INDIAN SOFTWARE

INDUSTRY
 Three decades of its evolution

Visionary companies built compilers

and application software for local India excels in banking- More than 300 startups in
market requirement. specific products. the last 4 years.
 Last Year Fact
Indian Software Product Market Landscape, FY2008 Indian Software Product
Businesses Revenue

Indian Software
Product Companies
Selling in India

USD 11.7 billion

USD billion
Global Companies Indian Software
Selling Software Product Companies
Products in India Selling Outside India

USD 23.84 billion USD 40.3 billion

IT/ITeS sector contributed to over 5.4 per cent

of India’s GDP in 2008-09, an increase from
4.8 per cent in 2007-2008
BLUE:DOMESTIC
Note: * Includes overseas acquisition led revenue growth
RED:EXPORT
Source: Zinnov Analysis
 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
 Some Major On-Going Project
q British Telecom awarded US$ 1 billion contract to Tech Mahindra.
q General Motors awarded Wipro a five-year contract of the value of
US$ 300 million.
q ABN Amro awarded a US$ 500 million five-year contract to TCS,
Infosys and Patni.
q TCS and Satyam together signed a seven-year contract worth US$
145 million with Qantas Airlines.
q 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-Chain

WIPRO,TCS,HCL,
INFOSYS AND
MINDTREE
CONSULTING

95% Of
Revenue
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 &
NAC
Growth Strategies for Indian IT
SMEs”.
 Government Incentives
• Telecom sector deregulation
q Sector deregulated in the mid and late 1990s to
allow private sector and MNC participation
q Regulatory reform to allow adoption of new
technologies
q Enable benefits of free market competition
Improved service quality and declining tariffs
 Government Incentives
• Software Technology Parks of
India(STPI) are set up to provide:
•

q Fiscal benefits like tax holidays to

attract Investment into the
industry
q Basic Infrastructure
q 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
q Host to more than 55 per cent of
global SEI CMM Level 5 firms.
q Cost of an engineer is about 20 –
40 per cent of comparable cost
in EU and near about 60% of
USA.
q More than 70,000 Software
Engineering per year.
q India offers technical and language
skills with supportive
government policies.
q High quality telecom infrastructure
with cost of connectivity
declining rapidly and service
levels improving significantly.
q
•

• OTHER SIDE OF THE COIN…..

Challenges Faced…..
•

• IS BRANDING NECESSARY??????
 BRANDING STRATEGY
q So far, companies have relied
more on vendor events,
product meets and their own
websites to get in touch with
potential clients.
q Increasing use exhibitions and
trade shows to showcase
their products and create
brand awareness.
q INFOSYS:“winning in a flat
world” in all investor and
media communication from
mid-2006
q HCL:adopting a high pitched,
mass media driven corporate
branding campaign
q TCS:“Experience Certainty”
What Is The Future Of Indian
Software Industry???
 Future In Search Engine…
75
q15 local search engines have emerged in the
last 2 years in the Indian market (Justdial,
60.4
Guruji, Asklaila, Zatka.com, 123india.com,
mapmyindia.com, tolmolbol.com etc)
qYahoo and Microsoft have their R&D centers
50
in India,to get advantage of Indian Talent/ 0.6
Domain Expertise.
qPercept Knorigin acquired Searchsize in
2008 and ByIndia.com was acquired by Web2
Corp in 2006
25.2
q 25

0.1

0
FY2008 FY2015E

Global Market Domestic Market

 Future in BFSI sector…
40

q BFSI sector specific software

products from Indian companies
such as TCS, Infosys, i-flex, 3i- 30.3
Infotech, Polaris, Nucleus 30
Software, Omnesys, Lasersoft,
Mindmill are preferred by
customers globally. 0.44
q Total VC Funding (Since 2004): 20
17.4
USD 71 million.
q Oracle’s acquisition of I-flex is one
of the key examples to highlight
the rising BFSI expertise from 10
India. 0.15
q
q
0
q
FY2008 FY2015E

Global Market Domestic Market