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The ?#?(-&%' $#"!$ accounts for a 5.19% of the country's GDP
and export earnings as of 2009, while providing employment to a significant number of its
tertiary sector workforce. More than 2.3 million people are employed in the sector either directly
or indirectly, making it one of the biggest job creators in India and a mainstay of the national
economy. In March 2009, annual revenues from outsourcing operations in India amounted to
US$50 billion and this is expected to increase to US$225 billion by 2020. The most prominent
IT hub is IT capital Bangalore. The other emerging destinations are Chennai, Hyderabad,
Mumbai, Pune, Bhubaneswar, NCR, Jaipur and Kolkata. Technically proficient immigrants from
India sought jobs in the western world from the 1950s onwards as India's education system
produced more engineers than its industry could absorb. India's growing stature in the
information age enabled it to form close ties with both the United States of America and the
European Union. However, the recent global financial crises has deeply impacted the Indian IT
companies as well as global companies. As a result hiring has dropped sharply and employees
are looking at different sectors like the financial service, telecommunications, and manufacturing
industries, which have been growing phenomenally over the last few years.

India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group
in partnership with Burroughs. The first software export zone SEEPZ was set up here way back
in 1973, the old avatar of the modern day IT park. More than 80 percent of the country's software
exports happened out of SEEPZ, Mumbai in 80s.

Each year India produces roughly 500,000 engineers in the country, out of them only 25% to
30% possessed both technical competency and English language skills, although 12% of India's
population can speak in English. India developed a number of outsourcing companies
specializing in customer support via Internet or telephone connections. By 2009, India also has a
total of 37,160,000 telephone lines in use, a total of 506,040,000 mobile phone connections, a
total of 81,000,000 Internet users²comprising 7.0% of the country's population, and 7,570,000
people in the country have access to broadband Internet² making it the 12th largest country in
the world in terms of broadband Internet users. Total fixed-line and wireless subscribers reached
543.20 million as of November, 2009.

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The Indian Government acquired the EVS EM computers from the Soviet Union, which were
used in large companies and research laboratories. In 1968 Tata Consultancy Services²
established in SEEPZ, Mumbai[2] by the Tata Group²were the country's largest software
producers during the 1960s. As an outcome of the various policies of Jawaharlal Nehru (office:
15 August 1947 ± 27 May 1964) the economically beleaguered country was able to build a large
scientific workforce, second in numbers only to that of the United States of America and the
Soviet Union. On 18 August 1951 the minister of education Maulana Abul Kalam Azad,
inaugurated the Indian Institute of Technology at Kharagpur in West Bengal. Possibly modeled
after the Massachusetts Institute of Technology these institutions were conceived by a 22
member committee of scholars and entrepreneurs under the chairmanship of N. R. Sarkar.

Relaxed immigration laws in the United States of America (1965) attracted a number of skilled
Indian professionals aiming for research. By 1960 as many as 10,000 Indians were estimated to
have settled in the US. Kapur (2006)By the 1980s a number of engineers from India were
seeking employment in other countries. In response, the Indian companies realigned wages to
retain their experienced staff. In the à



  , Kamdar (2006) reports on the role of
Indian immigrants (1980 - early 1990s) in promoting technology-driven growth:

The United States¶ technological lead was driven in no small part by the brain power of brilliant
immigrants, many of whom came from India. The inestimable contributions of thousands of
highly trained Indian migrants in every area of American scientific and technological
achievement culminated with the information technology revolution most associated with
California¶s Silicon Valley in the 1980s and 1990s.

The National Informatics Centre was established in March 1975. The inception of The Computer
Maintenance Company (CMC) followed in October 1976. Between 1977-1980 the country's
Information Technology companies Tata Infotech, Patni Computer Systems and Wipro had
become visible. The 'microchip revolution' of the 1980s had convinced both Indira Gandhi and
her successor Rajiv Gandhi that electronics and telecommunications were vital to India's growth
and development. MTNL underwent technological improvements. Between 1986-1987, the
Indian government embarked upon the creation of three wide-area computer networking
schemes: INDONET (intended to serve the IBM mainframes in India), NICNET (the network for
India's National Informatics Centre), and the academic research oriented Education and Research
Network (ERNET).

