1. ICTs in Governance & Job ( and Wealth) Creation By Dr T.H. CHOWDARY Director: Center for Telecom Management and Studies Chairman: Pragna Bharati (intellect India ) Former: Chairman & Managing Director Videsh Sanchar Nigam Limited & Information Technology Advisor, Government of Andhra Pradesh T: +91(40) 5567-1191/ 2784-6137(O) 2784-3121® F: +91 (40) 5567-1111, 2789-6103 hanuman.chowdary@tcs.com thc@satyam.com Talk @ Montessori Mahila Kalasala, Vijayawada : 2 Sept 2006

2. THC_CTMSS308_Aug062 ICTs in Governance (1/3) Governments (Union & State) are collecting and spending 30% of our GDP There are schemes on which upto Rs. 100,000 crores were spent but not completed even after 5 to 10 years Comptroller & Accountant General of India is writing history after history of waste and non- productive outlays Computerised MIS on nation-wide telecom network

3. THC_CTMSS308_Aug063 The Cost of Delay: Rs. 50,000 cr. Total Projects 742 ( 216 hit by cost overrun) RailwaysPowerAtomic Energy Urban Development CoalPetroleum No. of Projects 25662101810030 Projects hit by cost overrun 14992413 Original cost (Rs. crores) 25,1753,527 4,97652924,406 Extent of cost overrun 91.5%87.7% 115.9%52.2%29.6% (Source: Indian Express 31/8/2006)

4. THC_CTMSS308_Aug064 ICTs in Governance (2/3) Since 1997 Pioneered by GOs of AP, KN and TN, all governments have programs of ICT use in government work. G2C: eg: e-Sevas, Land records, CARD G2B: eg: e-procurement G2G: eg: Filing tax returns, jail reservations G2G: eg: e-MIS; Treasuries, video conferencing G2B: eg: banking, purchases

5. THC_CTMSS308_Aug065 ICTs in Governance (3/3) Union & state governments are investing about Rs. 3000 cr/year on various e-governance projects Eventually we must have e-elections –Registration ( no enrollment) –Electioneering ( TV & Radio channels, Toll free interrogation) –Balloting (i) 80% saving on (ii) & reduction of need for black money

6. THC_CTMSS308_Aug066 ICTs for Wealth and Employment

7. THC_CTMSS308_Aug067 Software Export Industry

8. THC_CTMSS308_Aug068 Employment in Indian IT sector*,’000 (* Years ending March; + Estimate @ break-up: NA) 2 mln@ ‘06

9. THC_CTMSS308_Aug069 A.P’s Software and ITES Exports In 2004-2005 Exports surged by 64.5% Year 2007 2006 2005 2004 1996 Volume (in Rs. Cr. ) 17,000 12,521 8,270 5,025 65 of Exports Visakhapatnam Units 37; Exports Rs. 70cr Vijayawada Units 13; Exports Rs. 24 Cr Number of direct employees 1,60,000 adding 30,000 to 40,000 per year

10. THC_CTMSS308_Aug0610 PROSPECT- I T ENABLED / CREATED SERVICES & EMPLOYMENT (INDIA) GROSS WORLD PRODUCT IN THE YEAR 2010 US $ 40 T CONTRIBUTION FROM SERVICES (60%) OF GWP US $ 24 T INDIA'S SHARE @ 10% US $ 2.4 T EMOLUMENTS COMPONENT (15% TO 50%) US $ 360 TO US $ 1200 b EMOLUMENTS/EMPLOYEE/YEAR US $ 5000 NO OF JOBS (360/1200) b = 72 to 240 million 5 K

11. THC_CTMSS308_Aug0611 20012002200320052006 1.5%1.9%2.82%3.8%5.0% India’s share in software exports in the over all global market

12. THC_CTMSS308_Aug0612 Share of India in Global BPO & KPO Markets Year 2003-’04 2010-’11 BPO 36% 55% KPO 56% 71% Leaders: Eng. Design Basic Data Biotech & Search Pharma Integration & Mgment 400m $ 300m $ 280 Education coming up

13. THC_CTMSS308_Aug0613 Not only, BPO but KPO GE Capital International Services (Gecis Global) –Started in India 1997 with 300 –Now was 17,000 in several countries –In India – 12,000 ( > 70%) (2,300 in R&D alone) Tutors from India – Career Launcher (Delhi) 20,000 US students taking e-tuitions

14. THC_CTMSS308_Aug0614 Foreign Companies Engaging Indian intellect (1/2) Motorola – 1700 employees 40% of software in its mobiles developed in India The Internet browser and multi-media messaging system conceived and developed for 3G and GSM and engineer The software going into US cars is being developed here in India.

15. THC_CTMSS308_Aug0615 Foreign Companies Engaging Indian intellect (2/2) GE – Largest R&D center outside USA is in India in Bangalore with 2300 researchers, double that in Shanghai GE put in $ 80 mln in the Bangalore R&D facility GE’s Bangalore R&D field for 260 patents in the USA (37 already approved) Boeing USA is outsourcing Aircraft design to Russia ( $ 120/ Hr) Russians are outsourcing parts of the design to HAL (BG) at $ 30/Hr Gorbachev went to USA to recommend Moscow as Bangalore’s rival! An Indian retained does the work of 2 or 3 Europeans; does not take 6 weeks of holidays & costs one-fourth

16. THC_CTMSS308_Aug0616 Some foreign companies’ employees in India GE CapsGE DevIBMOracleEDSTexas 16,0001,80010,00060003,500900 IntelJP MorganHUWAISiemensMotorola 1,7001,2001,50020001,500

17. THC_CTMSS308_Aug0617 ICT-enabled Employment in Rural areas

18. THC_CTMSS308_Aug0618 Work taken to Villages: GramIT While US, EU, Oceania outsource to Hyderabad, Hyderabad out-sources to villages. Satyam Computers & Byraju Foundation 200 Resident village graduates ( BA, B.Com, B.Sc) trained in Ameringlish; imparted computer & Internet skills Satyam (Hyderabad HQ) outsourced its own internal work (pay-roll, accounting; travel; training; MIS Satisfied,work from abroad moved to villages

19. THC_CTMSS308_Aug0619 Work taken to Villages: GramIT (2) Broad-band telecom (optical fiber) 512 kbps extended from point of presence (POP) to work- site by PMP wireless Called Gram ITs, these offer transaction processing services ( accounting, bulk mlng; records digitisation, reminder and follow-up and travel support. A whole Gram IT can be dedicated to a customer (like twinning of cities across continents; city com@Gram.IT twinning

20. THC_CTMSS308_Aug0620 Work taken to Villages: GramIT (3) Gram IT-team contributed part of profits for village development scheme designed by them – Independent and local initiative Rural Pressure group to demand and get quality infrastructure and services such as roads, retailing, education, health

21. THC_CTMSS308_Aug0621 Billionaires in the IT & Software Sector NameCoWealth in $ blnRs. cr Bill GatesMicrosoft502,30,000 Paul AllenMicrosoft221,01,200 Michael DellDell Corporation17.178,600 Larry EllisonOracle1673,600 Steve BalmerMicrosoft13.662,500 Ajim PremjiWipro13.361,180 Sergey BrinGoogle12.959,340 Larry PageGoogle12.858,880 Pierre OmidyarE-Bay10.146,460 Hasso PlattnerSAP6.429,440

22. THC_CTMSS308_Aug0622 Dhanyawad: Thank You