Presentation on theme: "South Asia as a hub for ICT based growth"— Presentation transcript:
1 South Asia as a hub for ICT based growth Opportunities and ChallengesKris CanekeratneChief Executive OfficerVirtusa CorporationSeptember, 2012
2 Agenda Overview of Virtusa The Millennial Enterprise Technology InnovationDigital NativesEnterprise Transformation will drive ICT demandThe South Asian ICT industry – Opportunities & Challenges
3 Virtusa has enjoyed over 15 years of strong growth Some Marquee ClientsGlobal IT Consulting & Outsourcing Services ProviderUS Based, Global Service ProviderHeadquartered in Westborough, MALocations in US, Europe, Asia and Middle EastTechnology Centers in U.S., U.K., India & Sri LankaOver 6000 world-class professionalsProvide services at several Fortune 500 firmsAcross BFSI, Comms, Media & HealthcareRapidly growing & profitableCurrent Fiscal Year revenue guidance $320M–$330MListed on NASDAQ (VRTU) since 200710-year revenue CAGR: 32.47%Numerous awards and certificationsPlaced number 22 on Forbes 2011 top 100 public companies with revenue less than $1BSome Key Awards
4 Lets discuss a few examples and then the underlying drivers We are in front of, perhaps, the largest enterprise application modernization in history…Lets discuss a few examples and then the underlying drivers
5 Innovative enterprises have excelled while other have stumbled… iTunes & iPods transformed the consumer experienceDownload song of choice instead of an entire albumApple is worth over $620 Billion!Netflix’s subscription-based, on-demand home movie rentalsEase of use, reasonable cost, and a large catalog of movies and gamesBlockbuster failed to see the opportunity – they have filed for bankruptcyFlipboard delivers targeted, personalized content to consumers through handheld devicesIn 2 years, Flipboard has acquired over 20 million customers, over 1.5 million daily users and 3B flips per month!What will happen in the next 3 – 5 years if banks, insurance providers, media houses, etc. don’t become millennial enterprises?
6 This paradigm shift is being driven by 2 powerful forces: Emergence of Digital NativesRapid Innovation across a few technologies
7 The emergence of digital natives in the employee and consumer population is driving rapid behavioral changesFor Millennial employees…Work is not a place they go to but what they doFeel entitled and demand recognitionExpect to be technologically enabled with the latest innovationsDepend on their social networks for advice, opinionsMillennial consumers…Expect services on-demand & on their device of choiceDo not hold strong loyalties to brand or organizationValue peer recommendations over expert opinionsWant to be more in control and drive the purchasing process51% of the Smartphone users in the age group of made purchases using their device, 27% in the age group and 12% in the age 55+
8 Technology innovation across four dimensions will change the dynamics of B2C and B2E interactions – think C2B and E2B!MobilityMobile is the New EndpointSocialPeople are the PlatformCloudApplications are a ServiceBig DataAnalytics is the WeaponMillennial User ExperienceDevice agnostic • 24x7 • On-demand & intuitive • Superior customer experience • Collaboration & co-creationSimpleContextualRelevantPersonalizedServicing the Millennial ConsumerProductivityCollaborationMotivationCultureEngaging the Millennial Worker
9 Today’s businesses will have to undergo a massive application modernization effort to become “Millennial Ready”The convergence of technology innovation combined with the emerging demands of digital natives will push enterprises to…Modernize enterprise ITSimplify processUnderstand and leverage the advances in technologyEmbrace and accelerate innovationEngage millennial consumers and enable millennial employeesConsistentDataA Few SpecialistsStandaloneAppsData CenterProcess EfficiencyMany Business ManagersERPIntegrationLANActionableDecisionsEveryone, EverywhereNetworked Solutions (Cross Platform)WANPortals & SuitesMost EmployeesBusiness AgilityMobile & CloudMAINTENANCE WAVECLIENT SERVER WAVEINTERNET WAVETHE CURRENT WAVE19902000201020201975198519952005ImpactReachApplication TopologyInfrastructureThis modernization effort will drive significant IT service revenue, perhaps, larger than any prior paradigm shift
10 The emerging millennial enterprise paradigm represents a tremendous opportunity for the South Asian ICT industryTransform business operations by leveraging social ecosystemsLeverage emerging technologies for business advantageDevelop products and services to engage the millennial generationThe cloud computing market will be $150 billion by 2013- GartnerBy 2015 brands will be generating 50% of their web sales through social media and mobile platforms with a projection of $30 Billion- GartnerWorldwide mobile payment transactions will surpass $ billion in 2012, up 62% from $106 billion last year- GartnerThe big data market is expected to grow from $3.2 billion in 2010 to $16.9 billion in 2015- IDCWe are in front of the largest application transformation in history, with significant opportunity for the South Asian ICT industry
11 …but not without its challenges CXO priorities are changingEnabling business through innovative use of technologyEngaging consumers and improving the customer experienceImproving value through newer engagement modelsNew geos are emerging to take business away from South AsiaLatin America, South America, Eastern Europe, East Asia…To capitalize on the technology transformation ahead of us we need to:Go beyond commodity services and deliver business valueInvest in innovation, build the millennial enterpriseMove from “order takers” to “trusted advisers”
12 Should we overcome these challenges, we have significant opportunity to grow the South Asian ICT industryOver the past 20 years, South Asia has emerged as the leading hub for offshore ICT servicesAggregate IT services revenue is expected to cross $100 Bn in 2012IT software and services revenue around $88 BnExpected to grow at 13% to a revenue target of $225 Bn by 2020Despite the economic downturn, the industry is showing strong growth across all segments:Domestic market (17%); IT services exports (19%); BPO (13%); and engineering services & products (15%)Within the global sourcing industry, India has increased its market share from 51 per cent in 2009, to 58 per cent in 2011Source: NASSCOM
13 We are on the cusp of a significant opportunity In ConclusionWe are on the cusp of a significant opportunityThe south Asian ICT industry is well positioned to expand market shareWe must overcome some of our challengesWe can accelerate our march to $225B
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