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transcript
Trends & Benchmarking – India v/s Brazil
Presented by – Homi, Diretor TI (TCS Brazil) 10th May 2006
BRIC’s GDP exceeds G6’s GDP
India - Economic Indicators
World’s 4th largest economy by PPP index
- GDP Purchasing Power Parity: US$ 3.319 trillion
- GDP Purchasing Power Parity, per capita: US$ 3,100
Per Capita Income (at current prices) US$ 627
Estimated GDP growth in 2004-05 6.9%
Expected GDP growth in 2005-06 7.2%
Exports of goods* US$ 81 bn
Imports of goods* US$ 119 bn
Inflation (WPI) 4.1%
Sources: Economic Survey, 2004-05/CSO statistics
, the CIA government factbook and CII
* (April 2004-March2005)
Indian Exports- a key source of demand growth
Annual Growth Rates
6.2
4.5
16.5
15.3
10.6
5.0 6.4
16.7
9.1
5.3
0.0
4.08.0
12.016.0
20.0
Pvt Cons Govt Cons Exports of
Goods &
Services
Imports of
Goods &
Services
Investment
Gro
wth
(%
)
93-94/96-97 97-98/02-03
Source: CSO, Government of India
Source: IMD Competitiveness Yearbook 2003Source: UN, Morgan Stanley
India - Growing Knowledge Pool
India - Huge and Growing IT Market
Share of IT and BPO 1.4% of GDP
2008 projection 7%
Exports projected (2005-06) US$ 17,7 bn
Growth projection 26-28%
Gwowth expectation (2010) US$ 60 bn
CAGR (since 1999) 46%
Employment Over 650,000
Brazil Exports
Estimated in 2005 US$ 300 mn
Projected in 2007 US$ 2 bn
India x Brazil - Bilateral Trade
Year 2005Indian Exports = US$ 1.202 billionIndian Imports = US$ 1.136 billionTotal: US$ 2.338 billion
Year 2004 Indian Exports = US$ 539 millionIndian Imports = US$ 640 millionTotal: US$ 1.179 billion
Year 2003Indian Exports = US$ 486 milllionIndian Imports = US$ 553 millionTotal: US$ 1.039 billion
Brazil GDP per capita - CAGR
Brazil Productivity Growth - Barriers
Summary: Brazil's government should establish conditions for fair competition in
domestic sectors and enhance international competitiveness of the economy as a
whole to benefit its export businesses
Offshoring - Market perspective
Wages – Current & Future inflation estimates
India: SWOT Analysis
Brazil: Competitiveness
• Skilled labour available
• Less time difference between Brazil and US/Europe
• Economic conditions generate strong experience on account of
– People start working at an early age
– Study and work at the same time
• Less contraints of visas for Europe and LatAm countries.
• Creative and Innovative
• Labour laws are very strong in Brazil e.g. Extra hours
• Recruitment costs are significantly higher in Brazil e.g. CLT
• Educational incentives need to be strengthened
• USD to Real conversion – Stronger Real makes exports less lucrative
• Lack of English Language pose significant challenges for international exports
• Culture
– Need to distinguish Flexibility v/s Discipline
– Tendency to see work “done in front of eyes”
• Lack of significant government incentives for export processing
• Perception is more important than numbers at times
Brazil: Some alerts
Maior Grupo Econômico Privado da Índia
Fundado em 1868
Faturamento de US$ 17,8 bilhões
Mais de 220.000 colaboradores
3% do PIB da Índia
2 milhões de acionistas
SIDERURGIA
TATA STEEL
MAIOR
INDIANA
TECNOLOGIA
DA
INFORMAÇÃO
TCS
MAIOR
ASIÁTICA
ENERGIA
ELÉTRICA
TATA POWER
MAIOR
INDIANA
AUTOMÓVEIS
TATA MOTORS
MAIOR
INDIANA
INDÚSTRIA
QUÍMICA
TATA CHEMICALS
MAIOR
INDIANA
SERVIÇOS
INDIAN HOTELS
MAIOR
INDIANA
BENS DE
CONSUMO
TATA TEA
NÚMERO 2
MUNDIAL
Grupo TATA
Tata Consultancy Services (TCS)
Leading Global IT Services Firm
Established in 1968
Over 70,000 Employees, serving over 1000 clients
Operations in 45 countries across 6 continents
Revenues of USD 2.97 Billion in FY 05-06
World’s first Enterprise wide CMMi level 5 & PCMM Level 5 company
4 Centers at CMM Level 5 in Latin America
1 BPO center in Chile with 1300 employees
Hangzhou, China
Atendendo China
Várias localidades,
EUA e Canadá
Atendendo América
Do Norte
Yokohama, Japão
• Atendendo Japão
Melbourne, Austrália
Atendendo
Australia/NZ
Budapest, Hungria
Atendendo Europa
Continental
Montevideo, Uruguai
Atendendo América
Latina
Guildford, UK
Atendendo Reino Unido
e Irlanda
Global Delivery Centers
Ahmedabad
Bangalore
Chandigarh
Chennai
Coimbatore
Deli
Hyderabad
Delivery Centers India
Sao Paulo e Brasília, Brasil
• Atendendo Brasil
Global Delivery Centers
Um grande leque de opções para nossos clientes
Jamshedpur
Kochi
Kolkata
Lucknow
Mumbai
Pune
TCS Brazil
History
– Engaged in projects in Brazil since the 1990s
– Set up operations in 2002
– Serving Clients in Brazil and Latin America
– Off-shore Platform for Global clients
Personnel
– 3000 employees in Latin America (+800 in Brazil)
– Brazil staff will grow to over 1800 by end of 2006
– 98% local Portuguese and English speaking personnel
– Initial & continuous training for all personnel
Quality
– The 1st company in Brazil to obtain and maintain CMMi
(Capability Maturity Model Integration) level 5
certificate
Clients
– We serve over 30 clients in Brazil
Latin America´s first enterprisewide
CMMi® Level 5 company
Managing Complex & Large IT needs
Examples of the value we provide clients
5 year engagement to manage all the banks applications in Brazil,
TCS will provide a team of over 1000 personnel in Brazil
Helping a global bank run its systems with maximum efficiency
ABN Amro is the world's 16th largest bank (by total assets) and has over 97,000 employees in over 60 countries.
In 2005, ABN Amro decided to outsource its IT Application management in Brazil & Europe to TCS, in a deal expected to be 50%
in Brazil, making it one of the largest outsourcing engagements in Latin America.
TCS will maintain all of the banks existing IT applications and be a preferred partner for future application development
services.
This part of the Global shared services program which aims to save the bank Euro 600 m per year from 2007 onwards.
Summary – Some trends
Summary – Some trends