MICROSOFT INDIA LTD.

Background In addition, the company provides support and • India received the Top Packaged India-focused strategies services to its Indian customers locally, through its Microsoft Corporation India Private Limited Company honour - Dataquest 2003 Microsoft’s India strategy is aimed at garnering long- several offices across the country. is a subsidiary of Microsoft Corporation USA, and • MNC Brand of the Year and Product of the Year term business growth and a firm market share in the has had a presence in India since 1990. Headquartered • The revenues in FY-04 touched US$ 199 million (Windows Server 2003) – PCQuest Users’ Choice country. Key highlights are: in , the key focus areas for the Company • 95 per cent of the revenues are from the domestic Awards 2003 • Emphasis on localisation: In 2003, Microsoft in India include market development through strategic market launched Project Bhasha in India – a collaborative partnerships and local alliances, e-governance, • Number 1 most admired company in India across program aimed at accelerating local language education, product localisation and developer industries by Business Today – Cirrus in 2003 Market leader in software applications computing in India wherein Microsoft focuses on community growth. Through its partnerships with Microsoft has grown at a compounded annual growth Factors for success product localisation ( and rate (CAGR) of 45 per cent in the Indian market Office interfaces to be available in 14 regional during 1999-2004. This is despite the fact that the Partnering India with strong parental support languages), government collaborations, academia/ piracy levels in the market are high. Microsoft is the world’s largest software firm with developer integration and building a local language IT ecosystem through community/industry Microsoft enjoys a share of 60 per cent in all software 50,000 people working in 78 countries and revenues participation. applications in the market. of over US$ 37 billion. The parent company has rendered strong support in further strengthening of • Microsoft works closely with the central and state Awards won by the company in India the Indian operations. Key highlights of this focus are: governments as a technology provider and • Microsoft’s Windows Services for Unix 3.0 consultant for e-governance, helping develop • Microsoft India is recognised as a vital growth point (SFU3.0), developed at its India Development technology blueprints for roll-out of citizen-centric in Microsoft’s global game plan. This is Centre (in ), bagged the ‘Best System services. Microsoft has MoUs with 12 state demonstrated by the frequent India visits by senior Integration Software’ award at the Linux World governments with more than 150 e-governance executives Conference in New York applications deployed on the Windows platform • Microsoft is working on sharing of the Windows source code with key customers in India Marketing strategy

ISVs and solution providers, Microsoft also adds value • Microsoft has partnered with Indian IT majors like Microsoft is active in organising various workshops to vertical markets including banking, finance, Satyam and Mastek to develop software products and seminars on IT education besides school level programs like Campus Challenge Quizzes to promote manufacturing and ISPs. Microsoft has also invested in jointly in association with a dedicated architectural IT awareness amongst people. Microsoft is involved development efforts in India through its India advisor from Microsoft, Redmond Development Centre (IDC) established in Hyderabad. in encouraging various social activities in the country. Microsoft has four distinct business units in India; the Wide range of innovative and user friendly Developing the market potential Sales and Marketing Subsidiary, the Global Delivery products Centre, the India Development Centre in Hyderabad Microsoft offers its customers (large, medium and Microsoft launched an array of academic programs and the Global Support Centre in . small businesses) a depth and breadth of products to increase IT awareness among people, thereby increasing the market potential. Microsoft India has two major channels of distribution: and solutions to cater to their unique requirements. channels and original equipment manufacturers With special emphasis on the home segment, • Partners-in-Learning Initiative: This program is (OEMs). The company operates through a strong Microsoft continues to have a wide array of software geared to deliver comprehensive IT curriculum network of 4,000 resellers spread across the country. as well as hardware options. development and training for teachers and

US COMPANIES IN INDIA students in addition to greater access to the latest Institute of Information Technology (IIIT), Future plans Microsoft Corporation: AT A GLANCE computer technologies. ‘Project Shiksha’ aims to Hyderabad was established in collaboration with With successful performance in the country, Microsoft • World’s largest software firm. 50,000 accelerate computer literacy in the country to Microsoft Corporation and has recently received plans to further strengthen its India presence: over 80,000 school teachers and 3.5 million a grant of US$ 250,000 from the parent company employees. 78 countries. Revenues of US$ • Planning to set up a US$ 35 million R&D facility students across schools over the next 3 years. In 37 billion Leveraging the India Advantage spread across 42.3 acres in Hyderabad addition, Microsoft provides scholarships to • Microsoft India: Sales and marketing students and teachers. For this, the company has India as a resource base • Plans to collaborate with the central and state Subsidiary. Global Delivery Centre. India partnered with state governments, NGOs and governments and NGOs for rolling out the Project The parent company actively involves the Indian Development Centre, Hyderabad. Global other organisations Shiksha programme, which will focus on technology subsidiary in global projects. Many global products Support Centre, Bangalore. Total revenues: skill training, curriculum development and technical • Microsoft training and certification initiatives: The have been developed using India’s IT talent pool. US$ 199 million (FY 2004) education program was launched to train high quality Recent highlights: • Windows Services for Unix 3.0 (SFU 3.0) professionals who implement Microsoft • Microsoft India has signed an agreement with the • A team of 120 developers in Redmond worked developed at the Hyderabad Centre won technologies. About 150,000 are certified as Andhra Pradesh government for a project to make closely with Microsoft’s Indian partners on the the “Best System Integration” Award at the ‘Microsoft Certified Professionals’, the second 400,000 students and 200,000 teachers in the localisation of Microsoft’s flagship offerings in major Linux World Conference in New York highest in the world. state IT-literate over the next five years Indian languages • Factors for success: Strong parental support. • Microsoft Academic Developer Program: The • To promote local language computing, Microsoft • Microsoft India Development Centre at Wide range of innovative and user-friendly program targets technical and engineering colleges plans to set up five Centres of Excellence for Hyderabad is Microsoft’s second software products. India-focussed strategies. Excellent and aims at creating a future-ready, skilled localisation across the country development centre outside the US with around marketing strategies. Development of market developer community. 250 professionals. This centre developed Version • Plans to increase the number of staff at its software potential • Microsoft University Relations Program: The Indian 3.0 of its Services for UNIX (SFU 3.0) development centre in Hyderabad from 200 to • For Microsoft, India is: A resource base. around 500 by 2005 A rapidly growing market

• Future plans, India: Further strengthen India presence. Invest US$ 35 million in a new R&D facility in Hyderabad. Collaborate to roll-out Project Shiksha. IT-educate 400,000 students and 200,000 teachers in Andhra Pradesh under an agreement with the state government. Establish 5 Centres of Excellence to promote local language computing. Increase staff at IDC Hyderabad from 200 to 500

US COMPANIES IN INDIA