Indian IT BPM sector in India 2013 - A Summary

IT-BPM Sector Key Trends

THE IT-BPM
SECTOR IN INDIA
Strategic Review 2013

IT Services

Software
Products OSPD
BPM

Knowledge
Services

Engineering

Copyright ©2013

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First Print: February 2013

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organisation and has emerged as the authentic voice of this industry in India. It is also the single reference point for all
information on IT industry in India. NASSCOM publishes an annual edition of its Strategic Review to disseminate the latest
status of the industry.

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FOREWORD

2012 turned out to be another year where uncertainty was the only thing that was
certain. Persistent economic weakness continued to sap our abilities to address
environmental challenges. But shocks are more than just natural phenomenon and,
as events since 2008 show, they are increasingly systemic – transcending boundaries
between geographies, markets and polities. In an interdependent, fast moving world,
uncertainties are amplified – exposing many and insulating few. This presents new
challenges for public and private sectors which need to be more agile and able to
experiment with different development solutions in the face of rising complexity
and improbabilities. This in turn is the new role of technology in general, to enhance
customer capabilities, help open untapped markets, drive transformation and create
a positive impact on business outcomes.

The Indian IT-BPM industry has remained a global powerhouse because it has not
remained a stationary target. It has exhibited rapid evolution in terms of expanding
their vertical and geographic markets, attracted new customer segments, transformed
from technology providers to strategic business partners, and offering a considerably
wider spectrum of services over the years. What is emerging as a crucial differentiator
going forward is the Indian industry’s ability to deliver enterprising solutions- IP driven,
multi-platform and productised services. At the same time, the industry is leading the
drive to design solutions incorporating social, mobile, analytics and cloud technologies
to provide innovative, enterprising answers to the unique challenges of this decade.
The industry is The Indian IT-BPM sector is estimated to aggregate revenues of USD 108 billion in
re-shaping itself FY2013, with exports touching USD 75.8 billion, growing at 10.2 per cent. During this
period, direct employment is expected to reach nearly three million, an addition of
to maintain 188,300 employees, while indirect job creation is estimated at 9.5 million. Domestic
IT-BPM services revenue is expected to grow at 14.1 per cent to gross ` 1,047 billion
its growth in FY2013. Strong economic growth, rapid advancement in technology infrastructure,

trajectory. Its increasingly competitive Indian organisations, enhanced focus by the government and
emergence of business models that help provide IT to new customer segments are key
outlook remains drivers for increased technology adoption in India.

bright and NASSCOM reaffirms its commitment to facilitate the industry’s growth towards
its 2020 vision. This report assesses various factors relating to the Indian IT-BPM
the sector will sector performance and key trends in the current fiscal year (FY2013), reviews the key

remain a game components of India’s value proposition and provides a view on the outlook projected
for the global and the Indian IT-BPM sector. This annual report is the only one of its

changer in kind assemblage of facts and indicators, and an apogee of NASSCOM’s research efforts
throughout the year. We trust you will find the report useful and we welcome your
this decade. feedback and comments.

Som Mittal
President

Nasscom Strategic Review 2013 1


About NASSCOM

Delhi Kolkata
Chennai
Pune u s tr y r
Hyderabad ind e
Mumbai
Years of

f

ve
NASSCOM

95 % o
Thiruvananthapuram

n u es
Bengaluru

d
tere
gis Over 1,400
Re
members
2000x growth 1998
Represents IT, BPM, (USD 0.05 billion) -
ER&D, Products
Indian Societies Act
2012 (USD >100 billion)

Established: 1988

What we do

Set Strategic Best practices, International Incubate and
direction for sharing and partnerships Workforce build new
development sectors
industry collaboration and Policy

Activites and Member Exclusive
Policy Global Trade
Advocacy Development Entrepreneurship Domestic IT

Membership Industry Enabling
Engagement Development Environment Sustainability

Network with multiple stakeholders
Engage, strategise through specific through international delegations
sectoral forums and initiatives and events

