Lan
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Lan as PDF for free.
More details
- Words: 669
- Pages: 11
IT & ITES Growth through Business Excellence
K R Lakshminarayana Wipro Limited Jan 2007
A Presentation at the 48th National Convention of
As an IT Destination, India has Come a Long Way… 30.5
Indian IT Services + BPO Exports 1999 through 2007E 23.6
CAGR of 36% 17.2
12.8 9.6 7.7 6.2 4.0 2.6
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07E
Source: Nasscom
2
Reflecting the Disruption Caused by Top Indian Players Company
2001 Empl
Rev
IBM Global Services
37,603
5,161
139,41 2
47,406
4,542
191,00 0
6%
-3%
8%
Accenture
13,061
2,511
75,174
17,094
2,111
109,70 0
7%
-4%
10%
HP-Compaq
12,846
1,586
N.A.
15,536
1,351
N.A.
5%
-4%
N.A.
EDS
21,033
2,054
108,22 0
19,821
141
129,60 0
-1%
-49%
5%
2001-02
Rev
EBIT
CAGR
$ Mn
Rs. Mn ($Mn)
EBIT
2005 Rev
2005-06
Wipro
22,909 510
7,851 170
11,796
80,514 1810
TCS
43,706 970
12,531 280
18,269
132,454 2,940
Infosys
26,035 580
8,770 190
10,738
95.216 2,100
Satyam
18,031 410
5,349 120
8,634
47,926 1,100
180
35
3,926
880
Cognizant
Empl
19,40 9 430 33,90 1 750 26,54 8 590 10,32 1 230 170
EBIT
Empl
CAGR
53,742
37%
25%
46%
62,832
32%
28%
36%
52,715
38%
32%
49%
26,511
28%
18%
32%
24,300
49%
50%
58%
3
& Wealth Created for Investors
4
Yet, India just a small Fraction of Opportuntity Space Service Line * * * ADM ($103 * Bn) * * * *
AM Level 1 AM Level 2 AM Level 3 AD Analysis AD Design AD Development AD Integration & testing AD Support
* * SI ($197 Bn) * * *
Analysis Design Development Integration & Testing Support
* Traditional * IT ($436 Bn) * *
Desktops and server Network IS H/ W Deploy. & Support
Consulting ($70 Bn)
Spend (U$Bn) 3
New Product Dev. Maintenance System Testing Porting/ Variants Localization Documentation
Addressable Market (U$ Bn)
Current Exports
Head- Space
30- 36
6.6
5X
30- 36
1.1
30X
70- 85
1.0
70X
3- 4
0.2
15X
14- 17
3.1
5X
30- 40%
5
70- 80%
9
80- 90%
6
0%
7
25- 30%
39
75- 80%
17
50- 60%
17
50- 60%
24 24
0% 20- 30%
69
50- 60%
41 39
40- 50% 10%
44
30- 40%
65
75- 80%
196 20- 30% 131
* IT Consulting * Network Consulting
* * R&D * Services (35 * Bn) * *
Offshoring Potential%
70
30- 40%
10%
9
75- 80%
8
75- 80%
3
60- 70%
7
75- 80%
5
100%
3
90- 100%
Source: Nasscom Mckinsey Report 2005
5
India Continues to Score Over Other Places…
India Continues to be Ranked Amongst the Most Attractive
Driving Force being the Cost+Capability+Productivity Of Labor Force
6
Quite Logically Therefore, Future Looks Set! India’s offshore IT and BPO exports, US $ Bn. CAGR 36% ~80 CAGR 28%
20
~60 20
CAGR 29% 6.
Projected CAGR 2005-2010
35
BPO
> 46%
45
Offshore IT
> 30%
25
23
1 5.2 7.2
0.9 2 5
12
2001
2005
35
2010 "Sustaining Leadership"
Additional Potential
"Extending Leadership"
Source: Nasscom Mckinsey Report 2005
7
Value Creation Equation
P(Momentum)= M(mass) x V(velocity) In Physics
P(Performance)= M(mass/scale) x V(growth) As applied to IT Services
8
Components of the equation
P
=
M x
V
Addressabl e market
Talent Chain
Knowledge Services
Value Propositio n
•Geography •Service Lines •Commodoti zation
•Scale, Scope & Economics
•Differentiati on •Specializati on •Blind Spots
•Pricing paradigms •Customer oriented ROI •Life Cycle Costing 9
Components of the equation
P
=
M x
Productivit y
Nonlinearity
•Productivity parameters •Usage of analytics
•Business models
V
Technolog y Leverage •Technology as growth accelerator •Emerging & subsiding trends
Business Enablers •Share Services •Templatized Solutions
10
Now for the view of the experts…..
P(Performance)= M(mass/scale) x V(growth)
Information contained and transmitted by this presentation is proprietary to Wipro Limited and is intended for use only by the individual or entity to which it is addressed, and contains information that is privileged, confidential or exempt from disclosure under applicable law.
