It Ites August 2013

8/13/2019 It Ites August 2013

http://slidepdf.com/reader/full/it-ites-august-2013 1/45



Source: NASSCOM; Aranca ResearchNote: BPM - Business Process Management, USP - Unique Selling Proposition

Strong growthopportunities

• The IT-BPM sector in India is estimated to expand at a CAGR of 9.5 per cent to USD300billion by 2020. The sector increased at a CAGR of 25 per cent over 2000 –13, 3-4 timeshigher than global IT-BPM spend

Leading sourcingdestination

• India is the world’s largest sourcing destination, accounting for approximately 52 per centof the USD124 –130 billion market. The country’s cost competitiveness in providing ITservices, which is approximately 3-4 times cheaper than the US continues to be its USP inthe global sourcing market

Largest pool of ready tohire talent

• India’s highly qualified talent pool of technical graduates is one of the largest in the world,facilitating its emergence as a preferred destination for outsourcing

Most lucrative sector forinvestments

• The sector ranks fourth in India’s total FDI share and accounts for approximately 37 percent of total Private Equity and Venture investments in the country



• The engineering sector is delicensed;100 per cent FDI is allowed in thesector

• Due to policy support, there wascumulative FDI of USD14.0 billion intothe sector over April 2000 – February2012, making up 8.6 per cent of totalFDI into the country in that period

Growing demand

Source: Nasscom, Aranca ResearchNote: SEZ stands for Special Economic Zone, BFSI stands for Banking, Financial Services and Insurance; E stands for Estimate, F stands for Forecast

Growing demand

• Strong growth in demand forexports from new verticals

• Expanding economy to propelgrowth in local demand

Global footprints

• IT firms in India have deliverycentres across the world; as of2012, IT firms had a total of580 centres in 75 countries

•

India’s IT & ITes industry iswell diversified across verticalssuch as BFSI, telecom, retail

Policy support

• Tax holidays extended to the ITsector

• SEZ scheme since 2005 to benefitIT companies with single windowapproval mechanism, taxbenefits,etc

Competitive advantage

• India has cost savings of 60 – 70per cent over source countries

• India remains a preferreddestination for IT & ITeS in theworld. With 52 per cent marketshare, India continues to be aleader in the global sourcingindustry

• The country has a huge talentpool

2013E

Industryvalue:

USD108billion

2020F

Industryvalue:

USD300billion

AdvantageIndia



• By early 90s,

US-basedcompaniesbegan tooutsource workon low-cost andskilled talentpool in India

• IT industry started tomature

• Increasedinvestment in R&Dand infrastructurestarted

• India increasinglyseen as a productdevelopmentdestination

• The number of firmsin India grew in sizeand started offeringcomplex servicessuch as productmanagement andgo-to marketstrategies

• Western firms setup a number ofcaptives in India

Pre-1995

1995-2000

2000 –05

2005 onwards

• Firms in India becamemultinational companieswith delivery centresacross the globe (580centres in 75 countries,as of 2012)

• Firms in India makeglobal acquisitions

• The IT sector is expectedto employ about 3.0million people directlyand around 9.5 millionindirectly, as of FY13

• India’s IT sector is at an

inflection point, movingfrom enterprise servicingto enterprise solutions



Source: Nasscom, Aranca Research

IT&ITeS sector

• Market Size: USD56.3 billion during FY13

• Over 78 per cent of revenue comes from the export market

• BFSI continued as the major vertical of the IT sector

• Market size: USD20.9 billion during FY13• Around 85 per cent of revenue comes from the export market

Business ProcessManagement (BPM)

IT services

• Market size: USD17.9 billion during FY13

• Over 79 per cent of revenue comes from exports

• Market size: USD13.3 billion during FY12

• The domestic market accounts for a significant share

• The domestic market is experiencing growth as the penetration of

personal computers is rising in India

Hardware

Software products andengineering services



Source: Nasscom, Aranca ResearchNote: E - Estimates

Market size of IT industry in India (USD billion)India’s technology and BPM sector (including hardware) isestimated to have generated USD108 billion in revenueduring FY13 compared to USD100.9 billion in FY12,implying a growth rate of 7.4 per cent

The contribution of the IT sector to India’s GDP rose toapproximately 8 per cent in FY13 from 1.2 per cent in FY98

