Strong growth opportunities

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

Leading sourcing destination

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

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

2013E

Growingdemand demand Growing

Strong growth in demand for exports from new verticals Expanding economy to propel growth in local demand

Global footprints
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

2020F
Industry value: USD300 billion

Industry value: USD108 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

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, there SEZ scheme since 2005 towas benefit cumulative FDI of USD14.0 billion into IT companies with single 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

Policy support

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

IT services

Business Process Management (BPM)

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

IT&ITeS sector
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
Source: Nasscom, Aranca Research

Hardware

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 The contribution of the IT sector to Indias GDP rose to approximately 8 per cent in FY13 from 1.2 per cent in FY98

Market size of IT industry in India (USD billion)

69 59

76

41

47

50

22
FY2008

22 FY2009

24 FY2010

29 FY2011

32 FY2012

32 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

TCS

Market share
10.7 per cent

Wipro
Cognizant Infosys HCL Tech Tech Mahindra

7.2 per cent

6.8 per cent 6.3 per cent 4.2 per cent 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)

Sector-wise breakup of export revenue FY13E

CAGR: 13.1%
11.4 10 8.8 9.9 22.2 FY2008 11.7 25.8 10.4 12.4 33.5

14.1 13.0 15.9 14.1 17.8 18.6% IT services

BPM
39.9 43.9 23.5% 57.9% Software products and engg. Services

27.3

FY2009 BPM

FY2010

FY2011

FY2012

FY2013E

IT 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)

Distribution of export revenue across verticals (FY13)

28

31

3% 5% 3% 14 11 10% 12 7 8 3 4 Healthcare 2 2 T&T 2 2 41%

BFSI T&M Manufacturing Retail

13

16%
C&U

Healthcare T&T

T&M

Manufacturing

BFSI

Retail

18%

C&U

FY12

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)

47 42

2% 8% 11%

US UK Continental Europe

62% 12
13 8 9 5 6 2 US UK FY12 Continental Europe APAC FY13 2 17%

APAC ROW

ROW

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

Category

Number of players

% of total export revenue

% of total employees

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

Large sized

11

47-50%

~35-38%

Mid sized

85-100

32-35%

~28-30%

Emerging

450-600

9-10%

~15-20%

Small

>4,000

9-10%

~15-18%

Global delivery model

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

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

Changing business dynamics

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

Large players gaining advantage

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

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-linear models

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

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

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, an inflection point for Indian IT

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
Global demand

Talent Pool

Computer penetration expected to increase Government likely to become a major contributor to domestic demand by 201314

Domestic growth Growth drivers

Tax holidays for STPI and SEZs

Procedural ease and single window clearance for setting up facilities

Policy support

Infrastructure

Robust IT infrastructure across various cities in India such as Bengaluru

Delivery centres spread across various countries

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 Expansion of Indian firms in global markets is leading to increasing spend on IT for efficient and cost-effective operations 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 With 46 million units, India has the second largest SMB base in the world

Domestic IT market by customer segment (FY2013E)

Total market = USD32 billion 12%

Large enterprises
15% 47% SMB Governement 26% Consumers

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 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

Domestic revenue from IT and BPM (USD billion)

~90-100

~22-23

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 consumer purchasing power

15.5

FY13

FY15F

FY20F

Source: Nasscom, Aranca Research Note: UT - Union Territory

Global IT-BPM spending to grow 56 per cent to nearly USD2 trillion by 2013 Global sourcing to rise at a faster pace of 911 per cent to USD124130 billion in 2013 Emergence of SMAC would provide USD1 trillion market by 2020 Emerging economies are likely to be a major contributor to IT spend growth IT spend in emerging economies to grow 3-4 times faster than advanced economies The BRIC IT market is estimated at USD380420 billion by 2020 Emerging segments are expected to drive growth of Indian IT-BPM exports
22

Export revenue from IT and BPM (USD billion)

