L IMA, PERU – NOVEMBER 6 , 2009

Gokul Agarwalla Management Consultants

Agenda

Indian IT – Going from strength to maturityNASSCOM – Overview

Vision Aims & Objectives Snapshot of membership Guiding Principles

Key Challenges

Indian IT: Going From Strength To Maturity

India has emerged as the fastest growing IT hub in the world The IT industry has grown its revenues ten-fold in the past

decade 1997-98: US$ 4.8 billion 2007-08 : US$ 60.0 billion

The IT industry's contribution to GDP rose from 1.2 per cent in 1999-2000 to an estimated 5.5 per cent in FY 07-08

Industry employs over 1.6 million professionals directly and Indirect employment attributed by the industry is estimated to be 4x, translating to over 6 million additional jobs

India is fast emerging as a research and development hub for some of the largest IT companies in the world

NASSCOM Evolution

Started in 1988 as a break-away group from the hardware sector

Negatives35 members – no revenue structure, small in size, lack

of government supportIndustry very highly regulated – license raj, high import

tariffsPositivesClear Focus: Catalyze growth of India’s software and

services sectorStrong commitment from founding members – a lesson

to be learned

NASSCOM’s Vision

To ensure that India remains the favored destination for IT and business process outsourcing.

Goals 2010: $ 75 Billion in IT & BPO (domestic + exports) 2014: $ 130 Billion in IT & BPO (domestic + exports)

Aims & Objectives

NASSCOM is achieving its objectives by following the following eight fold strategy

Industry Leadership

& Direction

Partnership with

Government

Aims & Objectives

OperationalExcellence

Uphold IP Rights

Shared aspirations for

Industry & Country

Premier Global Sourcing

destination

Talent pool development

Contribution to Society

NF

NASSCOM Membership Profile

By Origin

By Location

By Nature of Work

NASSCOM STRUCTURE

Executive Council18 Elected Members 6 Nominated 2 immediate Past Chairmen

Steering Committee

President & Secretariat

Chairmen Council

-Chairman-Vice Chairman-Immediate Past Chairman-President

-Emerging Companies Forum

Council & Forums

Corporate HQ-Research-Events -Member Recruitment & services-Public Policy-Media relations-Forum Leads-Systems and Web-Finance and Accounts

Regional Offices-BPO Forum-Innovation Forum-Software Product Forum-Domestic Market-Security Forum-IT Workforce Forum-Engineering Services Forum-Quality Forum

Focus Groups

International- Global Trade Development- Overseas Chapters- ASOCIO Initiatives

NASSCOM Foundation

Evolution of NASSCOM

Phase I1988-95

Phase II1995-00

Phase III2001-05

Phase IV2005-2010Period

Membership

Secretariat Staff

Budget

Activities

Offices

Focus

35-250 650-850 1200

4 25 50*

US$ 200,000 US$2.5 million

US$6 million

Government Policy; liberalization and incentives for software industry

Head office in Delhi

+ 3 Regional offices

6 regional offices + international presence proposed

Catalyse growth of software sector

250-650

10

US$ 1.5 million

Research based policy advocacy, international export promotion and long term industry vision

Head office in Delhi Beyond Cost:

India value proposition , quality, security reliability, scalability

Globally Competitive Industry Contributing value to Global Stakeholders

250-650

10

US$ 1.5 million

Policy advocacy, international export promotion and develop ten year industry vision

Head office in Delhi

Focused member activities, new forums, industry research, international policy advocacy

Establish India as a cost-quality outsourcing destination

Build domestic demand, develop new geographies, move-up value chain, sustaining competitiveness

Guiding Principles

Core Services

Catalyst for Implementati

on

Content Provider

Industry Utility

Guiding Principles

– Building the Domestic Market– Talent development initiatives– Promoting Gender Inclusivity

Partnership with international analyst and consulting firms e.g.: NASSCOM McKinsey report, NASSCOM Everest report on BPO landscape, NASSCOM Strategic Review, etc.

Organize events, facilitate member services, Government policy and advocacy, Industry forums…brand building and industry spokesman role..

– NASSCOM Assessment of Competence– National Skills Registry– Data Security Council of India– Innovation Fund

Challenges

Constant debate on “big vs small”Managing evolution of an industry where

needs are growing by different service linesChallenges of growthBuilding extended team with accountabilityMeasure relevance to stakeholders constantly

Extra Research

http://www.slideshare.net/workosaur/indian-it-and-ites-industry-presentation-010709

http://timesofindia.indiatimes.com/news/business/india-business/IT-industry-growth-may-fall-to-5-yr-low-in-2009/articleshow/4683536.cms