IT in India – Opportunities for German companies › ... ›...

QSO Technologies Paying attention to details

IT in India – Opportunities for German companies

Roland E. Haas


CURRENT SITUATION Overview

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India’s Economy – Facts & Figures

The rise of India’s IT industry

Opportunities for German IT companies

Outsourcing/Offshore services

Recruiting and retaining talent

6 Conclusions



Area : 3.3 Million Square Km Languages : Hindi - Official English - Business 14 Other official languages 2000 + dialects

Age Percentage Male Female

0-14 30.8 188,208,196 171,356,024

15-64 64.3 386,432,921 364,215,759

65 + 4.9 27,258,259 30,031,289

The average age is only 25.1 year


India‘s Economy – Facts & Figures



Germany ranks 6th as export destination for India (volume >USD 6 billion)

GDP at current market prices is 1.16 Trillion USD in 2008

Per capita income is estimated at US$ 1,021

India’s GDP at PPP (purchasing power parity) is estimated at USD 5.16 trillion

India ranks 24th as export destination for German goods and services (volume > USD 5 billion)


The rise of India‘s IT industry

The phenomenal growth rate of India’s software exports, with (ten-year rolling) average annual growth never dropping below 30%, and overall exports exceeding US$36bn in 2008/09

Azim Premj, Wipro

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%Growth

Accoun-ng Year

Indian So6ware Export (1980-‐2009)

Export

Growth Rate


The rise of India‘s IT industry

Bangalore

Mysore

QSO Technologies


Opportunities for German IT companies in India –  PLM –  Automation & Manufacturing –  Infrastructure Management –  Telematics –  Logistics –  Medical –  Embedded Automotive Systems Outsourcing to

offshore service provider

IT products

Captive center

Joint Ventures


Outsourcing/Offshore Services

• 40-50% of all E&D processes offshorable with 50-60% savings

• 40% of F&A, 30-50% of IT and 50% of HR processes are typically offshorable and can generate up to 50% savings

• 30-50% of all contact center processes offshorable with 20-30% savings potential

• 20%-30% of R&D and analytics can be offshored with 50-60% savings

Offshoring

Engineering & Design

Support Functions

Customer Contact

Business Intelligence


Outsourcing/Offshore Services


Outsourcing/Offshore Services - Issues

Trend of colocation

Lack of Domain knowledge

Fear of job losses

Resistance

Attrition

Processes need to be

ready

Complexity Intercultural

issues


Outsourcing/Offshore Services - Success factors

•  Clear roadmap & strategy

•  Strong quality systems and processes

•  Strong commitments from top management

•  Avoid process re-engineering in flight

•  Availability of talent

•  Manage attrition carefully

•  Look at total cost and not only per hour rates

•  Infrastructure


Outsourcing/Offshore Services - Voith & QSO

Lalitha Mahal Hotel

QSO Technologies Office in Mysore


Recruiting and retaining talent

Challenges •  Huge number of applications can come in •  Top candidates might be overlooked •  Paper qualifications have to be checked thoroughly •  Soft skills and communication skills are often poorer than in Europe or US

•  Equal opportunites

•  Role clarity

•  Honest appraisal

•  Fair compensation & competitive benefits

•  Training

•  Rewards

•  Models to integrate work and family life


Conclusion •  Friendly political framework (tariffs, labour law, company law) encourage foreign

direct investments and triggered a phenomenal economic growth. India’s huge demand for infrastructure has created an interesting market for high-tech and IT companies

•  India’s IT industry has grown tremendously. Indian offshore service providers started to challenge established players

•  India is a huge market for the products of German IT companies

•  Joint Ventures, captive centers, and partnerships with offshore service providers allow German companies to tap into the Indian talent pool

•  Outsourcing and offshoring have to be planned carefully - there are a lot of lessons learned and best practices available

•  Recruiting and retention of talent has to be planned carefully

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