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Indian Software & Services : Key Ingredients for Success

Indian Software & Services : Key Ingredients for Success. National Goal. “ Make India a Global Information Technology power and one of the largest generators and exporters of software in the world within 10 years.”. Beginning ……. Weighted Ranking. Factor Weight India Ireland

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Indian Software & Services : Key Ingredients for Success

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  1. Indian Software & Services : Key Ingredients for Success

  2. National Goal “Make India a Global Information Technology power and one of the largest generators and exporters of software in the world within 10 years.”

  3. Beginning ……. Weighted Ranking Factor Weight India Ireland SEGMENT EXPERTISE 6 12 6 LABOR COST 4 4 - 8 LABOR SUPPLY 4 8 0 EASE OF BUSINESS 3 0 6 EASE OF VISAS 3 - 3 3 ENGLISH SPEAKING 3 3 3 TECH. COMPETENCE 3 3 3 EDU. & TRAINING 2 0 2 GOVT. INCENTIVES 2 0 4 SECURITY 2 0 2 TELECOM INFRA. 2 - 2 4 DOMESTIC MARKET 1 1 2 WEIGHTED AVERAGE - 26 27 Ireland India Singapore Israel Philippines China Mexico Hungary Extract of a World Bank Report - 1991

  4. Challenges to Growth • Policy Creation • Policy Implementation • Operational Flexibility

  5. Policy during 1991 EOU’s & EPZ’s - - Not Very Congenial for Software Industries - Being implemented by the Commerce Ministry - Foreign Investment Promotion Board - Physical Boundary - Minimal Communication Infrastructure Result: Not Focused, lack of understanding, and discrete approach

  6. Software Technology Parks of India A non-profit society set-up in 1991 by the Ministry of Information Technology, Govt. of India to promote & facilitate Software Exports from India

  7. One Stop Shop

  8. STPI Differentiators • STP Scheme is being operated by the technical body • Investment Approvals decentralized • Most of the authoritaties are sub-Delegated to the Directors of the STPI Centers Result: A De-Centralized Single Window Scheme

  9. What is STP Scheme? Benefits • Complete duty free import • 100% foreign equity permitted • No corporate income tax till 2010 • Dedicated Data Communication links • Single window Government clearance • Custom bonding and export certification provided at single point.

  10. STPI : Catalyst for Synergy • Industry • Academia • Finance • Government

  11. Earthstation Location STPI Spread across … Other Sub-Centers • Dehradun • Rourkela • Madurai • Tiruchirappalli • Thirunelveli • Pondicherry • Vijayawada • Tirupati • Warangal • Nasik • Kolhapur Srinagar Mohali/Chandigarh Noida Shimla Delhi - HQ Jaipur Guwhati Lucknow Bhilai Kanpur Gandhinagar Indore Kolkata Nagpur Navi Mumbai Bhubaneshwar Aurangabad Under Implementation Vizag Pune Hyderabad • Gurgaon • Gangtok • Allahabad • Agra • Varanasi • Meerut • Jalandhar • Durgapur • Kharagpur • Shillong • Agartala • Salem Bangalore Hubli Mysore Chennai Manipal Coimbatore Mangalore Thiruvananthapuram Map Not to Scale

  12. Exponential Growth of Software Industry US $ in Million

  13. India : Vital Value Add

  14. India’s Value Proposition on IT-Enabled • Cost • 40-60% cost reduction for • offshored process • Labour cost arbitrage, the • reason for cost savings, likely to • exist for the next 20-30 years • Productivity • Faster turnaround time - Time Zone difference - 24x7 service • Learning curve effect – centralization within company • Quality • Established methodologies and • processes for better performance • Well defined quantifiable metrics for • quality & process • Access to highly-qualified skill pool Source:McKinsey

  15. Quality vs Productivity in India UK-based retail bank US financial services company No. of Correct transactions/ Total transactions (%) Total Satisfaction factor Quality No. of transactions/hour (indexed to UK) Average speed of answer (Secs) Productivity Source:McKinsey

  16. Success Formula • Investment C • Telecom/Datacom Infrastructure • Cluster & Incubation Development • Entrepreneurship and VC Funding • Internationalisation of HR • E-Governance • Quality Systems & Methods

  17. Connectivity Exchange International Fiber Landing Point Intl.Fiber India to USA STPI-Network Operations Center Cyber Park Bharti Metro Fiber Server Farm 9 Satellite Dishes 4 Metro Fibers Spectranet Metro Fiber BSNL Metro Fiber Reliance Metro Fiber

  18. Enabling Clusters Started Operation 13 Companies US $ 50.52 M Exports . Manipal Incubation Center 24 Companies US $ 8.12 M Exports Bangalore Mangalore Earthstation Location Mysore Infrastructures : ITPL, Bangalore, HITEC City Hyderabad, Cyber Park Bangalore

  19. Venture Capital Environment in Karnataka • 12 Domestic Small Funds • 16 Overseas Funds • 28 Large Funds • 50% of above Funds are Head Quartered in Bangalore • Concept of Investor/Incubation Combo is picking up

  20. Human Resources in Karnataka State • Engineering Colleges 97 • Polytechnics 181 • Medical Colleges 27 • General Colleges 812 • Universities 11 • Technical University 1 • Agricultural Universities 2 • Health University 1 10% Indian Graduates are produced in Karnataka

  21. E-Governance Initiatives • Mukya Vahini – Decision Support System for Administration • Bhoomi & Nondani – Land Records Computerisation & Registration • Khajane – E-enabling of Treasuries through linking of 250 treasuries to manage the complete expenditure of the state • Therige – E-enabling Commercial Tax Offices and Outposts • Reshme – Online Transaction support for Sericulture Farming • E-Seva – One Stop bill payment center covering all utilities, taxes, etc

  22. Thank You... Sanjay @ inknowtek.com InKnowTech Pvt. Ltd., A-306, STPI Complex, Electronics City, Bangalore – 561 229

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