Presentation Path .

India An IT Perspective
ITES The Future Directions
e-Governance : India vs. Bharat
The IT Culture of India A Comment

PART I :

India An IT Perspective

IT Culture in India
Case of a boy in Rural Bharat
Case of a broken marriage
Case of neglected road maintenance
Case of a growing population 118 Crores in
July 2009
Case of a food court in NCR
Case of a skyrocketing Sensex from 6451
to 12285 in 365 days and crash that of

Indian IT Scenario ----

IT is going to be for India what Oil

has been to Kuwait
IT is going to be for India what
Diamonds have been to South Africa

Thats history .
I

think there is a world market for may be

five computers
Thomas Watson, Chairman of IBM, 1943
Today India alone has crossed a figure of 36 million PCs.
And Indian PC industry recorded
16 % year-on-year growth in the year, CAGR 20022008 is 26 %
Year 2007-08 sales crossed 7.0 million units (both DT
and LT systems)

By May 31, 2009 .

PC population in India cross 36

million
Mobile phones cross 400 million
India with 100 million CDMA phones
is second only to USA with 175
million

Total PC (Desktops & Notebooks) sales:

2002-2008
7,344,306
7,000,000

6,341,451

6,000,000
5,046,558
5,000,000
3,809,724

4,000,000
3,124,422
3,000,000

2,344,617

2,000,000
1,000,000
0
2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

Desktop sales: 2002-2008

6,000,000

5,490,591 5,522,167

5,000,000

4,614,724

4,000,000

3,632,619
3,035,591

Units

3,000,000
2,293,643
2,000,000
1,000,000
0
2002-03

2003-04

2004-05

CAGR 2002-08: 19%

Growth over the 2006-07: 1%

2005-06

2006-07

2007-08

Notebook sales: 2002-2008

2,000,000

1,822,139

Units

1,500,000

1,000,000

850,860

431,834

500,000
50,974

88,831

2002-03

2003-04

177,105

0
2004-05

2005-06

2006-07

2007-08

Annual sales grew by 114%; CAGR: 104%

Households accounted for 44% of the market growing 150%, Businesses accounted for
56% of the market growing 93%

Desktop sales: 2002-08

Home

Business

Total DTPs

6,000,000

5,490,591

5,000,000

4,614,724
74%

Units

77%

3,000,000

72%
3,035,591
40%

81% 2,293,643

2,000,000
1,000,000

60%

75%
3,632,619

4,000,000

26%

1670880
19%

23%

28%

25%

0
2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

Desktop market growth over 2006-07: 1%

Consumption in households grew by 55%; in Businesses it declined 18%

10

Server sales: 2002-2008

140,000
122,178
120,000

Units

100,000

89,161

90,189

2005-06

2006-07

80,000
60,000

56,544

53,330

49,165

40,000
20,000
0

2002-03

2003-04

2004-05

2007-08

Annual sales increased: 35%; CAGR (for 6 years): 17%

11

Active Internet entities: March99 March08

Translates
to 52 million
internet
users

7,200
7000

6,009

6000

4,124

000 Units

5000

3,127

4000

2,504

3000
1,456

2000
1000

Entities

1,848

1,127
350

651

0
Mar
'99

Mar
'00

Mar
'01

Mar
'02

Mar
'03

Mar
'04

Mar
'05

Mar
'06

Mar' Mar'08
07

(Entities are establishments/individual with internet connection; an entity may house/ be multiple user/s)

Overall entities with internet grew by 20% over March 2007

Businesses accounted for 29% of the entities growing 6% while Households

accounted for 71% growing 27%
12

Internet penetration: March 2008

Internet Penetration by Town class and Socio-Economic Classification (SEC) among

Top 22 Cities
Business Segment

Internet
penetration by
Town class

Overall
Top 4 Metros
Next 4 Metros
Other 8 Metros
Remaining 6 Metros

Internet
penetration among
households by SEC

46%
50%
42%
46%
28%

Home
21%
25%
17%
16%
11%
SEC A SEC B SEC C-

43%
16%
6%

13

Strategic Review by NASSCOM - 2008 .