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/00/23/
Regulated VSAT links became visible in 1985. Desai (2006) describes the steps taken to relax
regulations on linking in 1991:

In 1991 the Department of Electronics broke this impasse, creating a corporation called Software
Technology Parks of India (STPI) that, being owned by the government, could provide VSAT
communications without breaching its monopoly. STPI set up software technology parks in
different cities, each of which provided satellite links to be used by firms; the local link was a
wireless radio link. In 1993 the government began to allow individual companies their own
dedicated links, which allowed work done in India to be transmitted abroad directly. Indian firms
soon convinced their American customers that a satellite link was as reliable as a team of
programmers working in the clients¶ office.

Videsh Sanchar Nigam Limited (VSNL) introduced Gateway Electronic Mail Service in 1991,
the 64 kbit/s leased line service in 1992, and commercial Internet access on a visible scale in
1992. Election results were displayed via National Informatics Centre's NICNET.

The Indian economy underwent economic reforms in 1991, leading to a new era of globalization
and international economic integration. Economic growth of over 6% annually was seen between
1993-2002. The economic reforms were driven in part by significant the internet usage in the
country. The new administration under Atal Bihari Vajpayee²which placed the development of
Information Technology among its top five priorities² formed the Indian National Task Force
on Information Technology and Software Development.

Wolcott & Goodman (2003) report on the role of the Indian National Task Force on Information
Technology and Software Development:

Within 90 days of its establishment, the Task Force produced an extensive background report on
the state of technology in India and an IT Action Plan with 108 recommendations. The Task
Force could act quickly because it built upon the experience and frustrations of state
governments, central government agencies, universities, and the software industry. Much of what
it proposed was also consistent with the thinking and recommendations of international bodies
like the World Trade Organization (WTO), International Telecommunications Union (ITU), and
World Bank. In addition, the Task Force incorporated the experiences of Singapore and other
nations, which implemented similar programs. It was less a task of invention than of sparking
action on a consensus that had already evolved within the networking community and
government.

The New Telecommunications Policy, 1999 (NTP 1999) helped further liberalize India's
telecommunications sector. The Information Technology Act 2000 created legal procedures for
electronic transactions and e-commerce.

Throughout the 1990s, another wave of Indian professionals entered the United States. The
number of Indian Americans reached 1.7 million by 2000. This immigration consisted largely of
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highly educated technologically proficient workers. Within the United States, Indians fared well
in science, engineering, and management. Graduates from the Indian Institutes of Technology
(IIT) became known for their technical skills. The success of Information Technology in India
not only had economic repercussions but also had far-reaching political consequences. India's
reputation both as a source and a destination for skilled workforce helped it improve its relations
with a number of world economies. The relationship between economy and technology²valued
in the western world²facilitated the growth of an entrepreneurial class of immigrant Indians,
which further helped aid in promoting technology-driven growth.


3/24&!&

India is now one of the biggest IT capitals in the modern world.

The economic effect of the technologically inclined services sector in India²accounting for 40%
of the country's GDP and 30% of export earnings as of 2006, while employing only 25% of its
workforce²is summarized by Sharma (2006):

The share of IT (mainly software) in total exports increased from 1 percent in 1990 to 18 percent
in 2001. IT-enabled services such as backoffice operations, remote maintenance, accounting,
public call centers, medical transcription, insurance claims, and other bulk processing are rapidly
expanding. Indian companies such as TCS, Wipro, and Infosys may yet become household
names around the world.

Today, Bangalore is known as the Silicon Valley of India and contributes 33% of Indian IT
Exports. India's second and third largest software companies are head-quartered in Bangalore, as
are many of the global SEI-CMM Level 5 Companies.

And Mumbai too has its share of IT companies that are India's first and largest, like TCS and
well established like Reliance, Patni, LnT Infotech, i-Flex, WNS, Shine, Naukri, Jobspert etc are
head-quartered in Mumbai. and these IT and dot com companies are ruling the roost of Mumbai's
relatively high octane industry of Information Technology.

Such is the growth in investment and outsourcing, it was revealed that Cap Gemini will soon
have more staff in India than it does in its home market of France with 21,000 personnel+ in
India.[13]

On 25 June 2002 India and the European Union agreed to bilateral cooperation in the field of
science and technology. A joint EU-India group of scholars was formed on 23 November 2001 to
further promote joint research and development. India holds observer status at CERN while a
joint India-EU Software Education and Development Center is due at Bangalore.