~106-111

48

FY11

FY14F

Core and non core segments growth prospects

17% Core segments Emerging segments

35

10% 19% 15

20% 20%

21%

11

1.2 2
IT consulting

7.6 13
IS sourcing

3.2 5.5 3.1 5.5 Knowledge services Software testing

CADM

ER&D

FY13E

FY16F

Source: Nasscom, Aranca Research Note: Ovals indicate CAGR

Availability of skilled English speaking workforce has been a major reason behind Indias emergence as a global outsourcing hub India added around 4.7 million graduates to the talent pool during FY13 Growing talent pool of India has the ability to drive the R&D and innovation business in the IT-BPM space

Graduates addition to talent pool in India (in millions)

4.7 4.4 3.7 3.2 3.5 4.0

FY2008

FY2009

FY2010.

FY2011

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 40 per cent of total spend on training is spent on training new employees A number of firms have forged alliances with leading education institutions to train employees

Training expenditure by Indian IT-BPO sector

11% 24% 19% 6%

Salaries for inhouse training staff External training (new recruits) External training (existing employees) Recruitment cost Employee welfare Other costs

13%
27%

Source: Nasscom, Aranca Research

Objectives

Initiatives

Enhance over all yield of employees

Short term

Improve employability
Expand to tier 2 cities Lower skill dependence

Industry to enhance investment in training Use NAC and NAC Tech to assess employability of talent pool Identified new tier 2 locations

Bring down investment on training Develop specialist management expertise and project

Medium term

Launched the National Faculty Development Programme to increase suitability of Faculty

Aiding industry access to specialist programmes offered by independent agencies

Long term

Expand education capacity

Expansion of higher education infrastructure; 20 new IIITs to be set up by the government Programme technology to increase PhDs in

Promote reforms in education

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 SEZ 15 years

100 per cent tax

100 per cent tax

holiday on export profits Fiscal benefits

Exemption from

holiday on exports for first five years

Exemption from

excise duties and customs

excise duties and customs

No location

constraints Location and size restrictions

23 per cent STPI

Restricted to

units in tier II and III cities

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 2018E Tier II/III locations

2008 Tier I 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)

3.2

Share of IT-BPM in PE-VC investments

484

1.9 184 58

379

393

0.8

25 2010 Number of deals

32

40

2008

2011

2012

2009

2011 2012 Share of IT-BPM

Source: Venture Intelligence, Nasscom, Aranca Research

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

New geographies

New customer segments

New verticals

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

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

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

595 506 339 243 195 128 80 126 193 17.2 34.5

Growth trend of emerging verticals

39.5

24.8 17.5 11.6 8.7 9.7 4.4

BFSI FY10

Telecom FY13E FY15F

Manufacturing

Education FY10

Healthcare FY13E FY15F

Retail

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 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 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

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

250

90 58

25
17

SMB

Government

Healthcare

Utilities

Media

Source: Nasscom, Aranca Research Note: SMB - Small and Medium Business

Emerging technologies present an entire new gamut of opportunities for IT firms in India
60%

Growing technologies future growth

Big data/analytics* Social Media 40% Cloud 30% 20% 10% 0 200 400 Market size USD billion 600 800 Enterprise mobility

SMAC provide USD1 trillion opportunity

50%

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

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 Canada Europe Japan IT spend USD63 billion USD230 billion USD235 billion USD26 billion USD29 billion USD47 billion USD105 billion USD48 billion Indias penetration ~1.5 per cent <1.5 per cent <1 per cent <1.5 per cent ~4 per cent ~2 per cent <1 per cent ~4 per cent Key segments Enterprise applications, cyber security, healthcare IT IT sourcing, BPM, IS outsourcing, CAD CRM, ERP, Salesforce automation, SI IT sourcing, SI IT sourcing, BPM Low level application management, artificial intelligence, R&D Software outsourcing, R&D Procurement outsourcing, infrastructure software & CAD
Source: Nasscom, Aranca Research

Spain
Mexico Brazil China Australia

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).
IT solutions and services Engineering and industrial services

13% 3% 3% 12%

Infrastructure services
Global consulting

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

5%

66%

Asset leverage solutions Business process outsourcing

Source: TCS website and Annual Report, Aranca Research

Financial performance (USD billion)

