Government Initiatives and Progressive Policy Reforms

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Presented by:

Prasad Nimbalkar
Pravendra Kumar
Ajit Kumar


Class: PGDBM,
2008-10

ITES did not exist 2 decades ago.
Created international benchmarks for
QUALITY.
Create the brand of “New India” and
served as an inspiration for everyone
else.

Overview of ITES
The changing Scenario of Country.

Being regarded as knowledge powerhouse.

Spectacular Economic Achievement.

Important player in international
technological Arena

Introduction
The ability to use operations in different
time zones.
Global IT sourcing creates employment
and supports economic growth.
◦ Eg- Ireland, Korea and India

India,is a well-known destination for global


IT sourcing.

Drivers of Global IT Sourcing


Direct contribution
◦ country’s GDP has been steadily increasing from a
share of 1.2% in FY98 to 5.2% in FY07
◦ Export earnings in FY08 - USD 40.0 billion with a
growth of 36%
◦ Direct employment - .0 million by end of FY08
◦ the largest employer in the organized private sector
of the country

Contributing to Economic Growth:


Indirect contribution

◦ Additional employment generation
◦ Encouraging balanced regional development
◦ Increase in registered IT/ITES units
◦ Employment
◦ Infrastructure and other amenities
◦ Improving the product/service quality level

30% of companies worldwide who have
reached Level 5 of Capability Maturity
Model Integration(CMMI) are Indian
IT/ITES firms.
Nearly 75% of Fortune 500 outsourcing
technology related services from India.

Some findings
SIZE- about US$40 billion in 2006-07
POLICY - 100% FDI is permitted.
OUTLOOK - expected to grow to US$77
billion by 2010.
◦ Exports expected to reach US$60
billion in 2010.

Indian ITES Industry


Establishment of a software tech. parks of India
Single- window clearances for setting up export
orientation unit
Basic infrastructure
No fdi restrction
Fiscal reform(international taxation, ) to facilitate
international transaction

Government initiatives and


progressive policy reforms
Area limit exemption in the SEZ policy.
Special emphasis on talent.
British Telecom awarded US$ 1bilion
contract to Tech Mahindra.
General Motors awarded Wipro a 5-year
contract of the value of US$ 300 million.
ABN Amro awarded a US$ 500 million 5-
year contract to TCS, Infosis and Patni.
Itis being claimed that KPO is one step
extension of Business Processing
Outsourcing (BPO) because BPO Industry
is shaping into Knowledge Process
Outsourcing because of its favorable
advantageous and future scope.

Knowledge Process Outsourcing


 Thank You

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