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?#5!?#"!$.
61

)%" !  37  3  3  3

IT Services 10.4 13.5 17.8 23.7

- à  7.3 10.0 13.13 18.1

- 
3.1 3.5 4.5 5.6

ITES-BPO 3.4 5.2 7.2 9.5

- à  3.1 4.6 6.3 8.3

- 
0.3 0.6 0.9 1.2

Engineering services, R&D and Software

2.9 3.9 5.3 6.5
products

- à  2.5 3.1 4.0 4.9

- 
0.4 0.7 1.3 1.6

Hardware 5.0 5.9 7.0 8.2

Total IT industry 21.6 28.4 37.4 47.8

- à  13.4 18.2 24.1 31.9

- 
8.3 10.2 13.2 15.9

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4
&+&?
"6!?#
8 $9& &!%4
Popularly known as the capital of the Silicon Valley of India is
1 Bangalore
currently leading in Information Technology Industries in India.
Famously known as "Gateway of South India", it is the second
2 Chennai
largest exporter of Software.
Hyderabad which has good infrastructure and good government
3 Hyderabad
support is also a good technology base in India.
Pune, a major industrial town, hosts numerous multinational and
national software giants along with BPO and KPO firms. World class
4 Pune SEZs like Hinjawadi IT park and Magarpatta city give Pune a
distinct advantage. The city is a major educational hub and churns
out thousands of technocrats every year.
Kolkata which is slowly becoming a major IT hub in near future.
5 Kolkata
Some of the well known technological corporations are situated here.
The National Capital Region of India comprising Delhi, Gurgaon,
6 NCR Faridabad, Noida, GreaterNoida and Ghaziabad are having ambitious
projects and are trying to do every possible thing for this purpose.
Popularly known as the commercial, entertainment, financial capital
of India. This is one city that has seen tremendous growth in IT and
7 Mumbai
BPO industry, it recorded 63% growth in 2008 TCS, Patni, LnT
InfoTech, I-flex, WNS and other companies are headquartered here.

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 % &
In The Beginning

More than fifteen years ago, before India became recognized as the dynamic force in information
technology that is known to be today, Oracle was one of the first multinational software
companies to set up operations in India. Beginning with a distributorship through Tata
Consultancy Services in 1987, the company established direct operations with a liaison office in
1991, and in 1993 formed Oracle India Private Ltd., a wholly±owned subsidiary of Oracle Corp.,
focused on the sales and marketing of Oracle software in India. In recognition of the significant
pool of highly educated software development engineers based in India, Oracle opened its India
Development Center (IDC) in Bangalore in 1994. This early commitment to the country marked
Oracle¶s vision for India as both a domestic market and a center for research and development.
The company became the first multinational company to establish core software development
operations in India to support its global product development strategy and to address the needs of
the local market. Initially, the India Development Center took on development work on a project
basis for different development divisions as determined by the company¶s headquarters in
Redwood Shores, California. As word spread throughout the company of the India team¶s record
delivery time of development projects that met the highest standards of quality, the IDC was
tasked with more strategic projects and increasingly demanding requirements. Today Oracle has
its India Development Centre located at Bangalore and Hyderabad and sales and marketing
offices across six Indian cities.

A Turning Point

In 1996, the India development team was challenged with taking on a strategic research and
development project. Ultimately the team¶s success on the project would propel the IDC into the
development spotlight at Oracle. The India team was given three months to develop the first
version of what would become the basis of Oracle¶s Internet computing technology, driving the
shift to simplified, low±cost computing machines which could access information stored on
larger, professionally managed servers. With no additional resources, the IDC, having been
asked only to show version one of the technology, delivered instead a second±generation version
three months to the day from the start of the project. Concurrently, the team also met all
deadlines and quality standards for the other 16 projects with which the IDC was tasked with at
that time. The world±class development abilities of the India development team were impressed
upon the highest levels of the company, garnering praise and recognition from Oracle founder
and CEO, Larry Ellison. This became a turning point for the India organization, transforming the
India Development Center into a growth engine, integral to the future and vision of the world¶s
largest enterprise software company. From that point forward the India Development Center was
integrated into Oracle¶s global software development organization, working on the latest
technology for Oracle customers around the world. At the same time, Oracle¶s increasing success
in the country established the company as the dominant provider of database and enterprise
software to the government and corporate sectors in India.

