1 globalisation of indian it sector 23 february 2011
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Globalisation of Indian IT Sector23 February 2011
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Global technology and outsourcing -- market size & growth
*2010Source: IDC, Everest Research, NASSCOMM*2010Source: IDC, Everest Research, NASSCOMM
Global technology spending grew by 4%,outpaced by global sourcing growth of 10%Global technology spending grew by 4%,outpaced by global sourcing growth of 10%
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Indian IT – BPO industry export revenues
Indian IT-BPO Export Revenues *(USD Billion)Indian IT-BPO Export Revenues *(USD Billion)
*Excluding Hardware
Source: NASSCOMM
*Excluding Hardware
Source: NASSCOMM
• India’s share in global sourcing –
55% in 2010, up from 51% in 2009
• Industry accounts for 26% of India’s
exports
• IT services exhibiting fastest growth
at 23%, BPO growing by 14%
• Transformation, new business
models, driving organization wide
efficiencies
• Emergence of verticalised solutions
• India’s share in global sourcing –
55% in 2010, up from 51% in 2009
• Industry accounts for 26% of India’s
exports
• IT services exhibiting fastest growth
at 23%, BPO growing by 14%
• Transformation, new business
models, driving organization wide
efficiencies
• Emergence of verticalised solutions
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Domestic Indian IT – BPO industry
Indian IT-BPO Domestic Revenues *(INR Billion)Indian IT-BPO Domestic Revenues *(INR Billion)
*Excluding HardwareSource: NASSCOMM*Excluding HardwareSource: NASSCOMM
• Domestic industry over $16 billion
annually
• IT – BPO seen as a critical
enabler for inclusive growth and
transformation
• Government drive to drive
performance and efficiency
accelerating growth (like private
sector to handle issue of
passports, railway reservation
automation, free internet kiosks
for villages)
• Domestic industry over $16 billion
annually
• IT – BPO seen as a critical
enabler for inclusive growth and
transformation
• Government drive to drive
performance and efficiency
accelerating growth (like private
sector to handle issue of
passports, railway reservation
automation, free internet kiosks
for villages)
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Employment - Indian IT – BPO industry
Direct Employment (‘000)Direct Employment (‘000)
Source: NASSCOMMSource: NASSCOMM
• Industry directly employs 2.5 million
professionals
• Industry building future ready
organizations through• Sustained investment in training• Opportunities for career growth• Managing people challenges
effectively• Ensuring cost competitiveness
• ~2 per cent of revenues spent on
training - industry supplementing the
education system
• Industry directly employs 2.5 million
professionals
• Industry building future ready
organizations through• Sustained investment in training• Opportunities for career growth• Managing people challenges
effectively• Ensuring cost competitiveness
• ~2 per cent of revenues spent on
training - industry supplementing the
education system
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Indian IT – BPO industry exports – sector wise trend
Source: NASSCOMMSource: NASSCOMM
Broad-based growth – Emerging verticals growing faster than the traditional onesBroad-based growth – Emerging verticals growing faster than the traditional ones
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India multipliers – for being future ready
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New BusinessModelsNew BusinessModels
• Shift towards managed services model,
• From FTE based to outcome based; pay
per use model, CAPEX to OPEX
• Shift towards managed services model,
• From FTE based to outcome based; pay
per use model, CAPEX to OPEX
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Innovation andTransformationInnovation andTransformation
• IP Led innovation
• Innovation through process re-
engineering
• IP Led innovation
• Innovation through process re-
engineering
Patents granted to top 5 Indian IT companiesPatents granted to top 5 Indian IT companies
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Global DeliveryGlobal Delivery • Globally dispersed footprints• Customer intimacy
• Globally dispersed footprints• Customer intimacy
Cross-border M&A DealsCross-border M&A Deals
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Service deliveryaround new techService deliveryaround new tech
• Everything as a service model,
platforms• Develop applications around cloud and
platform based solutions
• Everything as a service model,
platforms• Develop applications around cloud and
platform based solutions
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Outlook and challenges
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Future Growth& OutlookFuture Growth& Outlook
• FY2012 software and services growth forecast 16-18 per
cent
• Broad based growth – across service lines and verticals
• New geographies(APAC, Middle East, Japan) incl. domestic
market
• M&A - niche domains and global presence to escalate
• Onshore delivery – key priority
• FY2012 software and services growth forecast 16-18 per
cent
• Broad based growth – across service lines and verticals
• New geographies(APAC, Middle East, Japan) incl. domestic
market
• M&A - niche domains and global presence to escalate
• Onshore delivery – key priority
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ChallengesChallenges • Talent – quality and employability; Wage Inflation and
attrition
• Currency fluctuations, Inflation
• Issues of Protectionism and Visas
• Talent – quality and employability; Wage Inflation and
attrition
• Currency fluctuations, Inflation
• Issues of Protectionism and Visas
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A quick snapshot of HCL
HCL Enterprise
HCL Technologies
The software services arm
HCL InfoSystems
The systems integration arm
$5.5$5.5292977,00077,000
BILLION
COUNTRIES
PEOPLE
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CANADA
SunnyvaleIrvine
Mexico City
DallasUtah
Los AngelesHouston
Chicago
Columbia
StamfordChicago
CARY, NORTH CAROLINA
Toronto
FairfaxNew Jersey
SAO LEOPOLDO, BRAZILSao Paolo
SOUTH AFRICA
KRAKOW,POLAND
FINLANDSWEDEN
ITALYSWITZERLANDFRANCE
NETHERLANDS
GERMANY
U.K.
