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Is the Indian Software Industry Mature ? BCS Glasgow – Monday 8 th Oct 2001 The India Scenario Population 1 billion Second largest English speaking population in the world Over 1 million graduates each year Top three professions – law, medicine and computing
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Is the Indian Software Industry Mature ? BCS Glasgow – Monday 8th Oct 2001
The India Scenario • Population 1 billion • Second largest English speaking population in the world • Over 1 million graduates each year • Top three professions – law, medicine and computing Source: Nasscom Strategic Review 2001
What is Maturity About • Reliable Source for Skills • Demonstrated Competence • Sustained Growth • Appropriate Positioning • Broad Spread • Mature Processes • Mature Services
Reliable Skill Source: Education System • Education system – 10+2+3+2 • Emphasis on subjects like Mathematics and Science • Engineering schools and management schools • 150K Engineers & 35K Computer Graduates/Yr. • Centre of educational excellence -- IIT's, IIMs, RECs colleges. • Highly Competitive admission system • 3% get admitted in IIT , 0.5% in Comp. Science • Overall only 50% get admission for Engineering
Demonstrated Competence • Smart, Cost Effective and Plentiful IT Workforce • 185 of Fortune 500 companies outsource their software to India • 150 ISO 9000 certified companies and growing • 750 software companies • Second largest s/w exporter next to USA • Excellent communications
Demonstrated Competence • 80% market share of offshore outsourcing • In 1999-00, more than 260 out of the Fortune 1000 companies were outsourcing to India (US Govt. estimates) • Large, skilled, English speaking engineering, Scientific base, second only to the US • Highest, worldwide productivity per IT $$ • 24 out of 49 SEI CMM Level 5 organizations based in India • World-class Technology, Over 590 high speed (64Kbps) links • Companies like Nortel, Microsoft, Oracle, IBM, Cisco, Sun Microsystems have Offshore Development Facilities in India.
Sustained Growth: Software Exports The Indian software exports have zoomed from a mere US$ 128 million in 1990-91 to US$ 4 billion in 1999-2000 at a CAGR of 46.6%. Source: Nasscom Strategic Review 2001
High India The Philippines Number, Quality Vendor Sophistication China CIS Mexico Low Low High Number, Cost, Language, Skill People Sophistication Positioning: Best for Cross Border IT Services Source: McKinsey & Co. Analysis
Level 5 - Optimizing 30+ companies Level 4 - Managed 50+ companies 100+ companies Level 3 - Defined Level 2 - Repeatable 160+ companies Level 1-Initial 400+ companies Mature Processes: SEI CMM Levels
Mature Services: The Value Chain 3GOO = TTM • Core business measures • Revenue, Profit • Market Share, ROE • Business Scorecard • Service Value • Time to market • Intellectual Assets • Growth • Shareholder value 2GOO = THROUGHPUT 1st order benefits • IT Scorecard • Quality, delivery • Productivity • Staff Readiness • Customer demand 1G00 = COST ?GOO = Virtual Extension 2nd order benefits • IT causal measures • People & Skill • Bugs per LOC • Classification of bugs 3rd order benefits 4th order benefits
Key Events • Established 1982 • Public Flotation 1992 • ISO 9001 for all services • SEI (CMM) Level 5 Certified (One of only ~40 of companies worldwide) • PCMM Level 3 • One of India’s leading Suppliers of IT Services
Mastek (UK) Limited • Working in UK since 1993 • 350 professionals based in the UK and India • 2 Dedicated Offshore Development Centres • 80% of New Business from existing clients • June 2001 turnover £15 million
What we have achieved • Over 7000 man years of full lifecycle projects • 350 CRM Implementations • 200+ CRM Consultants • 50 + E Business Projects B2B & B2C • Product, Vendor Neutral • CMM Level 5, PCMM Level 3
How we add value “ Better than 94 % of our overall projects were delivered either on or ahead of time and budget” Of the remainder the maximum over-run was 3% Mastek September 2000 Independent CMM Audit
World Class Processes Mastek quality metrics far ahead of industry averages: • On-time delivery record of 94% (up from 88% the 1999) • Defect Leakage of 4% (Industry Benchmark 10-15%) • Budget variance less than 9 % Validated by the level 5 CMM assessment. * SEI CMM 5 is Carnegie Melon’s “Capability Maturity Model”, 5 is the highest level of assessment. Mastek is assessed at level 5