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06 FEATURE

   
   
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  HIGHLIGHTS
   
 

India's business confidence index touches a two-year high in Jan 2010
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05. INFORMAION TECHNOLOGY

Computer sales surf higher on economic revival


New Delhi: Economic revival, technological developments and right pricing led to overall sales of the Indian personal computer (PC) market touching 1.97 million units during the October-December (fourth) quarter of calendar year 2009 — a 25.7 per cent year-on-year (y-o-y) growth, according to a report by IDC, the research and advisory company.

Desktop PC sales accounted for nearly two-thirds of total PC sales at 1.27 million units, a 14.6 per cent increase over the corresponding quarter last year. However, on a quarter-on-quarter basis, the sales fell 12.8 per cent due to the seasonality factor. Notebook PC sales grew 52.8 per cent year-on-year, clocking 690,000 units in October-December 2009.

Total India PC shipments grew in each of the four quarters of 2009, after dropping sharply from a peak of 2.26 million units in July-September 2008 to 1.56 million units in October-December 2008. Home PC shipments (both desktops and notebooks) climbed 38 per cent year-on-year (October-December 2009 over October-December 2008).

The IDC report reveals that the growth of 57 per cent year-on-year (October-December 2009 over October-December 2008) in notebook PC shipments to large business (500-999 employees) and very large business (1,000 or more employees) segments was “pleasantly surprising”. In the overall PC (notebooks and desktops combined) market, HP retained the top spot, with a market share of 16.2 per cent in terms of unit shipments, while Dell and Acer had 13.6 per cent and 10.4 per cent, respectively.

PC Marketshare
Overall PC marketshare (%) Desktop PC ranking Notebook PC ranking
HP -16.20% HP #1 Dell #1
Dell -13.60% HCL #2 HP #2
Acer -10.40% Acer #3 Acer #3
(Source: IDC's India Quarterly PC Tracker 2009, 4Q CY2009)

In desktop PC shipments, HP retained top position with a market share of 11.6 per cent, followed by HCL and Acer, respectively, during the fourth quarter of last year. However, it was in the notebook PC shipments that the market witnessed a shake-up, as Dell captured the top spot for the first time, with a market share of 26.3 per cent.

“Dell’s ascent in the India notebook PC market can be attributed to their consistent marketing efforts over the previous quarters. Availability of a wide product portfolio with appealing aesthetics and branding helped Dell connect with ‘Gen X’ buyers – students as well as young executives,” said Sumanta Mukherjee, Lead PC Analyst, IDC India.

“The revival of buying by the large business and very large business segments, which have traditionally been strong segments for Dell, also shored up the vendor’s performance in the quarter ended December 31,” he added.

Source : Business Standard

India's IT market pegged to grow at 15.5 per cent in 2010

New Delhi: The Indian information technology (IT) market is expected to grow at around 15.5 per cent in 2010, on the back of growing investor confidence and favourable initiatives taken by the government, according to a study by Springboard Research.

Organisations are expected to initiate new large scale projects requiring significant IT infrastructure-related investments, according to Research Manager, Manish Bahl at Springboard Research.

The study also highlighted a shift in enterprise IT spending from focusing on new investments to streamlining costs and improving internal efficiencies.

The research highlights that Indian companies have received an impetus to be more productive due to the recent global economic and financial crisis.

The Indian IT-BPO exports are projected to increase by 13-15 per cent in 2010-11 as per the IT industry body, the National Association of Software and Services Companies (NASSCOM).

Source: IBEF

Indian IT - BPO Industry Exports Touches USD 50 Billion Landmark
Industry emerges stronger from the global economic meltdown to post encouraging results

• Domestic market expected to witness 12 percent growth in FY09-10; to reach INR 662 billion
• Industry will continue to be a net hirer; direct employment expected to grow by 4 percent and cross 2.3 million with over 90,000 jobs added in FY09-10
• FY 10-11 outlook; Software and Services exports revenues to grow by 13-15 percent and domestic revenues to grow by 15-17 percent
NASSCOM released the Indian IT-BPO sector performance estimates for FY09-10. According to the findings, export revenues for the Indian IT-BPO industry are expected to record a growth of 5.5%, to reach USD 49.7 billion in FY 09-10.

Mr. Pramod Bhasin, Chairman NASSCOM and President & CEO, Genpact said “The performance of the industry in
KEY HIGHLIGHTS
  • Government IT spend estimated at INR 150 billion in 2009; expected to reach INR 250 billion by 2011
  • USD 9 billion business opportunity in e-Governance
  • APAC is the fastest growing geography  with an estimated growth of 10%
  • Indian IT-BPO industry continues to dominate the global market place with 51 percent market share
  • Growth in emerging verticals such as retail and healthcare 3x faster than core verticals
  • Infrastructure services to be a key growth driver for the industry with an estimated growth of 10.5%

this year is far stronger than what is reflected through the growth numbers. The industry has reinvented itself by increasing its cost efficiencies, utilization rates, diversification into new verticals and markets and new business and pricing models. In the process, it was also able to turn itself into a business transformation enabler for its clients. With a renewed value proposition, we look forward to a terrific future with growth estimates of 13-15% in FY11 for the export sector and 15-17% for the India market.”

Mr. Som Mittal, President, NASSCOM said
, “It’s a historic moment for the Indian IT-BPO industry as it touches the USD 50 billion landmark. The growth was led by domestic market buoyed by increased Government spending in IT. In addition, new areas such as Engineering Services and Product Development displayed phenomenal momentum clocking a combined revenue of over USD 10 billion.

With 450 delivery centers in 60 countries across the world, the industry has an unparalleled global value chain. The industry has also enhanced its global workforce, hiring specialized talent in developed markets and building a truly global delivery model.”

IMPACT OF IT-BPO INDUSTRY
• Contributes over 25% of total India exports, 5.9 per cent of GDP in FY09
• Contributes 10.5% to the Services Sector
• Revenues from IT-BPO intensive states contributed 14 per cent to state GDPs
• IT-BPO Tier 2/3 employment increased by 50 per cent in FY07-09
• 22x growth in patents granted to the sector between FY05-08
• The sector accounted for over 10 per cent of total FDI investment in the last decade

As per the findings, the coming years are going to represent a significant shift in terms of business models, service lines, customers and talent structure. There will be increased focus on higher end offerings such as system integration, consulting, business intelligence, knowledge services and vertical specific BPO services.

The industry is expected to generate an increasing share of revenues from the untapped SMB segment through improved pay per use business models and platform solutions. It is also expected to acquire domain expertise and near shoring capabilities to further advance India’s value proposition as a global outsourcing hub. Key highlights of the industry performance in FY 2009-10

Financial year

Exports (USD bn)

Domestic (INR bn)

FY 08-09

47.1

590

FY 09-10

49.7

662

FY 10-11 (outlook)

56-57

761-775

 


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