Funding for SME in Technology Sector
1
Confidential
Outsourcing (IT & BPO/KPO) Drivers •
Global market opportunity of $1,000B
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India still leads the cost, quality, scale equation as an offshore destination
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Cost pressures in downturn will continue to drive outsourcing
Emergence
2
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Several vertical industries are underpenetrated (e.g. Cable, Utilities, etc)
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New horizontals are gaining momentum (e.g. LPO, Fund administration, Remote Infrastructure Mgmt., Testing, etc)
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Different geographical markets are embracing outsourcing (e.g. Venezuela, Dominican Republic, etc)
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New business models are taking shape (e.g. Direct to Consumer/SMB companies) Confidential
Outsourcing (IT & BPO/KPO) contd.. Challenges •
Turbulence in some market verticals (e.g. BFSI) is delaying contracts
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Larger incumbents are stretching services to niche domains
Funding Strategy
3
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Market opportunities in niches that are in excess of $1B
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Balanced center of gravity - partnering of U.S. and India crossborder teams
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High-quality management teams with strong domain expertise
Confidential
Consumer Internet Services Drivers •
Good user growth (40%)
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Low cost alternative for all
Emergence •
Commerce led mixed mode models
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Comparison shopping, local search
Challenges •
Access not widespread enough and cost not falling fast enough
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Internet advertising not yet a significant enough portion of media plans
Funding Strategy
4
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Exploit early mover advantage and gain rapid scale
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Build cross-functional teams : technology + consumer + domain Confidential
Mobile VAS Drivers •
Greater pressure on Operators to increase ARPUs from 315M users (in 2008)
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GPRS subscriber base doubled from 21M to 46M
Emergence •
Mobile Payments, Mobile Gaming, Advertising, Digital Music
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Cross Operator platforms like voice SMS
Challenges •
Operators take a chunk of the revenue share
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Low margin high volume
Funding Strategy
5
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Differentiated through product offering/technology
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Potential for global application
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Preferably independent of carriers Confidential
Products Drivers •
More and more development work coming into India
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Telecom, Mobile already dominant local markets
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Need for low price points
Emergence •
Networking solutions
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Hosted applications for SMEs
Challenges •
Most local market not large enough
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Lack of product management skills
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Needs serious interaction with U.S. as most tech products are global
6
Confidential
Products
contd..
Funding Strategy
7
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Markets would be India + other Emerging markets to gain critical mass
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Teams would be technology + product management + crossborder
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CEO preferably from business background
Confidential