The document discusses industry trends and challenges for next generation IT professionals in India. It notes that the Indian IT & BPO industry is expected to cross $100 billion in revenue and continue growing at 17% annually. While offshore work and rupee fluctuations present short-term challenges, the outlook for 2013 is growth of 11-14% in exports and 13-16% in domestic revenues. The document also lists skills needed by young professionals, such as communication, teamwork, analytics, and lifelong learning.

1. © Mindtree limited 2012
Presented at: Trends in Computer Education, 22-Feb-2013, Goa University
Raja Bavani, Chief Architect, Mindtree
Industry Trends and Challenges of
Next Generation IT Professionals

2. Agenda
2
• Indian IT & BPO Key Trends
• Challenges (short term)
• Possible Improvements (medium term)
• Financial Year 2013 Outlook
• Global Uncertainties
• Media Buzz
• What Do Young Professionals Need?
• Discussions

3. Indian IT & BPO: Key Trends
3
Aggregate revenue for the sector estimated to cross USD 100
billion mark [including hardware]
Industry continues its growth trajectory, with no
visible competition in the near future; Growing
impressively CAGR 2007-12 : 17 per cent
From 2009 to 2011, M&As increased 77 per cent
CAGR to reach USD 4.5 billion
70 countries, 560 delivery centers –providing skills,
domain, language and disaster recovery; non
Indian employees – 5-6% for large firms
Fixed price contracts, cloud based solutions,
productizing service
Changing model
Inorganic Growth
Global Footprint
Growth trends
Revenue
Direct employment expected to grow by over 9% to reach ~2.8
million, with over 230,000 jobs being added in FY2012Employment
Source: NASSCOM

4. Aggregate Industry Revenue (> 100 Billion USD)
4
IT-BPO revenue aggregate
India’s share in global sourcing - 58 per cent in
2011, up from 55 per cent in 2010
IT services exhibiting fastest growth at 19 per
cent, BPO growing by 13 per cent, ER&D by 15
per cent
Maturing domestic market – key thrust area for
the industry – growth faster than exports
Domestic IT services growth at 17.8 per cent,
driven by localized strategies by service
providers
Domestic BPO - 16.9 per cent driven by
demand from new verticals and technology
platforms
Software products to grow by 13.3 per cent:
New wave of start-ups driving growth
Source: World Bank, NASSCOM
Estimated

5. Job Creation
5
Direct Employment (’000)
FY2012 Estimates
Indirect
Direct Total Emp
~10.2mn
~2.8mn
~11.7mn
~8.9mn
Estimated
Source: World Bank, NASSCOM

6. Challenges (short-term)
• Delayed decision making - impacting refresh cycles and projects
• Volume growth higher, not reflected in revenue
• Rupee depreciation impact – pricing pressure
• Increased offshore component
• Investing in Cloud/platforms – doing more for less
• Differentiated growth for diverse industry segments and companies
• Maturity and value addition focus for R&D, GICs
6
Source: NASSCOM

7. Possible Improvements (mid-term)
• GDP growth may increase in the second half
• Technology spending to go up driven by- new tech, emerging markets,
business models
• Increased adoption of global sourcing
• Future of technology services -combination of services, solutions and
platforms
7
Source: NASSCOM

8. FY 2013 Outlook
8
IT-BPO Export revenues*
(USD billion)
FY2011 FY2012E FY2013P
Growth of 11-14% • FY2013 software and services growth
forecast 11-14 per cent (USD)
• Revenue growth USD 8-10 billion
• Differentiated growth – across service
lines and verticals
• Hiring – mix of campus and just in time;
100,000+ offers already made
59 68.7
76-78
786
918
FY2011 FY2012E FY2013P
1030-1060
IT-BPO Domestic revenues
(INR billion–excluding hardware)
Growth of 13-16%
• FY2013 software and services growth
forecast 13-16 per cent;
• Revenue growth INR 110-140 billion
• Consumer, Government, SMB to be
key growth drivers
• Software Product Start-ups creating
innovative solutions for India
• Technology enabled social and
financial inclusion
Source: NASSCOM

9. Global Uncertainties
9
Economic Growth - Global GDP Growth estimate for 2012 - 2.5%
(2.8% in 2011); Euro area in mild recession
Employment & Households - Unemployment high, but signs of
recovery in US jobs, PMI and durables
Financial Conditions – Developed markets – fiscal consolidation,
credit stringency. Emerging Markets – Tight money, declining capital
flows, currency volatility
Corporates – Cash hordes, Buoyant earnings in US mainly driven
by overseas revenues.
Risks - Downside risks elevated (credit crunch in Eurozone); Upside
possibilities in US
Source: NASSCOM

10. Need for Specialization
10
Changing Customer Demands and focus on Digital
Transformation
Focus on Core Partner for Specialization
Choose where to compete and then how to compete
Building a specialist talent pool
Source: NASSCOM

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20. What do young professionals need?
Communication skills (verbal and written)
Interpersonal skills (relates well to others)
Teamwork skills (works well with others)
Analytic skills
Flexibility/adaptability
Detail-orientation
Creativity
Critical Thinking/Problem Solving
Organizational skills
Leadership skills
Lifelong Learning/Self Direction
Industry Knowledge
20
Honesty/integrity
Motivation/Initiative
Strong work ethic
Self-confidence
Friendly/outgoing personality
Tactfulness
Well-mannered/polite
Social Responsibility

21. Discussions
21

22. India | USA | UK | Germany | Sweden | Belgium | France | Switzerland | UAE | Singapore | Australia | Japan | China
Raja Bavani
Raja_bavani@mindtree.com
www.mindtree.com/social