The IT-BPM sector in India is estimated to expand at a CAGR of 9.

5 per cent to USD300

billion by 2020. The sector increased at a CAGR of 25 per cent over 200013, 3-4 times
higher than global IT-BPM spend

India is the worlds largest sourcing destination, accounting for approximately 52 per cent
of the USD124130 billion market. The countrys cost competitiveness in providing IT
services, which is approximately 3-4 times cheaper than the US continues to be its USP in
the global sourcing market

Largest pool of ready to

hire talent

Indias 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 for

investments

The sector ranks fourth in Indias total FDI share and accounts for approximately 37 per
cent of total Private Equity and Venture investments in the country

Strong growth
opportunities

Leading sourcing
destination

Source: NASSCOM; Aranca Research

Note: BPM - Business Process Management, USP - Unique Selling Proposition

Growingdemand
demand
Growing

2013E

Industry
value:
USD108
billion

Global footprints

Strong growth in demand for

exports from new verticals

IT firms in India have delivery

centres across the world; as of
2012, IT firms had a total of
580 centres in 75 countries

Indias IT & ITes industry is

well diversified across verticals
such as BFSI, telecom, retail

Expanding economy to propel

growth in local demand

2020F
Industry
value:
USD300
billion

Advantage
India
Competitive advantage

India has cost savings of 60 70

per cent over source countries
India remains a preferred
destination for IT & ITeS in the
world. With 52 per cent market
share, India continues to be a
leader in the global sourcing
industry
The country has a huge talent
pool

Policy support

The engineering sector is delicensed;

Tax
holidays
extended
to the
IT
100 per
cent FDI
is allowed
in the
sector
sector

Due to
policy support,
theretowas
SEZ
scheme
since 2005
benefit
cumulative
FDI
of
USD14.0
into
IT companies with single billion
window
the
sector
over
April
2000

February
approval mechanism, tax
2012, making up 8.6 per cent of total
benefits,etc
FDI into the country in that period

Source: Nasscom, Aranca Research

Note: SEZ stands for Special Economic Zone, BFSI stands for Banking, Financial Services and Insurance; E stands for Estimate, F stands for Forecast

2005 onwards
200005

1995-2000

Pre-1995

By early 90s,
US-based
companies
began to
outsource work
on low-cost and
skilled talent
pool in India

IT industry started to
mature
Increased
investment in R&D
and infrastructure
started
India increasingly
seen as a product
development
destination

The number of firms

in India grew in size
and started offering
complex services
such as product
management and
go-to market
strategies
Western firms set
up a number of
captives in India

Firms in India became

multinational companies
with delivery centres
across the globe (580
centres in 75 countries,
as of 2012)
Firms in India make
global acquisitions
The IT sector is expected
to employ about 3.0
million people directly
and around 9.5 million
indirectly, as of FY13
Indias IT sector is at an
inflection point, moving
from enterprise servicing
to enterprise solutions

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

Business Process
Management (BPM)

Market size: USD20.9 billion during FY13

Around 85 per cent of revenue comes from the export market

Software products and

engineering 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

IT services

IT&ITeS sector

Hardware

Source: Nasscom, Aranca Research

Indias technology and BPM sector (including hardware) is

estimated to have generated USD108 billion in revenue
during FY13 compared to USD100.9 billion in FY12,
implying a growth rate of 7.4 per cent

Market size of IT industry in India (USD billion)

The contribution of the IT sector to Indias GDP rose to

approximately 8 per cent in FY13 from 1.2 per cent in FY98

69

76

59

41

47

50

22

22

24

29

32

32

FY2008

FY2009

FY2010

FY2011

FY2012

FY2013E

Domestic

Export

Source: Nasscom, Aranca Research

Note: E - Estimates

TCS is the market leader, accounting for about 10.1 per

cent of Indias total IT & ITeS sector revenue
The top six firms contribute around 36 per cent to the total
industry revenue, indicating the market is fairly competitive

Market share of IT players based on revenues (2012)

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: Bloomberg, Aranca Research

Note: 2012 (calendar year) revenues were
considered for all the companies

Total exports from the IT-BPM sector (excluding hardware) are estimated at USD76 billion during FY13; the industry rose
at 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

Growth in export revenue (USD billion)