22 22 24 29 32 32

41 47 50

5969 76

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013E

Domestic Export



Source: Bloomberg, Aranca ResearchNote: 2012 (calendar year) revenues were

considered for all the companies

Market share of IT players based on revenues (2012)TCS is the market leader, accounting for about 10.1 percent of India’s total IT & ITeS sector revenue

The top six firms contribute around 36 per cent to the totalindustry revenue, indicating the market is fairly competitive

Company name Market share

TCS 10.7 per cent

Wipro 7.2 per cent

Cognizant 6.8 per cent

Infosys 6.3 per cent

HCL Tech 4.2 per cent

Tech Mahindra 1.1 per cent



Source: Nasscom, Aranca Research; Note: E stands for Estimate

Growth in export revenue (USD billion)

Total exports from the IT-BPM sector (excluding hardware) are estimated at USD76 billion during FY13; the industry roseat a CAGR of 13.1 per cent during FY08-13E despite weak global economic growth scenario

Export of IT services has been the major contributor, accounting for 57.9 per cent of total IT exports (excluding hardware)

BPM accounted for 23.5 per cent of total IT exports during FY13

Sector-wise breakup of export revenue FY13E

22.2 25.8 27.3 33.5 39.943.9

9.911.7 12.4

14.1

15.917.8

8.810 10.4

11.4

13.014.1

FY2008 FY2009 FY2010 FY2011 FY2012 FY2013E

IT services BPM Software products and engg. services

57.9%23.5%

18.6%IT services

BPM

Software productsand engg. Services

CAGR: 13.1%



Source: Nasscom, Aranca ResearchNotes: C&U - Construction & Utilities, T&T - Travel and Tourism, T& M - Telecom & Media, BFSI - Banking, Financial Services and Insurance

The figures mentioned are for IT and BPM only and do not include engineering services and hardware exports

Export revenue growth across verticals (USD billion)

BFSI is a key business vertical for the IT-BPM industry. It generated export revenue of around USD31 billion during FY13,accounting for 41.0 per cent of total IT-BPM exports from India

Approximately 85 per cent of total IT-BPM exports from India is across four sectors: BFSI, telecom, manufacturing andretail. The hitherto smaller sectors are expected to grow

Distribution of export revenue across verticals (FY13)

28

1311

73 2 2

31

14 12

84 2 2

B F S I

T &

M

M a n u f a c t u r i n g

R e t a i l

H e a l t h c a r e

T & T

C

&

U

FY12 FY13

41%

18%

16%

10%

5% 3%

3%

BFSI

T & M

Manufacturing

Retail

Healthcare

T & T

C & U



Source: Nasscom, Aranca ResearchNote: ROW is Rest Of the World, APAC is Asia Pacific

Geographic breakup of export revenue (USD billion)

US has traditionally been the biggest importer of Indian IT exports; over 60 per cent of Indian IT-BPM exports wereabsorbed by the US during FY13

Non US-UK countries accounted for just 21.0 per cent of total Indian IT-BPM exports during FY12

Europe, one of the fast growing IT markets in 2012, is expected to emerge as a potential market as higher inclinationtowards offshoring firms would increase demand for IT services

Distribution of export revenue across geographies (FY13)

42

128

52

47

139

62

US UK ContinentalEurope

APAC ROW

FY12 FY13

62%

17%

11%

8%2%

US

UK

Continental Europe

APAC

ROW




CategoryNumber of

players

% of total export

revenue

% of total

employeesWork focus

Large sized 11 47-50% ~35-38%

• Fully integrated players offering full range ofservices

• Large scale operations and infrastructure

• Presence in over 60 countries

Mid sized 85-100 32-35% ~28-30%

• Mid tier Indian and MNC firms offering servicesin multiple verticals

• Dedicated captive centers

• Near shore and offshore presence in >30-35countries

Emerging 450-600 9-10% ~15-20%

• Players offering niche IT-BPM services

• Dedicated captives offering niche services

• Expanding focus towards sub Fortune 500/1000 firms

Small >4,000 9-10% ~15-18%

• Small players focussing on specific niches ineither services or verticals

• Includes Indian providers and small nichecaptives



Global deliverymodel

• The number of global delivery centres of IT firms in India reached 580, spreading outacross 75 countries, as of 2012