Hindu, February 12, 2008

Double digit growth has been maintained

It is on track to achieve $ 73-75 Billion in 2009-10
BPO segment is the fastest growing segment
across software and services exports
Direct employment in the sector is expected to
reach two million, an increase of about 375,000
professionals over 2006-2007
IT revenue as a GDP proportion is at 5.5 % in
2007-2008
US(61%) and UK(18%) remained the two major
markets for Indian software industry

The Billionaire Dozen --

The Top 20 companies have added upto US $ 28 Bn in sales

in 2006-2007.

Top 20 have contributed more than half the Indian industrys

revenues.

Several hundred other companies(some 20,000) account for

the rest 50 %.

Just four years ago, TCS crossed a billion dollars.

Now, we have 12 of the 20 are over US $ 1 Bn in sales

Year 2008-2009 has a different story to tell MAIT

Data : Hindu, 15-July-2009

Total PC sales including DT/LT : 6.79 Mn

Enterprises reduced their IT spending during the
fiscal
Sales of notebooks declined 17 % Y-O-Y
Sales got a boost from education and e-governance
sectors
MNC brands accounted for 51 % sales of DT market,
assembled/unbranded 31 %, and Indian Brands 18 %
Internet Entities crosses 8.6 Mn, with users
exceeding 60 Mn. Households account for 72 % of
the total number of entities
PC consumption in Fiscal 2009-2010 expected to
grow 7 % to 7.3 Mn units.

HT 31 JULY, 2008
Strong Rupee Erodes Growth for IT Giants

Indian IT companies are not hit by a

slowdown in outsourcing linked to the US
Economic Crisis, but the rupee gained 9 %
against the dollar in 2007-08
SAP, Dell and Accenture have entered the
Indian ITs top 20 list
Specialist firms like Financial Technologies
and Bartronics showed mani-fold rise in
revenue
MNCs like HP and Cisco topped Rs.5,000
crore annual revenues earned within India

HT 31 JULY, 2008
Top 10 IT Companies in India 2007-08
Revenue( Rs. Crore)
Company

Growth (%)

2006-07

2007-08

2006-07

2007-08

TCS

17560

21465

34

22

Wipro

13252

16884

41

27

Infosys

13240

15758

45

19

HP India

11917

15454

37

30

IBM India

8245

10179

52

23

Ingram
Micro

6896

8620

25

25

Satyam
Computer

6111

7889

34

29

Cognizant

4584

6310

83

38

USD Billion
5.4%

DOMESTIC MARKET
4.7%

EXPORTS

1,630,000

4.1%
3.6%
1,293,000

3.2%
2.6%

1.2%

1.4%

37.4

522,250

190,000

28.4

284,000
12.1

9.8

1.8

FY98

3.3 2.7

FY99

4.2 4.0

FY00

5.9

6.2

FY01

7.7
5.8

FY02

13.2

13.3

8.2

3.0

18.3

13.5

6.0

4.7

24.2

21.6

16.1

Direct
Employment

31.9

670,000
430,114

230,000

47.8

1,058,000
830,000

1.8%

Of GDP

2.8%

8.3

15.9

10.2

6.3

FY03

FY04

FY05

FY06

FY07E

Airlines and
Transportation 2.1%

Other 8.4%

Healthcare 3.0%
Construction and
Utilities 4.0%
Media, Publishing
and Entertainment
4.2%

BFSI
38.1%

Retail
7.6%

Manufacturing
12.9%
Hi-tech / Telecom
19.8%

HT, JULY 10, 2008

The industry directly employs 20
lakh people and indirectly four times
as many
IT and Service Exports grew 29 % in
2007-08 and is expected to grow by
21-24 % in 2008-09
BPO exports grew 30 % to $10.9 Bn
in 2007-08

HT, JULY 10, 2008

Revenue
US $
Billion

10 Year
Target

Achieved Required
200020082008
2010

Domestic

$ 15 Bn

23.0%

25.4%

13.7%

Exports

$ 60 Bn

31.2%

33.7%

21.9%

Total

$ 75 Bn

29.0%

31.4%

20.1%

HT, JULY 10, 2008-Top 5 IT Service

Exporters

1.
2.
3.
4.
5.