14.1

CAGR: 13.1%

13.0
11.4

8.8
9.9
22.2
FY2008

10

10.4

11.7

12.4

25.8

27.3

FY2009

IT services

BPM

Sector-wise breakup of export revenue FY13E

FY2010

15.9

IT services

18.6%
17.8

14.1

BPM
33.5

FY2011

39.9

43.9
23.5%

FY2012

FY2013E

57.9%
Software products
and engg. Services

Software products and engg. services

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

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 and
retail. The hitherto smaller sectors are expected to grow

Export revenue growth across verticals (USD billion)

3%
5% 3%

31

T&M

12

FY12

41%
2

Manufacturing
Retail

16%

Healthcare

C&U

2 2
T&T

Healthcare

7 8

Retail

11

Manufacturing

BFSI

13

BFSI

10%

14

T&M

28

Distribution of export revenue across verticals (FY13)

T&T

18%

C&U

FY13

Source: Nasscom, Aranca Research

Notes: 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

US has traditionally been the biggest importer of Indian IT exports; over 60 per cent of Indian IT-BPM exports were
absorbed 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 inclination
towards offshoring firms would increase demand for IT services

Geographic breakup of export revenue (USD billion)

Distribution of export revenue across geographies (FY13)

2%

47

US

8%

42
UK
11%
Continental Europe

62%
13

12

17%

6
2

US

UK
FY12

Continental
Europe

APAC

APAC
ROW

ROW

FY13

Source: Nasscom, Aranca Research

Note: ROW is Rest Of the World, APAC is Asia Pacific

Category

Large sized

Mid sized

Emerging

Small

Number of
players

11

85-100

450-600

>4,000

% of total export
revenue

47-50%

32-35%

9-10%

9-10%

% of total
employees

~35-38%

~28-30%

~15-20%

~15-18%

Work focus

Fully integrated players offering full range of

services

Large scale operations and infrastructure

Presence in over 60 countries

Mid tier Indian and MNC firms offering services

in multiple verticals

Dedicated captive centers

Near shore and offshore presence in >30-35

countries

Players offering niche IT-BPM services

Dedicated captives offering niche services

Expanding focus towards sub Fortune 500/

1000 firms

Small players focussing on specific niches in

either services or verticals

Includes Indian providers and small niche

captives
Source: Nasscom, Aranca Research

Global delivery
model

Global sourcing hub

The number of global delivery centres of IT firms in India reached 580, spreading out
across 75 countries, as of 2012
As of 2009, over 150 centres were set up by various Indian IT firms in North America

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 by
them
The number of patents filed by the top three IT companies increased to 858 in 2012 from
150 in 2009

Indias IT market is experiencing a significant shift from a few large-size deals to multiple
small-size ones
Delivery models are being altered, as the business is moving to capital expenditure
(capex) based models from operational expenditure (opex), from a vendors frame of
reference

Changing business
dynamics

Large players gaining

advantage

New technologies

Large players with a wide range of capabilities are gaining ground as they move from
being simple maintenance providers to full service players, offering infrastructure, system
integration and consulting services

Disruptive technologies, such as cloud computing, social media and data analytics, are
offering new avenues of growth across verticals for IT companies

Indias IT sector is gradually moving from linear models (rising headcount to increase
revenue) to non-linear ones
In line with this, IT companies in India are focusing on new models such as platform-based
BPM services and creation of intellectual property

Growth in non-linear
models

Consumerisation of IT

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

processes
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 II
cities

SMAC technologies, an
inflection point for
Indian IT

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

Social, Mobility, Analytics and Cloud (SMAC), a paradigm shift in IT-BPM approaches
experienced 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

4.7 million graduates are estimated to have been

added to Indias 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 FY1113
Global BPM spending is
estimated to expand at a
CAGR of around 7.0 per
cent during FY1113

Tax holidays for STPI and

SEZs

Procedural ease and single

window clearance for setting
up facilities

Talent Pool

Global
demand

Computer penetration
expected to increase

Government likely to become

a major contributor to domestic
demand by 201314

Domestic
growth
Growth
drivers

Policy
support

Robust IT infrastructure across

various cities in India such as
Bengaluru

Delivery centres spread across

various countries

Infrastructure

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

Large enterprises account for a significant share of the IT

market and added USD15bn to domestic revenue in FY13

Domestic IT market by customer segment

(FY2013E)