Peer learning and sharing, Build brand and Access research and
mentor emerging organisations leadership thought leadership

Affiliated Organisations:

2 NaSSCOM Strategic Review 2013


Global economic outlook continues to be cautious…

Global economic outlook
– Cautious optimism
GDP growth rates for 2012-2013, per cent Global sourcing market size
USD billion

4.9
3.9 Total sourcing market
3.6 3.5 (ITO, BPM) – grew
3.5 3.5 ~2X global IT spend
3.3 3.2
~9%
April-2012 July-2012 October-2012 January-2013
114-118 124-130
Forecasted in
70-72 76-80
2012 2013P 44-46 48-50

…Austerity measures
affect technology spend:
~5 per cent growth in 2012 BPM
IT
Outsourcing BPM
IT
Outsourcing

Worldwide IT-BPM spend
USD billion

Global IT-BPM market recorded growth of 4.8 per cent in 2012 2011 2012
2011: USD 1.8 trillion*
~7 per cent growth; 2012: USD 1.9 trillion*
new users from
rising lower/middle 2011 Segment growth remains
class in emerging
markets; datacentre 748
2012
positive, bolstered by IT
consolidation 797
outsourcing and F&A services
Hardware
USD billion
269
278 IT Services
627 156
Packaged Software 3.9%
648 164
3.4% Hosted application
IT Services Business Process
Management 3.3 per cent management
growth; industry and hosted
222
went through major 268 infrastructure
2.2% services recorded
Grew 3.3 per cent; 4.9 per cent transformation,
applications and growth (slightly from basic SOA to 158 highest growth
services built around above industry the way software
average); platform is delivered (SaaS). Support & Project IT
third platform Training Based Outsourcing
(social, mobile, solutions, bundling The disruption to Services
analytics/big data BPM with analytics, pricing and platform
and cloud) mobile enablement delivery models
of business accelerated software BPM Growth areas
processes – deliver spending 5.5% remained more
value beyond cost profound in
3.7% procurement and
Grew ~4 per cent; primary F&A where there
drivers include technological 6.4%
has been a strong
1,311 advances, competitive landscape platform play
1,350- 58 3.5%
1,400 (deconsolidation in automotive) and 48
consumer preferences (for e.g., in 31
ER&D medical devices, low-cost products 23
for emerging markets) 10.5%
3
* Excluding ER&D Growth
Customer HR HRO F&A Procurement
Source: Booz & Company, Everest Research, Forrester, Gartner, IDC, IMF NASSCOM Care 2012



The year of transformation for the IT-BPM industry

Exports mainstay of the industry, domestic market growing
IT-BPM revenue break-up
USD billion
Hardware 13 IT services > 50 billion
Domestic ER&D &
108 Software 18 BPM > 20 billion
Exports 101 Products
88 32 21
69.4 73.9 32 BPM
Domestic
29 market growing higher
21.9 23.8 than exports

59 69 76 IT Services 56
47.5 50.1 Exports grow double-
digit >10 per cent
in FY2013

FY2009 FY2010 FY2011 FY2012 FY2013E FY2013E

Player diversity Industry landscape
47-50 per cent of revenue Large-sized
~35-38 per cent of (~ USD 1 billion)
total employees

16-18% 32-35 per cent of revenue Mid-Sized
~28-30 per cent of (USD 100 million–1 billion)
GIC total employees

Emerging (USD
~9-10 per cent of revenue
12-14% ~15-20 per cent of
10–100 million)
67-70% total employees
MNC

ISP

9-10 per cent of revenue Small/Start-Ups
FY2012 ~15-18 per cent of total employees (<=USD 10 million)

IT-BPM: Highest impact sector for India

Relative to India’s GDP ~8% ~7% FDI share
Grew > 6X in the last 15 years Ranked 4th in India’s total FDI share

