IT & ITeS A

PRESENTATION BY J.K.OKE

WHAT IS I.T.?
THE TERM INFORMATION TECHNOLOGY (I.T.) CONJURES UP DIFFERENT IMAGES FOR DIFFERENT PEOPLE FOR SOME, IT MEANS COMPUTERS OR LAPTOPS FOR SOME OTHERS, IT MEANS ELECTRONIC GADGETRY OR INTERNET

WHAT IS I.T.?
FOR MR. ATAL BEHARI BAJPAYEE IT MEANS INDIAS TOMORROW

WHAT IS I.T.?
ACCORDING TO PORTER & MILLER, I.T. MUST BE CONCEIVED OF BROADLY TO ENCOMPASS THE INFORMATION THAT BUSINESS CREATE & USE AS WELL AS A WIDE SPECTRUM OF INCREASINGLY CONVERGENT & LINKED TECHNOLOGIES THAT PROCESS THE INFORMATION

WHAT IS I.T.?
HENCE, THE TERM I.T., IN ADDITION TO COMPUTERS, ALSO INCLUDES DATA RECOGNITION EQUIPMENT, COMMUNICATION TECHNOLOGIES, FACTORY AUTOMATION, & OTHER HARDWARE & SERVICES

WHAT IS I.T.?
ACCORDING TO THE U.K. DEPARTMENT OF TRADE & INDUSTRY, I.T. IS THE ACQUISITION, PROCESSING, STORAGE & DISSEMINSTION OF VOCAL, PICTORIAL,TEXTUAL & NUMERIC INFORMATION BY A MICRO-PROCESSORBASED COMBINATION OF COMPUTING & TELECOMMUNICATIONS

I.T.CAPABILITIES
TRANSACTIONAL GEOGRAPHICAL AUTOMATIONAL ANALYTICAL INFORMATIONAL SEQUENTIAL KNOWLEDGE MANAGEMENT TRACKING DIS-INTERMEDIATION

I.T.:ORGANISATIONAL IMPACT
IT CAN TRANSFORM UNSTRUCTURED PROCESSES INTO ROUTINISED TRANSACTIONS IT CAN TRANSFORM INFORMATION WITH RAPIDITY & EASE ACROSS LARGE DISTANCES , MAKING PROCESSES INDEPENDENT OF GEOGRAPHY ( MAKING GEOGRAPHY AN HISTORY!)

I.T.:ORGANISATIONAL IMPACT
IT CAN REPLACE OR REDUCE HUMAN LABOUR IN A PROCESS IT CAN BRING COMPLEX ANALYTICAL METHODS TO BEAR ON A PROCESS IT CAN BRING VAST AMOUNTS OF DETAILED INFORMATION INTO A PROCESS IT ALLOWS THE DETAILED TRACKING OF TASK STATUS, INPUTS & OUTPUTS

I.T. : ORGANISATIONAL IMPACT

I.T. CAN ENABLE CHANGES IN THE SEQUENCE OF TASKS IN A PROCESS, OFTEN ALLOWING MULTIPLE TASKS TO BE PERFORMED SIMULTANEOUSLY I.T. ALLOWS THE CAPTURE & DISSEMINATION OF KNOWLEDGE & EXPERTISE TO IMPROVE THE PROCESS

I.T. : ORGANISATIONAL IMPACT

I.T. CAN BE USED TO CONNECT TWO PARTIES WITHIN A PROCESS THAT WOULD COMMUNICATE THROUGH AN INTERNAL / EXTERNAL INTERMEDIARY (SOURCE: THE NEW INDUSTRIAL ENGINEERING: INFORMATION TECHNOLOGY & BUSINESS PROCESS RE-DESIGN, by THOMAS H. DAVENPORT & JAMES E. SHORT)

WHAT IS ITeS ?
ITeS : OFFERING OF SERVICES FROM REMOTE LOCATIONS BY HARNESSING I.T. CAPABILITIES ITeS : BUSINESS PROCESSES & SERVICES PERFORMED OR PROVIDED FROM A LOCATION DIFFERENT FROM THAT OF THEIR USERS OR BENEFICIARIES & ARE DELIVERED ,USING I.T. OVER TELECOM NETWORKS

WHAT IS ITeS ?
IT IS ANOTHER AVATAR OF BUSINESS PROCESS OUTSOURCING , INVOLVING A COMPLETE TRANSFER OF A BUSINESS PROCESS OR FUNCTION TO AN EXTERNAL SERVICE PROVIDER WHO EXECUTES THE TRANSFERRED PROCESSES OR FUNCTIONS

I.T. & ITeS IN INDIA

I.T / ITeS IS TYPICALLY THE POST-1990s PHENOMENON IN INDIA TILL 1999, INDIA WAS NOT CONSIDERED AS AN IDEAL DESTINATION FOR ITeS THE SITUATION HAS CHANGED DRAMATICALLY SINCE & INDIA HAS EMERGED AS A GLOBAL LEADER IN ITeS