Expansion of Indian firms in global markets is

leading to increasing spend on IT for efficient and
cost-effective operations

Total market = USD32 billion

12%

Large enterprises

SMB, another potential demand pool for IT services in

domestic market
Adoption of technology for enhancing product
visibility, reach and operational efficiencies is
leading to higher demand for IT services from SMBs

15%
47%

SMB
Governement

26%

Consumers

With 46 million units, India has the second largest

SMB base in the world
Source: Nasscom, Aranca Research
Note: Small and Medium Business; E indicates estimated numbers

Introduction of large eGovernance projects to provide better

services through IT and focus on the formation of the cyber
policy led to higher demand for IT and hardware from the
government

Domestic revenue from IT and BPM (USD billion)

~90-100

The Central Government and State/UT Government

allocated 0.91.2 per cent and 2.83 per cent,
respectively, of total budget on IT spend under the
12th Five Year Plan
~22-23

Strong consumer demand for IT service and products:

15.5

Advent of smartphones, tablets, iPads,

Rising computer literate population
Enhanced Internet and mobile penetration
Growing disposable income strengthening consumer
purchasing power

FY13

FY15F

FY20F

Source: Nasscom, Aranca Research

Note: UT - Union Territory

Export revenue from IT and BPM (USD billion)

Global IT-BPM spending to grow 56 per cent to nearly

USD2 trillion by 2013

~106-111

Global sourcing to rise at a faster pace of 911 per cent to

USD124130 billion in 2013

48

Emergence of SMAC would provide USD1 trillion market by

2020
FY11

Emerging economies are likely to be a major contributor to

IT spend growth

Core and non core segments growth prospects

The BRIC IT market is estimated at USD380420

billion by 2020

35

Core segments

10%

Emerging segments

20%
20%

19%

7.6 13

1.2 2

IS sourcing

15

IT consulting

11

ER&D

22
CADM

Emerging segments are expected to drive growth of Indian

IT-BPM exports

FY13E

21%

3.2 5.5 3.1 5.5

Software
testing

17%

Knowledge
services

IT spend in emerging economies to grow 3-4 times

faster than advanced economies

FY14F

FY16F

Source: Nasscom, Aranca Research

Note: Ovals indicate CAGR

Graduates addition to talent pool in India

(in millions)

Availability of skilled English speaking workforce has been a

major reason behind Indias emergence as a global
outsourcing hub

4.7
4.4

India added around 4.7 million graduates to the talent pool

during FY13

3.2

3.5

FY2008

FY2009

3.7

4.0

FY2010.

FY2011

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

FY2012

FY2013E

Source: Nasscom, Aranca Research

Note: Graduates includes both graduates and post graduates

About 2 per cent of the industry revenue is spent on training

employees in the IT-BPM sector

Training expenditure by Indian IT-BPO sector

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

new employees

Salaries for inhouse

training staff

11%
24%

A number of firms have forged alliances with leading

education institutions to train employees

External training (new

recruits)

19%

External training (existing

employees)
6%

13%
27%

Recruitment cost
Employee welfare
Other costs

Source: Nasscom, Aranca Research

Objectives

Short term

Medium term

Long term

Initiatives

Enhance over all yield of employees

Improve employability

Expand to tier 2 cities

Lower skill dependence

Bring down investment on training

Develop
specialist
management expertise

and

Expand education capacity

Promote reforms in education

project

Industry to enhance investment in

training

Use NAC and NAC Tech to assess

employability of talent pool

Identified new tier 2 locations

Launched
the
National
Faculty
Development Programme to increase
suitability of Faculty

Aiding industry access to specialist

programmes offered by independent
agencies

Expansion
of
higher
education
infrastructure; 20 new IIITs to be set up
by the government

Programme
technology

to

increase

PhDs

in

Source: Nasscom, Aranca Research

Note: NAC - Nasscom Assessment of Competence, IIIT - Indian Institutes of Information Technology

As of FY2011, 6,554 STPI units were operational, while

5,564 units have exported IT services and products. During
FY11, STPI units accounted for approximately 76.0 per cent
of total IT exports
IT-SEZs have been initiated with an aim to create zones
that lead to infrastructural development, exports and
employment

