Digital India

CERNA, Centre d’économie industrielle

Ecole Nationale Supérieure des Mines de Paris



60, bld St Michel - 75272 Paris cedex 06

Tel.: (33) 01 40 51 90 91 – 90 71

Fax: (33) 01 44 07 10 46

http://www.cerna.ensmp.fr

bomsel@cerna.ensmp.fr









Digital India

Report on the Indian IT Industry



Olivier Bomsel & Joël Ruet

Sylvain Cognet, Thierry Durupthy, André El-Khoury,

Augustin Maria, Pierre Masclet, Benjamin Vannier









With the Co-operation of CSH, New-Delhi







Final Report

June 2001

Digital India –Final Report









Log on to ww…, Bangalore.









Wiring Bombay. No comment.









Open Space, Wipro. Cyberabad.









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Contents







Main findings ............................................................................................................................................... 4

Appendixes................................................................................................................................................ 20

Appendix 1 – Figures and Facts

Prepared by Thierry Durupthy .................................................................................................................21

Appendix 2 – IT-Oriented Governmental Policies in India

Prepared by Augustin Maria ....................................................................................................................43

Appendix 3 – Interview Proceedings

Prepared by Sylvain Cognet & Benjamin Vannier .................................................................................58

Appendix 4 – Indian IT Clusters

Prepared by André El-Khoury & Pierre Masclet...................................................................................134

Detailed Table of Contents.....................................................................................................................161









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Main findings









0. Introduction ............................................................................................................................................. 5

Purpose of the study ................................................................................................................................................... 5

Description of the work................................................................................................................................................ 6

Content of the report ................................................................................................................................................... 7

1. How did it start?...................................................................................................................................... 8

The US Software Market............................................................................................................................................. 8

Skilled Labour Exports ................................................................................................................................................ 8

The Offshore Boom ..................................................................................................................................................... 9

Climbing up the Value Chain: Products versus Services............................................................................................ 9

The Indian Domestic Market ..................................................................................................................................... 10

Enabled Services....................................................................................................................................................... 10

2. Business Profiles.................................................................................................................................. 11

IT Business Models ................................................................................................................................................... 11

The Big Outsourcers ................................................................................................................................................. 11

The Product Start-Ups............................................................................................................................................... 12

Domestic Market Oriented Models............................................................................................................................ 12

3. The Indian Business Environment ......................................................................................................14

The IT Policy Frame .................................................................................................................................................. 14

Development Effects ................................................................................................................................................. 15

Competitiveness Challenges..................................................................................................................................... 15

The Financing Market................................................................................................................................................ 16

4. Clusters’ Profiles................................................................................................................................... 17

The Urban Districts: Delhi, Mumbai .......................................................................................................................... 17

Bangalore: Where History Started ............................................................................................................................ 17

Hyderabad: It's Happening by Design....................................................................................................................... 17

5. Perspectives.......................................................................................................................................... 18

The Nasscom Objective ............................................................................................................................................ 18

How will the Industry get Mature? ............................................................................................................................. 18

What about Europe? ................................................................................................................................................. 18









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0. Introduction





Purpose of the study

Since 1994, the Indian IT Industry grows between 40% and 50% per year. Its turnover was

US$ 8,7 billion for the year ended in June 2000 and should reach US$ 12 billion in 2000-2001.

The industry association (Nasscom) objective, is to reach a US$ 90 billion turnover in 2008.



IT is the specialisation allowing India to enter modern global markets. This industry is shaping

on the subcontinent a new development model based on the export of services and the

domestic penetration of digital technologies. Among the salient features of this development are

the creation of new firms, the surge of a dynamic financial market and the setting up of new

public service models.



The role of the IT sector in the recent growth of industrialised economies has been widely

assessed and keeps attracting attention through the ongoing slowdown. At the local level,

various studies have demonstrated the importance of positive externalities associated with the

development of IT clusters. The interesting issue regarding India is that, because of the

weakness of the traditional industrial sectors, IT industries play a dominant role in linking the

country with the global market growth, notably through:



• building up a competitive advantage on international markets,



• setting up global companies and international business networks,



• pulling up the domestic telecom infrastructure and education system,



• promoting local industrial policies,



• supporting the opening-up of an economy centred on import-substitution.



As we will see, this process has been initiated and stimulated by the US economic growth, upon

which India remains heavily dependent (60% of the exports). The US slowdown, and notably

the crisis in the telecom sector, might then seriously impact the virtuous balance of these

dynamics.



Europe represents only 23.5% of Indian IT exports, with nearly half of them going to the UK.

France gets a small 0.8%. The purpose of this report is to make the Indian digital industry more

familiar to Europeans so to allow them to participate more actively in the new Indian economic





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development.



Description of the work

The report is based on a two-week visit of a group of 8 people (2 professors and 6 engineering

students) in four locations (Delhi, Mumbai, Bangalore and Hyderabad) during which 40

companies and various professional or administrative institutions have been interviewed. The

visit was organised by the Centre for Human Sciences (CSH) in Delhi. It took place in February

2001, just before the impact of the US slowdown became a public issue in India.



Below is the list of the administrations and companies interviewed during the visit:



Administration Export / Domestic Products / Services

Ministry of Information Technology

NASSCOM Industry Association

French Trade Commission – Bangalore

Department of Information Technology –

Goverment of Andhra Pradesh

Software Technology Parks of India – Hyderabad STP

Paharpur Business Centre Private STP E S

Firms (B = Over USD 100 million turnover / SU = Start-up)

CMC Limited – R&D Centre B ED PS

Wipro Technologies + Wipro Technologies – R&D B ED PS

Centre

KPMG Consulting Private Limited B ED S

Tata Consultancy Services B ED S

Infosys Technologies Limited B ED S

Satyam Computer Services Limited B ED S

ARM Limited B D PS

ICICI (Industrial Credit and Investment B D S

Corporation of India) Limited

HSBC Bank International Limited B E Enabled Services

DELMIA Solutions Private Limited B E P

IIS Infotech Limited ED S

KSHEMA Technologies E S

MindTree Consulting Private Limited D S

TechSpan India Private Limited E S

Aptech Limited ED S

Magic Software Private Limited ED S

Transoft ED P

GLOBALsoft Private Limited ED PS

Datasoft Application Software (India) Limited D PS

Crossword Software Private Limited SU ED PS

TriVium India Software Private Limited SU ED P

eSols Worldwide Limited SU E PS

MDC Infoway Limited SU ED PS

Plexus Technologies SU ED S

TARUNI Technovision Private Limited SU D P

egurucool.com – Learning Universe Private Ltd SU D S

AutoClubAsia SU D S

Neutron Infotech Private Limited SU D S

IONIC Microsystems Private Limited SU E P

The principle of the interviews was to get a statement on the history and the current business





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model of the company. They also aimed at getting an assessment of the local business

environment.





