Global Investors Meet Karnataka: IT Capital of India

Transcription

1 Global Investors Meet Karnataka: IT Capital of India Page 1 Presentation title

2 India: global leader in IT Poised to become a US$225 billion industry by 2020, the Indian information technology (IT) industry has thus played a key role in putting India on the global map H.E. Ms. Bhaswati Mukherjee, The Hague, 1 Nov 2011 Accelerating growth: India s IT industry generated US$ 88.1-billion in FY 2011 IT sector revenues have grown from 1.2% of GDP in FY 1998 to 6.4% in FY 2011, while global averages lag at 2.7% IT-BPO consistently attracted highest share of pirvate equity and venture capital investments Total FDI inflow in computer software and hardware estimated at US$ 10-billion between Apr 2000 and Sep 2010 India s IT industry has grown at an average annual rate of 16.9% since FY 07 Global popularity Global IT leaders have large presence in India: IBM with 130,000+ employees, Accenture with 40,000+, Cap Gemini with 26,000+, and HP with 15,000+ Indian firms, like TCS, Wipro, and Infosys, Source: NASSCOM are domestic and global leaders Vast human resource pool: IT-BPO industry is expected to provide direct employment for over 2.5-million people in 2011 and indirect employment for 8.3-million in India Engineers constitute 16% of the 4-million new entrants into the workforce Operating cost efficiencies benefit producers and consumers Administrative and selling costs in India amount to approximately 80% of costs in the EU At US$ 20 US$ 35 per hour, India s offshore billing rates are 50%-70% lower than in the EU Strong projections: Industry expected to continue growing at 16%, with increased IT-BPO spending from automotive and healthcare industries, and from government on e-governance Karnataka: leading India s IT industry Global hub: Karnataka is the leading IT hub of the country with Bangalore as the 4th largest technological cluster in the world after Silicon Valley, Boston and London Leading State in the IT/ITeS industry in India With a third of India s software technology park units, the state is the country s largest software technology hub India s largest software exporter Karnataka earned Futuregov Award 2010 for Best Business Practices in Asia s Public Sector e-procurement platform valued projects of US$ 9,792-billion by 2011, and extended to 96 government departments, encouraged 10% higher bidder participation Page 2

3 Karnataka s IT industry: driving national and state economic growth State leads national IT industry with its software exports constituting 40% of India s trade Spearheading state s growth: Karnataka s electronic, computer software, and BT exports composed 63.5% of state s exports in Software exports contributed 21.4% to state s GSDP with export CAGR of 13.5% and GSDP CAGR of 15.2% between FY05 - FY10 BPO/ITeS companies grew to 270 in number by CAGR of 13.4% in FY2005 -FY 2008, while hardware exports grew to US$ 825-million at CAGR of 14.4% Strong local investor confidence: State attracted the most investments in the national IT industry, with thrust from Indian companies Global leadership: Karnataka hosts all the global leading IT companies, including Infosys, Wipro, Tata Consultancy Services, Oracle, Dell, IBM, Microsoft, Accenture, Cognizant, etc. Bangalore s native IT companies, Infosys and Wipro, have 6 th and 13 th highest market cap amongst all Indian companies, and are ranked in The Forbes Global 2000 list 9 of top 10 leading IT companies on Forbes Global 2000 list have based headquarters of their India operations in Bangalore CAGR of 5.84% in number of companies, 13.5% in exports drive state s IT industry Source: Economic Survey of Karnataka, State s IT sector attracted 44.6% of total investments in national IT industry Source: Economic Survey of Karnataka, Industry players in State s IT sector demonstrated significant growth between and Innovation and R&D: With the highest number of R&D centers in the country (103), leading global IT companies maintain their R&D centers in Bangalore, including Microsoft, Intel, Oracle, and IBM Human Resource hub: State contributes 500,000 IT professionals from leading engineering institutes to the nation s IT workforce of 2.5-million Source: Economic Survey of Karnataka, Page 3