Characteristics of STPI and SEZ in India

Parameters
Term

STPI
10 years

100 per cent tax

holiday on export
profits

SEZ
15 years

100 per cent tax

holiday on exports
for first five years

Fiscal benefits
Exemption from

excise duties and

customs

Exemption from

excise duties and

customs

No location

constraints
Location and
size restrictions

23 per cent STPI

units in tier II and

III cities

Restricted to

prescribed zones
with a minimum
area of 25 acres

Source: Nasscom, Aranca Research, STPI

Trends in tier II and III cities

43 new tier II/III cities are emerging as IT delivery
location; this could reduce pressure on leading
locations
Cost in newer cities is expected to be 28 per cent
lower than leading cities
Lower cost and attrition, affordable real estate and
support from local government, such as tax breaks,
STPI and SEZ schemes, are facilitating this shift of
focus
Over 50 cities already have basic infrastructure and
human resource to support the global sourcing and
business services industry
Some cities are expected to emerge as regional hubs
supporting domestic companies

IT sector employment distribution in Tier I and

Tier II/III cities

3,230
175

1,821

1,615

2008

2018E

Tier I locations

Tier II/III locations

Source: Nasscom, E&Y, Aranca Research

Number of GICs in India

Key highlights
Global In-House Centers (GIC), also known as captive
centers, are one of the major growth drivers of the ITBPM sector in India
As of FY2012, the captive segment accounted for 1618 per cent of the IT-BPM industry revenue
The impact of the segment goes beyond revenue and
employment, as it helped in developing India as a R&D
hub and create an innovation ecosystem in the country
Within
the
captive
landscape,
ER&D/SPD
(Engineering Research & Development /Software
Product Development) is the largest sub-segment
Companies from North America and Europe are major
investors in the captive segment in India, accounting
for over 90 per cent of captives in the country

750+
700+

450+

~180

2000

2005

2010

2012

Source: Zinnov, Nasscom, Aranca Research

The IT & BPM sector continued to attract PE and VC investments in 2012, accounting for a significant proportion in terms
of 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 Morgans 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

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

Share of IT-BPM in PE-VC investments

3.2
484

184

0.8

58

2008

393

379

1.9

2011

2012

2009

25
2010
Number of deals

32

40

2011
2012
Share of IT-BPM

Source: Venture Intelligence, Nasscom, Aranca Research

New geographies

New
customer
segments

New verticals

SMBs have IT spend of approximately USD230

250 billion, but contribute just 25 per cent to Indias
IT revenue

The emergence of new service offerings and

business models would aid in tapping market
profitably and efficiently

BRIC nations, continental Europe, Canada and

Japan have IT spending of approximately
USD380420 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 Indias IT revenue

A number of sectors are expected to depend on

technology and service providers to reduce the
cost to serve

Source: All the figures are taken from International Data

Corporation (IDC) and Nasscom and are FY10 estimates
Notes: SMB - Small and Medium Businesses

Traditional verticals i.e. BFSI, telecom and manufcaturing, continue to remain the largest in terms of IT adoption, and are
expected 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 in
emerging verticals

Growth trend of traditional verticals

Growth trend of emerging verticals

39.5

595
34.5

506

24.8

339
243
195
128

17.5

17.2
11.6

193
80

BFSI

8.7 9.7

126

4.4

Telecom
FY10

FY13E

Manufacturing
FY15F

Education

Healthcare
FY10

FY13E

Retail
FY15F

Source: Nasscom, Aranca Research

As IT is increasingly gaining traction in SMBs business

activities, the sector offers impressive growth opportunities
and is estimated at approximately USD230250 billion by
2020

Market size of other progressing verticals by 2020

(USD billion)

250

In a bid to reduce cost, governments across the world are

exploring outsourcing and global sourcing options
Technologies, such as telemedicine, mHealth, remote
monitoring solutions and clinical information systems, would
continue to boost demand for IT service across the globe

90
58

IT sophistication in the utilities segment and the need for

standardisation of the process are expected to drive
demand
Digitisation of content and increased connectivity is leading
to a rise in IT adoption by media

