1. Perspective 2020:
Perspective 2020:Transform
Transform Business,
Business, India
Transform
Transform India
Perspective 2020: Transform
Business, Transform India

2. PERSPECTIVE 2020: KEY MESSAGES
The Decade in Review
An unparalleled impact on the Indian economy in the last 10 years – 6% of incremental GDP
growth; 45% of incremental urban employment (direct and indirect); 6-7x increase in tertiary
education in top 7 states that account for 90% of industry exports
Significant returns to customers – annual savings of USD 20-25 billion in 2008 alone
A large unfinished agenda remains – Especially structural changes (e.g., tertiary education
reform), have not been implemented
Global economic crisis will have a far-reaching and as yet uncertain impact on the industry.
Near-term volumes and pricing likely to be under pressure.
While 10-year aspiration of USD 50 billion in exports in 2008 has largely materialised, extreme
contraction in the global economy likely to delay achievement of the 2010 goal by at least 3-4
quarters
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3. THE INDUSTRY HAS HAD AN UNPARALLELED IMPACT ON
THE INDIAN ECONOMY
Rapid growth in the last decade Areas of Impact Impact
• 45% of new urban
Exports USD billion Employment
47 Creation jobs created (1995-
2005)
Contribution to • 6-7x fold increase in
Education tertiary education in
18 exporting states
8
• Women in the
Diversity and
2
Global workforce estimated
Exposure to be 30%; new
1998 2002 2005 2009
entrants-45%
• 30% of delivery
CAGR 1998- outside India
33%
2009 (exports)
Contribution to • Exports offset close
Exports to 65 per cent of
CAGR 1998-
26% India’s cumulative
2009 (domestic)
net oil imports over
past decade
2

4. PERSPECTIVE 2020: KEY MESSAGES
Perspective 2020: An Altered Landscape
Global Megatrends
Demographic shifts will fuel the growth of new sectors (healthcare), markets (BRIC, Japan,
Germany) and service lines (process transformation for productivity improvement)
Social, environmental and technology trends will create hitherto unseen opportunities (e.g.,
climate change, servicing SMBs) and risks (automation of core service lines) that could
endanger up to a third of today’s market
A Redefined Market
The addressable market for global sourcing will triple in size from USD 500 billion today to
USD 1.5-1.6 trillion in 2020.
80% of incremental growth will be driven by opportunities outside the current core markets,
verticals and customer segments
Industry Outlook
The exports component of the Indian industry is expected to expand three-fold and reach
USD 175 billion in revenues by 2020. Focused initiatives and innovation-led growth can lead
to additional revenues of up to USD 135 billion by 2020
The domestic component will grow to USD 50 billion, equal to today’s exports revenues.
Focused initiatives can drive an additional USD 15 billion in revenues by 2020
3

5. SHIFT IN ECONOMIC AND DEMOGRAPHIC BALANCE 2008
2020
Working age (15-60 years), Retiree (60+
Regional share of global GDP, 1990- 2025
Millions years), Millions
CAGR 207 38
US 222 54
100 4.2%
Middle East & Africa
Latin America 40
3.4% 9
UK
41 13
Asia (except Japan)
80 6.3%
Japan 12
39
Italy
1.4% 37 14
60
55 16
Europe
Germany
2.1% 53 18
40
27
83
Japan
75 35
20 3.0%
North America
750 60
India
0 92
920
1990 ‘95 ‘00 ‘05 ‘10 ‘15 ‘20 2025
4

6. 2020 WILL PRESENT A DRAMATICALLY ALTERED
LANDSCAPE (1/2)
Past decade 2020
Demand
• Concentrated footprint • Significant opportunity outside
today’s markets
– 75% of Fortune 500
– SMB (Beyond Fortune 500)
– 80% from US/UK
1 Market – BRIC, GCC, Japan, ROW
– 75% from BFSI*, Telecom,
Manufacturing – Public sector and healthcare
– 60% from IT services
• Managing for cost, • Innovation, end-to-end
productivity and quality transformation, risk & compliance
• Labour arbitrage dominant • Access to talent and expertise
Customers
value driver
2
• “Onshore/offshore” mindset • Global value chain
5
* Banking Financial Services and Insurance

