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Internationalization of India’s Software Industry: Reflections on Infosys, Satyam and Wipro. By N. S. Siddharthan and K. Lal Institute of Economic Growth Delhi University Enclave Delhi – 110007, India Email: nss@ieg.ernet.in. INFORMATION TECHNOLOGY REVOLUTION CHARACTERISTICS

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slide1

Internationalization of India’s Software Industry:

Reflections on Infosys, Satyam and Wipro

By

N. S. Siddharthan and K. Lal

Institute of Economic Growth

Delhi University Enclave

Delhi – 110007, India

Email: nss@ieg.ernet.in

slide2

INFORMATION TECHNOLOGY

REVOLUTION

CHARACTERISTICS

Globalising And Decentralising

Technological Fusion

All Nations and Sectors

Knowledge Intensive

(Not Materials Intensive)

Short Product Life Cycles

Absence of Scale Advantages in Several Product Lines

Absence of Scale Advantages in R&D

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Earlier Technology

Mass Production of One Model

Current Technology

Flexible Manufacturing Systems

Frequent Changes in Product Mix

Frequent Changes in Designs

Small and Medium High-tech R&D Units

Web sites and E-commerce and business

Changing role of SMEs

Customerised Products

Specialisation

Subcontracting

CNC Machines

infosys technologies ltd revenue rs 1900 crores exports more than 90
Infosys Technologies LtdRevenue Rs. 1900 crores. Exports more than 90%

Strategic Partners

JASDIC PARK COMPANY: Joint venture to build critical applications for Japanese companies.

MICROSOFT:Strategic global relationship for developing, promoting and delivering business solution offerings and enterprise services.

SUPPLY CHAINGE:Strategic partnership to deliver the Lead Time Optimization Solutions.

TIBCO Software Inc: Strategic global relationship for developing, promoting and delivering business solution offerings and enterprise services.

WORKADIA, LLC: Is a joint venture of Infosys, American Express, TIBCO, and WestBridge Capital Partners.

INTEL: Infosys-Intel Lab is the first e-business lab of its kind.

infosys cont
Infosys Cont.

Worldwide Offices

America: United States of America; Canada; Argentina

Europe: Belgium; France; Germany; the Netherlands; Sweden; Switzerland; United Kingdom

Asia: Hong Kong; India.; Japan; Singapore; UAE

Australia

infosys cont1
Infosys Cont.

At current US depositary receipt prices, it is the second most valuable IT services co. in the world. Ranked higher than stalwarts like EDS, CSC and Cap Gemini.

Market values each Infosys employee at roughly $800,000. Most world leaders valued much less.

Expected to maintain revenue growth rates in excess of 20% for the next 10 years.

satyam computer services revenue rs 1220 crores exports more than 80
Satyam Computer ServicesRevenue Rs. 1220 Crores; Exports more than 80%

Satyam Asia Pacific: Head Qts. Singapore; Offices at Sydney and Melbourne. Taiwan, Malaysia and Hong Kong in pipeline.

Satyam Japan:Offers customer specific solutions with local partners.

Satyam Europe: Integrated end-to-end solutions to clients in UK, Germany, France and the Netherlands.

Satyam Middle East: Dubai Internet City.

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Wipro

A Diversified Integrated Company

Wipro Infotech

First soft ware company to get SEI Level 5 and also implemented Six Sigma TQM Practices and support functions.

Launched its German operations (based in Frankfurt) – business applications and R&D outsourcing requirements.

Has forged strategic relationship with the world best technology companies.

future prospects
Future Prospects

Firms should graduate from:

Service providing to product development

Exploitation of ownership advantages likely to pay more in the long-run than servicing of customized products

Future growth prospects depend on development of generic products and “productized” services

This will enable firms to move-up in the value added chain