LondonBelfast
INDIA
JAPAN
SHANGHAI, CHINAHONGKONG
Perth
MelbourneSydney
Brisbane
Wellington Auckland
SINGAPOREMALAYSIA
Dubai
Israel
INDIAPUERTO RICO
CZECH REPUBLICBelgium
SAUDI ARABIA
Beijing, China
Global Presence
• 10 Global Delivery Centers (outside India)
• 6 Delivery centers in UK (out of which 2 are in Northern Ireland)
• One of the largest employers in NI today – employing over 2,000 people
• Over 4,500 employees working for HCL in Europe (including onsite
presence)
• 10 Global Delivery Centers (outside India)
• 6 Delivery centers in UK (out of which 2 are in Northern Ireland)
• One of the largest employers in NI today – employing over 2,000 people
• Over 4,500 employees working for HCL in Europe (including onsite
presence)
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Globally Admired
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HCL is taught at Harvard as a premier case study on strategy
and organizational leadership
One of Britain’s Top Employers for the
4th Consecutive Year
Acknowledges HCL Technologies as the world’s most
modern management
Darden School of Business has done a case study on the impact created by HCL through its “Employees First Customers Second” practice
HCL Technologies is Disruptive and Bears Watching…though it has not received the hype of a salesforce.com or Google, we believe HCL may very well be one of the contenders to lead the IT services world of the very near future.”
“IBM and the other multinationals are becoming increasingly nervous about HCL Technologies…”
Best Employer in India –Hewitt Study 2009
One of the 44 Most Democratic Workplaces in the World
Employees First, Customers Secondis now a book Published by Harvard Press
Foreword by Late Prof C.K. PrahaladAdmired by many global thought leaders
Tom Peters, Tony Hsieh, Gary Hamel, Judy McGrathRam Charan, Victor K. Fung
Included in Forbes’ prestigious 'Asia's Fab 50 List' for 2010
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Scale and Integrated services capability
“HCL’s recent IT outsourcing and hosted application management (AM) contract wins heralds a milestone in both the offshore IT services competitive landscape and the U.S. IT outsourcing and application outsourcing markets”
"To all the remaining doubters out there: HCL has just whipped away your comfort blanket! This deal is proof that Indian-based outsourcers have what it takes to beat the established players,”
IBM and the other multinationals are becoming increasingly nervous about the fifth-biggest Indian outsourcer, HCL Technologies
International long term savings groups
5 Year~$500 mn
5 Year~$100 mn/Yr
5 Year~$200 mn
World’s Leading Pharma Company
UK Based Leading Telecom Major
BPO, ITO
BPO, ITO, IMS,
Consulting
BPO, ITO, IMS
Leading global investment bank
9+ Year~$200 mn/year
BPO, ITO, IMS
Client Client Profile
Integrated services – Major Client Deals
Service Components
Deal Value
Deal
Period
About our Success…Rated as leader in Global Delivery Infrastructure Management Wave
Gartner puts HCL as a Challenger in Application Services
About our Leadership….
Ranked in the “Leaders” Category of the Global Outsourcing 100 - IAOP
Ranked 1st among the Top 50 Best Managed Global Outsourcing Vendors – Black Book of Outsourcing
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HCL Strengths (As defined by our Customers*)
Entrepreneurial CultureEntrepreneurial Culture
Broad based Services Broad based Services
Highly Engaged PeopleHighly Engaged People
Customer AlignedCustomer Aligned
70 CIOs/ CTOs form the HCL Customer Advisory Council 70 CIOs/ CTOs form the HCL Customer Advisory Council
* Source: HCL Brand Workshop conducted with HCL CAC members Oct/ Nov 2010
“ It’s good to do business with HCL ”
• Engineering DNA• Skin in the game
• Most balanced portfolio
• Globally competitive
• Leadership commitment
• Employees First
• Aligned with customer’s strategy
• Transparency
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Thank You
For further details and questions, please contact:
Udayan Guha Vice-President, EuropeHCL Technologies - Business Services Division
Mail: [email protected]: +44-75450-86986Tel: +44-20-7105-8600
HCL, 7th Floor, 68 King William Street, London, EC4N 7DZ