Tata Consultancy Services

Infosys Technologies
WIPRO
Satyam Computer Services
HCL Technologies

HT, JULY 10, 2008-Top 5 BPO

Exporters

1.
2.
3.
4.
5.

Genpact India
WNS Global Services
IBM Daksh
Transworks Information
Tata Consultancy Services - BPO

HT, APRIL 02, 2009Worldwide IT spending to dip

1. Gartner has suggested that the
worldwide IT spending is likely to
decline by 3.8 % overall in 2009:
1. Global spending of IT forecast for 2009,
down from $3.4 Trillion in 2008 to $3.2
Trillion
2. Until Global Financial Markets stabilize,
global
GDP
growth
including
IT
spending is unlikely to strengthen

HT, APRIL 22, 2009IT to miss 2010 export target by a year

1. IT Dream gets bigger for India
2. India is ready for the next big wave
in its IT revolution
1. Could treble its software-based export
by the year 2020
2. Could account for 3 crore jobs, if the
country boosts its education and
embraces innovation

HT, APRIL 22, 2009IT to miss 2010 export target by a year

1. By 2020, Indias ITS/ITeS export

can be achieved at US $ 175 Billion
up from US $ 47 Billion in 20082009
2. In 2020, the estimated IT related
domestic services market potential
is at US $ 50 Billion
3. Focus on markets like Japan, China,
Brazil and Russia

Comparative Adoption Time to 50 Million

Users
Radio

38 Years

PC

16 Years

Television

13 Years

Internet

4 Years

Because ----- Adaptive technologies like ERP grow slowly from

Initial hype
Learning, experimenting, Investing
New wave technology & equipment
Infrastructure consolidation
to critical mass achievement

Whereas ----- Disruptive technologies like Internet & E-business

travel from initial hype to critical mass in the blink
of an eye.

Laws governing growth of IT :

Moores Law
Every eighteen months, processing power
doubles while cost holds constant - time to
revise this to 100 days

Metcalfes Law
The more people who use your software, your
network, your standard, your game, or your
book, the more valuable it becomes, and the
more users it will attract, increasing both its
utility and the speed of its adoption by still more
users.

The Law of Disruption ----- Every new technology results in changes in

.

Technologies
Social setups
Businesses
Political arena

and almost in the same order. The first one

being the fastest and the last being the
slowest

Richness and Reach of IT

Richness is a function of Bandwidth,
Interactivity, and Customization
whereas Reach is number of people
exchanging information

Relationships, Loyalty, and Trust are all the

products of rich exchanges of information
among people.

IT - The Technological Convergence

Computer Technology
*
*
*
*
*
*

From 1st Generation technology

To 5th Generation technology
Emergence of Home Video Computers
Emergence of Tele-conferencing
Emergence of Tele-commuting
Emergence of Net enabled computing

IT - The Technological Convergence

Communications Technology
*
*
*
*
*
*
*
*

Sumerion Writing
Telephone invented
Colour TV demonstrated
Cable TV / Cell Phones
CD-ROM games
Digital Phone services
Internet thru Cable Channels
WAP Technology

IT - The Technological Convergence

Information Technology
* Both these technologies are coming together
* And that is called - Information Technology
*Also referred to as
Computers - Communications Technology

Information Technology
Is organizationally
neutral
Can shrink an
organization by
increasing
managements span
of control
Can make an
organization more
responsive

Can help us
compress time
Can help us
overcome
geographical
restrictions
Can help us
restructure
business
relationships

IT - The Technological Convergence

Today what we have Workstations are as common as telephones

Reducing distinction between office systems and end
user systems
Databases and processing power is becoming more
distributed
IT spending as a part of sales is on the increase
Primary value of the central IT function is to provide
connectivity
It is a decade of integration of applications
All aspects of software continue to improve steadily