7. 2020 WILL PRESENT A DRAMATICALLY ALTERED
LANDSCAPE (2/2)
Past decade 2020
Supply
• India accounting for more • Diversified talent pool with
than 50% of the global low- globalised recruiting and HR
cost workforce practices
• Delivery-centric • Multiple management tracks,
management globalised expertise
3 Talent
• Recruiting and training as • Emphasis on learning,
key differentiators knowledge management,
research spending
• Deployable and specialized talent
• Trainable talent pool
pools
6

8. CURRENTLY UNTAPPED MARKETS WILL DRIVE ALMOST 80% OF
INCREMENTAL GROWTH BY 2020
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 Growth in New New Outsourcing
markets core verticals in customer market in
markets developed segments new
2008
• SMBs
countries geographies
• 6 verticals* • Not
• Public • BRIC
• N. America, adjusted for
sector
potential
Europe,
• Healthcare
erosion due
Japan
• Media
to
• Large
automation • Utilities
enterprises
* BFSI, telecom, retail, pharma, manufacturing, travel 7

9. PERSPECTIVE 2020: KEY MESSAGES
Transform Business, Transform India
Reinventing Business Models
80 per cent of incremental growth cannot be captured solely through the current “offshore
and low-cost” proposition. Providers should consider distinctive approaches, each building
on a source of competitiveness, with distinct performance markers and imperatives
Fostering Innovation in Business
India can become a laboratory for innovation for the world and own business systems in at
least 3 areas – energy efficiency and climate change, mobile applications, clinical research
outsourcing
Catalysing Inclusive Growth Through ICT
ICT-enabled solutions in healthcare, education, financial services and public services can
drive socio-economic inclusion of 30 million citizens each year, faster, cheaper and more
effectively than traditional models
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10. THE INDUSTRY CAN TRANSFORM INDIA BY HARNESSING
TECHNOLOGY TO ENABLE INCLUSIVE GROWTH
Areas Potential of ICT solutions
50% of Indians do not have access to primary healthcare
Healthcare • Technology can provide it at half the cost of traditional
solutions
80% of Indian households do not have bank accounts
Financial
services • Technology can enable access to 200 million families
India faces a 3x shortage in teachers
Education
• Technology can address this through remote solutions
40-50% of public food distribution in India does not reach the
Public targeted groups
services
• Technology can ensure efficiency and transparency
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11. PERSPECTIVE 2020: KEY MESSAGES
India’s opportunity at risk
India’s market share can decline by 10% by 2020 and be lost to other aspiring nations. In
this case, export revenues would reach USD 175 billion in 2020 (an additional USD 50 billion
is at risk due to protectionism).
With focused initiatives, the industry has the potential to achieve over USD 300 billion in
revenues
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12. Likely scenario
AN OPPORTUNITY OF UP TO USD 150 BILLION COULD Growth multiple
BE AT RISK IN 2020 (1/2) CAGR
India’s technology and business services export market in 2020 – scenarios*
USD billion 7.7x 18.6%
135
225-310
4.4x 13%
175
40
FY 2008 FY 2020-Current FY 2020-Focused Initiatives
Initiatives and Innovation - driven growth
• Slow pace of reforms in • Expedited reforms in tertiary
education (talent pool of 10 education
million) • 10-15 Tier II cities with world
• Limited development of Tier class infrastructure
II, III cities • Adoption of new business
• Continued trust as a sourcing models by the industry
hub • India among the top 3
• Continued government innovation hubs of the world
support • Talent pool of 13.5 million
• Limited lash back from
protectionism
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13. Likely scenario
AN OPPORTUNITY OF UP TO USD 150 BILLION COULD Growth multiple
BE AT RISK IN 2020 (2/2) CAGR
Indian domestic technology and business services market in 2020 – scenarios
USD billion
5.4x 15%
4.2x 12.6% 15
65
50
12
FY 2008 FY 2020 - Current Initiatives FY 2020 - Focused Initiatives
and Innovation Led Growth
• GDP CAGR of ~5.5% • GDP CAGR of ~7%
• Moderate IT adoption across • Significant IT adoption
verticals across verticals
• Significant government thrust
on IT adoption including
broadband rollout
• Reinvented business models
12

