![Page 1: June 5, 2008 Peter M. Heij Satyam Computer Services Ltd 7 th Munich Economic Summit Brain drain vs Brain gain](https://reader036.vdocuments.mx/reader036/viewer/2022082711/56649efd5503460f94c11770/html5/thumbnails/1.jpg)
June 5, 2008 Peter M. HeijSatyam Computer Services Ltd
7th Munich Economic Summit
Brain drain vs Brain gain
![Page 2: June 5, 2008 Peter M. Heij Satyam Computer Services Ltd 7 th Munich Economic Summit Brain drain vs Brain gain](https://reader036.vdocuments.mx/reader036/viewer/2022082711/56649efd5503460f94c11770/html5/thumbnails/2.jpg)
Over USD 2,2 Billion in Revenues
31 Global Solution Centers & 580
Customers
Market Capital about USD 8 BillionAs of March 31 2008
SEI-CMMI Level 5 53,000 Associates
SATYAM
Satyam highlights
Among Top 5 IT service providers from India. Provider of End to End IT Solution
![Page 3: June 5, 2008 Peter M. Heij Satyam Computer Services Ltd 7 th Munich Economic Summit Brain drain vs Brain gain](https://reader036.vdocuments.mx/reader036/viewer/2022082711/56649efd5503460f94c11770/html5/thumbnails/3.jpg)
13,2 16,223,2
31,9
40,8
24,2
4,6%
5,2%
5,5%
~33%
Indian IT-BPO revenue grew by 33% in FY2008
USD billion, percentage
FY2006 FY2007 FY2008E
37.4
48.1
64.0
~29%
DomesticMarket
Exports
Share of GDP
• Sustained export growth – revalidates strong fundamentals
• Domestic market growth is gaining momentum – even without the impact of Rupee appreciation
• Revenue aggregate as a percentage of GDP continues to rise
~28%
~32%
~43%~23%
Indian IT-BPO SectorRevenue Aggregate and Share of GDP
Exports crossed USD 40 billion and domestic market crossed USD 23 billion
![Page 4: June 5, 2008 Peter M. Heij Satyam Computer Services Ltd 7 th Munich Economic Summit Brain drain vs Brain gain](https://reader036.vdocuments.mx/reader036/viewer/2022082711/56649efd5503460f94c11770/html5/thumbnails/4.jpg)
378427
553
704
865
690
Domestic Market
BPO Exports
IT Exports
Direct employment to reach nearly 2 million Indirect job creation estimated at 7-8 million
‘000s***Direct Employment
Indirect Direct TotalEmployment
9-10mn7-8mn**
~2mn
*Figures may vary slightly due to rounding off ** Indirect employment multiplier estimated at 4x, NASSCOM-CRISIL Study 2007*** Estimates for direct employment do not include employees in the IT hardware sector.
FY2007 FY2008E
• ~2 million professionals employed directly
• Indirect employment ~4x, creating additional 7-8 million jobs**
![Page 5: June 5, 2008 Peter M. Heij Satyam Computer Services Ltd 7 th Munich Economic Summit Brain drain vs Brain gain](https://reader036.vdocuments.mx/reader036/viewer/2022082711/56649efd5503460f94c11770/html5/thumbnails/5.jpg)
4,9
8,4
18,0
0,5
6,3
10,9
23,1
0,5Hardware
ProductDev and
EnggServices
BPO
ITServices
FY2008E
FY2007
Export revenue, predominantly comprising software and
services
Percentage, USD billion
DomesticMarket
Exports
• Geographic market diversification
• Vertical market exposure
• Breadth and maturity of service portfolio
• Global delivery capabilities
62-66%
34-38%
~28%
~29%
~30%
**
*Figures may vary slightly due to rounding off ** Negligible
![Page 6: June 5, 2008 Peter M. Heij Satyam Computer Services Ltd 7 th Munich Economic Summit Brain drain vs Brain gain](https://reader036.vdocuments.mx/reader036/viewer/2022082711/56649efd5503460f94c11770/html5/thumbnails/6.jpg)
61%
18%
12%
6%
2%
While US and UK remain the dominant markets, the industry
is steadily increasing its exposure to other geographies
US
UK
Continental Europe
APACROW
100% = USD 31.4 billion*
~30%
US
UK Continental Europe
APAC
~44%
>55%
~37%
Percentage
FY2007
CAGR FY2004-07FY2007FY2004
Indian IT-BPO Exports grew at a CAGR of 35% over FY2004-07
* Excludes hardware exports
![Page 7: June 5, 2008 Peter M. Heij Satyam Computer Services Ltd 7 th Munich Economic Summit Brain drain vs Brain gain](https://reader036.vdocuments.mx/reader036/viewer/2022082711/56649efd5503460f94c11770/html5/thumbnails/7.jpg)
Global Delivery Footprint of Indian IT-BPO Firms
• Indian IT-BPO delivery footprint spans over 77 cities* across more than 25 countries*
• Near-shore and on-shore presence is enabling firms to build more integrated, ‘full-service’ offerings
* Excludes Indian cities / India
Credible scale across a widening service portfolio complemented by expanding GDM capability is helping deepen client relationships
![Page 8: June 5, 2008 Peter M. Heij Satyam Computer Services Ltd 7 th Munich Economic Summit Brain drain vs Brain gain](https://reader036.vdocuments.mx/reader036/viewer/2022082711/56649efd5503460f94c11770/html5/thumbnails/8.jpg)
While cost remains a key driver, access to skills is rapidly gaining prominence
![Page 9: June 5, 2008 Peter M. Heij Satyam Computer Services Ltd 7 th Munich Economic Summit Brain drain vs Brain gain](https://reader036.vdocuments.mx/reader036/viewer/2022082711/56649efd5503460f94c11770/html5/thumbnails/9.jpg)
* Global numbers indicate 2007 year end estimates; includes addressable markets in currently off shoring industries
** India revenues indicated refer to estimates for FY2008
Addressable market of at leastUSD 380 billion (2007-08)*
Addressable market
Current size
Global Sourcing of IT & Engineering Services
5-6x~220-250
~44-47
15-18
>29
Others
India**
Global Sourcing of BPO Services
6-7x~160-190
~26-29
Addressable market
Current size
15-18
~11
Others
India**
The opportunity is much larger; significant share of the addressable market potential still lies untapped
USD billion