Global Aspects Of Information Technology Enabled Services

Presented By
Priyanka Sawant Mahesh Utage Ajit Mangarulkar Amol Khatake Haaris Baraskar Gaurish Chaulkar Samar Pandit 90 78 24 67 49 51 92

Information Technology
Information technology (IT) is a branch of engineering dealing with the use of computers and telecommunications equipment to store, retrieve, transmit and manipulate data.

What Is IT-ES ???

ITES, Information Technology Enabled Service, is defined as outsourcing of processes that can be enabled with information technology and covers diverse areas like
Finance, Administration, Telecommunication, HR, Health Care, Manufacturing Etc.

Armed with technology and manpower, these services are provided from e-enabled locations. This radically reduces costs and improve service standards. In short, this Internet service provider aims in providing B2B e-commerce solutions.

India's Potential In IT Sector

The country's strengths in the form of low staff costs, a large pool of skilled, English speaking workforce, conducive policy environment and Government support has made India a popular choice for customers seeking outsourced services. Indian Government is making assiduous effort for promoting ITES. The country is well positioned to derive benefits from the ITES market and become a key hub for ITES services. ITES offers different services integrated in a single delivery mechanism to end users.

IT-ES Includes
Some of the services offered include :

Medical Transcription Document Processing Data Entry and Processing Data Warehousing IT Help Desk Services Application Development Enterprise Resource Planning Telecommunication Services

Provides Services Through

BPO (Business Process Outsourcing) IPO ( Information Process Outsourcing) KPO (Knowledge Process Outsourcing) ERP (Enterprise Resources Planning) SAP (Systems, Applications and Products In Data Processing)

Definition
Business process outsourcing (BPO) can be defined as the transfer of an organizations entire non-core but critical business process/function to an external vendor who uses an IT-based service delivery.

What is BPO?
Contracting of the operations and responsibilities of a specific business processes to a third-party service provider.

Reasons For Outsourcing Reduce and control operating costs Improve companies focus Free internal resources for other purpose

BPO Categories
Back Office outsourcing
Internal Business Functions

Front Office outsourcing

Customer Related services

What BPO Provides

Customer Support Services Technical Support Employee IT Help Desk Services

Data Conversion Services

Data Processing Services

Sectors Under BPO

Telecom Industry Travel & Hospitality Industry Technology Industry Banking/Financial services Insurance Industry E-commerce & Retail Industry Industrial Sector Distribution Sector & many more

Market Share
BPO and IT-ES Contributes 7% to GDP The global BPO Industry is 120-150
billion dollars Indian BPO is US $11.4billion. 824 call centers in India. Indian IT-BPO recorded Growth of 28% in FY 2007-08.

Market Share Contd

Expectations of $30 billion by 2012.
Around 6,00,000 people employed, about the
same as IT industry but Its growing faster.

Indian BPO players are ranked top global players

in every single segment because they invest massively in training, quality assurance, productivity improvement and information security.

Distribution Of BPO Providers In %

Market Share

31%

21%

India Russia

10%
7% 7% 7% 8% 9%

Phillippines
Eastern Europe United States Mexico Israel Others

India v/s World

IndiasTop 5 BPOs Worlds Top 5 BPOs 1. Genpact 1. IBM Global 2. WNS(World Network 2. Accenture Solutions) 3. Hewlett Packar 3. Wipro 4. MphasiS 4. HCL 5. Ernst & Young/Capgemini 5. Firstsource(ICICI)

Leading BPO-ITES Cities In India:

Tier I cities like Bangalore, Chennai, Hyderabad, Pune, Mumbai, Kolkata. Tier II cities like Nashik, Aurangabad, Mangalore, Chandigarh, Jaipur, Mysore etc. Offers lower Business process overhead(rent, electricity). Have a less reliable infrastructure system.