Relative to India’s exports 23-25% PE/VC investments
usd 3.2 Accounts for 37%, of the total
IT-BPM exports > 6X in the last 15 years billion investments in India
Direct employment 3
One of largest organised private sector ~380 Cross border acquisitions (FY2008-12)
employers in India million

Share in Global sourcing market 52% 580 Offshore delivery centres

ISP: Indian Service Provider, MNC: Multinational Company, GIC: Global In-house Centre
Source: NASSCOM



India’s IT-BPM industry: Resiliance in challenging times

Demand surge in Europe, the highlight of the year
Emerging regions
US RoW
APAC Traditional markets comprising
US and UK contribute
> 70% of exports
2.2%

7.8%
Continental Europe Y-o-Y growth:
UK: 10.8%
2%

11.4% Continental Europe:
7%
9.9%
12% APAC: 10.7%

Despite uncertainty, Europe

61% 18% 17.1% UK and RoW driving growth

APAC revenues deflated
due to dollar appreciation,
61.5% actual volume growth
significantly high

Pipeline for Europe remains
strong as the region opens
FY2010 up to IT as an enabler for
increasing profitability
FY2013E and growth

IT-BPM exports by serviceline Vertical-wise* break-up
Mature outsourcing
Integrated, Changing business verticals – BFSI,
end-to-end services models, solutions Const & Utilities manufacturing and
across segments, new
service offerings –
around disruptive 3% telecom contributed
technologies and T&T MPE over 75 per cent
XaaS, mobile-enabled verticalised structures of exports
and verticalised key enablers
3% 2%
Healtcare
5% Others
Hardware <1% 2%
ER&D, Sw. Prod. 19% Retail BFSI
BPM 23% 10% 41%
IT services 58% FY2013E
Total 100%
FY2013E
Manufacturing
16%
Hi-tech/Telecom
18%
100%=USD 76 billion
E: Estimate; *Excludes hardware exports
T&T: Travel & Transportation, MPE: Media, Publishing & Entertainment; Others: Include Government, Education
Source: NASSCOM



IT services increasingly driven by IS outsourcing,
BPM by knowledge based services

IT services: Software testing and IS outsourcing fastest
growing segments
IT services
100% = USD ~44 billion mainstay

Fastest
growing

37%
<1% Highest
1% value-add
14% 17%
1% 11%
6% 7%
3%3%

Hw IT Network IT SI Sw Software Others Application IS CAD
deploy/ education consulting Consulting Deploy/ Testing Management outsourcing
Support and & integration Support
training

BPM Exports: Value addition and analytic key drivers
100% = USD 18 billion

Customer
Interaction Finance & Accounting
Firms increasingly focus
41% HR Outsourcing 23% on analytics-based Others Market
insights; verticalisation
2% redefining FAO business 2% Research
6%
Other Horizontals
1% Procurement Data
& Logistics 1% Management
Vertical-specific
BPO Services 11%
Business
14% Research USD
42% 3.2 billion Legal
services
18%
Analytics

Knowledge Services
21%
18%

Horizontal services,
contributing
about 86 per cent, Need to make
continues to be the informed data-
largest segment driven business
in BPM decisions and predict
customer behaviour
driving growth
E: Estimate



Incremental growth coming from emerging technologies
for OSPD, products and ER&D

Software products driven by SMAC Technology
USD billion
Vendor-Customer relationship:
Focus of 1.6 Offer consulting services –
product
development 1.5 Software
product, technology roadmap
around SMAC Co-innovate products
technologies Products Extended marketing team for
1.4 clients
1.2
Cloud technology
OSPD
expanding access
ISVs traditional
to larger customer
clients; demand
base and driving
FY2012 FY2013E emerging from
demand for hosted
non-IT, Industrial
applications
clients

ER&D account for ~15 per cent of exports; to cross USD 11 billion

Application
optimised storage,
miniaturisation,
energy efficiency

Others*
20% Telecom
30%
Energy
Mobile-cloud,
4% device and
network

Medical devices
FY2013E convergence

3%
Consumer
Electronics Semicond.
Homecare
solutions, 5% 20%
medical robotics, Aerospace Auto
wearable 6% 12%
technologies Optoelectronics,
Connectivity, sensors/MEMs
device
convergence,
digitisation