• As of 2009, over 150 centres were set up by various Indian IT firms in North America

Global sourcing hub

• India continues to maintain a leading position in the global sourcing market. Its market

share increased to 52.0 per cent in 2012 from 50.0 per cent in 2011

Engineering offshoring• India is the most preferred location for engineering offshoring, according to a customer poll

conducted by Booz and Co• Companies are now offshoring complete product responsibility

Patent filing

• Increased focus on R&D by IT firms in India resulted in rising number of patents filed bythem

• The number of patents filed by the top three IT companies increased to 858 in 2012 from150 in 2009



Changing businessdynamics

• India’s IT market is experiencing a significant shift from a few large-size deals to multiplesmall-size ones

• Delivery models are being altered, as the business is moving to capital expenditure(capex) based models from operational expenditure (opex), from a vendor’s frame ofreference

Large players gainingadvantage

• Large players with a wide range of capabilities are gaining ground as they move frombeing simple maintenance providers to full service players, offering infrastructure, systemintegration and consulting services

New technologies• Disruptive technologies, such as cloud computing, social media and data analytics, are

offering new avenues of growth across verticals for IT companies

Growth in non-linearmodels

• India’s IT sector is gradually moving from linear models (rising headcount to increaserevenue) to non-linear ones

• In line with this, IT companies in India are focusing on new models such as platform-basedBPM services and creation of intellectual property



Consumerisation of IT

• Global outsourcing is being used to drive fundamental re-engineering of end-to-endprocesses

• Increased emphasis on beyond cost benefits• IT firms in the current phase have moved up the value chain, providing innovation-led

growth to clients from SLA satisfaction and RoI calculations

Emergence of Tier IIcities

• Tier II and III cities are increasingly gaining traction among IT companies, aiming to

establish business in India• Cheap labour, affordable real estate, favourable government regulations, tax breaks and

SEZ schemes facilitating their emergence as a new IT destination• Giving rise to the domestic hub and spoke model, with Tier I cities acting as hubs and Tier

II, III and IV as network of spokes

SMAC technologies, aninflection point for

Indian IT

• Social, Mobility, Analytics and Cloud (SMAC), a paradigm shift in IT-BPM approachesexperienced until now, is leading to digitisation of the entire business model

• IT vendors in India to generate USD225 billion from SMAC-related revenue by 2020

Note: SLA - Service Level Agreement; RoI - Return on Invesmtnet



Note: STPI stands for Software Technology Park of India, SEZ stands for Special Economic Zone

Growth

drivers

Talent Pool

Domesticgrowth

Infrastructure

Globaldemand

Policysupport

• Computer penetration

expected to increase

• Government likely to become

a major contributor to domestic

demand by 2013 –14

• 4.7 million graduates are estimated to have been

added to India’s talent pool in FY13

• Strong mix of young and experienced professionals

• Global IT offshore

spending is expected to

rise at a CAGR of 8.0 per

cent during FY11 –13

• Global BPM spending is

estimated to expand at a

CAGR of around 7.0 per

cent during FY11 –13

• Tax holidays for STPI and

SEZs

• Procedural ease and single

window clearance for setting

up facilities

• Robust IT infrastructure across

various cities in India such as

Bengaluru

• Delivery centres spread across

various countries



Source: Nasscom, Aranca ResearchNote: Small and Medium Business; E indicates estimated numbers

Domestic IT market by customer segment(FY2013E)

Large enterprises account for a significant share of the ITmarket and added USD15bn to domestic revenue in FY13

Expansion of Indian firms in global markets isleading to increasing spend on IT for efficient andcost-effective operations

SMB, another potential demand pool for IT services indomestic market

Adoption of technology for enhancing productvisibility, reach and operational efficiencies isleading to higher demand for IT services from SMBs

With 46 million units, India has the second largestSMB base in the world

47%

26%

15%

12%

Large enterprises

SMB

Governement

Consumers

Total market = USD32 billion



Source: Nasscom, Aranca ResearchNote: UT - Union Territory

Domestic revenue from IT and BPM (USD billion)Introduction of large eGovernance projects to provide betterservices through IT and focus on the formation of the cyberpolicy led to higher demand for IT and hardware from thegovernment