Analysis of Firms Use of IT

Regulated
Monopoly

Organizational

Efficiency

Free Market

Individual

Effectiveness

Regulated Free
Market

Inter-Orgl

Competitive

The Four IT Cultures

Only a few companies are IT Stars
Laggards make up the biggest category

IT for Efficiency
Low
High
High

Big IT

IT Stars

Spenders

IT for Effectiveness
Low

IT
Laggards

Cautious IT
Spenders

Indias Stakes in IT

(In US $ Billion)
2009
17.0

Top 3 Indian Companies

2006
7.30

Indian IT Industry

36.3

47.0

Global IT Services Spend

935.6

1198

NASSCOM & McKinsey report said that by 2010, it would :

reach US $ 60 Bn @ CAGR of 28 %
contribute 7 % to Indias GDP by 2010, from 4.7 % at present
create 8.8 million jobs directly/indirectly.

India on Cyberwheels According to MAIT estimate, India has at present :

9.22 Million Internet Connections
More than 60 million Internet users(An agency puts this
at 81 million users)

The number of broadband subscribers increased

from 3.96 lakh to 6.10 lakh by September 2005.
This is likely to touch 9.4 million by 2010

Change in the Indian Mindset .

Deals like :

IBM Bharti
HP Bank of India
WIPRO Sanmar Group
Dabur Accenture
TCS Department of Company Affairs

Indicate opening of Indian mindset

towards 3rd party providers.

Gartner Group Says India grows fastest

amongst all Asian countries in IT spend Financial Services Banking, Financial
Services, and Insurance have the deepest
pockets and with growth rate of 17.8 % will
surpass every other sector in IT spend
In India, CRM has a 28 percent market share
and SCM at 20 %.
Indian Government alone has been the fourth
largest spender of IT in the country
accounting for nine percent of Indias total IT
spend.

The latest trends in IT business -- BPO companies alight from metro to smaller towns
There are about 450 BPO companies in India which
employ about a million workers
Next big opportunity for the Indian software industry in
the development and implementation of RFID (radio
frequency identification) based software solutions
Domestic IT services expected to grow at 7.5 %
cumulative growth between 2003-2008
IT majors are eyeing outsourcing for growth :
TCS, WIPRO Spectramind, HCL-BPO, ProgeonINFOSYS

New IT Hubs in India --- Apart from Metros which attract all kinds of
businesses;
Bangalore
Hyderabad
Chennai
INFOSYS - 120 acre campus
TCS - 70 acre development
WIPRO - expanding operations
HCL - 2nd largest setup outside NCR
Many more - PEROT, Cognizant, I-Soft etc.
Coimbatore

What would lead the IT growth .

PC Adoption
Broadband Usage
Increasing relevance to small and
medium sector
Increasing integration with
businesses

IT Implementation in India .
FMCG Sector - Focus on SCM
ITC e-Chaupal - 4000 Chaupals
HLL - more than 4500 systems
Banking & Financial Services Industry
CVC ordered banks to have 70 % txns by 31 Dec
2000
WAN, ATM, Net Banking
Call centers, Websites
Manufacturing
All major manufacturers are focussing on IT
MUL, TELCO, WHIRLPOOL
etc.

IT Implementation in India .
Oil Sector

All Oil companies are implementing SAP R/3

Intranets and Others systems
Telecom

A Major emphasis on technology

Healthcare

Major shift in healthcare in India due to IT

New-gen Hospitals coming up all over
Retail

RFID is going to transform the industry

On-line trading - NEAT, BOLT, T+1 Settlement

IT Implementation in India .
Banking:

State Bank of India :

CBS at 3350 Branches as in June 2006
CBS at 4700 Branches in Associated Banks
9170 Branches CBS by December, 2006

