1. SOFTWARE START-UPS OPERATING IN INDIA - A NATIONAL RENDEZVOUS WITH DESTINY Dr.C.Subramanian Chief Executive Officer BAeHAL Software Limited Bangalore India 05 Dec 2005

2. MODERN MANAGEMENT THEORY BEGINS WITH THE HUMAN AND HIS CHOICES, NOT THE PRODUCTS OR SERVICES CHANGE IN HUMAN CONDITION: UNIQUE FACTOR INSTRUMENTAL FOR TRANSFORMATION AND/OR EVOLUTION IN IT BUSINESS SECTOR INTRODUCTION

3. IT BUSINESS SCENARIO GROWING REQUIREMENT FOR HUMAN CAPITAL AND MULTI-CHOICES AVAILABLE TO INDIVIDUALS INTERNET LITERALLY PUSHED THE IT BOOM UP BY CREATING MILLIONS OF JOBS IT COMPANIES QUICK ENOUGH TO CHANGE AND ADOPT THE CHANGING TECHNOLOGIES REMAIN AS LEADERS THOSE IN THE BODY-SHOPPING BUSINESS FACE TOUGH COMPETITION

4. IT BUSINESS SCENARIO (contd…) IT COMPANIES:  SETTING UP OWN OPERATIONS IN FOREIGN LAND TO TAKE ADVANTAGE OF LABOR ARBITRAGE  HIVING OFF OPERATIONS, BEING NOT PART OF THEIR CORE BUSINESS, TO STRATEGIC PARTNERS COLLABORATION WITH CUSTOMERS AND SUPPLIERS IN THE PLANNING AND REPLENISHING STAGES

5. INDIAN IT SCENARIO IT BUSINESS WITH PHYSICAL IMMIGRATION COMPONENT AS WELL AS OFF- SHORING COMPONENT DERIVE COST COMPETITIVENESS FROM SUPPORT OF HIGHLY SKILLED WORK FORCE & HIGH LEVEL OF SERVICE MATURITY SKILL SETS READILY AVAILABLE FOR IT AND ITES / BPO IT COMPANIES EARN SIGNIFICANT REVENUE FROM ITES

6. INDIAN IT SCENARIO (contd…) INDIAN IT COMPANIES CHAMPIONED OFF-SHORING MODEL  A FEW PRACTICED FROM THE BEGINNING  OTHERS FOLLOWED SUITE TO MEET DEMAND THROUGH INORGANIC GROWTH: MERGERS AND ACQUISITIONS, BUYOUTS, CONSOLIDATION AND RESTRUCTURING EARNINGS OF $12 BILLION IN 2004

7. IT BUSINESS AT BANGALORE BANGALORE CITY STOOD OUT AS A HIGH-TECH OFF-SHORING CENTER FOR SOME TIME NOW EXAMPLES:  IF YOU LOSE YOUR LUGGAGE ON BRITISH AIR OR SWISS AIR, THE PERSON WHO ANSWERS THE PHONE TO TRACK IT DOWN IS IN BANGALORE  IF YOU HAVE GOT A PROBLEM WITH YOUR DELL COMPUTER, THE PERSON ON THE OTHER END OF THE PHONE YOU’RE TALKING TO IS AT BANGALORE ABOUT 40,000 TECHNICAL GRADUATES PRODUCED EVERY YEAR, MAJORITY OF WHICH GETS ABSORBED IN IT INDUSTRY

8. SUPPLY CHAIN MANAGEMENT IT COMPANIES: ADOPT EFFICIENT & EFFECTIVE SUPPLY CHAIN MANAGEMENT OBTAIN CONSTANT FEEDBACK FROM EVERY ELEMENT IN THE SUPPLY CHAIN DEVELOPE SET OF METRICS TO MONITOR THE SUPPLY CHAIN ADD VALUE TO CUSTOMERS IN TERMS OF EFFICIENCY, LESS COST AND HIGH QUALITY

9. SCHEDULE VARIANCE : ACTUAL VS PLANNED EFFORT VARIANCE : ACTUAL VS PLANNED PRODUCTIVITY : LINES OF CODE PER HOUR DEFECT DENSITY : DEFECTS PER KLOC QUALITY REVIEW EFFICIENCY : (QUAL REV DEFECTS) / (QUAL REV DEFECTS + CUSTOMER REV DEFECTS) SUPPLY CHAIN MANAGEMENT (Contd...) QUALITY MANAGEMENT SYSTEM – TYPICAL PROCESS METRICS FOLLOWED AT BAeHAL

10. SUPPLY CHAIN MANAGEMENT (contd...) EXAMPLE:  OFFSHORE SERVICE DELIVERY PROGRAMME OF SATYAM CITED AS THE ‘INDUSTRY BEST PRACTICE’ BY ABERDEEN GROUP REPORT  THANKS TO WELL-LAID BUSINESS CONTINUITY MANAGEMENT SYSTEMS, SATYAM ACHIEVED UNINTERRUPTED EASTERN OPERATIONS DURING IRAQI CONFLICT

11. ATTRACTIVENESS INDEX (AI) “BUSINESS CHARACTERISTICS OF A COUNTRY TO GENERATE QUANTITATIVE NET COST BENEFIT OF OUT SOURCING TO ITS WORK CENTERS” COMPONENTS OF AI WITH % IN BRACKETS 1.FINANCIAL BENEFIT (30%)  LABOR COST  COST ADVANTAGE-OPERATING AND CAPITAL EXPENDITURES 2.SERVICE MATURITY (25%)  PROCESS MATURITY AND COMPETENCY OF SUPPLIERS  INDUSTRY SIZE AND GROWTH  SECURITY / IP PROTECTION