The Central Government and State/UT Governmentallocated 0.9 –1.2 per cent and 2.8 –3 per cent,respectively, of total budget on IT spend under the

12th Five Year Plan

Strong consumer demand for IT service and products:

Advent of smartphones, tablets, iPads,

Rising computer literate population

Enhanced Internet and mobile penetration

Growing disposable income strengthening consumerpurchasing power

15.5

FY13 FY15F FY20F

~22-23

~90-100




Note: Ovals indicate CAGR

Export revenue from IT and BPM (USD billion)Global IT-BPM spending to grow 5 –6 per cent to nearlyUSD2 trillion by 2013

Global sourcing to rise at a faster pace of 9 –11 per cent toUSD124 –130 billion in 2013

Emergence of SMAC would provide USD1 trillion market by2020

Emerging economies are likely to be a major contributor toIT spend growth

IT spend in emerging economies to grow 3-4 timesfaster than advanced economies

The BRIC IT market is estimated at USD380 –420

billion by 2020

Emerging segments are expected to drive growth of IndianIT-BPM exports

48

~106-111

FY11 FY14F

Core and non core segment’s growth prospects

22 11 1.2 7.6 3.2 3.1

35

152 13

5.5 5.5

C A D M

E R & D

I T c o n s u l t i n g

I S

s o u r c i n g

K n o w l e d g e

s e r v i c e s

S o f t w a r e

t e s t i n g

FY13E FY16F

Core segments Emerging segments17%

10%

19%

20%

20% 21%



Source: Nasscom, Aranca ResearchNote: Graduates includes both graduates and post graduates

Graduates addition to talent pool in India(in millions)

Availability of skilled English speaking workforce has been amajor reason behind India’s emergence as a globaloutsourcing hub

India added around 4.7 million graduates to the talent poolduring FY13

Growing talent pool of India has the ability to drive the R&Dand innovation business in the IT-BPM space

3.2 3.5

3.7 4.0

4.4

4.7

FY2008 FY2009 FY2010. FY2011 FY2012 FY2013E




Training expenditure by Indian IT-BPO sector About 2 per cent of the industry revenue is spent on trainingemployees in the IT-BPM sector

40 per cent of total spend on training is spent on trainingnew employees

A number of firms have forged alliances with leadingeducation institutions to train employees

24%

6%

13%

27%

19%

11%

Salaries for inhousetraining staff

External training (newrecruits)

External training (existing

employees)Recruitment cost

Employee welfare

Other costs



Source: Nasscom, Aranca ResearchNote: NAC - Nasscom Assessment of Competence, IIIT - Indian Institutes of Information Technology

Short term

Medium term

Long term

• Enhance over all yield of employees

• Improve employability

• Expand to tier 2 cities

• Lower skill dependence

Objectives Initiatives

• Industry to enhance investment intraining

• Use NAC and NAC – Tech to assessemployability of talent pool

• Identified new tier 2 locations

• Bring down investment on training

• Develop specialist and projectmanagement expertise

• Launched the National FacultyDevelopment Programme to increasesuitability of Faculty

• Aiding industry access to specialistprogrammes offered by independentagencies

• Expand education capacity

• Promote reforms in education

• Expansion of higher educationinfrastructure; 20 new IIITs to be set upby the government

• Programme to increase PhDs intechnology



Source: Nasscom, Aranca Research, STPI

As of FY2011, 6,554 STPI units were operational, while5,564 units have exported IT services and products. DuringFY11, STPI units accounted for approximately 76.0 per centof total IT exports

IT-SEZs have been initiated with an aim to create zonesthat lead to infrastructural development, exports andemployment

Characteristics of STPI and SEZ in India

Parameters STPI SEZ

Term 10 years 15 years

Fiscal benefits

• 100 per cent taxholiday on exportprofits

• Exemption fromexcise duties andcustoms

• 100 per cent taxholiday on exportsfor first five years

• Exemption fromexcise duties andcustoms

Location andsize restrictions

• No locationconstraints

• 23 per cent STPIunits in tier II andIII cities

• Restricted toprescribed zoneswith a minimumarea of 25 acres



Source: Nasscom, E&Y, Aranca Research

IT sector employment distribution in Tier I andTier II/III cities

1,821 1,615

175

3,230

2008 2018E

Tier I locations Tier II/III locations

Trends in tier II and III cities

• 43 new tier II/III cities are emerging as IT deliverylocation; this could reduce pressure on leadinglocations

