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Features

Datamine

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DQI Bureau
New Update

Though the IT education sector

failed to touch the zenith of Rs 2,594 crore, FY 2005-06 maintained last

year's growth momentum. From FY 2001-2002 till FY 2003-04, the training

sector revenues consistently went down. Subsequently, there was a

turnaround last year with the industry recording growth.
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Training: The

Top Players

Revenue (Rs

crore)

Growth



(%)

2004-05

2005-06

NIIT

398

450

13

Aptech

115

121

5

Tata Interactive

Systems

98

98

0

Jetking Infotrain

47

63

34

Siemens

13

34

162

CMS Computers

21

15

-29

SQL Star

10

16

60

MAAC

2

5

150
Source:

DQ estimates CyberMedia Research

The top 3 players were no

surprise as they maintained their last year's rankings. However, they

failed to match the growth momentum of their competitors (with the

exception of CMS Computers, which witnessed negative growth) lower down

the line		 As corporate training picked

up, companies launched new packages and activity tied-up with business and

state government
The rise in fresher

recruitments was driven by multiple factors: Companies prefer to train and

create specialized talent pool from scratch. It is also economical to tap

into the huge resource available, to meet the manpower crunch in the

industry. And it operates as a powerful metric to reduce average age and

salary cost
While overall training exports

earnings went up 56%, corporate training grew 50% and retail consumer

training revenue went up 84%. Companies expanded their operations in West

Asia, South-east Asia and Eastern Europe.



India-based

Service Provider Landscape
Category No

of players		 Share

of India's total



IT/BPO export revenues		 Performance
Tier

I Players		 3-4 45%

of IT Services 4-5% of BPO		 Revenues

greater than $1 bn
Tier

II IT Players		 7-10 25%

of IT Services 4-5% of BPO		 Revenues

$100 mn-$1 bn
Offshore

operations of Global IT majors		 20-30 10-15%

of IT Services



10-15% of BPO		 Revenues

$10 mn-$500 mn
Pure

play BPO providers		 40-50 20%

of BPO		 Revenues

$10 mn-$200 mn



(Excluding top provider with $500 mn)
Captive

BPO units		 150 50%

of BPO		 Revenues

$25 mn-$150 mn (top 10 units)
Emerging

players		 >3000 10-15%

of IT Services



5% of BPO		 Revenues

less than $100 mn (IT)



Revenues less than $10 mn (BPO)
*Based

on last comparable Annual Report



**Earnings before interest, tax, and depreciation and amortization margins
(last reported)



***Including captive centres for Independent Software Vendors (eg
Microsoft, Oracle)



Source: NASSCOM McKinsey Report 2005
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