Sustainability, Energy efficiency,
safety Convergence,
electronics
efficiency,
miniaturisation
Green energy, driving force
integrated avionics, for ER&D
E: Estimate electronic content
* Includes Computing Systems, Construction/Heavy Machinery, Industrial Automation, Infrastructure
Source: Zinnov, NASSCOM



Domestic IT-BPM: Consumerisation driving demand

Domestic IT-BPM Domestic IT-BPM: Break-up by Segment
Revenue ` billion
` billion
1,533 1,745 Demand for
notebooks, tablets,
iPads, Data storage,
FY2013E
1,745 FY2012 FY2013E analytics, datacentres
for IT infra
615 698
Hardware FY2013E
13.5%
FY2012
1,533 Driven
by SI, IS
589 674 outsourcing,
Cloud services
FY2011 14.5%
IT Services
1,321 14.0%
180 205 Driven by
FY2010 demand for
Software
1,139 Products 14.0%
ent-app, cloud
mobility
FY2012
167
FY2009 148
Demand for
1,003 BPM
12.7%
Analytics,
HRO

India’s Connected Consumers: We are increasingly social!

Telecom subscribers: Social network users: Broadband subscribers: Households with
internet access:
921 million >70 million 15 million
29 million
(Second largest in the
world after China)

Mobile subscribers: Facebook users: Internet subscribers: 75 per cent of netizens:
891 million 65 million 24 million <35 years of age
Mobile internet users: (Third largest country Internet users: 150
87.1 million (est.) on Facebook) million (est.)

Online retail:
PC installed base: LinkedIn users: Online Indians:
>37 million
25 million 18 million >120 million
unique visitors
(As of 2011; Zinnov’s (Second largest user base (Third largest after US
(3 of 5 online Indians visit online
Enterprise Mobility report) after US) and China)
retail sites; growth of 43 per cent)

Source: comScore, IAMAI, IMRB, socialbakers.com, TRAI, NASSCOM



India: Four segments driving technology adoption

IT Spending in Enterprises IT Spending in Government IT Spending by Consumers IT Spending by SMBs
` billion ` billion ` billion ` billion

6% ~11% ~22% ~13.5%

262

217

454
812

230

400
183
720

12
20
FY 13E
20
FY

12
20
12 12 FY 13E
20 20 20
FY 13E FY 13E FY
20 20
FY FY

SMBs
• nnovation,
I
New Products

Consumers • educing Costs
R

• Online Transactions • nable Competitiveness
E
Government • nfotainment
I • Increase Reach

Enterprises • Increase Transparency • Tailing
e
• Expansion and Innovation • Lower Pilferage
• Connectivity
Boost Revenue
• Cost Optimisation Collection
• nhance Competitiveness
E • Implement Reforms

• Increase Reach • Increase Reach

Domestic IT-BPM End-user Trends
• reater focus on software
G • Increased need for
• Convergence and
• ndia, a launch pad for
I
and services – process custom application connected devices global products
automation, innovation, development
analytics • rowing demand for
G • nhanced adoption
E
• Solutions around cloud
smartphones, tablets, of cloud, cluster area
• I and managed services
S and mobility iPads, etc. network
dominate
• Shared IT infrastructure
• rowing eContent –
G • MAC being leveraged
S
• loud seeing greater
C music, books, news, for differentiation
traction • Use of GIS, RFID, GPS,
education, games, etc.
biometrics, smart card, • ncreasingly adopting
I
• etail, energy, healthcare -
R etc. • emand for
D websites and SEO to
intensifying IT adoption eCommerce, gaming, market themselves
mobile applications and compete

Source: NASSCOM



Customers: Cost to innovation – Technology providers to
strategic business partners