4 Key players: domestic and global leaders Organization Tata Consultancy Services Revenues of US$ 7.4- billion in Infosys Revenues of US$ 5.8- billion in Wipro Technologies Revenues of US$ 5.6- billion in development centers, 30 global offices IBM India revenues of US$ 3- billion in Hewlett Packard India revenues of US$ 3.4-billion in Accenture India Cisco Intel Texas Instruments Industry focus IT and business process outsourcing IT consulting services in banking, financial services, healthcare and life sciences, insurance, manufacturing, media, entertainment, transportation, travel and hospitality, retail, utility, and energy resources IT consulting, modular global sourcing, process reengineering and BPO services Product engineering, technology infrastructure, BPO and other consulting solutions. IT services include application development, deployment and maintenance, business intelligence, and customer-relationship management End-to-end solutions to customers from hardware to software, services and IT consulting developing and manufacturing computing, data storage, and networking hardware, designing software and delivering services, along with leading consulting services in business process improvement BPO services, business consulting, systems integration Core technologies: routers, switches, LANs Advanced technologies: WLAN, security systems, enterprise telephony Chip design and manufacturing Semiconductor design, including analog, digital signal processing, wireless, and DLP technologies Mindtree Limited Microsoft Google IT solutions, specializing in IT services, independent testing, infrastructure management and technical support, knowledge services and product engineering. Develop technology for emerging markets, and provides high level technical resolution services. Technical innovation, Mobile Web Applications, Geo Products, Enterprise Cloud Computing Page 4

5 Infrastructure: 81% of the total SEZ in Karnataka focused on IT With investments of US4 1, million, 47 of the 58 Special Economic Zones approved in the state will drive the IT/ITeS sector Large Industry Clusters, IT/ITeS Status of SEZs Districts Operational Bangalore - 13, Dakshin Kannada - 2, Mysore 1 Notified Bangalore - 5, Mysore - 2, Mangalore - 2, Hassan - 1, Shimoga 1, Dakshin Kannada 1 Formally approved Bangalore - 12, Srirangapatna - 2, Mysore - 1, Mangalore 1, Hubli 1 Software Technology Parks Investments in 2160 STPI units in Karnataka totaled US$ 78-million by Mysore: 56 STPI registered companies recorded export of US$ 289-million in , growing by 250% since Mangalore: 29 STPIs exported US$ 181-millioin in Hubli: 16 STPIs exported US$ 5.2-million in Dakshin Kannada Mysore Additional Investments Hardware units: of US$237-million Investments Bangalore Foreign equity companies and BPOs: Investments of US$132-million Existing Electronic City, Bangalore EPIP Whitefield One of India s largest electronic industrial parks: 332 acres Houses more than 300 companies, including Wipro, Infosys, HP Employs more than 100,000 employees. Integrated township developed post-2005 with three IT/ITeS SEZs Nearly 25 villas and gated communities worth over US$ 416,000 Export Promotion Industrial Park amongst country s first IT parks Developed as joint initiative of central and state governments near Bangalore International Airport. Total expected investments by 2030 US $ 20-billion Projected Employment 255,000 (Direct) and 857,000 (Indirect) All IT Parks equipped with power, water, high speed connectivity Shimoga will have 100,000 sq. ft. IT workspace (US$ 5-million) Gulbarga will have 150,000 sq. ft. IT workspace (US$ 5-million) Mysore & Mangalore will have 40% area for IT (US$ 10-million) Information Technology Investment Region (ITIR) IT Industrial Parks developed in PPP mode Upcoming Page 5

6 Research and development: inspiring industry-focused innovation Global industry players escalate state s innovative acumen through research and development and innovation centers in Bangalore Philips Innovation Campus in Bangalore involved extensively in designing innovative engineering, healthcare and consumer lifestyle solutions. IBM, present in India since 1992, has one of its 10 global innovation centers in Bangalore Software Innovation Center Services Innovation and Research Center Honeywell s US$ 50-million research, development, and engineering facility Wipro Center of Excellence in Electronic City works with leading IT firms to develop innovative IT solutions CISCO Global Development Center Texas Instruments Research and Development Center Mindtree: One of the top 5 global R&D service providers Hewlett Packard R&D Center Sonata Software Development Center Microsoft Research India Leading National Engineering Academic Colleges Institutions RV College of Engineering University Visvesvaraya College of Engineering, Bangalore University National Institute of Engineering National Institute of Technology, Karnataka Bangalore Institute of Technology Indian Institute of Information Technology, Bangalore Leading Research Leading & R&D Development centers Centers Indian Institute of Science Centre for Development of Advanced Computing (C-DAC) National Centre for Software Technology CSIR Centre for Mathematical Modeliing and Computer Simulation National Institute of Advance Studies Raman Research Institute Knowledge-sharing beyond corporate walls and into classrooms Intel s education initiative has covered 32 districts, training 37,462 teachers in government and private schools State has Partnered with Regional Institute of Education, Mysore; University of Mysore; Kuvempu University; Bijapur University; Gulbarga University; Tumkur University for multi-core curriculum intrgration Donation of Multi Core labs, research partnership with IISC and IIIT Page 6

