Som Mittal PM Conference India 2009

1. IT as a catalyst for Business Transformation
The Power of Project Management
15th November, 2009 | Hyderabad

2. About NASSCOM
Represents IT/BPO/Products/Engineering Industry
Over 1300 members – Includes Indian Companies, MNCs and Captive units
• Policy Advocacy – Partnership with the Government
• Industry Development – Research, Events, Forums, Market development
• Enabling Environment – Entrepreneurship, Innovation, Resource building, Security
initiatives, Infrastructure
• Global Trade Development – Policy advocacy, Market development, International
Partnership, WTO/Bilateral engagements
• Sustainability - CSR initiatives, Gender inclusivity, Driving Inclusive Growth, Green IT
Initiatives

3. Indian IT – BPO Industry continues to grow
Break-up of Exports by service line,
FY2009E
Exports generate 3/4th of total revenues

4. Industry employs nearly 2.2 Million professionals
Direct Employment („000), • Almost 8 million indirect job
FY08-FY09 opportunities created
• 60% of the total cost is talent linked
10%
• On an average, companies spend up
to 40% of a staffer‟s annual salary on
training
• Implementing global best
• 7.5% of the current workforce are
foreign nationals; 20% increase in
foreign nationals employed in FY09

5. Industry‟s impact on the Indian economy
Rapid growth in the last decade Areas of Impact Impact
Industry size (exports Domestic
and domestic) Exports
Employment • 45% of new urban jobs created
Creation (1995-2005)
• Supported 6-7x increase in
Contribution tertiary education in IT/BPO
to Education exporting states as compared to
52 other states
• Women in the workforce
Diversity and estimated to be 30%
+31% p.a. Global • 30% of employees have worked
Exposure outside India
40
6 • Exports offset close to 65 per
Contribution
2 cent of India‟s cumulative net oil
4 to Exports imports over past decade
2000 2008
5

6. Focusing on Balanced Regional Growth
43 new locations identified for IT-BPO delivery
New Delhi, Noida, 17%
Gurgaon •Presently 97 percent of business
coming from 6 major cities
•Emergence of 43 tier 2/3 cities
Mumbai, 15% •On an average costs in tier 2/3
Pune cities is 28% less than leader
Others 3%
cities
• By 2018, 40% of IT-BPO exports
will originate from non-leader
Hyderabad 14% locations
Chennai 15% •What is required is social
infrastructure
Leader Cities
New Emerging
Cities
Bangalore 36%

7. FY10 outlook: Software and Services
Indian IT-BPO sector-Export Indian IT-BPO sector- Domestic revenues
revenues (USD billion) (INR billion)
Growth of 15-
18%
Growth of 4-7%

8. Investment in E-Governance >$10bn across 200,000 locations
National E-governance Plan (NeGP) set-up to speed up E-governance at State and Central level
National E-Governance Program - Mission Mode Projects (MMPs)
Central (9) State (11) Integrated (7)
• Income Tax • Agriculture • e-Biz
• Central Excise • Land Records - 1
• EDI
• Passport/Visa • Land Records - NLRMP
• Transport • India Portal
• Immigration
• Treasuries • CSC
• MCA 21 • Commercial Taxes • NSDG
• National ID / UID • Gram Panchayats
• Pensions • Municipalities • e-Courts
• e-Office • Police - CCTNS • e-Procurement
• Employment Exchange
• Banking
• e-District
• Insurance
NeGP COMPONENTS
• Policies, Standards and Guidelines • Capacity Building and Training
• Infrastructure • Awareness & Assessment
• (SWAN, CSCs , SDC )
• Technical Assistance
• Support Infrastructure

9. Institution supporting NeGP - NISG(National Institute of
Smart Governance)
NISG Process
Proposal Approved & Contract Awarded 53 Companies/Firms/
Academic Research
NISG Institutes and Society
8 Individuals/Domain
Experts
Sent for NISG
Approval
Line Ministries/ PSUs/ State Govts
Empanelled
Nominates Consultants
Min 5 Consulting
Firms Short listed
NISG
Bid is Issued
Prepares
Objective / Vision Document
Techno Commercial Stakeholder Consultations/
Proposal Workshops
AS-IS Study
Consulting Firm
TO-BE Study
Selected
Business Process
Quality Reengineering
Submits
Submits the Front ending with Line Technology Solution
Deliverable
Deliverables Ministries/ Departments Design & Development
Ensure Deliveries Detailed Project Report
(DPR)
RFP‟s
Bid Process Management
Programme Management
Reviewed NISG
Project Manager Change Management
By NISG
Training

10. Current scenario – Delivery approach
Multi-client
solutions/
products
Domain
Client interface
expertise
Customer
End-to-end delivery
intimacy
Delivery “Offshore-onsite”
excellence delivery model
Large enterprises SMBs Large enterprises SMBs
(Fortune 1000)
Developed markets Emerging markets (e.g., BRIC)

11. Future scenario – “Step-out” business models
Industry utility/ platform
Multi-client Reusable components
player
solutions/
products SaaS-enabled SMB player Reinvented services
Vertical specialist
(e.g., clinical research)
Domain Service through SMBs
expertise Process reengineer
(e.g., “gold standard” F&A)
Multitier Delivery
Customer
intimacy Customer specialist
Lean factory
Delivery
excellence Value-chain specialist
BRIC specialist
(e.g., IV&V)*
Large enterprises SMBs Large enterprises SMBs
(Fortune 1000)
Developed markets Emerging markets (e.g., BRIC)