556 11.6 10.2 8.2 245 6.0 6.3 2.8 1.4 1.7 2.3 USD1 million+ 3.1 214 208 76 522 458

Number of customers

277 170 196 143 115 81 99 42 25 USD10 million+ USD20 million+

27 5

43 48 8

14 16

FY09

FY10

FY11

FY12

FY13

USD5 million+

USD50 million+

USD100 million+

Revenue

Operating profit

FY5

FY11

FY12

FY13

Source: TCS website and Annual Report, Aranca Research

BFSI Expansion of geographic presence Issue of an IPO in the market in India and raised USD1.2 billion in 2004 Consolidation of market position through CMC acquisition

Acquisition of IT service firm Alti in France in 2013

Retail and consumer packaged goods

FY13 USD11.6 billion revenue

Media & Entertainment

Manufacturing

With a brand value of over USD1 billion, TCS consolidates position as one of the largest IT players

Life Sciences & Healthcare

1968 Indias first software service company 1968 2001

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

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

Energy resources & Utilities

2003

2005

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
5% 19% 32% Custom application services Infrastructure services

Enterprise application services 20% 24% Engineering & R&D services Business services

Source: HCL Technologies website and Annual Report, Aranca Research

Financial performance (USD billion)

Number of customers

4,345 3,452 2,560 2,228 1,879 682 250 FY08 317 FY09 321 FY10 Revenue 438 656 3,459

386 422

187 152 92 98 44 USD1 million+ USD5 million+ USD10 million+ 51 25 29 14 15 USD40 million+ 10 10 USD50 million+

FY11

FY12

9MFY13

USD20 million+

USD30 million+

Operating profit

31-Mar-12

31-Mar-13

Source: HCL Technologies website and Annual Report, Aranca Research

Financial Services

Acquisition of Capitalstream and AXON Group Diversification of business and geography mix Adoption of nonlinear strategy; formation of JVs and alliances Organic growth through prudent strategies FY09 Launch of IPO FY06 Signed the largest ever software service deal with DSG FY12 Revenue crossed USD4 billion

Manufacturing

Telecom

Retail & Consumer Packaged Goods

Media

1997 Established with spun-off HCLs R&D business 1997 1998

USD100 million+ clients reached 5

Life Sciences & Healthcare

1999

2000

2002

2004

2006

2008

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. Achievements:
20% Financial services & Insurance 24% 34% Manufacturing

Energy utilities, Communication and Services Retail, Consumer packaged goods, Logistics and Life Sciences

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

22%

Source: Infosys website and Annual Report, Aranca Research

Financial performance (USD billion)

7.0 6.0 5.0 4.8 190 1.7 1.6 1.8 2.0 1.9 7.4 399

Number of customers

448

213 132 137

233 231

97 84 16 15

FY09

FY10 Revenue

FY11

FY12

FY13

USD1 million+

USD5 million+

USD10 million+ 2012

USD20 million+ 2013

USD50 million+

USD100 million+

Operating profit

Source: Infosys website and Annual Report, Aranca Research

Aerospace, Defense & Airlines

Acquisition of Lodestone Holding AG

Automotive

Large client acquisitions FY13 USD7.4 billion turnover

Financial service

Expansion across the world and offshore business

Healthcare,

Pharmaceuticals &
Biotech

Organic growth 1999 Reached USD100 million and listed on NASDAQ

Industrial manufacturing

Logistics and Distribution

1981 Founded in Pune with an initial capital of USD250

1993 Launched IPO

Strong diversified client base of 798 clients

1981

1991

1993

1995

1997

1999

2002

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) Year

2004-05 2005-06 2006-07

Exchange Rates (Calendar Year) Year

2005 2006 2007 2008

INR equivalent of one US$

44.95 44.28 45.28

INR equivalent of one US$

45.55 44.34 39.45 49.21

2007-08
2008-09 2009-10 2010-11 2011-12 2012-13

40.24
45.91 47.41 45.57 47.94 54.31

2009
2010 2011 2012 2013

46.76
45.32 45.64 54.69 54.45
Average for the year

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