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Contribution of India's IT Industry to Economic Progress
Revenue GDP Global Sourcing Industry - - - - - - - - - -> $100 billion - - - - - - - - - -> 1.2% (1988) - - - - - - - - - -> 51% (2009) - - - - - - - - - -> 2.8 million Direct 8.9 million Indirect Employment (New) - - - - - - - - - -> 230,000 Jobs 7.5% (2012) 58% (2011)

Employment (Current)

....-> $31..-> broad based demand across traditional segments .-> ..1 billion (2012)...-> Vertical Markets ..-> $69. 9% Export revenues -----------Geographical Focus ...-> consistent demand from the US ...7 billion (2012).......... 16% .....Contribution of India's IT Industry to Economic Progress Domestic revenues .......

Contribution of India's IT Industry to Economic Progress .

.....-> $200 million ..-> $536 million .........................Top 5 players in ITES TCS Wipro Infosys Cognizant Genpact ...-> $294 million ......-> $465 million ...-> $134 million ..

expected to grow at almost 17 per cent in FY2012. .ITES – Present Market Scenario • Domestic IT-BPO revenue .

Growth Factors • Demand from consumers and enterprises. government’s technology infrastructure initiatives and availability of world class telecom infrastructure and services • IT-BPO in India is steadily increasing • Domestic BPO segment is expected to grow by 17 % in FY2012 .to reach Rs 148 billion • Direct employment within the domestic IT-BPO sector expected to grow by 7 % • Creating immense job opportunities in Tier II and Tier III cities .

Bangalore • Now it is the turn of the Tier III cities or the smaller cities as corporate sector target them as 'India's Next Destination Cities'. . the tier II cities like Pune.close proximity to the most happening cities like Delhi.ITES Recent Trend • ITES and BPO companies vying for the smaller cities where they are promised • Better infrastructure. • Tier III cities . Mumbai. • State-of-the-art office spaces and • Skilled manpower. • Of late. Kolkata and Hyderabad have made business opportunities and infrastructural development like never before.

Key Drivers • Strong economic growth • Rapid advancement in technology infrastructure • Competitive organizations • Enhanced focus by government • Emergence of business models that help provide IT to new customer segments .

Impact on India’s Growth .

.Growth catalyst through active direct and indirect contribution • Employment and better standard of living • Transformed India’s image from slow moving economy to global player in providing world class technology solutions and business services. • Industry has helped India transform from a rural and agriculture-based economy to a knowledge based economy.Impact on India’s Growth • IT-BPO sector .

Key Growth Drivers • • • • • • Growing middle class Consumer spending Technology innovation Increasing adoption of technology Telecom by consumers Focused Government initiatives .

Knowledge Professionals .

• Service providers are effectively utilizing India’s talent pool by designing large scale talent re-engineering initiatives and employee engagement activities.Organizational Efforts Groundwork • Premier source of mass employment across the country. • Organizations were required to equip their employees with new set of skills • Foreign language capabilities. • This is enabling the industry to provide both end-toend and high-end value-added services across sectors . sales and marketing skills. financial) and business analytics. global business process knowledge. market. research (business.

setting up industry benchmark (NASSCOM Assessment of Competence) and IT-BPO Sector Skill Council (SSC) initiative . ~400.4 million graduates and postgraduates in FY2012 • India retains its dominant position as the leading country to churn out ‘Ready-to-hire’ pool of graduates. career development plans. mentorship programmes. • Industry-NASSCOM-Government initiatives to enhance longterm employability through finishing schools. up/cross-skilling.000. rewards & recognitions.ITES • India’s talent base expanding rapidly with an annual addition of nearly 4. supply side is taking several employee engagement initiatives to retain human capital– retention/performancebased bonuses.000500. in 2011 • Internally. etc. CSR initiatives.

miniscule till 2003. The sement.Global In-House Centres • Global In-House centres (GIC) have played a key role in the IT-BPO sectors phenomenal growth story. employing close to 4 lakh people and contributing to 1 per cent of India GDP. establishing ‘proof of concept’ and branding India as a global sourcing destination. . has witnessed tremendous development in the last 7 year’s – growing at a Compound Annual Growth Rate of 22 per cent.

• Their impact on India extends beyond revenues and employment. . spearheading initiatives to develop affordable products for emerging markets and creating entrepreneurship opportunities.playing a leading role in developing an R&D and product culture.

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Quality • An increasing number of IT-BPO companies continue to adopt global standards such as ISO 9001 (for Quality Management) and ISO 27000 (for Information Security). . India based centres account for the largest number of quality certifications achieved by any single country.

30 percent increase in performance certifications. . Most companies who have acquired quality certifications have invested in acquiring level 4 and 5 certifications exhibiting greater sophistication.• Over the last three years. there has been an 18 percent increase in the number of IT-BPO companies acquiring quality certifications. 20 percent increase in security certifications.

. and localised products. driven by increasing use of electronics.Engineering & R&D Services (ER&D) • The engineering design and products development segments generated export revenues of USD 10 billion in FY2012. growing by about 14 per cent. convergence of local markets. fuel efficiency norms.

• The Indian IT-BPO industry has invested significantly to strengthen their customer outreach and build engineering capacity and capability not only across new and existing verticals but also across the full spectrum of product development value chain .

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and data mining. . medical transcription. e-CRM.• ITES sector includes services ranging from call centers. data processing. claims processing. SCM to back-office operations such as accounting.