Change in customer’s business requirements

Drive innovation Focus on overall Democratisation Real-time insights
from end customer experience and service of empowerment and predicability
point of view replacing product play in customers and through analytics
in the customer value internal employees
proposition

Industry moving up the value chain, initiating non-linear play
and extending cost advantage

High
Initiate non-linear
Moving up Value Play Offerings –
Chain Products, Platforms,
Non-Price Value

Software assets,
Offerings – Consulting and Solution Accelerators
SI, Specialised voice
Through – Global delivery
and workforce
Extending Cost
Advantage
Offerings – RIM, Testing,
BPM Through – Changing
employee mix, pyramid,
tier II/III
Low
High Cost Low

Industry offering Enterprising solutions- IP led, multi-platform,
productised services
Service
Parameters Delivery Pricing Resourcing Markets Impact
parameters
Enterprise
Services

Custom/people-driven, Input-based, Build to order, Developed Cost
India-centric, linear TM vertical-specific geographies, Fortune
500, BFSI+ Telecom
Enterpris-Ing

Capacity/IP-driven, Pay as you go, fixed, Integrated, Developed + developing Cost, revenues,
Solutions

global delivery, multi- gainshare end-to-end, SMAC geographies, Fortune profits, cash flows
platform, customer- 500+ SMBs, all
centric, transformative verticals

Source: Wipro Ltd, NASSCOM



Industry looking to expand both customer base and focus

Globalisation, domain and innovation key focus
Follow the Customer Million Dollar Clients*
Global Network (nos)

75* 1,827
52* 1,398

2008 2012 2008 2012

• irms continually growing their global
F
presence to leverage resources, skills – • teady increase in number of million dollar
S
multi-location suppliers clients despite slowdown

* Number of countries present

Verticalisation-BPM per cent Strong Demand Pipeline* Non-Top
Exports from Verticalised Services five Client Contribution

30-32% 84%
22-24% 82%

2008 2012 2008 2012
• erticalisation emerging as key differentiator –
V • irms expanding beyond large clients – many
F
firms offering end-to-end services across offer focused solutions for emerging, SMBs and
specific verticals start-ups

…And driving innovation and differentiation
IP Filed Top three IT Firms Solutions around SMAC* Offering Niche Solutions
SMB-per cent of IT-BPM revenue
3%

858

40%
13%
8% FY2008
2012 2012 FY2013
76 2008 2008
• MB customers emerging as a key
S
• umber of patents filed by Indian
N • irms deploying SMAC offerings as
F growth engine with suppliers adopting
IT organisations grew at CAGR adoption increases across both large SMB-specific strategies – pricing,
83 per cent enterprises and SMBs dedicated sales teams/channels, etc.

* Percentage of top 100 IT-BPM firms in India offering solutions around SMAC technologies
* Based on the data of top-four IT-BPM firms
Source: Industry reporting, secondary sources, press releases, company websites, NASSCOM



~3 million workforce contributing to industry growth

Direct Employment (’000)

7% Foreign nationals employed

100,000

Indirect ~9.5 mn
640
601
FY2013E
917
879 2,776 2,964
FY2012

1,407 Direct ~3.0 mn
1,296

~30-35%
FY2012 FY2013E
women employees
IT Service Export BPM Exports IT-BPM Domestic

Industry Skill Base Talent Output
Three-year Engineering
Other Specialists Postgraduates
Diploma/MCA
(Doctors, Lawyers, PHDs) 6% 6%
3% Others Graduates
Others
4% 9%
Financial Specialists Science Graduates)
(CAs/CPAs) 5% 12%
Postgraduates Commerce Graduates
(Includes MBAs) 12% 14%
Engineering Four-year Engineering
Graduates) 30% Diploma Degree 16%

Graduates (except Art + Other Graduates
Engineering) 46% 36%
FY2013E FY2013E
Total Total
2.9 million 4.74 million

Most diverse World’s largest
E: Estimate skill base employable pool
Source: NASSCOM



