Advantage of Outsourcing to india

1. New Beginnings Advantage India -Syed Nazir Razik www.fuentesystems.com

6. Source: NASSCOM CAGR 178.6% Rising FDI and PE are indicative of India’s advantage and global interest Advantage India and business opportunities S e c t o r N u m b e r o f D e a l s V a l u e ( I N R B n ) I T - I T E S 3 3 1 9 . 9 M a n u f a c t u r i n g 2 3 1 5 . 4 H e a l t h c a r e a n d L i f e S c i e n c e s 1 3 9 B F S I 6 6 . 6 T e x t i l e s 1 2 6 . 5 FDI in IT-ITES Private Equity in IT -ITES

11. Indian IT Export Industry Software Export Revenues accounts for 80% of total revenues of IT industry in India. This sector accounts for almost 5% of total GDP currently and is expected to account for nearly 10% by 2008 $ Million Break-up by Sector 2004 -05 32% 30% 15%

15. Worldwide ITES-BPO Spending by region 2002-2006 8.6 1.079.054 773,657 Worldwide 13 194,228 117,622 Asia/Pacific 8.5 237,390 171,303 EMEA 7.5 647,427 484,732 Americas 2002-2006 (CAGR %) 2006 2002 Region

18. Knowledge Worker’s Wages (Average Wage/year (US$000)

22. Investing in India – Entry Routes

25. Growth story built on strong fundamentals… • Access to a large, growing pool of highly qualified talent • A high degree of quality orientation and demonstrated service delivery expertise • Keen emphasis on information security reflected in the comprehensive legal framework and elaborate security practices supplemented by enabling intervention • World class telecommunication infrastructure • Enabling (and progressively improving) business environment through strong government support; incentives, favorable regulations and policy … delivered at a sustained and compelling cost-value proposition

26. … that is also reflected in the rapid evolution of the Indian IT-ITES service portfolio

27. IT services exports lead, growing at 32-33%; range of services offered has expanded significantly ITES-BPO exports grew by 37% last year, to reach USD 6.3bn; growth driven by scale and scope expansion

28. Recent trends and market indicators indicate a positive outlook for the sector • Large unaddressed market potential in offshore IT-BPO sustaining demand led growth – Evolution of global delivery expanding adoption of new services delivered from offshore • Unbundling of IT outsourcing mega-deals with increasing share of India based delivery – $100bn in contract value up for renewal over next two years – Increased participation of Indian vendors in these bids – MNCs also looking at significant ramp-up in India based delivery • Strength in client wins, cross-border M&A trends, stable pricing with marginal upward bias, and a gradual (favorable) shift in the outsourcing debate

29. Significant headroom for growth, less than 10% of the global addressable market captured till date

30. • Strengthening the global delivery model and addressing impediments to greater globalization of services • Building on India’s core value proposition – Enhancing the skill pool advantage – Strengthening business infrastructure – Reaffirming the philosophy of operational excellence • Effecting equitable distribution of gains from ICT – Catalyzing domestic market development – Decentralizing industry growth – Ensuring that ICT benefits reach the ‘bottom-of-the-pyramid’ ‘ Managing growth’ is the key challenge