Content of the report

The report consists in a synthetic presentation of the Indian IT development model and four

appendixes. The appendixes present the quantitative and descriptive material collected through

the literature and the interviews. Appendix 1, Figures and Facts, gathers the basic parameters of

the Indian IT Industry. A lot of them come from the 2001 Nasscom Strategic Review which

provides the clearest statistical picture of the industry. Appendix 2 describes the main aspects of

the Indian federal policy regarding the IT sector. Appendix 3 provides a standard reporting on

the interviews conducted during the visit. Appendix 4 gives a depiction of the four industrial

clusters under study. The present synthesis offers guidelines to get through this material.









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1. How did it start?





The US Software Market

In the US, the 1983 divestiture of AT&T has given the start to the deployment of a second

generation of telecom networks. Combined with the progress of microprocessors, the

technologies of switching, multiplexing, routing, billing, browsing, requiring millions of lines

of code have induced a huge need for software professionals. The growth of companies like

Intel, Microsoft, Sun, Nortel, Cisco, Oracle, etc., has coincided with a spectacular immigration

policy. This policy was based on the allocation of H1-B visas allowing companies to import

workers for their specific needs. As those visas were bound with working contracts, the imports

of H1-B workers introduced some kind of viscosity on the highly competitive US tech labour

market.



Skilled Labour Exports

India, and notably the southern part of the continent, has been the largest source of US

manpower imports. We have been told that the Chennai (Madras) US consulate had granted

about 40% of all the H-1B visas issued by the US during the 1990s1. Among the reasons for

Indian emigration were, of course, the English language, and the fact that the local industries

were not able to absorb the graduate students flowing out from the universities. It is almost

probable that the collapse of the Soviet Union – the traditional political and economical partner

of India – has also got an impact on this trend. In the early 1990s, most of the big US

companies started to ‘body shop’ in India. As a result, a large community of Indian

professionals penetrated almost all the IT companies in the US. The Indian community is still

the second in size in the Silicon Valley.



On the Indian side, entering the global market has become a goal for a many Indian students,

often from a rural origin, attending the education system. The global industry worker has

substituted the civil servant in the model of social elevation.









1

The annual cap on the number of H-B1 visas was 115,000. In 2000, the tech companies lobbied for

rising it to 195,000).







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The Offshore Boom

In the 1990s, the US IT companies have also started to discover that together with importing

professionals from India, they could also relocate part of the work on the subcontinent. The 1 to

10 ratio in wages was the determining incentive to set up offshore activities. The network of

Indian professionals employed in the US firms provided the necessary contacts to build up this

strategy. Certain tasks like transcoding old softwares for new operating systems, or debugging

new softwares were quite easy to subcontract. The growing modularity of the softwares made

this division of labour always more efficient, even for new products. In 1998, the Year 2000

problem brought to the Indian industry a new export market. Between 1995 and 2000, Indian

software exports jumped from US$ 485 million to US$ 4 billion.



Among the first to open offshore platforms were of course, the US IT companies like

Microsoft, Lucent, Cisco, Sun, etc, but also some Europeans like Siemens, or to a lesser extent,

Alcatel. However the largest part of the market went to the Indian players who entered then into

a global development strategy. The strongest like TCS (Tata Group) and Wipro were traditional

Indian companies focussed on the domestic market. They went into the offshore IT services and

built up on them a new global strategy. Other companies like Infosys or Satyam emerged like

IT pure players and, with the support of the capital markets, became significant global firms

after a few years of hypergrowth (Table 3).





Climbing up the Value Chain: Products versus Services

Offshore IT services consist in selling man.hours to a customer usually aware of the necessary

time to build up an application. Therefore, wages are the key factor. With the penetration of

lower income countries such as Indonesia, Philippines or China, the market is getting

increasingly competitive. To get sheltered and keep rewarding margins, the best solution is to

sell licensed products for which competition is based on customers’ utility, while the firm gains

from scale economies and recurring revenues. But products, unless they are very innovative,

have a high entry cost and require strong branding. Until 1998, most of the software licences

and brands were owned outside of India.



With swarms of new entrants fighting to be first to market, the US Internet boom has created

the conditions of product development in the field of e-commerce, portals, payment solutions

and web services. Most of the dotcoms were created on marketing concepts with very little IT

expertise in house. They generated a demand for turnkey solutions. The same thing occurred for

telcos promoting wap services. Indian companies targeted those markets and product sales

nearly doubled between 1998-99 and 1999-2000 (Figure 6).









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As we will see, it is probable that this activity will be the most affected by the economic

slowdown. At least for three reasons. One is the change in demand following the e-crash,

especially for e-commerce and portal solutions. Second is that products are far more capital-

intensive than services, and therefore, more sensitive to changes in demand when capital

markets do not support the industry. Third is that dotcoms were newcomers welcoming new

solutions. Brick-and-mortar companies will have to integrate e-solutions within their existing

systems and therefore will give privilege to the brands they already use.





The Indian Domestic Market

With only 26 million of fixed telephone lines and 3 million of cell phone users for a one billion

population, India remains an underdeveloped country (Figure 3). However, the domestic IT

market nearly doubles every two year and grows faster that any other sector in India (Figure 9).

The Government services and the banking sector still represent more than 50% of the market,

while the telecom sector only accounts for 10% (Figure 10). Several factors suggest that the

export-driven growth of the IT sector should pull the domestic demand. The two main drivers

should be telecoms and training. In the case of telecoms, most IT industries are using satellite

links for long distance data transmission. But progressively, as the global infrastructure

expands, fibre optic cables are brought to the Indian coast. As we have seen in Hyderabad,

those links will be extended inland towards the IT clusters where there is a growing demand. In

the meantime, the domestic market for all kinds of telecom services (from ISPs to CRM

solutions) will increase.



Training centres mushrooming in all big cities already make IT education a huge market. This

is reflected by all the interviews. As the middle-class expands, more and more people see IT

training as a personal investment allowing to access the global wealth. The IT industry

currently employs about 400 000 engineers and technicians. 70 000 new engineers are produced

every year. It is forecasted to triple this number as to reach 2.2 million professionals by the year

2008. Most of the training, especially for software languages will use PCs, Internet connections

and probably, e-learning programmes. This market will enhance the penetration of the Internet

countrywise.





