IT Enabled Services In the elite league

IT Enabled Services India - An Overview Market and Growth Potential Players Opportunities Why India? Contact in India

India - An Introduction Population States/UTs Geographical Area Languages recognised Business language Per Capita Income** GDP** Over 1 bn 35 3.3 mn sq kms 22 English US$ 534 US$ 650 bn **(at factor cost & at current prices) 1USD=43.54 INR (as on July 4, 2005) Source:CSO Statistics

India - Fast pace Growth Largest democracy 4th largest economy by PPP index 6th largest energy consumer ForEx reserves skyrocket from US$ 42 bn (2001) to USD 133 bn (February, 2005) GDP growth to continue between 6-8% 3rd largest economy by 2050: Goldman Sachs Leading in IT & BPO Oil & Gas and Biotechnology sunrise industries

India - Leading the world Hero Honda - largest manufacturer of motorcycles Moser Baer - 3rd largest optical media manufacturer in world Pharmaceutical Industry - 4th largest in world Walmart, GAP, Hilfiger sources more than USD 1bn worth apparel from India 100 Fortune 500 have set R&D facilities in India including GE, Delphi, Eli Lilly, HP, Heinz and Daimler Chrysler

IT Enabled Services India - An Overview Market and Growth Potential Players Opportunities Why India? Contact in India

IT Enabled Services Market Size 2002-03 US$ 2.3 billion Growth 52% Key driver of growth for Indian IT industry

IT and ITeS Market 2.4% of GDP 2002 - 03 16% of exports 7% of GDP 2008

Segments in ITES-BPO Sector Medical transcription Legal database processing Digital content development or animation Online education Remote maintenance Engineering and Design Specialised- Vertical specific General Contact centres Telemarketing/pre-sales Consumer care Technical support Back office operations Data processing

BPO Services Sales to grow 2003 US$ 709 million 2006 US$ 2572 million CAGR 52% Marketing to grow 2003 US$ 609 million 2006 US$ 2188 million CAGR 62% Source: International Data Corporation (IDC)

Changing Revenue Streams Relative importance three years later Current relative importance

IT Enabled Services India - An Overview Market and Growth Potential Players Opportunities Why India? Contact in India

Domestic ITES-BPO Service Providers Wipro Spectramind HCL Technologies BPO EXL Services Hinduja TMT Sutherland Technologies ICICI OneSource Datamatics Technologies Epicenter Technologies Hero Mindmine 24/7 Customer

Global ITES-BPO Players GE Capital International Services (GECIS) ADP Wilco IBM Standard Chartered Microsoft HealthScribeIndia AOL e-Serve International Ltd JP Morgan Chase Dakshe-services PvtLtd.(a part of IBM) Hughes BPO Services eFunds HSBC BPO unit American Express Dell Hewlett Packard Computer Associates Deloitte Consulting Oracle CapMarkOverseas Processing India

IT Enabled Services India - An Overview Market and Growth Potential Players Opportunities Why India? Contact in India

Outsourcing Destination Offering best combination of cost-quality-scalability Global quality standards -Six sigma, COPC, ISO 9001 Healthy mix of MNCs and Indian companies More than 210 companies registered with NASSCOM

BPO on the rise Share of ITES-BPO sector in total revenues of India`s IT software & services industry has increased 1998-99 6.5% 2003-04 29%

2004 -05 ( Projected) US$ 5.1 billion Grow with India ITES-BPO sector 2004 -05 ( Projected) US$ 5.1 billion Growth of 40%

IT Enabled Services India - An Overview Market and Growth Potential Players Opportunities Why India? Contact in India

India Advantage Capitalise Low manpower on time zone costs difference Reliable infrastructure Low real estate costs High quality Vast pool of knowledge professionals Prestigious institutes like IITs Proficiency in English

Competitive Cost Manpower costs 70 - 80% lower than in US/UK Source: Industry Sources, Merrill Lynch, 2003

Growing Knowledge Pool Source: UN, Morgan Stanley Source: IMD Competitiveness Yearbook 2003

India Competitiveness Productivity 20% higher Quality 30% higher

Central Policy Advantage Tax breaks Bandwidth sharing between multiple entities Internet and IPLC connectivity on same LAN Duty-free imports of capital goods Income tax exemption on exports Fast track approval for projects Relaxation in regulations 100% FDI in Call Centers

State Policy Advantage Assignment of priority sector status Cheap power and real estate Concessions in taxes and various fees Latest technology for infrastructure Favourable legislation IT parks

India - An offshore destination

IT Enabled Services India - An Overview Market and Growth Potential Players Opportunities Why India? Contact in India

Contact in India National Association of Software and Service Companies (NASSCOM) International Youth Centre Teen Murti Marg Chanakyapuri New Delhi - 110021 Tel 91 11 23010199 Fax 91 11 23015452 Email info@nasscom.org

Contact in India MAIT 4th Floor, PHD House Opp. Asian Games Village New Delhi 110 016 Tel 26855487/26866976/26866976 Fax 26851321 Email mait@vsnl.com

Contact in India Confederation of Indian Industry (CII) 249-F, Sector 18, Udyog Vihar Phase IV Gurgaon 122015 Tel 0091 124 5014060-67 Fax 0091 124 5014080/5013874 E mail s.ray@ciionline.org