TECHNOLOGY & CONSULTING SECTORS              

• Information Technology (IT)
• Information Technology Enabled Services (ITeS)
• Knowledge Process Outsourcing (KPO)
• Business Process Outsourcing (BPO)
• Business Process Management (BPM)
• Telecom
• Consulting

Information Technology (IT & ITeS)

Sector Overview: The Indian IT and Information Technology enabled Services (ITeS) sectors have put India on the world’s center-stage. India’s cost competitiveness and strength in IT are its USP.  India is among the fastest-growing IT services markets and the largest sourcing destination in the world, with~ 52% market share of the US$ 124–130 Bn global market. The industry employs ~ 10 million people. India’s IT industry broadly operates into 5 key segments, i.e.  (a) IT services (i.e. ‘Application Development and Maintenance’ or ‘ADM’), (b) Software Products, (c) Engineering and R&D services, (d) IT-enabled services/Business Process Outsourcing (ITES/BPO), and (e) Hardware. The export of project based ‘IT services’ segment is the largest with a revenue of ~ US$56 Bn during FY13 (contributing ~ 60% of total revenues of the sector); and the BPO segment is the next with US$21 Bn (~ 20% of revenue). Among the users, Banking, Financial Services and Insurance (BFSI) and Telecom are the major customer segment of Indian IT/ITES sector’s export revenues contributing ~40% and ~20% respectively. USA and UK contribute 60% of the export revenue, Europe ~30%, and the balance 10% from rest of the world. Indian IT companies are recalibrating their strategies to counter competition from cheaper outsourcing countries, MNCs’ captive development centers, ‘re-shoring’, and tighter immigration regime.

 Growth Prospects: The Indian IT/ITES industry  grew at a CAGR of 13% during FY08–13 to revenues of ~US$100 Bn in FY13, with ~68% coming from exports; and  is expected to grow at a CAGR of ~12-15% to revenue of ~ USD 225 Bn by 2020. India is emerging as the most preferred destination for the engineering offshoring for complete product responsibility. Now, with GOI’s emphasis on better technology enabled delivery mechanisms for a variety of government programmes/projects like e-passport, Unique Identification Scheme, and cash remittance of subsidy, the domestic IT market looks promising. As India now forms less than 5% of the global IT spending, this provides huge untapped opportunities for the growth of the Indian domestic IT-BPO industry.  Thus, Indian IT sector has a very bright future, and will stay a top employer for years to come.

Telecom: India is the world’s second-largest telecommunications market, with ~ 900 million subscribers (~60% Urban and 40% Rural; ~ 78% GSM and 22% others). Indian telecom sector has achieved a stupendous growth in the last decade, with revenue doubling from ~US$20 Bn to ~US$ 40 Bn during FY06-13 (10.4% CAGR). Third generation (3G) data traffic in India has been growing rapidly – faster than the global average. With the data growth and emerging technologies such as cloud computing, replicating the success of voice-connectivity; the government is aiming broadband connectivity to over 600 million people by 2020. The Indian mobile phone industry has potential to contribute US$ 400 Bn to the country’s GDP, and generate ~ 4 million new jobs by 2020. With the massive investments planned into Indian infrastructure, the country is poised for high penetration in the telecom sector in coming years; contributing to economic growth and jobs creation.

KLS&A Advantage:  

We have a well-educated, trained and experienced team of senior recruiters who understand various technologies, and have the domain knowledge and experience in hiring senior and middle level technology professionals for different functions and technologies for global MNCs and domestic IT companies. Our team members hold IT qualifications, and have worked in leading technology talent hiring companies. We take pains in understanding your business, environment, and your unique people needs; and work hard to provide you with the relevant technology talent that meets your specific preferences at the shortest turnaround time (TAT), so that your projects are up and running fast. We strive to excel in our service, and build long-term relationship with our clients. 

(References: Various media reports, press clippings, articles, and research reports, including from IBEF, and EM, etc.)

[Disclaimer: This general note with very broad and indicative information of the industry sector(s), has been compiled through secondary research from various known and unknown sources; and hence, the information herein may not be complete, latest or accurate; and this is not meant to be relied by anyone for any purpose; and KLS&A or the sources are not in any way responsible for any errors or shortcomings in the same. You should consult your own experts and do your own independent homework & research before acting in any way.]

Hiring for A Variety of Technical Skills, e.g.:

IT: SAP,  Oracle,  Axapta, Mx-AxTech, Big Data-Architect, Linux,  Python, Pearl, Java, JavaScript, JODC, Ajax, XML, Silverlight, Flash, J-Query, HTML, Spring, Hibernate, NOSQL, SharePoint, Hadoop, Mongo DB, HDFS, N2CMS, Fix Protocol,  Android, iOS, BlackberryOS, Asp.net, Oops, C++, C+, C#, Crystal Report, Active Directory, Exchange Resource, PL/SQL, MYSQL, Maven, QT, Automation/Blackbox/Whitebox Testing, QA/QC, ROR, Enterprise Mobility, Digital Broadcast and Sound Engineering, Security, Archer, etc.; and many more..

ITeS:  International BPOs – Voice Process, and KPOs.