12. Global mega trends that will impact business and society
Macroeconomic and 1 Shifting centers of economic activity – Emerging Asia
demographic trends
2 Shrinking working age population
3 Increased internet and mobile connectivity
Social and
environmental trends 4 Demand-supply gap in key natural resources
5 Major shifts in industry structures and regulatory control
Business and
6 Redefinition of corporate boundaries
technology trends
7 Technology transforming – Governments and corporations

13. Economic and Demographic shifts significant
Regional share of global GDP Comparison of population shifts
Per cent Est. GDP CAGR
Working age (15-60 years) Retiree (60+ yrs)
Per cent, 1990-2025
100 Middle East and Africa 4.2 40
Latin America
90 41 UK
3.4
Asia (except Japan)
80 6.3
39
70 14
Japan 1.4
60 16
37 Italy
50
Europe 2.1 55
40
Germany
53
30 18
20 North America 3.0
750 60
10
India
0 920
1990 1995 2000 2005 2010 2015 2020 2025
2008 2020 Significant shift

14. Industry would witness higher growth in
new markets and verticals
Total revenue potential for global sourcing, 2020
USD billion 380 1,500
230
190
200
500
Up to 80% of growth from
markets that are not core today
Core markets Growth in core New verticals in New customer Outsourcing Total
2008 markets developed segments market in new addressable
• 6 verticals countries • SMBs geographies market in 2020
• N. America, • Public sector • BRIC
Europe, Japan
• Healthcare
• Large
enterprises
• Media
• Utilities
Creation of local jobs due to need for local knowledge; Broadening of workforce; Talent
pool to service innovation needs – inclusion of strategic leadership and core delivery
roles
Source: McKinsey Analysis

15. Changed landscape and Innovation-led growth
transforming business
IT/BPO industry revenue potential
USD billion Industry landscape in 2020
225 ▪ Globally dispersed footprints; decoupled value
50 Domestic chains
▪ Integrated solutions across end-to-end value
chains
4x ▪ Shift to greater proportion of proprietary
offerings in revenue mix
175 Exports ▪ Global people supply chain with globalized
recruiting and talent practices
59 ▪ Innovation-led, end-to-end transformation
12.4 ▪ Several integrated players, multiple co-existing
46.3 business models
FY2009 2020 ▪ Converged business models, rendering
geographic boundaries obsolete

16. The industry‟s impact on India‟s economy and society
by 2020
Areas Contribution of Indian technology-business services by 2020
• 6% of annual GDP
Economy
• 28% of annual exports
• 30 million urban employment (direct and indirect)
• Significant job creation in rural and non-metro areas
Employment
• Increased diversity (women are 50% of the total workforce)
• Significant career opportunities due to globalised and location-
independent models
Growth outside metro • Infrastructure development
cities – 8-10 satellite townships around Tier-1 cities
– 10-15 Tier-2 cities with upgraded basic and business infrastructure
• Provide solutions at a fraction of cost of traditional solutions &
Reduced fiscal burden reduce public spend on these areas (healthcare, education, fin. &
public services)
• Improve transparency
Globally reputed • Additional revenues of USD 50-80 bn innovation driving additional
innovative solutions GDP contribution of 1.5-2%

17. Five-fold vision needs to be launched
• Intellectual property framework • Winning through the downturn
(especially enforcement) • Reinvented business models
• Centers of Excellence • Tapping into new verticals,
Building a Catalysing
• Entrepreneurship geographies, customer segments
preeminent growth beyond
innovation • Robust domestic demand
today‟s core
hub in India markets
5 1
• Tertiary Developing a Five Establishing
education high caliber 4 themes 2 India as a trusted
quality and talent pool of • Improved
global hub for
scale up over 4 million 3 infrastructure (e.g.,
professional
• Curriculum and people services satellite townships)
faculty • Corporate
development Harnessing
ICT for inclusive governance
growth • Risk management
and security
• ICT solutions for healthcare, education,
• Global branding
financial services, public services
• Connectivity and access (e.g., broad-band
rollout)
• Soft infrastructure (e.g., IT literacy)
Source: McKinsey Analysis; NASSCOM Analysis

18. Points to ponder for PMI (1/2)
How does the future of PMI change and evolve during the future?
• Changing customer profile/needs
o Is the client the customer or is the end-user the customer?
o How will we get customer empathy?
o Going beyond SLAs and milestones
o Flexibility, rapid changes and acquisitions
• Changing work profile
o More innovation and transformation driven
o Long term project increases uncertainty
o Profit & Loss back ended
• Changing profile of contracts
o New business models
o More outcome based
o Risk with vendor

19. Points to ponder for PMI (2/2)
• Evolving risks
o More and more work becoming mission critical
• Role of Project management in service delivery
• Increasing Government buying
o Increasing role of technology in Government
• Multiple projects need convergence
• Change management and improvement needed
Project Management over the next years will dramatically evolve to
address the above

20. Thank You