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India as outsourcing destination – Key milestones. George Anthony VP & CTO Tech Mahindra Limited . Agenda. Introduction Key statistics India outsourcing – Milestones Current Challenges China-India model. Growth is at fast pace (Offshore based outsourcing). IT Exports. $ Billion.

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india as outsourcing destination key milestones

India as outsourcing destination – Key milestones

George Anthony

VP & CTO

Tech Mahindra Limited

agenda
Agenda
  • Introduction
  • Key statistics
  • India outsourcing – Milestones
  • Current Challenges
  • China-India model
growth is at fast pace offshore based outsourcing
Growth is at fast pace (Offshore based outsourcing)

IT Exports

$ Billion

* NASSCOM, McKinsey, Forrester, Aberdeen, neoIT

outsourcing drivers india advantages
Outsourcing Drivers & India advantages

Cost Savings/Containment

OUTSOURCING

DRIVERS

Focus

Skills

Shortage

Quality

Specialist

Requirements

Time to Market

total outsourcing proposition
Total Outsourcing Proposition
  • Strategic Consulting
  • New applicationDevelopment & Mgmt
  • Technology Consulting
  • Business Applications Sustenance
  • Process Consulting
  • Application

Optimization

  • Infrastructure Optimization
  • Infrastructure Set up & Provisioning on a pay-by-use basis
  • Infrastructure Management
india s competitive advantage
India’s Competitive advantage

Performance

Highlights

  • India has 28% of suitable talent among all cost competitive offshore locations
  • Key stakeholders are taking initiatives to further enhance India’s talent proposition

Abundant Talent

1

  • Significant primary infrastructure is being built in leading centres
  • ~ 25 million sq feet of Class A real estate was available in 2005
  • End-to-end network uptime for India and other offshore locations vis-à-vis US levels (~99.95%)

Quality & Scaleable Infrastructure

2

Critical Ingredients of India’s success

  • India based players have managed to maintain quality and cost leadership vis-à-vis other countries

Operational Excellence

3

  • India’s business environment is competitive with those in other countries
  • Key government policy interventions have catalyzed growth

Conducive Business Environment

4

Growing Domestic IT/ BPO Market

  • Increase in domestic spending on IT

5

= Low

= High

Source: Nasscom-McKinsey Report 2005

the outsourcing value chain
The Outsourcing Value Chain

Managed

Services,

Product

Sales linked

revenue

E2E

Ownership

Systems

Outsourcing,

Product

Testing

Application

Outsourcing

Fixed Price

Projects

T&M

Projects

Risk and Ownership

Professional

Services

Level of Maturity

india as a pivot in gdm
1.7%

2.1%

2.3%

3.3%

3.8%

4.5%

6.8%

75.5%

India

CEE

Philippines

Latin America

China

Canada

MEA

Others

India as a Pivot in GDM

Worldwide Offshore IT Services Share by Region, 2004

Low Cost Global Delivery Player

Total = $9.8 Bn.

India well established on the Global Outsourcing Stage

Source: IDC and Forrester

key challenges
Key Challenges
  • Attrition
    • Pure-play, MNC, Captive, Product Engineering, R&D
    • Ambitious growth plans
  • Costs are going up
  • Quality of resources
china india model
China-India model
  • China IT Outsourcing industry is emerging
  • Advantages of China
    • Great Infrastructure, Huge domestic market, Better living conditions, increasing engineering graduates
  • Adoption of best practices from INDIA outsourcing model
  • COMPLEMENTARY and SYNERGESTIC model between China and India
  • CHINA is important in our growth strategy
  • Working model
slide13
Overview

Tech Mahindra

Financials

Revenue US$ Mn.

  • Global Reach
  • People from diverse culture and nationalities
  • Global Fortune 500 customers

TelecomExpertise

  • Effective & Proven Solutions for players in telecom ecosystem
  • Developing business solutions & consulting capabilities
  • Multiyear partnerships, preferred vendor status, partners in key transformations

Process & Quality Leadership

  • Proven mASTERTM Service Delivery Framework
  • Integrated Business Management System comprising SEI CMM Level 5 & ISO9001:2000, BS7799 adherent practice
  • Customer benefits:
    • Predictable high quality results
    • Consistently delivered on time & budget
  • Annualized Revenue of US$ 290 Million*
  • Global JV of BT Group Plc.(43%) & Mahindra & Mahindra (57%)

People and Services

  • 18 years of focused IT experience exclusively in the Telecom domain
  • Wide range of services right from IT Consulting to Operations Outsourcing
  • Over 9,500 dedicated resources
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