Enabled Services

Apart from the new HSBC platform in Hyderabad, we have not been able to assess the

development of this sector. The lack of infrastructures has probably been a handicap for the

development of enabled services like call centres, e-mailing platforms, banking back-office.

However, if infrastructure expands in the new IT districts and if the competitive advantage in

wages remains, there is a strong potential for these activities in India.







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2. Business Profiles





IT Business Models

The Indian IT industry resembles India: diverse, unequal and growing. The biggest players have

based their strategy on the global outsourcing market. As long as the margins are strong, the

hypergrowth in outsourcing services can largely be self-financed. The Indian market share is

below 5% and still may grow whatever happens to the market. Other companies are more

domestic-oriented and look attentively to the training market. They may enter the global scene

with e-learning products. The smallest companies are in the field of products or domestic e-

services. Since 1998, this sector has been sustained by venture capital. It is probably the most

exposed to the slowdown of the activity.



The Big Outsourcers

Table 3 shows the list of the top 20 companies. There is a gap between the Big 6 (TCS, Wipro,

Infosys, NIIT, Satyam, HCL) earning more than US$ 100 million a year and the next group.

Those companies have already references with the Fortune 500. They are able to set up large

teams for performing any kind of outsourcing work with high quality standards (CMM level 5).

As we have seen in Infosys and Wipro, the involvement in telecom equipment coding (modern

switches, fibre optic terminals…) provides them with a high-tech expertise and a quasi

integration into their big customer's network. Those companies are already big global players

and are followed by many others. Over the last five years, they have opened several hundred

offices all around the world and are getting closer to the customer.



Their model is not stabilised yet. The big issue is to define what assets do they have and what

are they going to capitalise on in future. On the one hand are their clients: TCS, for instance,

has won last year the Amex best supplier award. As those clients will pursue IT

implementation, no doubt that the big six will benefit from it.



Another asset is probably all the modules those companies have already performed and which

are now bricks in their software libraries. Those bricks can be re-used in various other contracts

or assembled into products.



Last but not least is the brand. The Indian outsourcers are now squeezed between two branded

businesses: one is the software products like Microsoft, Oracle, SAP and even smaller labels

like JD Edwards. The other is the large consulting firms, like McKinsey, BCG or Accenture.



The risk for the Indians is to become anonymous integrators of branded solutions prescribed by







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branded consultants. They would then compete only on labour prices with lower wage

countries. Except for TCS which remains Tata fully-owned, the Indian big outsourcers have

started to make themselves known by listing their stocks on the Nasdaq or the LSE. Smaller

companies like IIS Infotech have even been purchased by foreign consulting groups listed on

foreign Stock Exchanges. Their image may now suffer from the downturn of tech stocks. It is

not yet certain that this strategy, even combined with a nice quality reputation, will be enough

for them to build up strong brands.





The Product Start-Ups

The Indian environment has been favourable to the launch of many start-ups. Some of them like

TechSpan or TriVium were initiated in the US where their founders had a professional

experience and business connections. Others benefited from some Indian venture capital, which

expanded after 1998. About 80 venture capital funds are now operating in India. Among the

start-ups are some Internet service companies which have benefited from the Indian dotcom

fashion and may find difficulties in future. There are also companies specialised in software

solutions for e-commerce, portals, CRM or mobile Internet. The big issue for software products

is marketing. Most of these companies will suffer from the downturn of their market and the

competition of the big outsourcers financed through their offshore activity and already

benefiting from marketing networks.



Some of these start-ups like TechSpan have already changed their model so to use their

marketing network in the US as a way to bring orders for outsourcing services. They may then

reorient towards offshore services prior to get back on the market with some original products.





Domestic Market Oriented Models

The Indian domestic market is growing fast and looks attractive for many companies. It

generates various business models. The most traditional is probably CMC a public state-owned

company founded in 1976 and specialised in government supply: the state still accounts for one

third of the domestic market. However, being state-owned does not look like an advantage to

resist the competition on the labour market, and in spite of its strong domestic market share,

CMC has not been able to equal the growth performance of its private competitors. Other

companies target telecom services (ARM, Neutron Infotech…) or in training (Aptech,

Datasoft...).



The telecom market is still dominated by the incumbent VSNL and will probably remain so.

However, the ISP market may prove more competitive since most residential users will access

services through kiosks or Internet cafes. In other words, Indian ISPs will control the access









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from the terminal to the services. There will be probably several brands on this market where

Satyam, Tata or ARM have already a strategy.



The other big market is training. The two big players are NIIT and Aptech with a share of about

80%. IT training is the pass to a growing sector offering high salaries and global opportunities.

In every town, on walls and buses, posters sell language courses and IT training. In Bangalore,

we have even met a company offering ‘blue tooth’ lessons! In Mumbai, Datasoft is building up

fully equipped buses to host IT training sessions in various parts of the cities. We have been

told that in some areas, housewives were ready to pay US$ 70 for getting trained in surfing on

the Internet. We think this market may generate many innovative e-learning solutions, some of

them to be exported in future.









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3. The Indian Business Environment





The IT Policy Frame

The IT development in India results from various opportunities from which both the State and

the industry have taken advantage. We have already mentioned the market opportunity

following the launch of the second telecom generation in the US. On the Indian side, the state

reforms started in 1991 leading to decentralisation and progressive opening up has certainly be

an important catalyst. The basic issue was to switch from the traditional import-substitution

model characterised by high import-export taxes, to a more open economy based on

specialisation and local initiatives. In the case of IT, the Software Technology Parks of India

(STPI) have been the specific tool of this policy. The problem was that to enhance export-

oriented software activities, computers and electronic equipment had to be duty-free. (The

average level of taxes is around 50%). So to avoid a black market for these devices, it was then

necessary to set-up duty-free zones into which all the necessary administration interface could

be adapted to the fiscal status of this industry (see Appendix 2).



The priority given to the IT sector requires specific relations between the Industry and the State.

The role of the Nasscom (National Association of Software and Services Companies) and of its

state counterpart, the Federal Ministry of IT, is to assist the monitoring of the Government IT

policy. The Nasscom has become the first industrial lobby of India advocating for rules helping

to keep the industry competitive.



