,000
40,000
30,000
20,000
10,000
0
2003-4 2004-5 2005-6 2006-7 2007-8 2008-9.
Year
Source: Indian Ministry of IT
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
Retail &
Wholesale
1%
Government &
Education
14%
Communicatio
ns & Media
17%
Source: Indian Ministry of IT
Others
8%
Financial
Services
31%
Manufacturing
29%
Export Destination for IT
Products/Services
Latin
America
4%
Rest of
the World
7%
Asia
Pacific
6%
Europe
31%
Source: DataQuest – Internal Reports
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
Average Salary of IT Professionals
50,000,000
All Professionals
Top 10%
Top 1%
40,000,000
JPY
30,000,000
20,000,000
10,000,000
0
Less than 2 years
experience
Source: DQ and Unpublished survey
2 to 5 years experience
10 years and more
experience
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)
Total telephone subscribers (2008)
Source: ITU
2.05
99.59
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
Infocomm Manpower
2008
130,400
139,000
Annual Growth (%)
8.9
6.6
Households with Access to
Computer (%)
Business Broadband Adoption (%)
79
80
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-aservice, virtualisation and green IT.
• The government continued to roll out its ambitious crossgovernmental 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:
[email protected]