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Rapid Investment and Growth

In order to leverage India¶s world±class software development skills base and consistent on±time
delivery of high quality products, Oracle India underwent significant investment and rapid
growth in operations. The India Development Center in Bangalore became an extension of three
headquarters development organizations ± Tools Division, Server Technologies Division and
Platform Technologies Division. The Bangalore tools development team specialized in key areas
including application development tools, business intelligence, portals, e±learning and
integration. The server technology team became integral to the development of emerging
technologies and new platforms, with responsibility for the entire development lifecycle for
database, application server and other products. The platform technologies team evolved to
provide automated support for different platforms including Linux, as well as create tools and
technologies to support Oracle On Demand ± the company¶s offering designed to provide better,
faster software service at a lower cost.

In 1998, Oracle established its second development center in Hyderabad . While the Bangalore
center continued to focus on the development of Oracle¶s core application development tools,
server and platform technologies, the Hyderabad center was dedicated to a newer area of
development of growing strategic importance to the company ± commonly know as e±business
applications. With an unwavering focus on quality, the team today works on developing all
aspects of the Oracle E±Business Suite, including core business functions ranging from sales and
marketing, to manufacturing and supply chain, to financials, human resource management and
projects. The team also caters to the needs of specific industries such as healthcare, higher
education and public sector financials applications. In 2001, Oracle added another team in
Bangalore for Oracle E±Business Suite product development, working on Customer Relationship
Management solutions that integrate people, process, and technology to meet the toughest of
customer demands. Together, the Bangalore and Hyderabad applications development teams
form the largest group of developers outside of the company¶s global headquarters, forming a
seamless, round±the±clock, quality±driven organization that delivers a comprehensive suite of
business applications for customers worldwide. In addition, this team supports Oracle employees
worldwide in their use of Oracle applications, implementing and managing new products and
modules of the Oracle E±Business Suite within Oracle.

India Development Center ± Critical To A Global Team

Today, the combined resources of the India Development Center in Bangalore and Hyderabad
contribute to core software development across the entire Oracle product family, including
Oracle Database 10g, Oracle Application Server 10g, Oracle Collaboration Suite and Oracle E±
Business Suite. The work carried out in India includes new product design, development,
technology and feature enhancements, quality engineering, documentation, curriculum for
instructor±led and online training, integration, as well as support and maintenance of existing
products. The IDC has made major contributions to the research and development of key focus
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areas for the company including the future of grid computing, technology and applications
deployment on Linux, security, Java application development, XML, and Warehouse
Management Systems, to name a few. The IDC also contributes significantly to Oracle¶s online
developer community, Oracle Technology Network, showcasing new technology, best practices,
sample applications, discussion forums, white papers and through participation in global events.

Working hand±in±hand with their counterparts on the other side of the globe, the U.S. and India
development teams work on joint projects round±the±clock, taking advantage of the 12 and a
half hour time difference between India and the US to pass development, support and consulting
projects between teams overnight. In essence, Oracle¶s computers never sleep. When developers
in the U.S. retire for the night, their development colleagues in India take over. The result is
greater quality assurance, more innovative products and the ability to deliver new technology to
market faster. This joint cooperation enables the company to operate as a global organization in a
"follow the sun" model, effectively accomplishing two days of work in one.

While some multi±national companies outsource work to teams in India on a project basis,
Oracle takes a different approach. The India development teams belong to the same organization
as their U.S. counterparts, and have as much input into product design and direction as
developers at the company¶s headquarters in Redwood Shores, California. There is no distinction
between developers in the U.S. or India when it comes to working on the latest cutting edge
technology and strategic development that is critical to the continued growth of the company.