India emerging as hot-bed for technology start-ups

Fast maturing start-up Entrepreneurship on the rise
ecosystem
400 450
32% Serial
335 Entrepreneur

162
Operational
57% Start-up (First
Venture)
2005 2009 2011 2012
Number of start-ups 11% Potential
Entrepreneur

Bengaluru, NCR leading the VC/Angel investment driving
start-ups destination growth
Hyderabad 3% Chennai 6%

Pune 3% Others 10% Ot 6.2
rs
he
Mumbai 10%
2
Clean.7
43.0%
Delhi/NCR 32% tech Internet
Bengaluru 36% 3.1
Finance
FY2012 3.1

M 6.1%
Healthcare

ile
ob
1
uc %
ion

s
Se .4%

ftw %
ce
Ed 5.4
at

e
ar
rvi

So 0.8
9

1
IT

Distribution by cities

Emerging opportunities driving growth
Cloud/Big Data/Other emerging
32%

29%
technologies

Education

21%

Business Productivity
18%
Social Media
18%

18%

Communication
14%
Websites online
14%
Mobile

eCommerce
14%
Devices/OEM /
11%
Tools

IT services

Healthcare
11%
listings

Hardware

Domain Focus by Start-ups
Source: NASSCOM, Zinnov



Indian providers are creating new business streams, enabling
consumerisation and enhancing process through mobility

New business streams, consumerisation and process efficiency:
Building blocks of enterprise mobility

Profitable Market Embracing Newer
Opportunities
• lobal addressable market to reach around
G Enterprise • Mobile enterprise application platform
USD 140 billion by 2020, a CAGR of ~15% Mobility • obile device management; internal app store
M
• orth America to remain the largest
N
market; APAC to grow fastest at ~21% • Embedded platforms for mobile

• ndia, expected to be a big market;
I • ystem integration expertise and consulting
S
capabilities need to be aligned strategically • obile VAS services for telcos
M

India: A Distinctive
Market
• obile-enabled business processes
M
• eaching customers at POS (m-payment,
R
m-commerce, m-retail, m-banking)
• ew revenue streams (surveillance and
N
monitoring, eGovernance, patient care,
supply chain)

Advanced Analytics for distilling better Intelligence gained from
customer and enterprise data
• Global market to grow at 45% annually to reach ~USD 25 billion by 2015
• North America to provide the major opportunities
• ndian market to grow from ~USD 200 million in 2012 to ~USD 1.0 billion in
I
2015, a CAGR of ~83%
The Next Big Market
1
• nfrastructure, big data management and storage;
I
Infrastructure-as-a -Service (IaaS)
• mplementation and analytics tools
I
• elivering real-time insights and end-to-end data analytics
D

Big 2 • dvanced visualisation applications
A
Data • dvanced analytics (predictive and descriptive modelling and optimisation)
A
Immense
Opportunities • ext generation sequencing and mapping
N
• ehavioural/sentiment analysis
B
The New Frontier
3 for Innovation

Source: NASSCOM



Indian Enterprises are leveraging cloud to monetise
Business (cost and productivity) and identify new delivery
models (innovation)

Monetising existing resource base
The global cloud
Indian providers are considerably enhancing their revenue generating potential by
opportunity monetising the existing resources

01
expected to
• Leveraging cloud as Business Process-as-a-Service

reach USD
650-700 billion • Cloud-enabled processes/solutions through pay-per-use-model
while domestic
opportunity to Developing new industry specific applications
reach USD 15-18
billion by 2020 Cloud computing offers significant potential to innovate and achieve market facing
differentiation

• Global SaaS to be

largest segment
contributing USD
02 • Scalable test beds for cloud-specific software testing and management

