Presentation On: IT and ITES Industry

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Presentation on

IT and ITES Industry


ITES
 Refers to Information technology enabled services.

 Delivery of services through the use of information


technology.

 ITES services are diverse in nature.

 customer interactive services and back office


operations for remote customers.
SERVICE STRUCTURE
 India is referred to as the back office of the world
owing mainly to the Information Technology-enabled
Services (ITeS) sector
 Started with basic data entry tasks over a decade ago
 It now offers services such as knowledge process
outsourcing (KPO), legal process outsourcing (LPO),
games process outsourcing (GPO) and design
outsourcing among others.
EVOLUTION OF THE INDUSTRY
 ITES evolution can be divided into four phases as
follows:
 First Phase : MNCs establishing units in India (Pre
1997)
- GE,British airways,HSBC etc.
 Second Phase : Entry of established software co.
(1997 – 2002)
 Third Phase : Geographical dispersion of Activities
(2002-2004)
 Fourth Phase : Move towards acquisitions ( 2004
Onwards )
On a steady growth track
Contd…
Revenues
IT/ITeS : Primary factors
 Cost
 Labor cost
 Infrastructure costs
 Exchange rates

 Labor competitiveness
 Size
 Level of education
 compatibility

 Other Factors
 Business and political risks
 Geographical location
 Regulatory considerations
Advantage India
 Most obvious driving fact is the advantage of cost
efficiency.
 Other factors that influence the decision:
 Flourishing IT education market
 Broad skill sets of Indian computer professionals
 Telecom and IT infrastructure on par with global
standards
 Advantage of 12-hour time lag with US.
 Amicable demographic environment.
Contd…
 Encouraging business environment, simple rules and
procedures
 Foreign investor friendly tax structure for ITES/BPO
industry
 Proactive policies and incentives by the government
 Large English speaking work force
 Better productivity, 24x7 services
 Low wage levels of the Indian labor force
Established IT/ITeS Hubs
Emerging IT/ITeS destinations
Global Comparison….
Global Comparison
Major Players
India's Top Software companies India's Top BPO firms

1 TCS 1 Genpact

2 Infosys 2 WNS

3 Satyam 3 Wipo BPO

4 Wipro 4 HCL BPO Services

5 IBM 5 ICICI One Source

6 IBM Daksh

7 Progeon
Top 4 companies have 8 Aegis BPO Services
80% market share
9 EXL Service Holdings

10 24/7 Customer
Road ahead
 The Indian animation industry is rapidly growing as a major
outsourcing hub with a growth rate of 30 per cent.
 The Indian KPO sector is estimated to become a US$ 10 billion
industry by 2012, from the current size of US$ 4 billion.
 Becoming a hot destination for outsourced e-publishing work. As
per a Confederation of Indian Industry (CII) report, the industry is
growing at an annual rate of 35 per cent and India's outsourcing
opportunities in the value-added and core services will help make
the publishing BPO industry worth US$ 1.46 billion by 2010.
 As per a CRISIL study, engineering services outsourcing (ESO)
the next big opportunity in the Indian outsourcing services
industry is likely to grow at a compounded rate of 26 per cent and
post revenues aggregating around US$ 7.5 billion by 2012.
Presented By: Amit Kumar
IMG/08-10/001

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