Models of cooperation for Israeli and Indian IT companies

Ramon.horkany@ushustech.com

ACCEL Group Companies

ACCEL GROUP

- Enterprise IT Solutions & Embedded Software

- Customer Interfacing Solutions

- 3D Animation & Visual Effects

- Media Solutions

- Staffing and Training

About Accel Frontline

• Accel Frontline is a leading system integrator and complete ICT provider

• Established on 1991

• Traded on Bombay and National stock exchanges

• Over 3000 employees, Year 2011 revenues reached $100M

• In India 40 branch offices, 100+ service location and four development centers

• Oversees offices in Dubai, Japan, US & Israel

Indian IT Market Size

• Indian IT industry generated $88B in Y 2011

• Very high growth

• Most revenues generated from services

• Around 70% of revenues are from export

• Two very large markets: domestic and global

20% Y-to-Y growth

Indian IT Sectors

Main IT Segments

• Banking and financial services is most dominant segment

• Telecom, Manufacturing and retail account 45% of market

Cooperation Scenarios An Indian service company

perspective

Off shore product development

Main scope - sales Maybe adopt Israeli

innovation

Enhance competitive position in India or Global

New business IT services in India & globally

A Proven Offshore Model

40% cost reduction

Proven delivery model

Scalable resource pool

Versatile expertise pool

Cross value chain: IT, R&D, managed service

Global standard quality

Time Zone

Focus on core business

Business advantages

Reduce costs Lower risk

Increase agility Enhanced

competitiveness

What can be Off-shored?

30%

70% •Development of generic hardware and software platforms & services •Integration projects •Customer requests

Core technology Core business process

None core activities

Core activity

Israeli high tech company activities

Offshore Models

Ownership

Loca

tio

n

In-house Outsourced

Isra

el

Ind

ia o

r C

ust

om

er s

ite

• Best benefits on fully outsourced /off-shored model

• Ownership can be of module, domain or complete product

• Offshore model is a function of partnership maturity level

Adopt Israeli Innovation

Indian market

• Resell Israeli brands

• Known “Israeli” domains

• Lower cost & “good enough” technology

Global Market

• Solutions fit for the Indian service delivery model

An Israeli- Indian Joint Venture

e-commerce cloud

application

Indian Partner Israeli Partner

Provide hosting

Manage the service

In India: recruit users

Supply platform

Supply Knowhow

Deploy the platform

Users

There are Benefits for both Sides

• Indian IT industry encompass a huge local and global target

market for Israeli companies

• Israeli companies can benefit from the Indian proven offshore model to increase competitiveness

• There is a sense to combine both cooperation models to the benefit both sides

Thank You