In addition to growing its employee resources, the company is expanding its Bangalore and
Hyderabad development centers. The Bangalore facility spans 213,000 square feet of space with
an 11±storey multi±level car park, a modern cafeteria that accommodates more than 500 people,
recreational facilities including a gymnasium, table tennis and a billiards room, and a fully
stocked and computer±accessible library. In Hyderabad, expansion plans include a 500,000
square foot, state±of±the±art campus complete with a multi±level 1,000 car park with recreation
and library facilities on ten acres of land acquired at HITEC city in Hyderabad. The first phase of
construction of this campus was completed in 2005. An important center for Oracle India,
Hyderabad presents considerable opportunities for the growing local team to continue with the
creation of the high quality, global products that have been the hallmark of Oracle¶s success.

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,?
? 
Simplify

Speed Information Delivery with Integrated Systems and a Single Database

The best way to simplify IT systems²and business operations²is to consolidate information.

Businesses need to know how their supply chain is faring, how quickly inventory is moving,
what competitors are doing, and where the markets are going. Now. Not next quarter. Companies
need instant access to accurate, consolidated information to meet legal and regulatory mandates
for corporate performance management and responsibility. To get this complete view of their
customers and their business, companies have to simplify. All business systems must be
connected, and all business applications must share a single database of customers, products,
service information, and more.

Oracle's Information Architecture consolidates all organizational information in one database for
a clear and accurate picture of every customer, every product and service, and every transaction.
Key to Oracle Information Architecture is Oracle Data Hub, which synchronizes data from both
third-party products and Oracle software into a common enterprisewide definition²a single
source of truth.

And in the data center, Oracle Enterprise Manager provides a global view of a company's
systems and enables company employees to drill down to any level of detail they need.
Companies can centralize their applications and information into fewer data centers, improving
efficiency and achieving significant savings.

Now companies can get information²about their business and about their business systems²on
demand and know that it's accurate and up to date. Simple.

?

? 
More than three decades ago Larry Ellison saw an opportunity other companies missed: a
description of a working prototype for a relational database. No company had committed to
commercializing the technology, but Ellison and co-founders Bob Miner and Ed Oates realized
the tremendous business potential of the relational database model²but they may not have
realized that the company they formed would change the face of business computing forever.

Throughout its history Oracle has proved it can build for the future on the foundation of its
innovations and, its intimate knowledge of customer challenges and successes analyzed by the
best technical and business minds in the world. The company has leveraged its immense size and
strength to serve its customers, and to implement key technology and business decisions that
upend conventional wisdom and take its products and services in new directions.

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Today Oracle is the gold standard for database technology and applications in enterprises
throughout the world²the company is the world's leading supplier of information management
software and the world's second largest independent software company. The acquisition of Sun
gives Oracle a leadership role in the hardware arena as well.

Now more than ever before Oracle technology can be found in nearly every industry, and in the
data centers of 100 of the Fortune Global 100 companies. Oracle is the first software company to
develop and deploy 100 percent internet-enabled enterprise software across its entire product
line: database, business applications, application development, and decision support tools.

Innovation is the engine of Oracle's success. Oracle was one of the first companies to make its
business applications available through the internet²an idea that is now pervasive. Oracle has
introduced new Oracle Fusion Middleware products and functionality that reflect the company's
goal to connect all levels of enterprise technology, ensuring customers access to the knowledge
they need to respond to market conditions with speed and agility.

Before the acquisition of Sun was final, Oracle and Sun introduced the Sun Oracle Database
Machine, the world's fastest machine for any type of database workload. Today, Sun servers and
storage, Oracle Real Application Clusters, Oracle Applications, Oracle Grid Computing, support
for enterprise Linux, and Oracle Fusion, all fuel a commitment to innovation and results that has
defined Oracle for thirty years.

What does Oracle have in store for tomorrow? Our goal is to become #1 in middleware and #1 in
applications, just as we have in database. And we will provide our customers with complete,
open solutions integrated from the disk to applications software that meet their business needs
and solve their business problems. And, we will continue to innovate and to lead the industry,
while always making sure that we focus solving the problems of the customers that rely on our
technology.