I.T. & ITeS IN INDIA

IN THE PROCESS , INDIA HAS STOLEN A MARCH OVER ITS COMPETITORS LIKE CHINA & PHILIPPINES, IN ASIA, & AUSTRALIA, CANADA, IRELAND, MEXICO & NEW ZEALAND , GLOBALLY

I.T. & ITeS IN INDIA

FURTHER, AS A RESULT OF THIS BUSINESS / SERVICES GROWTH, ITeS HAS EMERGED AS A MAJOR SOURCE OF EXPORT / FOREIGN EXCHANGE EARNINGS, & A DRIVER FOR ECONOMIC GROWTH BY DISBURSING ECONOMIC ACTIVITIES & GENERATING MASSIVE EMPLOYMENT

IT/ITeS GROWTH: AT A GLANCE (NASSCOM DATA)

YEAR 1999-2000 2000-2001 2001-2002 2005-2006 2010 2012 2013 2020

REVENUES Rs. 2400 Crores Rs. 4100 Crores Rs. 7100 Crores Rs. 1,32,300 Crores Rs. 2,70,000 Crores Rs. 4.9 lakh Crores Rs. 5.5 lakh Crores Rs. 11 lakh Crores

I.T. & ITeS IN INDIA

THE GROWTH OF ITeS HAS BEEN RESTRICTED TO CERTAIN MAJOR CITIES ACROSS INDIA , KNOWN AS THE IT / ITeS NAVARATNAS

THE I.T./ ITeS NAVRATNAS

HYDERABAD (CYBERABAD) KOCHI CHENNAI KOLKATA AHMEDABAD BANGALORE MUMBAI NATIONAL CAPITAL REGION (NCR) PUNE

I.T. & ITeS IN INDIA

ITeS ENCOMPASSES A NUMBER OF SERVICES HOWEVER, THE MOST HIGH PROFILE ITeS ARE CALL CENTRES, MEDICAL TRANSCRIPTIONS & THE GIS

I.T./ ITeS CONSTITUENTS

ITeS, INTER ALIA, INCLUDE: ANIMATION BUSINESS PROCESS OUTSOURCING / MANAGEMENT BACK OFFICE OPERATIONS (CREDIT CARD / PAYROLL) COLLECTION SERVICES CUSTOMER CARE / INTERACTION SERVICES

I.T./ITeS CONSTITUENTS
DATA DIGITISATION DIGITAL CONTENT DEVELOPMENT LEGAL DATABASES MARKET RESEARCH REMOTE EDUCATION TRANSCRIPTION /TRANSLATION SERVICES WEBSITE SERVICES

WHY OUTSOURCE?
OUTSOURCING HELPS MNCs SAVE ANYWHERE UPTO 30-50% OF COSTS MNCs CAN FOCUS MORE ON THEIR CORE PROCESSES GLOBAL, REAL TIME, ON-LINE COST-EFFECTIVE / COMPETITIVE ASSURED NETWORKING

WHY OUTSOURCE?
(MICHAEL F. CORBETT & ASSOCIATES)

NEED TO CREATE A VARIABLE COST STRUCTURE NEED TO INCREASE REVENUE NEED TO FOSTER INNOVATIONS NEED TO CONSERVE CAPITAL NEED TO IMPROVE QUALITY NEED TO INCREASE SPEED TO MARKET

WHY OUTSOURCE TO INDIA?

WORLD-WIDE PROVEN TRACKRECORD IN ITeS AVAILABILITY OF HIGH QUALITY TECHNICAL SKILLS / KNOWLEDGE / TALENT LARGE & COST-EFFECTIVE POOL OF ENGLISH-SPEAKING PROSPECTIVE EMPLOYEES

WHY OUTSOURCE TO INDIA?

VALUE FOR MONEY PROPOSITION INHERENT STRENGTHS IN MATHEMATICS, LOGIC & COMPUTER SCIENCE APPLICATIONS PRO-ACTIVE & FACILITATING GOVERNMENT POLICIES (LIKE CONFERRING SUN RISE INDUSTRY STATUS, SETTING UP OF STPIs, TAX CONCESSIONS UPTO 2009 etc.)

WHY OUTSOURCE TO INDIA?

