logging in or signing up IT AND ITES prataplata Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 664 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: August 24, 2010 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: anudeep746 (19 month(s) ago) Hi, This is a very interesting presentation, and I'd like to get a copy of it. Please send me a copy at my email: anudeep.palle@gmail.com Thanks and regards, anudeep Saving..... Post Reply Close Saving..... Edit Comment Close By: vijaysai99 (20 month(s) ago) Hi, This is a very interesting presentation, and I'd like to get a copy of it. Please send me a copy at my email: vijaysai99@yahoo.com Thanks and regards, Vijay Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript IT AND ITES : IT AND ITES IT & ITES Agenda : History Current Scenario IT & ITES Agenda History : IT and ITES industry has its roots in the mid-seventies The market size was small with export = $24 million in 1984 Liberalisation of the sector in 1990 IT revolution had its spin-offs on other sectors Source: The Indian Renaissance IT & ITES History History : IT Boom The Y2K Scare Dot-com boom Success of the Indian expatriates IT & ITES History IT Industry : IT & ITES IT Industry . BPO : BPO accounts for little less than half of the exports Emergence of domestic BPO is the key highlight for FY 2009 recording a growth of above 40 per cent in INR terms. The growth is led by the BFSI, Telecom and Airline industries and a greater vendor focus with specific service offering Revenue generated from BPO is $73.1 billion in 2008-2009 IT & ITES BPO Source : Nasscom Current Scenario : IT & ITES Current Scenario IT Services : Contributes to 57% of the total software and services exports Domestic IT services spends grew at over 43 % in FY2009 IT & ITES IT Services Source : Nasscom Current Scenario : 68 companies, 37 are private limited companies Export driven industry Share in GDP increased from 1.2% in 1998 to 6% in 2010 Share in global market increased from 3% in 2000-2001 to 6% in 2008-2009 Exports crossing $40.8 billion Source: Nasscom IT & ITES Current Scenario Slide 10: IT & ITES Current Scenario : Out of the total revenue 61% is from the US based clients and 78.8% from overall exports Volume growth addition of 2.2% due to the strengthening of the USD versus GBP, Euro Seven Indian cities account for 95 per cent of export revenues, focus on developing 43 new locations to emerge as IT-BPO hubs IT & ITES Current Scenario Source : Nasscom Current Scenario : IT & ITES Current Scenario As we can see that the largest source of income for the industry is the Banking and financial services sector which was severely affected during recession Source: Department of Information Technology Current Scenario : Employment growth at CAGR of 26% Direct employment reached 2.2 million with 1.7 million in exports segment IT & ITES Current Scenario Strengths : Cost leadership has been the competitive edge of the Indian software sector Innovation Breadth of service offering and innovation Specialised manpower A young demographic profile and over 3.5 million graduates and postgraduates that are added annually to the talent base IT & ITES Strengths Weakness : Foreign Exchange Rate Erosion of advantage of Labor Arbitrage Incompetent infrastructure Low focus on Research and Development IT & ITES Weakness Opportunities : Moving up value chain Emerging technologies Cloud Computing Internet based computing Customers rent third-party provider’s services Opportunities IT & ITES Moving Up Value Chain : Moving Up Value Chain IT & ITES Threats : Rising Employee Costs Foreign countries entering India Other low cost countries developing skills Deal sizes are getting smaller Threats IT & ITES Global View : 55% market share of the global off-shore market 35% market share of the global ITES/BPO market 28% of IT and BPO talent among 28 low-cost countries Regulatory environment Knowledge of English Time zone attractiveness USA remains the dominant market, higher growth in European/Asian market Global View IT & ITES Slide 20: Top-tier IT exporters are likely to continue their growth momentum despite weak European economies Latest visa restrictions imposed by the UK and a sharp depreciation in the pound and the euro against the dollar are less likely to have any major impact on the performance The announcement of a major cut in the IT budget by petroleum giant BP may have a marginal impact IT & ITES Effect of Recession : IT & ITES Effect of Recession Infosys : Offers services, turnkey projects and products for the domestic and export market Second largest IT Company in India Market capitalization of 160,026.58 cr Revenue for the year 2009-10 was Rs. 22742 cr compared to the previous years’ Rs. 21693 cr an increase of 4.83% IT & ITES Infosys Source : Infosys website Tata Consultancy Services : Offers application developmnent, testing, enterprise solutions, business & IT consultancy Largest IT Company in India Market Capitalisation Revenue for the year 2009-10 was Rs. 7000.64 cr IT & ITES Tata Consultancy Services Source : TCS website Patni Computers : Offers ADM, enterprise solutions, embedded technology, product