1. Looking Beyond the Billion – The Indian Context

2. Snapshot Demographics Talent Availability Vs Talent Acquisition Myth India – Way Forward

3. Demographics

4. India Overview Population (July 2006 est.)1,095,351,995 Per Capita IncomeUS$ 800 Per Capita GDPUS$ 543 GDP % growth 8.6% Composition of GDPServices : 51.4 % Industry : 28.1% Agriculture:20.6% Inflation % (CPI)4.1 % Foreign Exchange ReservesUS $1,51,622 million LiteracyTotal literate Population – 65.38 % Female – 54.16 % Male – 75.85 % *Source: Census 2001

5. India #3 – Agricultural India 300 M adults Mostly involved in farming; 50 M literate; 250 M illiterate Vote bank of India Heavy migration towards urban regions India #1 – Educated India 100 M adults Professionals, Business people, Govt. officers Mostly based in Urban areas India #2 – Middle India 200 M adults Semi-educated; mostly living in urban areas Semi-skilled labor; Manufacturing technician; Armed forces; Port workers India #4 – Young India 300 M under the age of 18 Youngest country in the world Have exposure to urban life and education Huge potential to add to the bank of IT professionals Multiple Indias

6. Favorable age split of the population,  60 % of India’s population between the ages 15-59, and more than half below the age of 25  In contrast, countries including the US, Europe, Japan and China have a more aged population with dependency ratios likely to increase over the same period

7. Potential surplus population in working age group (2020) Global Labour Shortages & Supply Sources Note:Potential surplus is calculated keeping the ratio of working population (age group 15 – 59) to total population constant; Source:U.S. Bureau of the Census International Data Base; BCG Analysis 47 Mn 19 Mn 7 Mn 3Mn 5Mn 3Mn India Bangladesh Pakistan Iran Brazil Mexico (1) Philippines 5Mn 4Mn Vietnam 2Mn Turkey -10 Mn China -6 Mn Russia 5Mn Indonesia 1Mn Malaysia 0Mn Ireland Israel 0Mn Russia and China will compete in specific segments Iraq 2Mn -1 Mn Czech Republic 4Mn Egypt -17Mn US -2 Mn UK -2 Mn Italy -3 Mn France -9 Mn Japan

8. 0 500 1,000 1,500 2,000 2,500 05,00010,00015,00020,00025,000 Make India the largest opportunity English-speaking graduates and postgraduates Thousands PA Annual wage costs US$ PA Ireland India Philippines China Malaysia Mexico Egypt Massive skilled labour surplus U.S. Caribbean**

9. Talent Availability vs Talent Acquisition Myth

10. Despite Academic Infrastructure &.... *According to data released by the Department of Secondary and Higher Education, Ministry of Human Resource Development, and Government Of India Tier I: 6 IITs, 2 IIITs, 6 IIMs, IISc Tier II: 17 RECs, 33 others Tier III: 191 Govt Funded 520 Self Financed Availability of Hi-Tech students (Source: TaskForce on HRD in IT - Govt. of India, Dec 2000) As of March 2005 343 institutes of higher education 16,000 colleges Enrollment of 9.3 million 441,000 technical graduates 2.3 million other graduates 300,000 post-graduates each year English being the accepted medium of instruction, a large proportion of the graduate pool is proficient in English.

11. .....Indian Engineering Talent Growth 2003-042004-052005-06F2006-07 F2007-08 F No of engineering graduates 316,000365,000441,000501,000536,000 Degree (four years)139,000170,000222,000270,000290,000 Diploma & MCA (three years) 177,000195,000219,000231,000246,000 *No of IT professionals 179,000201,000246,000280,000303,000 Engineering IT graduates (degree) 84,000102,000133,000162,000180,000 Engineering IT graduates (diploma) 95,00099,000113,000118,000123,000 * IT professionals include Comp Science, Electronic and Telecom professionals.

12. ….Expected Skill & Competency Shortfall Number of qualified graduates not keeping pace with booming demand. According to Nasscom just one in four of technical professionals possess the skills required for employment, while tech jobs are expected to double to over 2 million by 2010. Nasscom projects a shortfall of a half-million tech workers by 2010. Availability of Leaders, Managers, Leadership and Management skills being keenly felt

13. Although India scores high on loyalty….  Employees in India more likely to speak well of their companies and be enthusiastic about their work  Employees working for some of the world’s largest corporations are more likely to be ambassadors. …Attrition rates are high with rates varying from 10% to 60% in Technology and other High Growth Areas

14. India – The Way Forward

15. OPPORTUNITIES EVOLVING IN MULTIPLE DOMAINS Established opportunities Cust. interaction services Finance and accounting serv. Engineering and design services HR services Animation Translation, transcription and localisation Rapidly evolving opportunities Latent opportunities Network consulting and management Data search, integration and analysis Market research services Website services Remote education Logistics management Consulting services Monitoring services Legal advice Distributed product development Secretarial services Higher value added, higher complexity

16. India Business Entry Strategies to plan & operationalise these factors Focus on Transfer of Knowledge Process, Patience in Execution Investing in and Building local Leaders and Leadership competencies Partnering Universities and Colleges in bridging demand shortfall wrt skills and competencies Partnering Local Government and other Industries in evolving sustainable growth Cultural Sensitisation of assigned staff Remote Management Operationalisation/Optimisation Risk Optimisation through Business Continuity planning Creative Solutions (like home office etc) India – The Way Forward

17. Thank You