INDIAN SOFTWARE INDUSTRY

Three decades of its evolution

1980-1990 1990-2000 2000-2007

Visionary companies built compilers and application software for local market requirement.

India excels in banking- specific products.

More than 300 startups in the last 4 years.

Last Year Fact

Indian Software Product Companies

Selling in India

USD 11.7 billion

Indian Software Product Market Landscape, FY2008

Indian Software Product Companies Selling Outside India

USD 40.3 billion

Indian Software Product Businesses Revenue

US

D b

illio

n

Note: * Includes overseas acquisition led revenue growth

Source: Zinnov Analysis

Global Companies Selling Software Products in India

USD 23.84 billion

IT/ITeS sector contributed to over 5.4 per centof India’s GDP in 2008-09, an increase from4.8 per cent in 2007-2008 BLUE:DOMESTIC

RED:EXPORT

Market Overview

• Banking, Financial Services and Insurance (BFSI) vertical continues to account for the largest share of exports at 31 per cent.

• Telecom vertical accounts for second-largest share of the pie at 19 per cent.

• Other verticals such as manufacturing, retail,media and healthcare are rapidly gaining pace

35%

19%

33%1%5%

4%3%

REVENUEBFSI

HIGH-TECH/TELECOM

MANUFACTURING

RETAIL

MEDIA,PUBLISHING AND ENTER-TAINMENT

CONSTRUCTION AND UTILITIES

OTHERS

Some Major On-Going Project

British Telecom awarded US$ 1 billion contract to Tech Mahindra. General Motors awarded Wipro a five-year contract of the value of

US$ 300 million. ABN Amro awarded a US$ 500 million five-year contract to TCS,

Infosys and Patni. TCS and Satyam together signed a seven-year contract worth US$

145 million with Qantas Airlines. SABMiller gave project to evaluate and improve the effectiveness of

its in-store shopper marketing campagins to Infosys.

HOW IS THE INDIAN SOFTWARE INDUSTRY MOVING UP THE VALUE CHAIN.?

Moving Up The Value-ChainBusiness and IT Strategy

Business

Intelligence

Solution,

Business ProcessRedesign

Application Design and

Development, Package

Implementation

Application Management, System Integration

Infrastructure and Network Management

95% Of Revenue

WIPRO,TCS,HCL,INFOSYS AND MINDTREE CONSULTING

Low End And Low Risk Job

NASSCOM Initiatives

• National rollout of skill certification through NAC (NASSCOM Assessment of Competence)

• Carter of more then 1200 Firms• Help in Technology Innovation.• Gives Promotion and Global Exposure

to Indian SME’s• THEME THIS YEAR: “Survival &

Growth Strategies for Indian IT SMEs”.

NAC

Government Incentives

Telecom sector deregulationSector deregulated in the mid and late 1990s to

allow private sector and MNC participationRegulatory reform to allow adoption of new

technologiesEnable benefits of free market competition

Improved service quality and declining tariffs

Government Incentives

Software Technology Parks of India(STPI) are set up to provide:

Fiscal benefits like tax holidays to attract Investment into the industry

Basic Infrastructure Single-window clearances for

setting up

Top Ten Indian Software Company

Why Indian Software Industry is On Hype???

Points In Favor Of Indian Software Industry

Host to more than 55 per cent of global SEI CMM Level 5 firms.

Cost of an engineer is about 20 – 40 per cent of comparable cost in EU and near about 60% of USA.

More than 70,000 Software Engineering per year.

India offers technical and language skills with supportive government policies.

High quality telecom infrastructure with cost of connectivity declining rapidly and service levels improving significantly.

OTHER SIDE OF THE COIN…..

3.50%

96.50%

REVENUE

INDIAN SOFTWARE INDUSTRYWORLD SOFTWARE INDUSTRY

Challenges Faced…..

CHALLENGES

IS BRANDING NECESSARY??????

BRANDING STRATEGY

So far, companies have relied more on vendor events, product meets and their own websites to get in touch with potential clients.

Increasing use exhibitions and trade shows to showcase their products and create brand awareness.

INFOSYS:“winning in a flat world” in all investor and media communication from mid-2006

HCL:adopting a high pitched, mass media driven corporate branding campaign

TCS:“Experience Certainty” 

What Is The Future Of Indian Software Industry???

Future In Search Engine…

15 local search engines have emerged in the last 2 years in the Indian market (Justdial, Guruji, Asklaila, Zatka.com, 123india.com, mapmyindia.com, tolmolbol.com etc)Yahoo and Microsoft have their R&D centers in India,to get advantage of Indian Talent/ Domain Expertise.Percept Knorigin acquired Searchsize in 2008 and ByIndia.com was acquired by Web2 Corp in 2006

25.2

60.4

0.1

0.6

0

25

50

75

FY2008 FY2015E

0.0

0.2

0.4

0.6

0.8

1.0

Global Market Domestic Market

Future in BFSI sector… BFSI sector specific software

products from Indian companies such as TCS, Infosys, i-flex, 3i-Infotech, Polaris, Nucleus Software, Omnesys, Lasersoft, Mindmill are preferred by customers globally.

Total VC Funding (Since 2004): USD 71 million.

Oracle’s acquisition of I-flex is one of the key examples to highlight the rising BFSI expertise from India.

17.4

30.3

0.15

0.44

0

10

20

30

40

FY2008 FY2015E

0.0

0.2

0.4

0.6

0.8

Global Market Domestic Market