TECHNOLOGY & CONSULTING SECTORS (IT AND TELECOM)    

Information Technology (IT & ITeS)

Sector Overview: The Indian IT and Information Technology enabled Services (ITeS) sectors have put India on the world’s center-stage. India’s cost competitiveness and strength in IT are its USP.  India is among the fastest-growing IT services markets and the largest sourcing destination in the world, with~ 52% market share of the US$ 124–130 Bn global market. The industry employs ~ 10 million people. The IT sector attracted foreign direct investment (FDI) of ~ US$ 10 Bn during 2000-14.

India’s IT industry broadly operates into 5 key segments, i.e.  (a) IT services (i.e. ‘Application Development and Maintenance’ or ‘ADM’), (b) Software Products, (c) Engineering and R&D services, (d) IT-enabled services/Business Process Outsourcing (ITES/BPO), and (e) Hardware. The export of project based ‘IT services’ segment is the largest with a revenue of ~ US$56 Bn during FY13 (contributing ~ 60% of total revenues of the sector); and the BPO segment is the next with US$21 Bn (~ 20% of revenue). The software products and engineering services form the rest with US$18 Bn (~ 20% of revenue, excluding hardware). Among the users, Banking, Financial Services and Insurance (BFSI)  and Telecom are the major customer segment of Indian IT/ITES sector’s export revenues contributing ~40% of revenue,  Telecom ~20%.; and rest of other industries together contributing to ~40% of the revenue. Marketwise, USA and UK contribute 60% of the export revenue, Europe ~30%, and the balance 10% from rest of the world. The industry grew at a CAGR of 13% during FY08–13 to revenues of ~US$100 Bn in FY13, with ~68% coming from exports.

Emerging Trends & Challenges: Indian IT companies are facing competition from cheaper outsourcing countries like Poland, Hungary, Romania, Philippines. Some MNCs are setting up captive IT development centers in India; and some are ‘re-shoring’ the earlier outsourced operations back. The governments of advanced countries like US are tightening immigration policies, restricting visa and raising cost of visa. Indian companies are also taking important strategic steps to meet challenges and stay ahead – switching from the linear models (rising headcount to increase revenue) to non-linear ones (e.g. platform-based BPM services);  moving up the IT value chain by providing higher value-added services like consulting; R&D and product development; mobility; analytics, etc. Indian IT companies are also focusing on cost control measures like shifting more work offshore, setting up new development centers in Indian Tier II and III cities. Many large Indian companies are now offering the composite IT-BPO contracts as end-to-end solution.  Indian IT companies are also adopting the global delivery model, by setting up development centers in other cheaper labour cost countries like Latin America, South East Asia, and Eastern European countries to reduce costs and also service the local markets there. Most Indian IT companies are increasingly subcontracting onsite jobs to local employees in the US or setting up local development centers there to counter immigration restrictions, and win projects in highly regulated sectors, like healthcare, utilities, and government work.

Government Initiatives: The Government of India has been playing a catalyst role in development of IT sector with growth conducive policies, promoting IT education and skill development programmes to prepare a large pool of qualified and trained IT engineers, and enhancing the infrastructure capabilities.

Growth Prospects: Indian IT/ITES industry is expected to grow at a CAGR of ~12-15%, and achieve a revenue target of ~ USD 225 Bn by 2020. India is emerging as the most preferred destination for the engineering offshoring; and the MNCs are now offshoring complete product responsibility. Also, now, with the Indian government emphasizing on better technology enabled delivery mechanisms for a variety of government programmes and projects like e-passport, Unique Identification Scheme, and cash remittance of subsidy, the domestic IT market looks very promising. The Central Government and the State Governments may spend US$ 6.4 billion on IT products and services in 2014, and more in the next few years. As India now forms less than 5% of the global IT spending, this provides huge untapped opportunities for the growth of the Indian domestic IT-BPO industry.  Thus, Indian IT sector has a very bright future, and will stay a top employer for years to come.

Telecom: India is the world’s second-largest telecommunications market, with ~ 900 million subscribers (~60% Urban and 40% Rural; ~ 78% GSM and 22% others). With major policy initiatives by the Indian government in transforming the industry, and the aggressive push by the private players, Indian telecom sector has achieved a stupendous growth in the last decade, with revenue doubling from ~US$20 Bn to ~US$ 40 Bn during FY06-13 (10.4% CAGR). Third generation (3G) data traffic in India has been growing rapidly – faster than the global average, with the data consumed per subscriber for 3G being 4 times that of second generation (2G). With the data growth and emerging technologies such as cloud computing, replicating the success of voice-connectivity; the government is aiming broadband connectivity to over 600 million people by 2020. The Indian mobile phone industry has potential to contribute US$ 400 Bn to the country’s GDP, and generate ~ 4 million new jobs by 2020. The Indian telecommunications industry attracted US$ 287 Bn. cumulative foreign direct investments (FDI) till FY2013; and further large FDI inflows are expected, with the liberalised FDI policy for telecommunication announced by the government in Union Budget 2014-15. With the massive investments planned into Indian infrastructure, the country is poised for high penetration in the telecom sector in coming years; contributing to economic growth and jobs creation.

(References: Various media reports, press clippings, articles, and research reports, including from IBEF, and EM, etc.)

[Disclaimer: This general note with very broad and indicative information of the industry sector(s), has been compiled through secondary research from various known and unknown sources; and hence, the information herein may not be complete, latest or accurate; and this is not meant to be relied by anyone for any purpose; and KLS&A or the sources are not in any way responsible for any errors or shortcomings in the same. You should consult your own experts and do your own independent homework & research before acting in any way.]