• Cost in newer cities is expected to be 28 per centlower than leading cities

• Lower cost and attrition, affordable real estate andsupport from local government, such as tax breaks,STPI and SEZ schemes, are facilitating this shift offocus

• Over 50 cities already have basic infrastructure andhuman resource to support the global sourcing andbusiness services industry

• Some cities are expected to emerge as regional hubssupporting domestic companies



Source: Zinnov, Nasscom, Aranca Research

Number of GIC’s in India

2000 2005 2010 2012

~180

450+

700+750+

Key highlights

• Global In-House Centers (GIC), also known as captivecenters, are one of the major growth drivers of the IT-BPM sector in India

• As of FY2012, the captive segment accounted for 16-18 per cent of the IT-BPM industry revenue

• The impact of the segment goes beyond revenue andemployment, as it helped in developing India as a R&Dhub and create an innovation ecosystem in the country

• Within the captive landscape, ER&D/SPD(Engineering Research & Development /SoftwareProduct Development) is the largest sub-segment

• Companies from North America and Europe are majorinvestors in the captive segment in India, accountingfor over 90 per cent of captives in the country



Source: Venture Intelligence, Nasscom, Aranca Research

PE-VC investments in IT & BPM (USD billion)

The IT & BPM sector continued to attract PE and VC investments in 2012, accounting for a significant proportion in termsof volume (around 37 per cent) and value (approximately 40 per cent)

Value increased at an impressive 68.4 per cent over 2011

eCommerce accounted for 31 VC deals in 2012

About 64 per cent of VC deals in India were in the software, internet and mobile industry

Two of the largest PE deals in the sector during 2012 were:

JP Morgan’s buyout of M*Modal (USD1,100 million)

Bain Capital, GIC investment in Genpact (USD1,000 million)In 1Q13, the industry attracted 26 deals at a value of USD105 million

Share of IT-BPM in PE-VC investments

0.8

1.9

3.2

2008 2011 2012

184

379

484

393

5825 32 40

2009 2010 2011 2012

Number of deals Share of IT-BPM



Source: All the figures are taken from International DataCorporation (IDC) and Nasscom and are FY10 estimates

Notes: SMB - Small and Medium Businesses

• BRIC nations, continental Europe, Canada and

Japan have IT spending of approximately

USD380 –420 billion

• Adoption of technology and outsourcing is

expected to make Asia the second largest IT

market

• Government, healthcare, media and utilities have

IT spend of approximately USD190 billion, but

account just 8 per cent of India’s IT revenue

• A number of sectors are expected to depend on

technology and service providers to reduce the

cost to serve• SMBs have IT spend of approximately USD230 –250 billion, but contribute just 25 per cent to India’s

IT revenue

• The emergence of new service offerings and

business models would aid in tapping market

profitably and efficiently

New verticalsNew

customersegments

New geographies



Growth trend of traditional verticals

Traditional verticals i.e. BFSI, telecom and manufcaturing, continue to remain the largest in terms of IT adoption, and areexpected to grow at an average of 15%

Implementation of cloud environment and mobility way forward for traditional verticals

Emphasis on other emerging verticals (such as education, healthcare and retail) to aid growth in IT firms in India

Shift from IT adoption infrastructure, automation and digitisation to smart IT marks future trend of services inemerging verticals

Growth trend of emerging verticals

12880

339

195

126

506

243

193

595

BFSI Telecom Manufacturing

FY10 FY13E FY15F

17.211.6

4.4

34.5

17.5

8.7

39.5

24.8

9.7

Education Healthcare Retail

FY10 FY13E FY15F




Source: Nasscom, Aranca ResearchNote: SMB - Small and Medium Business

Market size of other progressing verticals by 2020(USD billion)

As IT is increasingly gaining traction in SMB’s businessactivities, the sector offers impressive growth opportunitiesand is estimated at approximately USD230 –250 billion by2020

In a bid to reduce cost, governments across the world areexploring outsourcing and global sourcing options