The STPI concept has allowed India to create a set of local institutions able to sustain the

settlement and the growth of IT businesses in every region. 18 zones have already be elected for

welcoming STPIs. These regions will compete together to attract industries and develop

diversified models of IT clusters (see below).



As far as infrastructure is concerned, the federal policy is not very clear yet. Although GSM

licenses have been auctioned all over the country allowing new entrants to get into the market,

the incumbent monopoly remains the main player. The deployment of high speed infrastructure

will largely depend on local demand and local state policies.



The most important aspect of IT policy in future is education. Demand is forecasted to grow

from an actual 70 000 a year to 350 000 by year 2008. The aim is to double and then triple the

current number of engineering students. The big IT firms are increasingly involved in the

education system. Companies like Wipro or Infosys already provide a nine month special







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training to the engineers they recruit. They also participate in the development of new

universities and Technology Institutes (IIT, IIIT). One of the big issues is to retain teachers in

the education system provided that a MBA graduate earns up to US$ 2000 a month. There will

be a growing paradox in training people for global markets by teachers paid on domestic

standards.





Development Effects

The IT sector creates a divide between the traditional domestic sectors and the global industry.

This is already visible with the STPIs and the new living conditions of the IT workers. This

may create a dual economy with Dutche Disease effects - the IT sector pulling the wages

countrywise - unfavourable to all other sectors. Soon enough, such a trend would imperil the IT

sector itself. To keep its comparative advantage in IT, India will have to raise the productivity

of all the factors. So as an effect of the globalisation, IT growth should pull the other sectors

towards more competitiveness. With more and more solvent industrial customers complaining

for utilities - like energy supply - the Government will probably get into public sector reforms

that had been postponed for decades. This may be used as an indicator of the impact of the IT

development. Besides, the creation of a middle-class will change many consumption habits and

question the traditional consensus about poverty and social inequalities. The more wealth will

poor into the IT sector, the more the government will have to do to justify this trend. It will

need to reinvest in education, infrastructure and to raise the standard of living countrywise.





Competitiveness Challenges

Will the Indian IT industry remain competitive?



With the core of the industry being the outsourcing of software, the key factors are quality,

labour costs, and education. As far as quality is concerned, the Indian industry is committed to

reach the utmost standards: according to Nasscom, out of the 37 companies in the world having

got the SEICMM Level 5 certificate by December 2000, 20 were Indians. Further to those

standards assessing the industrial environment, some companies like Infosys are implementing

new procedures controlling and reducing the number of bugs in programming. India clearly

wants to make quality a comparative advantage.



Labour costs are a major issue. In a fast growing environment competition for growth is

competition for labour. Wages have grown between 21 and 16% per year over the last for years

(Figure 34). Moreover the high attrition rates obliges each company to largely overstaff every

project and to pass part of the costs onto the customer. How long will this trend last? Maybe not

very long. First, since the slowdown of the US industry and the announced restrictions on H-1B









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visas (the cap should be lowered to 65,000 in 2003), the ‘global’ component of the wage

increase, e.g. the opportunity to find a job abroad, has nearly disappeared. Second, if the annual

growth of IT companies slows down from 100% to only 50, this will strongly impact the Indian

labour market. In other words, IT growth rates and labor costs are positively correlated on the

long term. So, we see labor costs as a function of (1) the global demand for Indian IT workers,

and (2) the growth rate of the Indian IT industry. With employment in industrialised countries

getting more stable and a push from the Indian education system doubling the annual number of

skilled workers reaching the market, the IT wages may probably stabilise for a while. Recent

press interviews of some Indian HR managers provide some insights on this trend.



We have seen also that wages could be quite different from one region to another. There may be

a 2 to 1 ratio between Bombay and Hyderabad. So, in the future, competition will be segmented

by quality, and, as far as costs are concerned, it may arise between new entrants like Indonesia

or China and new IT clusters emerging in India. One reason for the large IT companies to open

several sites in India is probably to anticipate on this forthcoming specialisation.





The Financing Market

The vision we have from the financing market for the IT industry is limited to what we have

learnt from the companies, and to one meeting with the ICICI venture capital fund. General

lending conditions are expensive, so private money and self-finance through service contracts

(training or outsourcing) have been the most common means to start a business. However, to

get reliable for the customer, companies should become public. We have met various

companies who had got listed on the Bombay Stock exchange at a very early stage and for

whom, getting new money for development meant a strong dilution. Usually, those companies

had been started before the surge of venture capital.



Venture capital has expanded in 1998 from large global banks, Corporate funds, US VC funds,

and from various Indian institutions. About 80 funds operate the market. However, the Indian

climate looks as gloomy as in the US. A lot of money has been put in Internet projects and the

deal flow is now dried up. Most of the files concern refinancing. And since the markets are

bear, the funds are stuck with their positions, and rather reluctant to reinvest as long as exit

means are not clear. While US$ 500 million were invested in 2000, it is not certain that the

Nasscom forecast of US$ 1.2 billion will be reached in 2001 (Figure 35).









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4. Clusters’ Profiles



Appendix 4 describes the profiles of the four major IT districts.



The Urban Districts: Delhi, Mumbai

In Delhi and Mumbai, the local economy – government in Delhi, finance in Mumbai – has

induced the settlement of IT companies. The STPI system have gathered export-oriented

companies altogether in specialised zones like Navi Mumbai, Noida or Gurgao, while

companies aiming the local market maybe more spread over. Those districts are not very

spectacular. They enjoy the plus (infrastructure, industrial environment, local market) and

minus (high prices, traffic congestion, pollution…) of being inserted in large urban

agglomerations. In Mumbai, the congestion of the city and the high prices enhances the

development of Pune, a neighbour city where IT specialisation should engender stronger

positive externalities.



Bangalore: Where History Started

Like the Silicon Valley, Bangalore has a long history in engineering and defence industry. The

IT development started in 1984 with the offshore development centre of Texas Instruments.

From that on, academic institutions and IT companies expanded together as to make of

Bangalore the biggest concentration of IT firms in India. This started even before the

government set up its ongoing IT policy frame. The climate, dry a temperate, and the quality of

life, quite high on Indian standards, have helped to attract skilled workers. Today, most of SEI-

CMM level 5 companies have R&D activities in the zone. Bangalore remains the highest-tech

Indian cluster, which means the most challenging for engineers, and probably the most

expensive for IT wages.