14. PERSPECTIVE 2020: KEY MESSAGES
An agenda for action
Success will rely on concerted action by industry stakeholders (Companies, NASSCOM,
Government) anchored on a five-fold vision:
• Catalysing growth beyond today’s core markets
• Establishing India as a trusted global hub for professional services
• Harnessing ICT for inclusive growth
• Developing a high calibre talent pool
• Building a preeminent innovation hub in India
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15. SUCCESS WILL RELY ON CONCERTED ACTION ANCHORED ON A
FIVE-FOLD VISION
• Winning through the downturn
• Intellectual property
framework • Reinvented business models
• Centres of Excellence • New verticals, geographies,
Catalysing customer segments
• Entrepreneurship Building a
• Robust domestic demand
preeminent growth
innovation beyond
hub in India today’s core
1 markets
5
Establishing
Five • Infrastructure
Developing a
• Quality
themes 2 India as a
4 • Corporate
high calibre
scale of
trusted global
3 governance
talent pool of
tertiary
hub for
over 3 million
education • Risk
professional
people management
• Curriculum services
Harnessing
and security
and faculty ICT for inclusive
quality • Global branding
growth
• ICT solutions for healthcare,
education, financial services, public
services
• Connectivity and access
• Soft infrastructure
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14

16. ALL STAKEHOLDERS MUST ACT TOGETHER IN A CONCERTED
MANNER (1/2) ILLUSTRATIVE
Areas Government NASSCOM Industry
• Foster domestic • Become a brand • Investing in new
demand through ambassador for business models to
Catalysing
national CIO office, global services tap into new
growth beyond
allocate 1-3% of budget geographies and
today’s core
on e-governance verticals
markets
• Improve urban • Global awareness to • Develop self regulatory
infrastructure and reposition India as a framework to adhere to
India as a trusted
public services in 10- trusted sourcing hub world class standards
global hub for
15 Tier II, III cities; in corporate
professional
incentivise through governance and risk
services
STPI extension management
• Create a national • Collaborate with • Collaborate to create
information structure, government to develop interoperable
(Internet connectivity, a national blueprint for applications and
Harnessing
national ID, ICT IT-enabled solutions for standards, such as
ICT for inclusive
literacy) major public services integrated hospital
growth
management systems
15

17. ALL STAKEHOLDERS MUST ACT TOGETHER IN A CONCERTED
MANNER (2/2) ILLUSTRATIVE
Areas Government NASSCOM Industry
• Educational reforms • Scale up certifications • Invest in building a
Developing a
to facilitate increased and faculty specialized talent pool/
high caliber
private participation development by 50x globalised workforce
talent pool of
in higher education
over 3 million
people
• Allocate 2% of • Roadmap and • Increase R&D
national budget for collaboration for spending and co-invest
research developing 3-4 with universities to
Building a
• Create quality innovation hubs drive research
Preeminent
around climate
institutions to
innovation hub
change/mobile
increase PhD holders
in India
applications/clinical
to 200,000 by 2020
research
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18. THE INDUSTRY CAN HAVE AN UNPARALLELED IMPACT ON
INDIA’S ECONOMY AND SOCIETY BY 2020 ILLUSTRATIVE
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 global career opportunities due to location-independent
models
• Infrastructure development
Growth outside – 8-10 satellite townships around Tier-I cities
metro cities – 10-15 Tier-II cities with upgraded basic and business
infrastructure
• ICT can provide solutions at a fraction of the cost of traditional
Reduced fiscal
solutions and reduce public spend on these areas (healthcare,
burden
education, financial services and public services)
Globally reputed
• Additional revenues of USD 50 billion-80 billion through
innovative
innovation, driving additional GDP contribution of 1.5-2%
solutions
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