TECHNICAL / MANAGEMENT EDUCATION INFRASTRUCTURE IMPROVING BASIC INFRASTRUCTURE FACILITIES (LIKE AIR PORTS, ROADS, TELECOM CONNECTIVITY, BROADBANDING & BAND-WIDTH etc.) PEOPLE FACTOR ( COMPETENCIES / LOW ATTRITION / LOWER COST / HIGHER PRODUCTIVITY )

MANAGERIAL CHALLENGES.
RELATIVELY POOR QUALITY OF BASIC INFRASTRUCTURE LESS STRINGENT DATA SECURITY / PROTECTION, IPR ACTS NON-GRANTING OF INDUSTRY STATUS UNDUE EMPHASIS ON FINANCIAL SERVICES

MANAGERIAL CHALLENGES.
LOWER VALUE CHAIN OPERATIONS (I.T. SWEAT-SHOPS/BODY-SHOPPING) INCREASING WAGE LEVELS, LIKELY TO ADVERSELY AFFECT / HAMPER GLOBAL COMPETITIVENESS DECLINING PRODUCTIVITY ( AS MEASURED BY REVENUE & NET PROFITS PER EMPLOYEE) DISASTER MANAGEMENT ISSUES

MANAGERIAL CHALLENGES.
SLOW MOVEMENT UP THE VALUE CHAIN FROM BODY SHOPPING / CODING TO CONSULTING SERVICES INCREASING ATTRITION & TURN-OVER RATE - WAR ON TALENT (GETTING BUSINESS IS NOT THE BIGGEST CHALLENGE, ATTRACTING & RETAINING TALENT IS)

MANAGERIAL CHALLENGES.
EMERGING COMPETITION FOR TALENT FROM SECTORS LIKE TELECOM, RETAIL etc. WHICH ARE EXPERIENCING EXPLOSIVE GROWTH SOME OF THE MAJOR CLIENTS (LIKE IBM, PEROT SYSTEMS,ACCENTURE ) HAVE SET UP THEIR OWN FACILITIES IN INDIA (COST ADVANTAGE LOST)

MANAGERIAL CHALLENGES.
THE INDIAN IT / ITeS COMPANIES HAVE SHOWN REMARKABLE ABILITY TO RAMP UP & SCALE UP HOWEVER, THEY ARE LIKEY TO FACE PRACTICAL PROBLEMS IN MANAGING A FUTURE WORKFORCE OF OVER 1,00,000 (PRESENTLY, IBM GLOBAL SERVICES HAS 1,90,000 PEOPLE & ACCENTURE HAS 1,33,000 PEOPLE WORLDWIDE)

OTHER CHALLENGES
GLOBAL ECONOMIC UNCERTAINTY LEADING TO MUTED GROWTH, AS IT/ITeS IS DERIVED BUSINESS LACK OF PREVAILING CLARITY ON POLICIES LIKE THE PROPOSED DIRECT TAX CODE (DTC), THE GOODS & SERVICES TAX (GST) AND ISSUES RELATED TO SPECIAL ECONOMIC ZONES (SEZ) (TOI/ET dt. 09/02/2012)

VALUE BOOSTERS
(10 THINGS INDIAN IT COMPANIES NEED TO DO TO IMPROVE REVENUES & PROFITS PER EMPLOYEE)

FOCUS ON CONSULTING TARGET SPECIFIC VERTICALS OFFER PRODUCTISED SERVICES BUILD FRAMEWORKS DEVELOP LAYERED APPLICATIONS

VALUE BOOSTERS
(10 THINGS INDIAN IT COMPANIES NEED TO DO TO IMPROVE REVENUES & PROFITS PER EMPLOYEE)

THINK SERVICE-ORIENTED ARCHITECTURE INVEST IN INNOVATION MOVE FROM OFF-SHORE TO BEST-SHORE GO FOR TOTAL OUTSOURCING SOLUTIONS (ToS) INVEST IN TRAINING

THE EPILOGUE.
THE INDIAN ITeS ORGANISATIONS MUST MOVE UP THE VALUE CHAIN THEY MUST INVEST IN CREATING INTELLECTUAL PROPERTY ( IBM / HP / ACCENTURE GET A SIGNIFICANT SHARE OF THEIR REVENUE FROM LICENSING / ROYALTY) LOOK FOR TALENT ABROAD

THE EPILOGUE.
MUST THINK : BEYOND ENGINEERS, BEYOND INDIA MOVE FROM TIER-I TO TIER-II & THEN ON TO TIER-III CITIES / LOCATIONS EVOLVE A DIFFERENTIATED STRATEGY TO STAY COMPETITIVE IN THE MARKET, GLOBALLY

THE EPILOGUE.
INDIAN IT / ITeS COMPANIES STARTED LIFE AS BODY-SHOPPERS (LITERALLY, HIRING OUT TECHNO COOLIES), EVOLVED INTO THE MUCH CELEBRATED GLOBAL DELIVERY MODEL (GDM), BUT NOW WILL HAVE TO RE-INVENT THEMSELVES BEFORE THE TRIPPING POINT COMES

THE EPILOGUE. THE TIME FOR INDIAN IT / ITeS COMPANIES TO RE-INVENT IS NOW, WHEN EVERYTHING IS GOING WELL