Why India Is More Preferable

English speaking population Educated technically skilled employees (large no.
of graduates, engineers)

Telecom facilities. Favorite govt. policies Lower wages (cost reduction up to 50% ) Suitable & large human resources Well positioned with IT-enabled services Conductive environment Favorable time lag (12 hrs with USA 5 hrs with UK)

Problems In India :
Poor infrastructure Cultural differences Internal competition for resources Rising labor costs Political and religious instabilities

Challenges to be faced Ahead

Retention of clients, employees Quality and compliance issues Emerging Foreign Destinations
Physical Infrastructure

SAP
Type Traded as Aktiengesellschaft ISIN: DE0007164600FWB: SAP NYSE: SAP Enterprise software Weinheim, Germany (1972) Dietmar Hopp Hans-Werner Hector Hasso Plattner Klaus Tschira Claus Wellenreuther

Industry Founded Founder(s)

SAP
Head quarter located Area served Key people Walldorf, Germany Worldwide Hasso Plattner (Chairman) Jim Hagemann Snabe (Co-CEO) Bill McDermott (Co-CEO)

Products
Revenue Operating income Profit Total assets Total equity Employees Website

See list of SAP products.

14.233 billion (2011) 4.879 billion (2011)] 3.438 billion (2011) 23.225 billion (2011)] 12.699 billion (2011) 59,420 (2012) SAP.com

Sap Products
Customer Relationship Management (CRM) helps companies acquire and retain customers, gain marketing and customer insight Product Lifecycle Management (PLM) helps manufacturers with product-related information Supply Chain Management (SCM) helps companies with the process of resourcing its manufacturing and service processes. Supplier Relationship Management (SRM) enables companies to procure from suppliers

SAP Community Network

SAP Community Network(SCN) is a community of SAP customers, partners, employees, and influencers -- typically in roles such as: developers, consultants, integrators, and business analysts . Who gain and share knowledge about ABAP, Java, .NET, SOA, and other technologies, plus analytics and dashboards, business process best practices, cloud, mobile, big data, and a range of other topics via expert blogs, discussion forums, exclusive downloads and code samples, training materials, and a technical library. The SAP Community Network (SCN) has more than 2 million members, representing a wide range of roles and lines-ofbusiness, from countries and territories all over the world, in 24 industries

KPO
(Knowledge Process Outsourcing)
It cuts into traditional Core Competencies of many organizations. KPO provides highly skilled and relatively cheap talent pool to their clients to unlock their top line growth by outsourcing their core work. The Indian KPO industry will have revenues in the range of $ 10 to $17 billion by 2010.

Enterprise Resources Planning (ERP)

Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization, embracing finance or accounting, manufacturing, sales and service, customer relationship management.

Functional Areas Of ERP

Financial Accounting Management Accounting Human resource Manufacturing Supply chain management Project Management Customer relationship management

Reason For ERP Market Growth In India

ERP market in India steadily growing because....
The number of organizations using the ERP system is increasing ERP clients who have started with the basic modules are going for subsequent applications. There is also a trend to replace customized system with standard application packages, like an ERP system.

India is expected to present ERP suppliers an important marketplace as manufacturing companies are significantly investing in technology solutions to improve their manufacturing operations.

Size Of ERP Market 2004-2010

Annual growth rate of period of 2004-2009.
The market was $83 Market wad around 2010.

25.2 %

during the

million in 2004.

$160-180 million in

ERP Market Growth In India (2012)

By research, it is projected that
Will achieve CAGR upto

13 % in 2012
3.22 Bn in 2012 out

Revenue Generation around US $ of US $ 280 Bn.

In 2012, India will be the 4th largest enterprise software market in Asia/Pacific. The country is forecast to account for 11 % of the regions total revenue of $29.33 billion USD for Asia/Pacific this year, the equivalent to 1.15 % of the total worldwide software of market share of $280 billion

Future Market Scenario (In 2016)

The report said that by 2016, Indias share of the software market in Asia/Pacific is expected to...
Representing US $5.4 Billion in revenue, or 1.5 % of total worldwide software market revenue of $361 billion.
Market Share

India

World

12.10%

87.90%

87.90%

Major Players Of Indian Market (2012)

SAP, 28.70%

Others, 47.20%

Oracle, 10.20%

The Sage Group, 7.40%

SSA Global Tech., 2.80%

Microsoft Dynamics, 3.70%

Future Prospects Of ERP In India

Indias enterprise software market is forecast to maintain its strong performance, with an estimated compound annual growth rate

(CAGR) of

13.6 percent upto 2016,

rd 3

highest growth rate in the world, according to Gartner.

Key Areas Of Growth In Future

Priority areas of software spending include

Operating Systems, DBMS, AIM and Application Development.

Web Conferencing And Team Collaboration, Enterprise Content Management, CRM and ERP.

In the next five, the fastest-growing segments will be

Thank You