engineering and services 4th largest company in the sector Profit – 542.73 cr IT & ITES Patni Computers Source : Patni website Factors affecting IT Industry : End of STP tax deduction benefits US President Barack Obama Declares a Bill on Tax Increase on Outsourcing High attrition rate SEZ The dollar fluctuations Factors affecting IT Industry IT & ITES Factors affecting IT Industry : End of the STP tax deduction benefits 10 years complete tax exemption on export profits. The finance act 2008 and 2009 extended the tax holiday by 2 years Benefits on indirect tax Central excise duty Customs duty Central sales tax Tax holiday will be available only until the fiscal year 2011 Factors affecting IT Industry IT & ITES Factors affecting IT Industry : Solutions for STP issue Shifting to SEZ SEZ enjoy the tax waiver benefits for 15 years as against only 10 years for STP Further tax waiver for VAT LST Increasing sops to STP’s Nasscom has requested the government to extend the sops for STP’s Factors affecting IT Industry IT & ITES Factors affecting IT Industry : US government has proposed to tax expenditure by US companies on availing services from outside the country from 2011 Benefits enjoyed due to outsourcing A service whose expenditure in US would cost 70-80$ can be outsourced and done in 10-15$ Also there was no tax on outsourcing money Reason for the Bill To generate employment in US Factors affecting IT Industry IT & ITES Factors affecting IT Industry : Affects of the Bill On India India will loose a big share of outsourcing in com. Many people will become job less Worst effect that even recession had On US Company costs will increase the services will become costlier Some companies will stop production or some services Factors affecting IT Industry IT & ITES Factors affecting IT Industry : High attrition rate At least 60,000 of the 171,000 workforce change jobs every year About 80% of them look for better leaders Attrition rates US 42% Australia 29% Europe 24% India 18% Global Average 24% Factors affecting IT Industry IT & ITES Corporate Social Responsibiltiy : Use IT services to enable programs Provide Databases Help maintain spreadsheets etc. Enable managers to View CSR information Improve decision making IT & ITES Corporate Social Responsibiltiy IT & ITES Corporate Social Responsibiltiy : Activities such as teaching rural women and their children computers, tree plantation drives, trusts etc. Examples:- Infosys Foundation Wipro cares Accenture development partnerships Tech Mahindra Foundation TCS IT & ITES Corporate Social Responsibiltiy Future Outlook : Services offered Business Process Outsourcing(BPO) Knowledge Process Outsourcing(KPO) Legal Process Outsourcing(LPO) Generation of Tier 1 and Tier 2 cities Innovation Infrasttucture Future Outlook IT & ITES BPO : BPO generated $ 14.8 billion revenues which is 20 % of the total of revenue of Indian IT Industry BPO Industry in India expected to grow at 20% Expected to reach $ 181 billion worldwide by 2012 CAGR of 12 % BPO Source: nasscom.com IT & ITES KPO : Greater skill, knowledge, education and expertise to handle the process is required KPO encompasses R&D, product development and legal e-discovery etc. GenPact, Evalueserve, Ugam Solutions are the top three companies in KPO KPO IT & ITES IT Infrastructure : IT industry needs the following infrastructure Telecom Power Roads and Transportation IT Parks IT Infrastructure Innovation : IT Industry has brought about a plethora of process, price, management and innovation ICICI Bank has changed the financial services industry with Internet banking and electronic payment systems Mindtree Consulting- for Knowledge Management ecosystem a holistic taking into view the entire lifecycle view of knowledge including knowledge creation and innovation, collaboration and knowledge sharing, and reuse. IT & ITES Innovation Union budget 2010 for IT : Union Budget 2010 failed meet expectations of IT sector of India FM failed to meet the extension of STPI (Software technology Park of India) in IT sector Tax Rebate has not been mentioned in the budget declaration and is expected to end on March 2011, the BPO are estimated to incur losses in future years. Allocation of Rs 1900 crore for UID (Unique Identity) project Union budget 2010 for IT IT & ITES Latest news and current happenings : Cognizant registered a net profit of 22% in Q1 to $172.2 million and its revenue increased by $145 million BSE IT index rose higher by 178 points to settle at 5,640.99 ; the best gainer in the 13 sectoral indices. TCS jumped 4.54%to touch a year-high of Rs 871. Wipro climbed 3.96% Infosys Technologies zoomed 2.99%while HCL Technologies advanced 2.94% Latest news and current happenings IT & ITES Latest news and current happenings : Infosys to hire 36,000 employees in FY 2010-11 TCS allotted the contract for providing total solution for the online voting during the October 2010 municipal polls in Gujarat Wipro to develop crime and criminal tracking network system (CCTNS) for Home Ministry Latest news and current happenings IT & ITES THANK YOU : IT & ITES THANK YOU You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