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FINANCIAL STATEMENTS ANNALYSIS
2010 2009 2008 2007 2006
05/31/20 05/31/200 05/31/200 05/31/200
Period End Date 05/31/2010
09 8 7 6
12
Period Length 12 Months 12 Months 12 Months 12 Months
Months
Stmt Source 10-K 10-K 10-K 10-K 10-K
06/29/20 07/02/200 06/29/200 07/21/200
Stmt Source Date 07/01/2010
09 8 7 6
Stmt Update Type Updated Updated Updated Updated Updated

Revenue 26,820.0 23,252.0 22,430.0 17,996.0 14,380.0

 &+&"& 26,820.0 23,252.0 22,430.0 17,996.0 14,380.0

Cost of Revenue, Total 5,764.0 4,794.0 4,981.0 4,191.0 3,235.0

!!)( 21,056.0 18,458.0 17,449.0 13,805.0 11,145.0

Selling/General/Administrative
5,991.0 5,423.0 5,487.0 4,599.0 3,732.0
Expenses, Total
Research & Development 3,254.0 2,767.0 2,741.0 2,195.0 1,872.0
Depreciation/Amortization 1,973.0 1,713.0 1,212.0 878.0 583.0
Interest Expense (Income), Net
0.0 0.0 0.0 0.0 0.0
Operating
Unusual Expense (Income) 776.0 234.0 165.0 159.0 222.0
Other Operating Expenses, Total 0.0 0.0 0.0 0.0 0.0
4&?%-& 9,062.0 8,321.0 7,844.0 5,974.0 4,736.0

Interest Income (Expense), Net

0.0 0.0 0.0 0.0 0.0
Non-Operating
Gain (Loss) on Sale of Assets 0.0 0.0 0.0 0.0 0.0
Other, Net 56.0 3.0 67.0 86.0 36.0
?%-&&(&: 8,243.0 7,834.0 7,834.0 5,986.0 4,810.0

Income Tax - Total 2,108.0 2,241.0 2,313.0 1,712.0 1,429.0

?%-&(&: 6,135.0 5,593.0 5,521.0 4,274.0 3,381.0

Minority Interest 0.0 0.0 0.0 0.0 0.0

Equity In Affiliates 0.0 0.0 0.0 0.0 0.0
U.S. GAAP Adjustment 0.0 0.0 0.0 0.0 0.0
&?%-&&(&:*
6,135.0 5,593.0 5,521.0 4,274.0 3,381.0
?&-!
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Total Extraordinary Items 0.0 0.0 0.0 0.0 0.0
&?%-& 6,135.0 5,593.0 5,521.0 4,274.0 3,381.0

Total Adjustments to Net

0.0 0.0 0.0 0.0 0.0
Income
Preferred Dividends
General Partners' Distributions

Basic Weighted Average Shares 5,014.0 5,070.0 5,133.0 5,170.0 5,196.0

Basic EPS Excluding
1.22 1.1 1.08 0.83 0.65
Extraordinary Items
Basic EPS Including
1.22 1.1 1.08 0.83 0.65
Extraordinary Items

Diluted Weighted Average

5,073.0 5,130.0 5,229.0 5,269.0 5,287.0
Shares
Diluted EPS Excluding
1.21 1.09 1.06 0.81 0.64
Extrordinary Items
Diluted EPS Including
1.21 1.09 1.06 0.81 0.64
Extraordinary Items

Dividends per Share - Common

0.2 0.05 0.0 0.0 0.0
Stock Primary Issue
Gross Dividends - Common
1,004.0 250.0 0.0 0.0 0.0
Stock
Interest Expense, Supplemental 754.0 630.0 394.0 343.0 169.0
Depreciation, Supplemental 298.0 263.0 268.0 249.0 223.0

Normalized EBITDA 12,136.0 10,518.0 9,477.0 7,260.0 5,764.0

Normalized EBIT 9,838.0 8,555.0 8,009.0 6,133.0 4,958.0
Normalized Income Before Tax 9,019.0 8,068.0 7,999.0 6,145.0 5,032.0
Normalized Income After Taxes 6,712.55 5,762.92 5,644.37 4,387.53 3,537.05
Normalized Income Available to
6,712.55 5,762.92 5,644.37 4,387.53 3,537.05
Common

Basic Normalized EPS 1.34 1.14 1.1 0.85 0.68

Diluted Normalized EPS 1.32 1.12 1.08 0.83 0.67
Amortization of Intangibles 2,000.0 1,700.0 1,200.0 878.0 583.0

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REFERENCES
http://en.wikipedia.org
http://www.oracle.com
http://www.theofficialboard.com
http://moneycentral.msn.com

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