1. March 2005 Indian IT Industry Vast Growth Potential

2. March 2005 IT Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

3. March 2005 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

4. March 2005 India - Fast pace Growth  Largest democracy  4th largest economy by PPP index  6th largest energy consumer  ForEx reserves skyrocket from USD 42 bn (2001) to USD 133 bn (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

5. March 2005 India - Leading the world  Hero Honda - largest manufacturer of motorcycles  Moser Baer - among the top three media manufacturers in the 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

6. March 2005 IT Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

7. March 2005 Huge and Growing IT Market Size (2002-03) US$ 24 billion Growth rate 28% Share of IT and BPO1.4% of GDP 2008 projection7% Exports projected (2003-04) US$ 12 billion to grow at26-28% CAGR (since 1999) 46% EmploymentOver 650,000 (Second largest employer in IT services sector)

8. March 2005 Future Growth Potential By 2008 17 million people available USD 35 billion domestic software market

9. March 2005 Growth in Domestic Outsourcing (USD Million) Alignment to domain knowledge needs

10. March 2005 Moving up the Value Chain 1960 Client / ServerInternetMainframe Facilities management Unix-based coding Maintenance Migration & Re- engineering Package Implementation Application development Web Enabling legacy Consulting Maintenance Package Implementation E-business applications Embedded software Network Management Network Security Aligned to technology needs

11. March 2005 Growth of the Offshore Model % of software export Alignment to business needs

12. March 2005 Potential Domestic Hardware Market 2010 US$ 44 billion By Value Addition 37.4 21.8 8.3 6.9 10.2 6.6 5.4 6.9 - 10 20 30 40 50 Finished Product Product Manufactured from sub- assembly Sub-assembly manufacture from components US $ Billion Locally Manufactured Imports Value Addition By Product Segment 20.1 13.4 6.7 4.0 IT Hardware. Telecom Consumer Electronics Others Total Market: USD 44 Billion

13. March 2005 Potential Hardware Exports Exports by Value Chain 11 2 7 5 OEM + ODM Products Design Services Components Exports manufacture by Value addition LocalImportsValue Addition Products & Assemblies 13.0 7.1 2.9 4.5 3.2 1.4 1.1 0 2 4 6 8 10 12 14 US $ Billion Total Exports: USD 25 Billion Products & Assembly manufacture from sub- assembly Sub- assembly manufacture from components USD 25 billion

14. March 2005 Focus Areas Utilities Transportation Healthcare Financial Services Telecom Equipment Manufacturing Industries Targeting new verticals Beyond traditional sectors

15. March 2005 IT Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

16. March 2005 Indian Players TCSWold leading IT consulting services and business process outsourcing company InfosysProvides consulting and IT services to clients globally as partners WiproServes over 300 global leaders and is world’s first PCMM, CMMi and CMM Level 5 company

17. March 2005 MNC Presence MNCs contribution to export revenues from IT services 23.5%

18. March 2005 MNC presence in India Services IBM, USA Kelton Graphics Inc., USA Intergraph Corp., USA Capricorn Systems Inc., USA Microsoft, USA Products Oracle Inc., USA SUN Micro System Inc, USA IBM, USA NOVELL, USA Dun & BradStreet., USA Deneb Robotics., USA Manhattan Associates., USA

19. March 2005 MNC presence in India IT Infrastructure Hewlett Packard, USA CISCO, USA SUN Micro System Inc, USA IBM, USA Silicon Graphics Inc., USA Siemens Nixdorf., Germany Hughes Network Systems., USA Fujitsu, Japan Bull, France Alcatel, France Embedded systems Cadence Design Systems Inc., USA Texas Instruments Inc., USA Motorola Inc., USA

20. March 2005 IT Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

21. March 2005 Invest in India Skills Quality Domain Policy Infrastructure Risk

22. March 2005 Invest in India Source: NASSCOM India attracts second highest private equity investment in Asia

23. March 2005 Invest in India  Package Software Implementation  System Integration  R& D Engineering  Network Management Advancing on the value chain

24. March 2005 Partner with India Venture funding activities to increase 9 folds by 2007-08 2001 - 02USD 1,100 million 2007 - 08USD 10,000 million Venture funding activities

25. March 2005 Export from India Product Services

26. March 2005 Professional Services Export from India

27. March 2005 Export from India Outsourcing Services

28. March 2005 IT Outsourcing - Expanding Opportunities  Software development outsourcing  Product development outsourcing

29. March 2005 Destination India Offshoring of outsourcing

30. March 2005 IT Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

31. March 2005 The India Advantage Quality manpower Pro active policy framework Specialised organisations and facilities State-of-the-art infrastructure High quality services

32. March 2005 Vendor sophistication: Number of vendors, vendor quality Human Sophistication: Number of workers, labour cost, worker skill level India Indonesia China Philippines Ireland Germany UK USA Singapore France Low High Skill surplus End-user countries Regional Hubs The Intellectual Advantage India is today a mature region for IT offshore work

33. March 2005 The Knowledge Advantage Large pool of highly talented software professionals Highly qualified pool of IT professionals

34. March 2005 The Cost Advantage Costs for offshore work 30-50% lower than in US/Europe

35. March 2005 The Infrastructure Advantage  Standardisation Testing and Quality Certification (STQC) programme  Software Technology Parks One-stop solution to all quality requirements of electronics industry Exemption from local duties and taxes No corporate income tax up to March 2010 Up to 100% foreign equity permitted Single window government clearance Single point custom bonding and export certification

36. March 2005 The Policy Advantage  IT Act 2000  EOU status extended to hardware manufacturing units  USD 2580 mn to be spent on e-Governance initiatives  Priority sector status given by banks  Export processing zones established  487 information communication centres Evolving regulatory regime

37. March 2005 IT Industry  India - An Overview  Market and Growth Potential  Players  Opportunities  Why India?  Contact in India

38. March 2005 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

39. March 2005 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

40. March 2005 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