Technologies, such as telemedicine, mHealth, remotemonitoring solutions and clinical information systems, wouldcontinue to boost demand for IT service across the globe

IT sophistication in the utilities segment and the need forstandardisation of the process are expected to drivedemand

Digitisation of content and increased connectivity is leading

to a rise in IT adoption by media

250

90

5825

17

SMB Government Healthcare Utilities Media




Note: Size of bubble indicates market size,*CAGR and market size for Big data/analytics is till 2015

Growing technologies future growthEmerging technologies present an entire new gamut ofopportunities for IT firms in India

SMAC provide USD1 trillion opportunity

Cloud represents the largest opportunity under SMAC,increasing at a CAGR of approximately 30 per cent toaround USD650 –700 billion by 2020

Social media is the second most lucrative segment for ITfirms, offering a USD250 billion market opportunity by 2020

Cloud

Social Media

Enterprisemobility

Bigdata/analytics*

10%

20%

30%

40%

50%

60%

0 200 400 600 800

C A G

R

t i l l 2 0 2 0

Market size USD billion



Source: TCS website and Annual Report, Aranca Research

Number of customersFinancial performance (USD billion)

6.0 6.3

8.2

10.2

11.6

1.4 1.72.3

2.8 3.1

FY09 FY10 FY11 FY12 FY13

Revenue Operating profit

214

76

4225

5

458

208143

81

278

522

245

170

9943

14

556

277

196115

4816

USD1million+

USD5million+

USD10million+

USD20million+

USD50million+

USD100million+

FY5 FY11 FY12 FY13



1968 2001 2003 2005 2007 2009 2011 2013

Energy resources& Utilities

Consolidation ofmarket positionthrough CMC

acquisition

Expansion ofgeographicpresence

1968India’s first

software servicecompany

Issue of an IPO inthe market in Indiaand raised USD1.2

billion in 2004

FY03

Became the firstsoftware company

in India to crossUSD1 billion

revenue

FY13USD11.6

billion revenue

Life Sciences &

Healthcare

Manufacturing

Media &Entertainment

Retail and consumerpackaged goods

BFSI

Acquisition of ITservice firm Alti in

France in 2013

With a brand value of overUSD1 billion, TCS

consolidates position asone of the largest IT

players

FY13 Active clientbase: 1,156New clients:

153

Source: TCS website and Annual Report, Aranca Research



Source: HCL Technologies website and Annual Report, Aranca Research

Segment-wise revenue breakdown (FY13)

32%

24%

20%

19%

5%Custom applicationservices

Infrastructure services

Enterprise application

services

Engineering & R&Dservices

Business services

HCL Technologies

Established in 1991, HCL Technologies Ltd is an ITservices company providing enterprise and customapplication, business transformation, infrastructuremanagement, business process outsourcing andengineering services. The company’s network of 26

offices is spread across the US, Europe and Asia Pacific

Achievements:

• 2013: Won IT Europa, European IT Excellence Awards and Asia Pacific Enterprise Leadership Award2013

• 2012: Received Market Facing Innovation award at theNASSCOM Innovation Awards, 2011

• 2011: Received Operational Excellence & Qualityaward at BPO Excellence Awards 2010 –11



Source: HCL Technologies website and Annual Report,

Aranca Research


1,879

2,228

2,560

3,452

4,345

3,459

250 317 321 438 656

682

FY08 FY09 FY10 FY11 FY12 9MFY13

Revenue Operating profi t

386

152

92

4425 14 10

422

187

98

5129 15 10

USD1million+

USD5million+

USD10million+

USD20million+

USD30million+

USD40million+

USD50million+

31-Mar-12 31-Mar-13



1997 1998 1999 2000 2002 2004 2006 2008 2010 2011 2012 2013

Life Sciences &Healthcare

Organic growththrough prudent

strategies

Diversification ofbusiness and

geography mix

1997Established withspun-off HCL’sR&D business

Adoption of non-linear strategy;

formation of JVs andalliances

FY06Signed thelargest ever

software servicedeal with DSG

FY12Revenue

crossed USD4billion

Media

Retail & Consumer

Packaged Goods

Telecom

Manufacturing

Financial Services

Acquisition ofCapitalstream and

AXON Group

USD100 million+clients reached 5

FY09Launch of

IPO

Source: HCL Technologies website and Annual Report, Aranca Research



Source: Infosys website and Annual Report, Aranca Research

Segment-wise revenue breakdown (FY13)

