1

Software Professionals - Software Professionals - Opportunities & Opportunities &

ChallengesChallenges

Dr Mukesh J PatelAugust 2007

2

Presentation Road MapPresentation Road Map

Indian IT and BPO-ITESHighlight - Financial and EmploymentTalent Pool and Skill GapTop IT and ITES companies

OpportunitiesIT- ITES – Opportunities Non-Technical Skill

Concluding Remarks

3

Indian IT IndustryIndian IT Industry

USD Billions 2004 2005 2006 2007

IT Services 10.4 13.5 17.8 22.9

-Exports 7.3 10.0 13.3 18.1

ITES-BPO 3.4 5.2 7.2 9.5

-Exports 3.1 4.6 6.3 8.3

Eng Services R&D S/ware Products

2.9 3.9 5.3 6.5

-Exports 2.5 3.1 4.0 4.9

Hardware 5.0 5.9 7.0 8.2

Total IT Ind 21.6 28.4 37.4 47.8

4

2007 Highlights - 12007 Highlights - 1

Contribution to GDP 5.4% in 2007 (4.8% in 2006)

Majority is exports – services and software growth forecast is 30+%

MNC investments over USD 10bLarger contracts (USD 50m +) 1%

to 7%

5

2007 Highlights - 22007 Highlights - 2

IP creation (Product devp, eng services) growth forecast 22%

Broad-based industry structure – Not just the big players – SMEs such Mahindra Tech, I-Flex,

Hexaware, Educomp, NIIT, etc

6

Domestic ScenarioDomestic Scenario

The total size expected to cross USD 15.9 billion in FY 2006-07, a growth of 21 percent over FY 2005-06

No longer totally dominated by hardware sales

No longer just MNC – Indian players are making inroads

7

Employment HighlightsEmployment Highlights

2007 - Total IT Software/services & ITES employment 1.6m (1m in 2004)

2010 – 2.5m (0.9m IT prof & 1.4m ITES-BPO)

2004 – 3m indirect employment attributed to IT-ITES

8

BPO HighlightsBPO Highlights Significant transformation over the past

decade– Starting with basic data entry tasks– High proportion of voice-based services– A range of back-office processing activities

Last 3-4 years services include – processes involving rule-based decision

making– Research and Analysis services– Legal and Medical work

9

Talent Pool - 1Talent Pool - 1

Good demographic profilenearly 50% + of pop below the

age of 25Accounting for 28% of the total

suitable pool available across all offshore destinations

10

Talent Pool - 2Talent Pool - 2

Emerging Manpower/skills gapNot numbers but skills

– Comprehensive skill assessment and certification

– Educational SEZ’s– Finishing Schools (3-4 months)

Non-technical knowledgeSoft skills

11

NASSCOM NASSCOM Top-Top-220 IT0 IT Exp Exp

1. TCS2. Infosys 3. Wipro4. Satyam5. HCL6. Tech Mahindra7. Patni Comp8. I-Flex9. L & T Info Tech10. Polaris

1. Hexaware2. Flextronics3. Mphasis4. Mastek5. Siemens Info Sys6. NIIT Technologies7. Prithvi Info8. Genpact9. I-Gate 10. Birlasoft

12

NASSCOM Top-NASSCOM Top-110 IT0 IT (2004) (2004)

1.  TCS2.  Infosys 3.  Wipro4. HCL5.  Cognizant6.  Satyam7.  HP8.  Genpact9.  Tech Mahindra10. Oracle

13

Genpact WNS Tranmsworks IBP-Daksh TCS Wipro Firstsource HCL Infosys EXL Holdings

NASSCOM Top-NASSCOM Top-110 IT0 ITESES

14

IT – Opportunities SummaryIT – Opportunities Summary

Software Coding Software Services User Support Maintenance/Hosting and Admin Telecom and Networking Hardware – embedded design R & D Product Design and Development BPO – ITES

Demand for Skilled Workers All that matters is TALENT and KNOWLEDGE

15

Software ProductsSoftware Products

Skills Engineering / Computers / MBA Analytical / Logical abilities Communication skills Business Functional knowledge Design Skills – usability, graphics,

formatting, etc Research and learning skills Systems/Web Architecture

16

Skills Graduates Communication skills – verbal and written Sector Knowledge – banking, insurance,

mortgage Business Functional Knowledge – HR, Marketing Cultural and General Knowledge Ability to understand, and learn Monitoring, supervision Training Value adding – new idea, processes Networking Technical Knowledge – not very high

IT Enabled Services - BPOIT Enabled Services - BPO

17

IT Enabled Services - BPOIT Enabled Services - BPO Skills

Graduates Communication skills – verbal and written Sector Knowledge – banking, insurance, mortgage Business Functional Knowledge – HR, Marketing Cultural and General Knowledge Ability to understand, and learn Monitoring, supervision Training Value adding – new idea, processes Networking Technical Knowledge – not very high

18

Telecom and NetworkingTelecom and Networking

Skills Engineering / Comp / Comm Graduates & MBA Technical Knowledge of TCP/IP, Internet, Wireless Service reliability – support and maintenance Application access/services - Data security Project management - Planning and

implementation Research and learning skills Strategic planning for business & service growth Adaptation to rapid changes

19

Non – Technical SkillsNon – Technical Skills

Product Development – ideas Online Services – revenue generation BPO – Communication skills, English, etc Business Knowledge – functional Domestic Market – business analysis, BI Mobiles – networks,

applications/services Logistics – GIS, scheduling

20

Concluding RemarksConcluding Remarks IT and related sectors remain viable

options However growth and opportunities

increasingly for those with MORE than technical skills Communication – oral and written Ability to understand and learn fast Utility and usage of software – functional Business knowledge Analytical skills Network and systems architecture related skills Graphics and Design often internal General Knowledge

21

Thank YouThank Youmukesh@applitechsolution.commukesh@applitechsolution.com

22

Indian IT IndustryIndian IT Industry

Source - Nasscom

23

“A combination of h/w & s/w as a part of larger system used to perform, control or monitor”

Prerequisites Engineering – Computers, Electronics and IC Knowledge of System Design Architecture Knowledge of h/w, s/w and networking

protocols

Role Analyst and Assessors System Integrators Developers

Embedded Systems TechnologyEmbedded Systems Technology