Hyderabad: It's Happening by Design

The Chief Minister of Andhra Pradesh, Chandrababu Naidu and some local business people –

all of them having an American experience – have conceived to attract in the city the biggest

US brands in order to start the development of an IT cluster. One of the smart moves has been

to attract Oracle to develop e-governance tools that may be used as further references in that

field. Once Oracle and Microsoft had decided to come, the district was branded. The local

government used then the STPI system to promote the region and to attract other companies.

Those companies are now associated in the sponsoring of new education facilities. Some plans

are also made to bring high speed telecom links in the region. The government advertises a lot

for its IT policy while Andhra Pradesh still remains largely poor and rural. The success of

Hyderabad will largely rely on the ability of the government to avoid a digital divide and to

keep a consensus on the soundness of IT development.





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5. Perspectives





The Nasscom Objective

The Nasscom 2001 strategic review sees a turnover of US$ 87 billion in the year 2008 with

exports amounting US$ 50 billion. The sector will then account for 35% of Indian exports and

employ 2,2 million people. This forecast is based on the assumptions that the industry keeps its

current growth rate, that the education systems expands and that the digital divide remains

under control. Will this be possible with a slowdown of the US economic growth?





How will the Industry get Mature?

There is no reason why the global IT service market should not grow: companies will keep on

investing in information systems, and this will generate services. What is not known is who will

benefit the most from these orders: the consulting firms, the product brands, the integrators? It

is probable that the current structure of the industry will be shaken out, and that some big

brands which have made their names in products will experience tougher competition. The

Indians whose global market share is below 5% might well innovate in that direction by making

products more compatible or by selling solutions of their own. If there is a stronger pressure on

returns on IT investments, cheaper solutions will take advantage.



In other words, with the slowdown and the bitter experience of certain branded products, some

Chief Information Officers may start looking differently at the market. They may give more

attention to India in order to cut costs and to increase their returns on IT investments. This

second wave of IT investment may be a chance for Indian companies to enter new markets.



What about Europe?

If this happens, with only 12% of the Indian IT exports, the continental Europeans may

understand that the Americans are the first beneficiary of the Indian skills and that many

branded products they buy from the US have a large Indian content. This is the result of history.

When it is better known – which is the purpose of this report – then direct links could develop

as to benefit from the Indian IT advantage. They may take the form of service purchases, VC

funding, or capital mergers. However, for this to happen, it is highly necessary to expand the

human interface between Europe and India. The strength of the US and the UK is to benefit

from a strong Indian community largely spread within their industry network. The other

European countries will have to ease the access of their territory to Indian IT professionals so to

create the necessary interface of efficient industrial partnerships. This should affect, at the first

stage, the immigration policy, but also the involvement of the European education system into







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global partnerships and the promotion of a higher-tech image of India europewise. In other

words, Europe should take opportunity of the globalisation of India to pull up its own

globalisation strategy.









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Detailed Table of Contents







Contents....................................................................................................................................................... 3

Main findings ............................................................................................................................................... 4

0. Introduction ............................................................................................................................................. 5

Purpose of the study ................................................................................................................................................... 5

Description of the work................................................................................................................................................ 6

Content of the report ................................................................................................................................................... 7

1. How did it start?...................................................................................................................................... 8

The US Software Market............................................................................................................................................. 8

Skilled Labour Exports ................................................................................................................................................ 8

The Offshore Boom ..................................................................................................................................................... 9

Climbing up the Value Chain: Products versus Services............................................................................................ 9

The Indian Domestic Market ..................................................................................................................................... 10

Enabled Services....................................................................................................................................................... 10

2. Business Profiles.................................................................................................................................. 11

IT Business Models ................................................................................................................................................... 11

The Big Outsourcers ................................................................................................................................................. 11

The Product Start-Ups............................................................................................................................................... 12

Domestic Market Oriented Models............................................................................................................................ 12

3. The Indian Business Environment ......................................................................................................14

The IT Policy Frame .................................................................................................................................................. 14

Development Effects ................................................................................................................................................. 15

Competitiveness Challenges..................................................................................................................................... 15

The Financing Market................................................................................................................................................ 16

4. Clusters’ Profiles................................................................................................................................... 17

The Urban Districts: Delhi, Mumbai .......................................................................................................................... 17

Bangalore: Where History Started ............................................................................................................................ 17

Hyderabad: It's Happening by Design....................................................................................................................... 17

5. Perspectives.......................................................................................................................................... 18

The Nasscom Objective ............................................................................................................................................ 18

How will the Industry get Mature? ............................................................................................................................. 18

What about Europe? ................................................................................................................................................. 18

Appendixes................................................................................................................................................ 20

Appendix 1 – Figures and Facts Prepared by Thierry Durupthy..........................................................21

1. India and Digital Growth.......................................................................................................................22

2. The Offshore Boom...............................................................................................................................23

3. The Indian Domestic Market ................................................................................................................24

4. IT Business Models............................................................................................................................... 27





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5. The IT Companies ................................................................................................................................. 31

6. Start-Up, Internet and E-Commerce ....................................................................................................32

7. Competitiveness Challenges ...............................................................................................................35

8. The Financing Market ...........................................................................................................................39

9. Geographic Repartition ........................................................................................................................40

10. IT Sector Perspectives........................................................................................................................ 41

11. Maturity of the IT Industry..................................................................................................................42

Appendix 2 – IT-Oriented Governmental Policies in India Prepared by Augustin Maria ................... 43

1. Regulatory Environment ......................................................................................................................46

At the central level..................................................................................................................................................... 46

Procedures simplification .......................................................................................................................................... 48

At the state level........................................................................................................................................................ 49

2. The Infrastructure Development..........................................................................................................50

At the central level..................................................................................................................................................... 50

At the state level........................................................................................................................................................ 50

3. Human Resource Development...........................................................................................................52

General Figures (Nasscom) ...................................................................................................................................... 52

The University Grants Commission........................................................................................................................... 53

At the Central Level................................................................................................................................................... 53

At the State Level ...................................................................................................................................................... 54

The Involvement of the Corporate Sector ................................................................................................................. 54

Appendix 3 – Interview Proceedings Prepared by Sylvain Cognet & Benjamin Vannier .................. 58

Ministry of Information Technology........................................................................................................60

History and activity .................................................................................................................................................... 60

The issue of education .............................................................................................................................................. 60

The issue of infrastructures....................................................................................................................................... 60

The Indian IT Sector on the global market................................................................................................................ 60

Other issues .............................................................................................................................................................. 60

