june 5, 2008 peter m. heij satyam computer services ltd 7 th munich economic summit brain drain vs...

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June 5, 2008 Peter M. Heij Satyam Computer 7 th Munich Economic Summit Brain drain vs Brain gain

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Page 1: June 5, 2008 Peter M. Heij Satyam Computer Services Ltd 7 th Munich Economic Summit Brain drain vs Brain gain

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

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

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

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

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

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

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

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

* 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