25
17

SMB

Government

Healthcare

Utilities

Media

Source: Nasscom, Aranca Research

Note: SMB - Small and Medium Business

Growing technologies future growth

Emerging technologies present an entire new gamut of

opportunities for IT firms in India
60%

Big
data/analytics*

SMAC provide USD1 trillion opportunity

Cloud represents the largest opportunity under SMAC,
increasing at a CAGR of approximately 30 per cent to
around USD650700 billion by 2020
Social media is the second most lucrative segment for IT
firms, offering a USD250 billion market opportunity by 2020

CAGR till 2020

50%

Social Media
40%
Cloud
30%
Enterprise
mobility

20%
10%
0

200

400
Market size USD billion

600

800

Source: Nasscom, Aranca Research

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

Emerging geographies to drive the next growth phase for IT firms in India
BRIC provides USD380420 billion opportunity by 2020
Focus on building local credible presence, high degree of domain expertise at competitive costs and attaining operational
excellence hold key to success in new geographies
Countries offering growth potential to IT firms
Country

IT spend

Indias penetration

Key segments

Canada

USD63 billion

~1.5 per cent

Enterprise applications, cyber security, healthcare IT

Europe

USD230 billion

<1.5 per cent

IT sourcing, BPM, IS outsourcing, CAD

Japan

USD235 billion

<1 per cent

CRM, ERP, Salesforce automation, SI

Spain

USD26 billion

<1.5 per cent

IT sourcing, SI

Mexico

USD29 billion

~4 per cent

IT sourcing, BPM

Brazil

USD47 billion

~2 per cent

Low level application management, artificial intelligence, R&D

China

USD105 billion

<1 per cent

Software outsourcing, R&D

Australia

USD48 billion

~4 per cent

Procurement outsourcing, infrastructure software & CAD

Source: Nasscom, Aranca Research

Segment-wise revenue breakdown (FY13)

Tata Consultancy Services
Established in 1968, Tata Consultancy Services (TCS) is
an Information Technology (IT) services, consulting and
business solution company . It provides end-to-end
technology and technology-related services to global
enterprises. The companys business is spread across
the Americas, Europe, Asia Pacific, and Middle East and
Africa (MEA).

Achievements:

2013: Won Best Performing Consultancy Brand award

in Europe
2013: Received Red Hat North America Awards for
System Integrator Partner of the Year
2012: TCS China ranked amongst the top 10 global
services providers in China
2012: TCS BaNCS won Xcelent Customer Base
Awards 2012

IT solutions and
services

13%

Engineering and
industrial services

3%
3%

Infrastructure
services

12%

Global consulting
5%

66%

Asset leverage
solutions
Business process
outsourcing

Source: TCS website and Annual Report, Aranca Research

Number of customers

Financial performance (USD billion)

556
522

11.6

458

10.2
8.2

245
6.3

6.0

214
2.8

1.4

FY09

1.7

FY10

Revenue

3.1

FY12

Operating profit

FY13

170
196
143
115
81 99
42
25

76

2.3

FY11

277

208

USD1
million+

USD5
million+

FY5

USD10
million+

FY11

USD20
million+

FY12

27
5

43 48

USD50
million+

14 16

USD100
million+

FY13

Source: TCS website and Annual Report, Aranca Research

Acquisition of IT
service firm Alti in
France in 2013

BFSI
Expansion of
geographic
presence

Retail and consumer

packaged goods

Issue of an IPO in
the market in India
and raised USD1.2
billion in 2004

Media &
Entertainment

Manufacturing

Life Sciences &

Healthcare

Energy resources
& Utilities

FY13
USD11.6
billion revenue

Consolidation of
market position
through CMC
acquisition

1968
Indias first
software service
company
1968

2001

With a brand value of over

USD1 billion, TCS
consolidates position as
one of the largest IT
players

FY03
Became the first
software company
in India to cross
USD1 billion
revenue

2003

2005

FY13
Active client
base: 1,156
New clients:
153

2007

2009

2011

2013

Source: TCS website and Annual Report, Aranca Research

Segment-wise revenue breakdown (FY13)