11
K R Lakshminarayana Wipro Limited Jan 2007
A Presentation at the 48th National Convention of
As an IT Destination, India has Come a Long Way… 30.5
Indian IT Services + BPO Exports 1999 through 2007E 23.6
CAGR of 36% 17.2
12.8 9.6 7.7 6.2 4.0 2.6
FY99
FY00
FY01
FY02
FY03
FY04
FY05
FY06
FY07E
Source: Nasscom
2
Reflecting the Disruption Caused by Top Indian Players Company
2001 Empl
Rev
IBM Global Services
37,603
5,161
139,41 2
47,406
4,542
191,00 0
6%
-3%
8%
Accenture
13,061
2,511
75,174
17,094
2,111
109,70 0
7%
-4%
10%
HP-Compaq
12,846
1,586
N.A.
15,536
1,351
N.A.
5%
-4%
N.A.
EDS
21,033
2,054
108,22 0
19,821
141
129,60 0
-1%
-49%
5%
2001-02
Rev
EBIT
CAGR
$ Mn
Rs. Mn ($Mn)
EBIT
2005 Rev
2005-06
Wipro
22,909 510
7,851 170
11,796
80,514 1810
TCS
43,706 970
12,531 280
18,269
132,454 2,940
Infosys
26,035 580
8,770 190
10,738
95.216 2,100
Satyam
18,031 410
5,349 120
8,634
47,926 1,100
180
35
3,926
880
Cognizant
Empl
19,40 9 430 33,90 1 750 26,54 8 590 10,32 1 230 170
EBIT
Empl
CAGR
53,742
37%
25%
46%
62,832
32%
28%
36%
52,715
38%
32%
49%
26,511
28%
18%
32%
24,300
49%
50%
58%
3
& Wealth Created for Investors
4
Yet, India just a small Fraction of Opportuntity Space Service Line * * * ADM ($103 * Bn) * * * *
AM Level 1 AM Level 2 AM Level 3 AD Analysis AD Design AD Development AD Integration & testing AD Support
* * SI ($197 Bn) * * *
Analysis Design Development Integration & Testing Support
* Traditional * IT ($436 Bn) * *
Desktops and server Network IS H/ W Deploy. & Support
Consulting ($70 Bn)
Spend (U$Bn) 3
New Product Dev. Maintenance System Testing Porting/ Variants Localization Documentation
Addressable Market (U$ Bn)
Current Exports
Head- Space
30- 36
6.6
5X
30- 36
1.1
30X
70- 85
1.0
70X
3- 4
0.2
15X
14- 17
3.1
5X
30- 40%
5
70- 80%
9
80- 90%
6
0%
7
25- 30%
39
75- 80%
17
50- 60%
17
50- 60%
24 24
0% 20- 30%
69
50- 60%
41 39
40- 50% 10%
44
30- 40%
65
75- 80%
196 20- 30% 131
* IT Consulting * Network Consulting
* * R&D * Services (35 * Bn) * *
Offshoring Potential%
70
30- 40%
10%
9
75- 80%
8
75- 80%
3
60- 70%
7
75- 80%
5
100%
3
90- 100%
Source: Nasscom Mckinsey Report 2005
5
India Continues to Score Over Other Places…
India Continues to be Ranked Amongst the Most Attractive
Driving Force being the Cost+Capability+Productivity Of Labor Force
6
Quite Logically Therefore, Future Looks Set! India’s offshore IT and BPO exports, US $ Bn. CAGR 36% ~80 CAGR 28%
20
~60 20
CAGR 29% 6.
Projected CAGR 2005-2010
35
BPO
> 46%
45
Offshore IT
> 30%
25
23
1 5.2 7.2
0.9 2 5
12
2001
2005
35
2010 "Sustaining Leadership"
Additional Potential
"Extending Leadership"
Source: Nasscom Mckinsey Report 2005
7
Value Creation Equation
P(Momentum)= M(mass) x V(velocity) In Physics
P(Performance)= M(mass/scale) x V(growth) As applied to IT Services
8
Components of the equation
P
=
M x
V
Addressabl e market
Talent Chain
Knowledge Services
Value Propositio n
•Geography •Service Lines •Commodoti zation
•Scale, Scope & Economics
•Differentiati on •Specializati on •Blind Spots
•Pricing paradigms •Customer oriented ROI •Life Cycle Costing 9
Components of the equation
P
=
M x
Productivit y
Nonlinearity
•Productivity parameters •Usage of analytics
•Business models
V
Technolog y Leverage •Technology as growth accelerator •Emerging & subsiding trends
Business Enablers •Share Services •Templatized Solutions
10
Now for the view of the experts…..
P(Performance)= M(mass/scale) x V(growth)
Information contained and transmitted by this presentation is proprietary to Wipro Limited and is intended for use only by the individual or entity to which it is addressed, and contains information that is privileged, confidential or exempt from disclosure under applicable law.
11