NASSCOM.................................................................................................................................................. 62

About the clusters in India......................................................................................................................................... 62

The Educational System ........................................................................................................................................... 62

Quality........................................................................................................................................................................ 62

Global Market ............................................................................................................................................................ 62

French Trade Commission – Bangalore .................................................................................................64

Can you tell us more about Gemplus? Why did it move from Bangalore to Dubai? ................................................ 64

How are the other French companies doing in Bangalore? ..................................................................................... 64

Department of Information Technology – Goverment of Andhra Pradesh ........................................ 65

History and activity .................................................................................................................................................... 65

The issue of education .............................................................................................................................................. 65

The issue of infrastructures....................................................................................................................................... 66

Other issues .............................................................................................................................................................. 66

Software Technology Parks of India – Hyderabad ................................................................................67

Activity ....................................................................................................................................................................... 67

Finance...................................................................................................................................................................... 67

Location ..................................................................................................................................................................... 67

Perspectives, Strategy .............................................................................................................................................. 68







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Point of view concerning the Indian IT sector ........................................................................................................... 68

Paharpur Business Centre Limited .........................................................................................................69

History and activity .................................................................................................................................................... 69

Finance...................................................................................................................................................................... 69

Human resources ...................................................................................................................................................... 69

Location ..................................................................................................................................................................... 69

Perspectives, Strategy .............................................................................................................................................. 69

Point of view concerning the Indian IT sector ........................................................................................................... 70

CMC Limited - Headquarters....................................................................................................................71

History and activity .................................................................................................................................................... 71

Finance...................................................................................................................................................................... 71

Human resources ...................................................................................................................................................... 71

Location ..................................................................................................................................................................... 72

Perspectives, Strategy .............................................................................................................................................. 72

Point of view concerning the Indian IT sector ........................................................................................................... 72

CMC Limited – R&D Centre......................................................................................................................73

History and activity .................................................................................................................................................... 73

Human resources ...................................................................................................................................................... 73

Location ..................................................................................................................................................................... 73

Perspectives, Strategy .............................................................................................................................................. 73

Point of view concerning the Indian IT sector ........................................................................................................... 73

CMC Limited – Regional Office Mumbai .................................................................................................74

History and activity .................................................................................................................................................... 74

Human resources ...................................................................................................................................................... 74

Location ..................................................................................................................................................................... 74

Perspectives, Strategy .............................................................................................................................................. 75

Point of view concerning the Indian IT sector ........................................................................................................... 75

CMC Limited – Regional Office Delhi......................................................................................................76

History and activity .................................................................................................................................................... 76

Human resources ...................................................................................................................................................... 76

Location ..................................................................................................................................................................... 76

Perspectives, Strategy .............................................................................................................................................. 76

Wipro Technologies Limited....................................................................................................................77

History and activity .................................................................................................................................................... 77

Finance...................................................................................................................................................................... 77

Human resources ...................................................................................................................................................... 77

Location ..................................................................................................................................................................... 77

Perspectives, Strategy .............................................................................................................................................. 78

Point of view concerning the Indian IT sector ........................................................................................................... 78

Wipro Technologies Limited – R&D Centre............................................................................................79

History and activity .................................................................................................................................................... 79

Human resources ...................................................................................................................................................... 79

Location ..................................................................................................................................................................... 79

Perspectives, Strategy .............................................................................................................................................. 80

KPMG Consulting Limited........................................................................................................................81

History and activity .................................................................................................................................................... 81

Finance...................................................................................................................................................................... 81

Point of view concerning the Indian IT sector ........................................................................................................... 81

Tata Consultancy Services ......................................................................................................................82

History and activity .................................................................................................................................................... 82

Finance...................................................................................................................................................................... 82

Human resources ...................................................................................................................................................... 82









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Location ..................................................................................................................................................................... 82

Perspectives, Strategy .............................................................................................................................................. 83

Point of view concerning the Indian IT sector ........................................................................................................... 83

Infosys Technologies Limited..................................................................................................................84

History and activity .................................................................................................................................................... 84

Finance...................................................................................................................................................................... 84

Human resources ...................................................................................................................................................... 84

Location ..................................................................................................................................................................... 84

Perspectives, Strategy .............................................................................................................................................. 85

Point of view concerning the Indian IT sector ........................................................................................................... 85

Satyam Computer Services Limited........................................................................................................86

History and activity .................................................................................................................................................... 86

Finance...................................................................................................................................................................... 86

Human resources ...................................................................................................................................................... 86

Location ..................................................................................................................................................................... 86

Perspectives, Strategy .............................................................................................................................................. 87

Point of view concerning the Indian IT sector ........................................................................................................... 87

ARM Limited .............................................................................................................................................. 88

History and activity .................................................................................................................................................... 88

Finance...................................................................................................................................................................... 88

Human resources ...................................................................................................................................................... 88

Location ..................................................................................................................................................................... 88

Perspectives, Strategy .............................................................................................................................................. 89

ICICI Limited (Industrial Credit and Investment Corporation of India) ............................................... 90

History and activity .................................................................................................................................................... 90

Finance...................................................................................................................................................................... 90

Human resources ...................................................................................................................................................... 90

Perspectives, Strategy .............................................................................................................................................. 91

Point of view concerning the Indian IT sector ........................................................................................................... 91

HSBC Bank International Limited............................................................................................................92

History and activity .................................................................................................................................................... 92

Finance...................................................................................................................................................................... 92

Human resources ...................................................................................................................................................... 92

Location ..................................................................................................................................................................... 92

Perspectives, Strategy .............................................................................................................................................. 92

Point of view concerning the Indian IT sector ........................................................................................................... 93

DELMIA Solutions Private Limited ..........................................................................................................94

History and activity .................................................................................................................................................... 94

Finance...................................................................................................................................................................... 94

Human resources ...................................................................................................................................................... 94

Location ..................................................................................................................................................................... 94

Perspectives, Strategy .............................................................................................................................................. 95

Point of view concerning the Indian IT sector ........................................................................................................... 95

IIS Infotech Limited (now Xansa (India) Ltd) ..........................................................................................96

History and activity .................................................................................................................................................... 96

Finance...................................................................................................................................................................... 96

Human resources ...................................................................................................................................................... 96

Location ..................................................................................................................................................................... 97

Perspectives, Strategy .............................................................................................................................................. 97

Point of view concerning the Indian IT sector ........................................................................................................... 97

KSHEMA Technologies Limited...............................................................................................................98