HCL Technologies
Established in 1991, HCL Technologies Ltd is an IT
services company providing enterprise and custom
application, business transformation, infrastructure
management, business process outsourcing and
engineering services. The companys 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 Award
2013
2012: Received Market Facing Innovation award at the
NASSCOM Innovation Awards, 2011
2011: Received Operational Excellence & Quality
award at BPO Excellence Awards 201011

Custom application
services

5%
19%

32%

Infrastructure services

Enterprise application
services
Engineering & R&D
services

20%
24%

Business services

Source: HCL Technologies website and Annual Report,

Aranca Research

Number of customers

Financial performance (USD billion)

4,345

386 422
3,459

3,452
2,560
2,228

187

1,879

152
92

682
250
FY08

317
FY09

321
FY10
Revenue

44

656

438

FY11

98

FY12

Operating profit

9MFY13

USD1
million+

USD5
million+

USD10
million+

51
25

USD20
million+

31-Mar-12

29

USD30
million+

14 15

10 10

USD40
million+

USD50
million+

31-Mar-13

Source: HCL Technologies website and Annual Report,

Aranca Research

Acquisition of
Capitalstream and
AXON Group

Financial Services

Adoption of nonlinear strategy;

formation of JVs and
alliances

Telecom

Retail & Consumer

Packaged Goods

Media

Life Sciences &

Healthcare

FY12
Revenue
crossed USD4
billion

Diversification of
business and
geography mix

Manufacturing

Organic growth
through prudent
strategies

1997
Established with
spun-off HCLs
R&D business
1997

1998

FY06
Signed the
largest ever
software service
deal with DSG

FY09
Launch of
IPO

1999

2000

2002

2004

2006

2008

USD100 million+
clients reached 5

2010

2011

2012

2013

Source: HCL Technologies website and Annual Report, Aranca Research

Segment-wise revenue breakdown (FY13)

Infosys Limited
Established in 1981, Infosys Limited is engaged in
consulting, engineering, technology and outsourcing
services. The companys end-to-end services include
consulting and system integration. It operates through 30
offices across India, the US, China, Australia, the UK,
Canada and Japan.

Financial services &

Insurance
24%
34%

Energy utilities,
Communication and
Services

Achievements:
20%

2013: Ranked first in the annual Euromoney Best

Managed Companies in Asia survey
2013: Received NASSCOM Business Innovation
Award 2013 for Infosys Edge
2012: Identified as an innovation leader in KPMGs
Global Technology Innovation Survey 2012

Manufacturing

22%

Retail, Consumer
packaged goods,
Logistics and Life
Sciences

Source: Infosys website and Annual Report,

Aranca Research

Number of customers

Financial performance (USD billion)

7.4

7.0

399

6.0
5.0

448

4.8
190
1.7

1.6

1.8

2.0

233 231

213
132 137

1.9

97 84
16 15

FY09

FY10
Revenue

FY11

FY12

Operating profit

FY13

USD1
million+

USD5
million+

USD10
million+
2012

USD20
million+

USD50
million+

USD100
million+

2013

Source: Infosys website and Annual Report,

Aranca Research

Acquisition of
Lodestone Holding
AG

Aerospace, Defense
&
Airlines

Large client
acquisitions

Automotive

FY13
USD7.4 billion
turnover
Expansion across
the world and
offshore business

Financial service

Healthcare,

Pharmaceuticals &

Organic growth

Biotech

Industrial
manufacturing

Logistics and
Distribution

1981
Founded in
Pune with an
initial capital of
USD250

1981

1991

1999
Reached USD100
million and listed
on NASDAQ

1993
Launched
IPO

1993

1995

1997

1999

2002

Strong diversified
client base of 798
clients

2006

2010

2012

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 110 021
Phone: 91 11 2301 0199
Fax: 91 11 2301 5452
E-mail: info@nasscom.in

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

Exchange Rates (Fiscal Year)

Exchange Rates (Calendar Year)

Year

INR equivalent of one US$

Year

INR equivalent of one US$

2004-05

44.95

2005

45.55

2005-06

44.28

2006

44.34

2006-07

45.28

2007

39.45

2007-08

40.24

2008

49.21

2008-09

45.91

2009

46.76

2009-10

47.41

2010

45.32

2010-11

45.57

2011

45.64

2011-12

47.94

2012

54.69

2012-13

54.31

2013

54.45
Average for the year

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