CBS in Delhi Sector in SBI

Out of 180 branches, 165 branches already have
CBS implementation

Indias Top IT Spenders

Increasing the speed of transaction and velocity of

business
Increasing factor productivity in all areas of
business
Improving internal efficiency of business processes
Providing better access to information and thus
improved individual performance
Making customers more happy
Reducing direct costs
Providing an advantage in marketing & sales

Part - II
ITES The Future
Directions

Industry Trends IT Services

Medium sized companies need to sharpen
focus to grow
Margins will continue to face pressure
ITES-BPO
Scale of operations (1000 seats and above) is
critical factor for survival
Captive units will continue to grow at a faster
pace than third party vendors

ITeS from India :

Specialized Services

Medical transcription
Legal database processing
Digital content development/animation
On-line education
Remote maintenance
Engineering & Design

General Services

Contact centres
Telemarketing/pre-sales
Consumer care
Technical support
Back office operations, accounts, financial services, etc.
Data processing

BPO LANDSCAPE
Company

Revenues

Employees

Major Clients

GENPACT

$ 493 Mn

20000

GE, LINDE,
NISSAN, GSK, AIR
CANADA

WNS

$ 224 Mn

9000

AIR CANADA,
BRITISH AIRWAYS

WIPRO BPO

$ 200 Mn

14000

AMEX, DELL

HCL TECH
BPO

$ 156 Mn

11200

Deutsche Bank,
British Telecom

IBM Daksh

$ 120 Mn

15000

Lloyds, Barclays,
Allstate

BPO The Whiplash !!!

Year
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08

Production
(Rs. Crores)
97,000

Annual Growth
(%)

118,290
152,420
190,300
244,000
291,100
- Mail Today July

21.1
21.9
28.9
24.9
28.3
19.3
5, 2008

Part - III
e-Governance : India
vs. Bharat

Accentures Report eGovernment

LeadershipRealizing the Vision stated - Out of 23 countries reviewed, Canada continues to be
the best e-Governed country
Singapore and United States have joined the league.
Canadians have electronic access to all federal
programmes and services.
Singapore is following the suit.
These 3 countries are termed as Innovative Leaders
and have a clear lead
The next group of 10 countries, called Visionary
Challengers, are closing the gap very fast.
7 out of these ten countries achieved above average
growth in overall maturity.

Accentures Report eGovernment

LeadershipRealizing the Vision stated --

The next group of the Emerging Performers

has started to speed up the pace in
implementing solutions in functioning.
The last category, i.e. Platform Builders, is
in the process of creating IT infrastructure for
the national architecture.
Surprisingly, all of the developing countries
including India belong to the last category.
Of course, the potential is unlimited.
India is on its way to assetise the so called
national liability - population of India

E-Governance : India is getting SMART

Many states are known to be having
breakthrough applications in e-Governance
Andhra Pradesh
- Land Records, OLTP
Bihar
- Sales Tax Admn
Chattisgarh
- Treasury Office
Delhi
- RCS Office
Vehicle Tracking
Gujarat
- Tender Notices
Karnataka
- Bhoomi
Madhya Pradesh
- Mandi Board, Gyandoot
Etc.

E-Governance in India .

AMUL experience

From 2.2 million to 500,000 retailers : all are benefited

Internet Rail Reservation thru mobile phone R

WORLD
EDI for Customs Clearance and Excise Now
everything on-line and not in-line
Hand held Simputers are being used by illiterate
attendants in MCD Parking lots
E-filing of TDS is catching on Tax Information
Network managed by NSDL
Technology in service of tax payers Income Tax
Deptt.
Health information system by Delhi Govt Bhagidari
for all services on the net

E-Governance in India .

