1. Indian Software & Services : Key Ingredients for Success

2. National Goal “Make India a Global Information Technology power and one of the largest generators and exporters of software in the world within 10 years.”

3. Ireland India Singapore Israel Philippines China Mexico Hungary Weighted Ranking Factor Weight India Ireland SEGMENT EXPERTISE 6126 LABOR COST 4 4 - 8 LABOR SUPPLY 4 80 EASE OF BUSINESS 3 06 EASE OF VISAS 3 - 33 ENGLISH SPEAKING 3 33 TECH. COMPETENCE 3 33 EDU. & TRAINING 2 02 GOVT. INCENTIVES 2 04 SECURITY 2 02 TELECOM INFRA. 2- 24 DOMESTIC MARKET 1 12 WEIGHTED AVERAGE - 26 27 Beginning ……. Extract of a World Bank Report - 1991

4. Policy Creation Policy Implementation Operational Flexibility Challenges to Growth

5. EOU’s & EPZ’s - - Not Very Congenial for Software Industries - Being implemented by the Commerce Ministry - Foreign Investment Promotion Board - Physical Boundary - Minimal Communication Infrastructure Result: Not Focused, lack of understanding, and discrete approach Policy during 1991

6. A non-profit society set-up in 1991 by the Ministry of Information Technology, Govt. of India to promote & facilitate Software Exports from India Software Technology Parks of India

7. One Stop Shop

8. STP Scheme is being operated by the technical body Investment Approvals decentralized Most of the authoritaties are sub-Delegated to the Directors of the STPI Centers Result: A De-Centralized Single Window Scheme STPI Differentiators

9. Benefits s Complete duty free import s 100% foreign equity permitted s No corporate income tax till 2010 s Dedicated Data Communication links s Single window Government clearance s Custom bonding and export certification provided at single point. What is STP Scheme?

10. Industry Academia Finance Government STPI : Catalyst for Synergy

11. Earthstation Location STPI Spread across …  Dehradun  Rourkela  Madurai  Tiruchirappalli  Thirunelveli  Pondicherry  Vijayawada  Tirupati  Warangal  Nasik  Kolhapur Other Sub-Centers Under Implementation  Gurgaon  Gangtok  Allahabad  Agra  Varanasi  Meerut Bhubaneshwar Coimbatore Mysore Manipal Pune Navi Mumbai Hyderabad Delhi - HQ Jaipur Noida Mohali/Chandigarh Chennai Hubli Guwhati Srinagar Indore Vizag Aurangabad Mangalore Shimla Kolkata Gandhinagar Thiruvananthapuram Lucknow Bhilai Nagpur Kanpur  Jalandhar  Durgapur  Kharagpur  Shillong  Agartala  Salem Bangalore Map Not to Scale

12. Exponential Growth of Software Industry US $ in Million

13. India : Vital Value Add

14. India’s Value Proposition on IT-Enabled Cost 40-60% cost reduction for offshored process Labour cost arbitrage, the reason for cost savings, likely to exist for the next 20-30 years Productivity Faster turnaround time - Time Zone difference - 24x7 service Learning curve effect – centralization within company Quality Established methodologies and processes for better performance Well defined quantifiable metrics for quality & process Access to highly-qualified skill pool Source:McKinsey

15. Quality vs Productivity in India Source:McKinsey Quality Productivity No. of Correct transactions/ Total transactions (%) Total Satisfaction factor No. of transactions/hour (indexed to UK)Average speed of answer (Secs) UK-based retail bank US financial services company

16. Success Formula Investment C Telecom/Datacom Infrastructure Cluster & Incubation Development Entrepreneurship and VC Funding Internationalisation of HR E-Governance Quality Systems & Methods

17. STPI-Network Operations Center Connectivity Exchange Cyber Park Server Farm International Fiber Landing Point Intl.Fiber India to USA Spectranet Metro Fiber Reliance Metro Fiber BSNL Metro Fiber 9 Satellite Dishes 4 Metro Fibers Bharti Metro Fiber

18. Mangalore Manipal. Enabling Clusters Earthstation Location Incubation Center 13 Companies US $ 50.52 M Exports 24 Companies US $ 8.12 M Exports Started Operation Mysore Bangalore Infrastructures : ITPL, Bangalore, HITEC City Hyderabad, Cyber Park Bangalore

19. Venture Capital Environment in Karnataka 12 Domestic Small Funds 16 Overseas Funds 28 Large Funds 50% of above Funds are Head Quartered in Bangalore Concept of Investor/Incubation Combo is picking up

20. Human Resources in Karnataka State Engineering Colleges 97 Polytechnics 181 Medical Colleges 27 General Colleges 812 Universities 11 Technical University 1 Agricultural Universities 2 Health University 1 10% Indian Graduates are produced in Karnataka

21. E-Governance Initiatives Mukya Vahini – Decision Support System for Administration Bhoomi & Nondani – Land Records Computerisation & Registration Khajane – E-enabling of Treasuries through linking of 250 treasuries to manage the complete expenditure of the state Therige – E-enabling Commercial Tax Offices and Outposts Reshme – Online Transaction support for Sericulture Farming E-Seva – One Stop bill payment center covering all utilities, taxes, etc

22. Thank You... Sanjay @ inknowtek.com InKnowTech Pvt. Ltd., A-306, STPI Complex, Electronics City, Bangalore – 561 229