12. ATTRACTIVENESS INDEX (AI) (Contd..) 3.PEOPLE (25%)  WORK FORCE AND SKILL LEVEL  LANGUAGE PROFICIENCY  HUMAN RELATION  EDUCATIONAL SYSTEM 4.SERVICE MATURITY (25%)  ICT AND PHYSICAL INFRASTRUCTURE 5.CATALYST (15%)  GOVERNMENTAL SUPPORT  GEOPOLITICAL ENVIRONMENT  PHYSICAL AND TIME ZONE DISPLACEMENT  CULTURAL COMPATIBILITY INDIA, CANADA, CHINA, POLAND AND IRELAND ARE RANKED AS THE TOP FIVE IN THE ORDER

13. CONTRIBUTARY FACTORS FOR GROWTH OF IT INDUSTRY IN INDIA 1.VAST NATURAL RESOURCE: THE PEOPLE  AVAILABILITY OF VAST POOL OF WORK FORCE TO SOFTWARE INDUSTRY  INCESSANT PRODUCTION OF BATCHES OF ENGINEERS BY ACADEMIC INSTITUTIONS  CONCENTRATION OF ENGINEERING EDUATION ON COMPUTERS AND/OR SOFTWARE  PRODUCTION OF PROGRAMMERS AT LOWER TIER OF ACADEMIC INSTITUTIONS  SPOKEN LANGUAGE OF MAJORITY BEING ENGLISH, THE LINGUA FRANCA OF NEW ECONOMY

14. 2.COMPANIES CONTINUOUSLY RAMP UP TO WORLD SCALE INCLUDING ITS ICT FACILITIES AND PHYSICAL INFRASTRUCTURE  FORECAST INCREASE OF EMPLOYMENT IN IT & ITES SECTORS IN INDIA: FROM 280,000 (1999) TO 2.2 MILLION (2008) 3.RAPID SHIFT OF MOBILITY FROM DOWNWARD TO UPWARD  AN EXAMPLE IS THE STORY OF ‘SATYAM’ 4.NEW AVATARS SUCH AS CONSULTANTS AND ADVISORS GAINING IMPORTANCE AND PROVIDING INDIVIDUALS MORE CHOICES  WORKING LIFE SPAN OF PROFESSIONALS INCREASED FROM 20 TO 60 YEARS IN THE RECENT TIMES 5.COMPANIES PROVIDE BEST OF THE FACILITIES TO RETAIN WORK FORCES AND TO CHECK ATTRITION RATES CONTRIBUTARY FACTORS (Contd…)

15. 6.SUCCESSION PLANNING ACROSS THE BOARD: REAR PERSONNEL READY AND COMPETENT ENOUGH TO HANDLE KEY POSITIONS THROUGH PROCESS-STEPS:  IDENTIFY KEY POSITIONS  ASSESS KIND OF PERSONNEL REQUIRED FOR THE POSITIONS  FIND PERSONS WHO FIT IN NICELY  PUT CONTENDERS THROUGH LEADERSHIP TRAINING  EXECUTE THE PLANS CONTRIBUTARY FACTORS (Contd…)

16. MOST ADMIRED KNOWLEDGE ENTERPRISE (MAKE) 1.WEALTH CREATION TO SHAREHOLDERS THROUGH MASSIVE MARKET CAPITALIZATION  “IT INDUSTRY HAS CREATED MORE MILLIONAIRES IN THE PAST FIVE YEARS THAN ALL OF INDIA’S INDUSTRIES PUT TOGETHER IN THE LAST 50 YEARS.” SAYS CHAIRMAN OF WIPRO 2.RECOGNIZED FOR THEIR ORGANIZATIONAL LEARNING AND FOR TRANSFORMING ENTERPRISE KNOWLEDGE INTO SHAREHOLDER VALUE

17. MOST ADMIRED KNOWLEDGE ENTERPRISE (Contd..) 3.MOST ADMIRED KNOWLEDGE ENTERPRISES ARE RECOGNIZED AS GLOBAL LEADERS IN:  CREATING A CORPORATE KNOWLEDGE DRIVEN CULTURE  DEVELOPING KNOWLEDGE WORKERS THROUGH SENIOR MANAGEMENT LEADERSHIP  DELIVERING KNOWLEDGE BASED PRODUCTS / SOLUTIONS  MAXIMIZING ENTERPRISE INTELLECTUAL CAPITAL  CREATING AN ENVIRONMENT FOR COLLABORATIVE KNOWLEDGE SHARING  DELIVERING VALUE BASED ON CUSTOMER KNOWLEDGE  TRANSFORMING ENTERPRISE KNOWLEDGE INTO SHAREHOLDER VALUE

18. CHALLENGES FACED BY IT MANAGERS INCREASING CONCERN FOR SOCIAL GOOD  CHIEF MENTOR OF INFOSYS SAYS: “ALWAYS, PUT PUBLIC INTEREST ABOVE PRIVATE INTEREST. LIFE IS INCOMPLETE IN A SOCIETY LIKE OURS UNLESS YOU MAKE AN EFFORT TO REDUCE THE DIFFERENCES BETWEEN THE HAVES AND HAVE-NOTS.” DEVELOPMENTS IN INFORMATION TECHNOLOGY EVER INCREASING INTERNAL AND EXTERNAL ENVIRONMENT INCREASING COMPETITION AWARENESS OF QUALITY OF WORK LIFE  FOR PEOPLE WHO ARE EDUCATED, SPEAK ENGLISH AND HAVE SOME BASIC SKILLS, IT WILL BE A GREAT LIFE IN INDIA.

19. CONCLUSION SUCCESS STORIES OF INDIAN IT COMPANIES SUCH AS INFOSYS, WIPRO AND SATYAM HAVE TAKEN THE NEW INDIAN ECONOMY SCENARIO TO NEW HEIGHTS

20. THANK YOU