History and activity .................................................................................................................................................... 98

Finance...................................................................................................................................................................... 98







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Human resources ...................................................................................................................................................... 98

Location ..................................................................................................................................................................... 98

Perspectives, Strategy .............................................................................................................................................. 99

MindTree Consulting Private Limited ...................................................................................................100

History and activity .................................................................................................................................................. 100

Finance.................................................................................................................................................................... 100

Human resources .................................................................................................................................................... 100

Perspectives, Strategy ............................................................................................................................................ 100

Point of view concerning the Indian IT sector .........................................................................................................100

TechSpan India Private Limited.............................................................................................................101

History and activity .................................................................................................................................................. 101

Finance.................................................................................................................................................................... 101

Human resources .................................................................................................................................................... 101

Location ................................................................................................................................................................... 101

Point of view concerning the Indian IT sector .........................................................................................................101

Aptech Limited ........................................................................................................................................ 103

History and activity .................................................................................................................................................. 103

Finance.................................................................................................................................................................... 103

Human resources .................................................................................................................................................... 103

Location ................................................................................................................................................................... 104

Perspectives, Strategy ............................................................................................................................................ 104

Point of view concerning the Indian IT sector .........................................................................................................104

Magic Software Private Limited.............................................................................................................105

History and activity .................................................................................................................................................. 105

Finance.................................................................................................................................................................... 105

Human resources .................................................................................................................................................... 105

Location ................................................................................................................................................................... 105

Perspectives, Strategy ............................................................................................................................................ 106

Transoft India Limited.............................................................................................................................107

History and activity .................................................................................................................................................. 107

Finance.................................................................................................................................................................... 107

Human resources .................................................................................................................................................... 107

Location ................................................................................................................................................................... 107

Perspectives, Strategy ............................................................................................................................................ 107

Point of view concerning the Indian IT sector .........................................................................................................107

GLOBALsoft Private Limited..................................................................................................................109

History and activity .................................................................................................................................................. 109

Finance.................................................................................................................................................................... 109

Human resources .................................................................................................................................................... 109

Location ................................................................................................................................................................... 109

Datasoft Application Software (India) Limited .....................................................................................110

History and activity .................................................................................................................................................. 110

Finance.................................................................................................................................................................... 110

Human resources .................................................................................................................................................... 110

Location ................................................................................................................................................................... 110

Perspectives, Strategy ............................................................................................................................................ 111

Point of view concerning the Indian IT sector .........................................................................................................111

Crossword Software Private Limited ....................................................................................................112

History and activity .................................................................................................................................................. 112

Finance.................................................................................................................................................................... 112

Human resources .................................................................................................................................................... 112

Location ................................................................................................................................................................... 112

Perspectives, Strategy ............................................................................................................................................ 112







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Point of view concerning the Indian IT sector .........................................................................................................113

TriVium India Software Private Limited ................................................................................................114

History and activity .................................................................................................................................................. 114

Finance.................................................................................................................................................................... 114

Human resources .................................................................................................................................................... 114

Location ................................................................................................................................................................... 114

Perspectives, Strategy ............................................................................................................................................ 115

Point of view concerning the Indian IT sector .........................................................................................................115

eSols Worldwide Limited........................................................................................................................116

History and activity .................................................................................................................................................. 116

Finance.................................................................................................................................................................... 116

Human resources .................................................................................................................................................... 116

Location ................................................................................................................................................................... 116

Perspectives, Strategy ............................................................................................................................................ 116

Point of view concerning the Indian IT industry ......................................................................................................117

Brainwaves Education Limited..............................................................................................................118

History and activity .................................................................................................................................................. 118

Finance.................................................................................................................................................................... 118

Human resources .................................................................................................................................................... 118

Location ................................................................................................................................................................... 118

Perspectives, Strategy ............................................................................................................................................ 119

Point of view concerning the educational system in India ......................................................................................119

MDC Infoway Limited.............................................................................................................................. 120

Finance.................................................................................................................................................................... 120

Human resources .................................................................................................................................................... 120

Location ................................................................................................................................................................... 121

Perspectives, Strategy ............................................................................................................................................ 121

Plexus Technologies Limited.................................................................................................................122

History and activity .................................................................................................................................................. 122

Finance.................................................................................................................................................................... 122

Human resources .................................................................................................................................................... 122

Location ................................................................................................................................................................... 122

Perspectives, Strategy ............................................................................................................................................ 123

Point of view concerning the Indian IT industry ......................................................................................................123

Taruni Technovision Private Limited ....................................................................................................124

History and activity .................................................................................................................................................. 124

Finance.................................................................................................................................................................... 124

Human resources .................................................................................................................................................... 124

Location ................................................................................................................................................................... 124

Perspectives, Strategy ............................................................................................................................................ 125

Point of view concerning the Indian IT sector .........................................................................................................125

egurucool.com – Learning Universe Private Limited ..........................................................................126

History and activity .................................................................................................................................................. 126

Finance.................................................................................................................................................................... 126

Human resources .................................................................................................................................................... 126

Location ................................................................................................................................................................... 126

Perspectives, Strategy ............................................................................................................................................ 127

Point of view concerning the Indian IT sector .........................................................................................................127

AutoClubAsia Limited.............................................................................................................................128

History and activity .................................................................................................................................................. 128

Finance.................................................................................................................................................................... 128

Human resources .................................................................................................................................................... 128

Location ................................................................................................................................................................... 128







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Perspectives, Strategy ............................................................................................................................................ 128

Neutron Infotech Private Limited...........................................................................................................130

History and activity .................................................................................................................................................. 130

Finance.................................................................................................................................................................... 130

Human resources .................................................................................................................................................... 130

Location ................................................................................................................................................................... 130

Perspectives, Strategy ............................................................................................................................................ 131

IONIC Microsystems Private Limited ....................................................................................................132

History and activity .................................................................................................................................................. 132

Finance.................................................................................................................................................................... 132

Human resources .................................................................................................................................................... 132

Location ................................................................................................................................................................... 132

Perspectives, Strategy ............................................................................................................................................ 133

Appendix 4 – Indian IT Clusters Prepared by André El-Khoury & Pierre Masclet............................ 134

1. A Few Facts and Figures about the Indian Clusters ......................................................................136

2. The Delhi IT Cluster ............................................................................................................................140

Location ................................................................................................................................................................... 140

Delhi......................................................................................................................................................................... 140

Gurgaon................................................................................................................................................................... 142