7 Plethora of policies: encouraging an investor-friendly environment Karnataka Animation, Visual Effects, Gaming, and Comics Policy 2012 Infrastructure: Land earmarked for AVGC in ITIR near Bangalore; AVGC public and private parks in areas where facilities and land available Venture Capital fund: US$ 11-million for new entrants in AVGC Centre of Excellence: Established on Public Private Partnership (PPP) Mode at cost of US$ 17-million in Bangalore, with financial assistance from GoK towards capital expenditure and equipment Karnataka Information and Communications Technology Policy, 2011 Karnataka Semiconductor Policy 2010 Research Hub: In Bangalore, along with a prototype and testing laboratory with State funding limited to 50% of the total cost of setting-up the necessary infrastructure IT Investment Region: Provision of excellent infrastructure and investor-friendly policy environment in min 10,000 acre area; managed and administered under Karnataka ITIR Act 2010 Buy Local program: Karnataka-based Defense, Nuclear energy, satellite programs and Public sector enterprises and state departments to source from local IT/BPO/Telecom companies Investment promotion subsidies to encourage establishment of semiconductor units in Tier-II cities Additional US$ 5.2-million to KITVEN IT fund for assisting semiconductor start-up units in design and embedded software ATMP units will receive special incentives in proposed ITIR near BIAL, Bangalore, while Solar PV manufacturing units will receive assistance under Karnataka Renewable Energy Policy Karnataka Fund For Semi Conductor Excellence to enable private companies to cover 50% of R&D expenses Karnataka New Industrial Policy, State policy for SEZ Electronics, Telecom and Informatics (Software) industries set-up in Mysore and Dharwad eligible for 100% sales tax exemption for 6 years Sector-specific industrial zones and SEZs that match natural resources and capabilities of a region with industry requirements Land bank created by Karnataka Industries Development Board to facilitate land acquisition for investors Infrastructure development through investments in power, roads, water, warehouse, and logistic facilities Single Point clearance to SEZ developers and units Exemption from stamp duty, electricity duty Exemption from state local taxes, sales tax, VAT, Entry tax, Special Entry Tax Declaring SEZ as industrial townships enabling SEZ as self governing and autonomous municipal bodies Page 7

8 Investments: facilitating industry growth IT industry attracted US$ 3,435-million in investments during Global Investor Meet 2010, garnering the highest number of MoUs across all industries 70% of MoUs signed during GIM 2010 in implementation stages Infosys: US$ million in 2 software development centers Manyata Developers: US$ million in IT/BT/BPO Park Indian Green Grid Group: US$ million in IT Park Wipro: US$ million in IT/ITeS SEZ and Software Development Ctr Source: Karnataka Udyog Mitra Larsen & Toubro: US$ million in sector-specific SEZ for IT and ITeS State also attracted additional investments worth US$ million in its IT/ITES SEZ sectors during another similar state specific event. State offers investors several opportunities and options for investing in IT/ITeS sector Infrastructure: Special Economic Zones, Investment Regions, Industrial Parks Research and Human Resource Development Research and development centers Vocational training institutions egovernance Procurement platforms Investment clearance portals Business process management and data management for government agencies IT enabled Services Business process outsourcing: information system management, customer-relationship management, business intelligence Engineering process outsourcing, including designing solutions across industry verticals Legal process outsourcing: legal and intellectual property research Knowledge process outsourcing: Thirdparty analytics, like data analytics and modeling IT Services Application development, deployment and maintenance Development of core and advanced technologies, including hardware Semiconductor design and manufacture Page 8

9 Key Contacts Principal Secretary to Government Department of Information technology, Biotechnology and Science and Technology, Government of Karnataka VI Floor, 5thStage, M.S.Building, Ambedkar Veedhi, Bangalore Ph: , Fax: , ID: itsec@bangaloreitbt.in itbtsec@gmail.com Commissioner for Industrial Development and Director of Industries & Commerce 2nd Floor, Khanija Bhavan No.49, Race Course Road, Bangalore commissioner@karnatakaindustry.gov.in Visit us at : Managing Director, Karnataka Udyog Mitra 3rd Floor, Khanija Bhavan (South Wing), No.49, Race Course Road, Bangalore Ph : , ; , Fax : md@kumbangalore.com Visit us at : Karnataka Biotechnology and Information Technology Services Managing Director No.9, 2 nd floor, UNI Building, Thimmaiah Road, Vasanthnagar Bangalore , Karnataka, India Ph: / Fax: mdkbits@bangaloreitbt.in Visit us at: Page 9