No paper, no graft : Some hope

Delhi Transport Department

Drawerless Tables
Lockless Cupboards
Paperless work
Nameplates for staff
Disallowing lunch boxes in offices

MCD On-line

Municipal Services thru Citizen Service Bureaus

Dynamic website
Regn of deaths and issue of death certificates at
Crematoria

Approved

Multi-purpose National ID Card

Pilot
Basis of ID
for all
e-Governance
Projects

Planned

Full
Population
Register

Local
Register of
Indian Citizens

National
Register of
Indian
Citizens

Updation and
Maintenance
through other
systems

NIN

Multi-Application: linkage of NIN with other databases

Financial
Banking,
Insurance
Services
database

Education

Seed, Fertilizer
Pesticide,
Marketing credit

Admission
in schools,
colleges and
hostels

Services
Registration of
Land, Property,
Shares

Agriculture

Travel
Railway,
Air, Bus
Ticket
booking

NIN
2001 15326 10056 9

SC/ ST/ OBC

database

Special Status
PDS

Employment

Health & Medic

Health and
Medical
Services

Other
Gender issues Child marriage, marital
status, maintenance of separated women

Disability,
Old-age pension,
freedom fighter

Utility of MNIC for the Citizen

Identity
Name

MNIC
2001 15326 10056

Proof
of

Age

Residence

Domicile

Citizenship

e-Choupal by ITC--- Commencement of initiative: 2000

Status at Present
States covered
:
Villages covered
:
e-Choupal installations
:
Empowered e-farmers
:
Milestones for the next decade
States to be covered
:
Villages to be covered
:
e-Choupals to be installed :
Farmers to be e-empowered:

7
40,000
5372
3.5 million
15
1,00,000
20,000
10 million

e-Choupal by ITC--- ITCs e-Choupal comprises of

an Internet kiosk
village gathering place
an e-commerce hub
managed by a farmer trained by ITC, called
Sanchalak.
Farmers have better access to information on yield
prices,
weighing
scales,
bagging
costs,
and
transportation costs.
Can buy products such as seeds, fertilizers and
consumer products through the same choupals at much
lower prices.
Farmers benefited to the extent of 2.5 % or so in selling
produce and buying goods, ITC saves upto 2.5 %

AMCUS - Automatic Milk Collection Unit System

Started by Gujarat Co-operative Milk Marketing
Federation Limited(GCMMF)
AMCUS has benefited 2.2 million member farmers,
10,675 co-operative societies, 12 member unions,
3,000 distributors, and 5,00,000 retailers all over the
country.
Each farmer given a plastic identification card
The entire process from emptying milk into steel
container to calculation of payment which used to
take upward of a few hours is now taking lesser than
5 minutes per transaction
The project has led to reduction in time spent in the
process, pilferage, human error, and wastage and
resulted in on-the-spot payment, transparency, and
operational integration.

e-Seva A PPP Initiative

Started as Twincities Integrated Network Services(TWINS) in 1999

Single window service counters facilitate on-line transactions and
offer 160 different services to the citizens including 130
Government-to-Consumers(G2C)
and
30
Business-toConsumers(B2C) services integrating 14 state government
departments, 3 Government of India departments and 10 private
sector organizations.
More than 60 % of the electricity, water, and Tata Tele Services
bills are being paid through e-Seva centers.
Today, e-Seva has 238 centres all over the state of Andhra
Pradesh.
UTI Bank and ICICI Bank are partnering with the state government
in a big way to manage e-Seva centers. The number of
transactions handled by e-Seva has been on the increase.
Presently, e-Seva centers in the districts have recorded 30 million
transactions amounting to Rs.500 Crore collections. The state
government intends to increase the number of services to 1600
services through these centers.

Railways to book passenger tickets

thru Commercial Banks ---- About 1.5 lakh bank counters all over
the country to be used for ticket
booking
5000 ATMs to be installed at Railway
Stations

MCD micro-chips bunking bulls -- MCD will spend Rs.4.00 lakh to install microchips
inside the stomachs of bulls bunking duty
Earlier the Civic body had successfully brought down
absenteeism among its employees by installing biometric machines at Town Hall
883 carts, each pulled by a bull, used to ferry slit and
garbage to landfill sites were bunking duty
The Chip will contain exhaustive details on the animal,
its owner and would use global positioning system
technology to trace the bulls whereabouts
HT December 11, 2008