• Virtualised and cloud-ready hardware; Infrastructure-as-a-service, computing platforms

and datacentres
230-245
Building new business models
• IaaS and PaaS

to touch USD Indian organisations are modifying their businesses and operating models to leverage
maximum synergies from cloud
140-150 billion
and USD 40-
45 billion,
respectively
03 • Self-service BPM platform models enabled by cloud and automated service delivery

mechanisms

• Licensed to subscription based software deployment models

Social Media Analytics: Newer Opportunities to expand market to
USD 6.4 billion by 2016

Consulting to customers World-class technology
to easily adopt social solutions to address
media and work closely customers’ social
with clients to evolve media requirements
strategies, roadmap and and integrate with
implementation to enhance CRM initiatives, BI, Technology
Consulting business effectiveness Customer Analytics Solutions

Media engagement Insights and analysis
solutions for a services based on
real-time engagement customer feedback, brand
on a global scale proficiency to gauge with
further insights

Engagement Analytics and
Solutions BI offerings
Source: Press Release, Industry
Press, NASSCOM



India’s value proposition built across five parameters

60-70% ~36-37%
more cost-efficient of world
than US

Human Capital
Cost Competitive
Largest
Optimum cost
employable pool
Operational
flexibilities, Diverse
efficiencies background
Agility Experience
and domain
expertise

15-20%
more cost-efficient than Strong Ecosystem
next lowest cost country
Competitive
infrastructure
43 Focus on untapped
Tier II/III cities
potential locations
Industry presence 40%
580 ODCs across entire of top 100 firms offer
across 75 spectrum SMAC solutions
countries

Customer Focus
Scalability,
Security Customer centric
business outcomes
Mature global
delivery network End-to-end
services
Business
continuity, Niche and domain
security capabilities
governance ~78%
increase in patents
filled over 2009-2012

World’s No. 1 Sourcing Destination - 52 per cent share

Source: Everest Research, NASSCOM



India: Only country to offer full spectrum of IT-BPM services

Customers

World Presence

Verticals Portfolio

Players Portfolio

Ownership Profile

Full Gamut
of Services

India continues to be the lowest cost location for IT-BPM services
Operating cost per FTE for IT Services: ADM 2012 USD ‘000/per annum

Operating cost per FTE for BPM Services: Transactional FA 2012 USD ‘000/per annum

o st ey la ai tro uru
r II Pau
l
ape terr Kua pur ngh est Me ila gal
Tie gue ne har Ben
US Sao Pra Bud Mo Lum Sha Buc Ma
n

Source: Everest Research, NASSCOM



Global tech spend set to improve – grow ~6 per cent in
2013…

Global Technology Spend Indian IT-BPM Revenues*
growth per cent USD billion

6%
Growth
5%
5%
12-14% 13-15%
7.5 5.4
Hardware
84-87
6.6
6.5 6.8
Software
3.3
76 22-24
BPM 5.3 5.4
IT Services
4.9
4.2 4.6
19
3.3
FY2012

2014P
2013E

FY2013E FY2014P FY2013E FY2014P

Exports Domestic

Stakeholders’ five-point agenda
• Reinvent business models
Expand beyond core • New verticals, geographies,
markets
5 customers
• Foster robust domestic demand

• Improve infrastructure
Establish • Strengthen corporate governance
India as trusted hub for 4 • Improve risk management and security
products
• Encourage global branding
GOVERNMENT
ACADEMIA • Incubation and mentorship
Hub for technology INDUSTRY • Access to funding
enterpreneurship NASSCOM 3 • Capability development
• Market access

Developing a • Improve quality of education
high calibre 2 • Scale up tertiary education
talent pool • Improve curriculum and faculty quality

Build India • Strengthen intellectual property framework
as global • Create Centres of Excellence
innovation 1
• ICT solutions for healthcare, education, financial
hub
services, public services

*Exclude hardware; E: Estimate; P: Projection
Source: Computer Weekly, Everest REsearch,
NASSCOM Forrester, Gartner, IDC, IMF, NASSCOM



Notes:

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New Delhi 110021, India
T 91-11-23010199 F 91-11-23015452
research@nasscom.in
www.nasscom.in

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