Noida ....................................................................................................................................................................... 143

Greater Noida .......................................................................................................................................................... 144

3. The Mumbai IT cluster ........................................................................................................................145

Location ................................................................................................................................................................... 145

Mumbai.................................................................................................................................................................... 145

Navi Mumbai............................................................................................................................................................ 147

4. Bangalore............................................................................................................................................. 149

Location ................................................................................................................................................................... 149

How did it start?....................................................................................................................................................... 149

Bangalore today ...................................................................................................................................................... 150

5. Hyderabad............................................................................................................................................ 155

Location ................................................................................................................................................................... 155

How did it start?....................................................................................................................................................... 155

Hyderabad today ..................................................................................................................................................... 156

6. Sources ................................................................................................................................................ 160

Detailed Table of Contents.....................................................................................................................161

List of Figures ......................................................................................................................................... 168

List of Tables ........................................................................................................................................... 170









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List of Figures





Figure 1. Literacy _____________________________________________________________________________ 22



Figure 2. Households equipment _________________________________________________________________ 22



Figure 3. Numeric Equipment ___________________________________________________________________ 22



Figure 4. Offshore Services _____________________________________________________________________ 23



Figure 6. Product & Packages ___________________________________________________________________ 23



Figure 7. Contribution of the Different Sectors of IT Industry in Global Revenue ____________________________ 24



Figure 8. Evolution of India IT Industry in India ______________________________________________________ 25



Figure 9. Evolution of domestic IT Market __________________________________________________________ 25



Figure 10. Domestic IT Market Constitution ________________________________________________________ 25



Figure 11. IT in global Indian Industry _____________________________________________________________ 26



Figure 12. Indian IT Software and Services Industry (1995-2000) _______________________________________ 27



Figure 13. Domestic IT Software and Services Market (1995-2000) _____________________________________ 27



Figure 14. IT Software and Services Export Industry (1995-2000) _______________________________________ 27



Figure 15. Destination of Indian Software Exports ___________________________________________________ 28



Figure 17. Domestic Software Activity Break-Up_____________________________________________________ 28



Figure 18. Software Export Activity Break-Up _______________________________________________________ 29



Figure 19. Evolution of Overseas Office of Indian IT Software and Services Company_______________________ 29



Figure 20. Distribution of Overseas Office of Indian IT Software and Services Company _____________________ 29



Figure 21. Size and Profitability of IT Firms in 2000 __________________________________________________ 30



Figure 22. IT Firms Cumulate Revenues___________________________________________________________ 31



Figure 23. Growth of Internet ____________________________________________________________________ 32



Figure 24. Age Groups of Indians accessing the Internet as on 31 December 2000 _________________________ 32



Figure 25. Exports of E-commerce Software Solutions from in India 1999-2004 ____________________________ 33



Figure 26. Domestic E-commerce Solutions Market in India 1999-2004 __________________________________ 33



Figure 27. E-commerce Transactions in India _______________________________________________________ 34



Figure 28. India’s cost and quality advantages ______________________________________________________ 35



Figure 29. People Vendor and Sophistication _______________________________________________________ 35







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Figure 30. Growth of the IT Workforce_____________________________________________________________ 36



Figure 31. Work Experience of IT professionals _____________________________________________________ 37



Figure 32. Ratio of Sex amongst the IT professionals_________________________________________________ 37



Figure 33. Average Attrition Rate since 1992 _______________________________________________________ 37



Figure 34. Compensation/Salary Status ___________________________________________________________ 38



Figure 35. Venture Capital and Angel Investment for the IT sector ______________________________________ 39



Figure 36. Investment Stage Break-up ____________________________________________________________ 39



Figure 37. Major Contributors to Invested Funds in India ______________________________________________ 39



Figure 38. Contribution from various regions of India _________________________________________________ 40



Figure 39. IT Workforce Annual Demand Projections till 2008 __________________________________________ 42



Figure 40. Skills in demand _____________________________________________________________________ 42



Figure 41. IT Workforce Annual Demand Projections till 2008 __________________________________________ 52



Figure 42. Growth of the IT Workforce in Services and Software ________________________________________ 52



Figure 43. STPI Locations _____________________________________________________________________ 136



Figure 44. Number of firms per STP in 1998 _______________________________________________________ 137



Figure 45. Contribution of STPI - Bangalore vs. National _____________________________________________ 153

Figure 46. Growth of Software Industry in Bangalore ________________________________________________ 153

Figure 47. Exports from Bangalore ______________________________________________________________ 154









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List of Tables





Table 1. Indian Population ______________________________________________________________________ 22



Table 2. The different sectors of the IT Industry _____________________________________________________ 24



Table 3. The Top 20 IT firms ____________________________________________________________________ 31



Table 4. Gender of Internet users ________________________________________________________________ 33



Table 5. Present Quality Certification _____________________________________________________________ 35



Table 6. SEI Quality Assessment ________________________________________________________________ 36



Table 7. Annual intake of students by various institutions during July-December 2000 _______________________ 36



Table 8. Location of Software Companies, Headquarters of Top 700 companies ___________________________ 40



Table 9. Opportunities across four broad sectors ____________________________________________________ 41



Table 10. Education System ____________________________________________________________________ 52



Table 11. Government Grants ___________________________________________________________________ 53



Table 12. Cost of Sponsoring____________________________________________________________________ 55



Table 13. Budgetary Transactions of the Central and State Governments and Union Territories (Including internal

and extra-budgetary resources of public sector undertakings for their plans)__________________________ 56



Table 14. Ninth Plan Outlay by Heads of Development: Centre, States and Union Territories, 1997-2002 and Annual

Plans 1997-98 to 2000-2001 _______________________________________________________________ 57



Table 15. Revenue distribution of Nasscom member firms (n=405) by geographic region ___________________ 137



Table 16. Software exports in 1999-2000 _________________________________________________________ 137



Table 17. Number of firms registered under STPI on February 2001 ____________________________________ 137



Table 18. State wise export revenue for the year 2000-2001 in million USD (northern states) ________________ 138



Table 19. Number of software firms’ headquarters per city in 1998 _____________________________________ 138



Table 20. Number of Software firms’ headquarters per city on February 2001 ____________________________ 138



Table 21. Exports from various regions of India in 1999-2000 _________________________________________ 138



Table 22. Hiring pattern: Region-Wise Break-Up ___________________________________________________ 139



Table 23. Export Revenue of STPI-Noida _________________________________________________________ 143









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