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Indian Software & Services : Key Ingredients for Success.

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Presentation on theme: "Indian Software & Services : Key Ingredients for Success."— Presentation transcript:

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


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