IT AND ITES prataplata Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 664 Category: Business & Fin.. License: All Rights Reserved Like it (0) Dislike it (0) Added: August 24, 2010 This Presentation is Public Favorites: 0 Presentation Description No description available. Comments Posting comment... By: anudeep746 (19 month(s) ago) Hi, This is a very interesting presentation, and I'd like to get a copy of it. Please send me a copy at my email: anudeep.palle@gmail.com Thanks and regards, anudeep Saving..... Post Reply Close Saving..... Edit Comment Close By: vijaysai99 (20 month(s) ago) Hi, This is a very interesting presentation, and I'd like to get a copy of it. Please send me a copy at my email: vijaysai99@yahoo.com Thanks and regards, Vijay Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript IT AND ITES : IT AND ITES IT & ITES Agenda : History Current Scenario IT & ITES Agenda History : IT and ITES industry has its roots in the mid-seventies The market size was small with export = $24 million in 1984 Liberalisation of the sector in 1990 IT revolution had its spin-offs on other sectors Source: The Indian Renaissance IT & ITES History History : IT Boom The Y2K Scare Dot-com boom Success of the Indian expatriates IT & ITES History IT Industry : IT & ITES IT Industry . BPO : BPO accounts for little less than half of the exports Emergence of domestic BPO is the key highlight for FY 2009 recording a growth of above 40 per cent in INR terms. The growth is led by the BFSI, Telecom and Airline industries and a greater vendor focus with specific service offering Revenue generated from BPO is $73.1 billion in 2008-2009 IT & ITES BPO Source : Nasscom Current Scenario : IT & ITES Current Scenario IT Services : Contributes to 57% of the total software and services exports Domestic IT services spends grew at over 43 % in FY2009 IT & ITES IT Services Source : Nasscom Current Scenario : 68 companies, 37 are private limited companies Export driven industry Share in GDP increased from 1.2% in 1998 to 6% in 2010 Share in global market increased from 3% in 2000-2001 to 6% in 2008-2009 Exports crossing $40.8 billion Source: Nasscom IT & ITES Current Scenario Slide 10: IT & ITES Current Scenario : Out of the total revenue 61% is from the US based clients and 78.8% from overall exports Volume growth addition of 2.2% due to the strengthening of the USD versus GBP, Euro Seven Indian cities account for 95 per cent of export revenues, focus on developing 43 new locations to emerge as IT-BPO hubs IT & ITES Current Scenario Source : Nasscom Current Scenario : IT & ITES Current Scenario As we can see that the largest source of income for the industry is the Banking and financial services sector which was severely affected during recession Source: Department of Information Technology Current Scenario : Employment growth at CAGR of 26% Direct employment reached 2.2 million with 1.7 million in exports segment IT & ITES Current Scenario Strengths : Cost leadership has been the competitive edge of the Indian software sector Innovation Breadth of service offering and innovation Specialised manpower A young demographic profile and over 3.5 million graduates and postgraduates that are added annually to the talent base IT & ITES Strengths Weakness : Foreign Exchange Rate Erosion of advantage of Labor Arbitrage Incompetent infrastructure Low focus on Research and Development IT & ITES Weakness Opportunities : Moving up value chain Emerging technologies Cloud Computing Internet based computing Customers rent third-party provider’s services Opportunities IT & ITES Moving Up Value Chain : Moving Up Value Chain IT & ITES Threats : Rising Employee Costs Foreign countries entering India Other low cost countries developing skills Deal sizes are getting smaller Threats IT & ITES Global View : 55% market share of the global off-shore market 35% market share of the global ITES/BPO market 28% of IT and BPO talent among 28 low-cost countries Regulatory environment Knowledge of English Time zone attractiveness USA remains the dominant market, higher growth in European/Asian market Global View IT & ITES Slide 20: Top-tier IT exporters are likely to continue their growth momentum despite weak European economies Latest visa restrictions imposed by the UK and a sharp depreciation in the pound and the euro against the dollar are less likely to have any major impact on the performance The announcement of a major cut in the IT budget by petroleum giant BP may have a marginal impact IT & ITES Effect of Recession : IT & ITES Effect of Recession Infosys : Offers services, turnkey projects and products for the domestic and export market Second largest IT Company in India Market capitalization of 160,026.58 cr Revenue for the year 2009-10 was Rs. 22742 cr compared to the previous years’ Rs. 21693 cr an increase of 4.83% IT & ITES Infosys Source : Infosys website Tata Consultancy Services : Offers application developmnent, testing, enterprise solutions, business & IT consultancy Largest IT Company in India Market Capitalisation Revenue for the year 2009-10 was Rs. 7000.64 cr IT & ITES Tata Consultancy Services Source : TCS website Patni Computers : Offers ADM, enterprise solutions, embedded technology, product engineering and services 4th largest company in the sector Profit – 542.73 cr IT & ITES Patni Computers Source : Patni website Factors affecting IT Industry : End of STP tax deduction benefits US President Barack Obama Declares a Bill on Tax Increase on Outsourcing High attrition rate SEZ The dollar fluctuations Factors affecting IT Industry IT & ITES Factors affecting IT Industry : End of the STP tax deduction benefits 10 years complete tax exemption on export profits. The finance act 2008 and 2009 extended the tax holiday by 2 years Benefits on indirect tax Central excise duty Customs duty Central sales tax Tax holiday will be available only until the fiscal year 2011 Factors affecting IT Industry IT & ITES Factors affecting IT Industry : Solutions for STP issue Shifting to SEZ SEZ enjoy the tax waiver benefits for 15 years as against only 10 years for STP Further tax waiver for VAT LST Increasing sops to STP’s Nasscom has requested the government to extend the sops for STP’s Factors affecting IT Industry IT & ITES Factors affecting IT Industry : US government has proposed to tax expenditure by US companies on availing services from outside the country from 2011 Benefits enjoyed due to outsourcing A service whose expenditure in US would cost 70-80$ can be outsourced and done in 10-15$ Also there was no tax on outsourcing money Reason for the Bill To generate employment in US Factors affecting IT Industry IT & ITES Factors affecting IT Industry : Affects of the Bill On India India will loose a big share of outsourcing in com. Many people will become job less Worst effect that even recession had On US Company costs will increase the services will become costlier Some companies will stop production or some services Factors affecting IT Industry IT & ITES Factors affecting IT Industry : High attrition rate At least 60,000 of the 171,000 workforce change jobs every year About 80% of them look for better leaders Attrition rates US 42% Australia 29% Europe 24% India 18% Global Average 24% Factors affecting IT Industry IT & ITES Corporate Social Responsibiltiy : Use IT services to enable programs Provide Databases Help maintain spreadsheets etc. Enable managers to View CSR information Improve decision making IT & ITES Corporate Social Responsibiltiy IT & ITES Corporate Social Responsibiltiy : Activities such as teaching rural women and their children computers, tree plantation drives, trusts etc. Examples:- Infosys Foundation Wipro cares Accenture development partnerships Tech Mahindra Foundation TCS IT & ITES Corporate Social Responsibiltiy Future Outlook : Services offered Business Process Outsourcing(BPO) Knowledge Process Outsourcing(KPO) Legal Process Outsourcing(LPO) Generation of Tier 1 and Tier 2 cities Innovation Infrasttucture Future Outlook IT & ITES BPO : BPO generated $ 14.8 billion revenues which is 20 % of the total of revenue of Indian IT Industry BPO Industry in India expected to grow at 20% Expected to reach $ 181 billion worldwide by 2012 CAGR of 12 % BPO Source: nasscom.com IT & ITES KPO : Greater skill, knowledge, education and expertise to handle the process is required KPO encompasses R&D, product development and legal e-discovery etc. GenPact, Evalueserve, Ugam Solutions are the top three companies in KPO KPO IT & ITES IT Infrastructure : IT industry needs the following infrastructure Telecom Power Roads and Transportation IT Parks IT Infrastructure Innovation : IT Industry has brought about a plethora of process, price, management and innovation ICICI Bank has changed the financial services industry with Internet banking and electronic payment systems Mindtree Consulting- for Knowledge Management ecosystem a holistic taking into view the entire lifecycle view of knowledge including knowledge creation and innovation, collaboration and knowledge sharing, and reuse. IT & ITES Innovation Union budget 2010 for IT : Union Budget 2010 failed meet expectations of IT sector of India FM failed to meet the extension of STPI (Software technology Park of India) in IT sector Tax Rebate has not been mentioned in the budget declaration and is expected to end on March 2011, the BPO are estimated to incur losses in future years. Allocation of Rs 1900 crore for UID (Unique Identity) project Union budget 2010 for IT IT & ITES Latest news and current happenings : Cognizant registered a net profit of 22% in Q1 to $172.2 million and its revenue increased by $145 million BSE IT index rose higher by 178 points to settle at 5,640.99 ; the best gainer in the 13 sectoral indices. TCS jumped 4.54%to touch a year-high of Rs 871. Wipro climbed 3.96% Infosys Technologies zoomed 2.99%while HCL Technologies advanced 2.94% Latest news and current happenings IT & ITES Latest news and current happenings : Infosys to hire 36,000 employees in FY 2010-11 TCS allotted the contract for providing total solution for the online voting during the October 2010 municipal polls in Gujarat Wipro to develop crime and criminal tracking network system (CCTNS) for Home Ministry Latest news and current happenings IT & ITES THANK YOU : IT & ITES THANK YOU