34%

22%

20%

24%

Financial services &Insurance

Manufacturing

Energy utilities,Communication andServices

Retail, Consumer packaged goods,Logistics and LifeSciences

Infosys Limited

Established in 1981, Infosys Limited is engaged inconsulting, engineering, technology and outsourcingservices. The company’s end-to-end services includeconsulting and system integration. It operates through 30offices across India, the US, China, Australia, the UK,Canada and Japan.

Achievements:

• 2013: Ranked first in the annual Euromoney BestManaged Companies in Asia survey

• 2013: Received NASSCOM Business Innovation Award 2013 for Infosys Edge

• 2012: Identified as an innovation leader in KPMG’s

Global Technology Innovation Survey 2012




5.0 4.8

6.0

7.07.4

1.7 1.6 1.82.0 1.9

FY09 FY10 FY11 FY12 FY13

Revenue Operating profit

399

190

132

233

97

16

448

213

137

231

84

15

USD1million+

USD5million+

USD10million+

USD20million+

USD50million+

USD100million+

2012 2013

Source: Infosys website and Annual Report,

Aranca Research



1981 1991 1993 1995 1997 1999 2002 2006 2010 2012

Logistics andDistribution

Organic growth

Large clientacquisitions

1981Founded in

Pune with aninitial capital of

USD250

Expansion acrossthe world and

offshore business

1993Launched

IPO

FY13

USD7.4 billionturnover

Industrial

manufacturing

Healthcare,

Pharmaceuticals &

Biotech

Financial service

Automotive

Aerospace, Defense&

Airlines

Acquisition ofLodestone Holding

AG

Strong diversifiedclient base of 798

clients

1999Reached USD100

million and listedon NASDAQ

Source: Infosys website and Annual Report, Aranca Research



National Association of Software and Services Companies

(NASSCOM) Address: International Youth Centre Teen Murti Marg, Chanakyapuri,New Delhi – 110 021Phone: 91 11 2301 0199Fax: 91 11 2301 5452E-mail: [email protected]



APAC: Asia Pacific

BFSI: Banking, Financial Services and Insurance

BPM: Business Process Outsourcing

CAGR: Compounded Annual Growth Rate

C&U: Construction & Utilities

FDI: Foreign Direct Investment

GOI: Government of India

INR: Indian Rupee

IT&ITeS: Information Technology-Information Technology Enabled Services

NAC: Nasscom Assessment of Competence

RoI: Return on Investment

ROW: Rest Of the World



SEZ: Special Economic Zone

SLA: Service Level Agreement

SMB: Small and Medium Businesses

STPI: Software Technology Parks of India

T&M : Telecom & Media

T&T: Travel and Transport

USD: US Dollar

USP: Unique Selling Proposition

UT: Union Territory

Wherever applicable, numbers have been rounded off to the nearest whole number



Year INR equivalent of one US$

2004-05 44.95

2005-06 44.28

2006-07 45.28

2007-08 40.24

2008-09 45.91

2009-10 47.41

2010-11 45.57

2011-12 47.94

2012-13 54.31

Exchange Rates (Fiscal Year)

Year INR equivalent of one US$

2005 45.55

2006 44.34

2007 39.45

2008 49.21

2009 46.76

2010 45.32

2011 45.64

2012 54.69

2013 54.45

Exchange Rates (Calendar Year)

Average for the year



India Brand Equity Foundation (“IBEF”) engaged Aranca to prepare this presentation and the same has been prepared

by Aranca in consultation with IBEF.

All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The

same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium

by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in

any manner communicated to any third party except with the written approval of IBEF.

This presentation is for information purposes only. While due care has been taken during the compilation of this

presentation to ensure that the information is accurate to the best of Aranca and IBEF’s knowledge and belief, the

content is not to be construed in any manner whatsoever as a substitute for professional advice.

Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in

this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of

any reliance placed on this presentation.

Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission onthe part of the user due to any reliance placed or guidance taken from any portion of this presentation.

It Ites August 2013

Documents

Transcript of It Ites August 2013