My Net-worth is in Millions Already!

WOULD YOU LIKE TO BE AMONG MILLIONAIRES? If you are a professional working in IT and based out of India, perhaps you already are!

First, some bullet-points about the global and Indian IT industry that got me thinking:

• Indian Software Industry is approx 66% of Worldwide Software Services
• Top 6 Indian IT Companies makes of approx. 50% of total Indian IT Industry
  
• In terms of sales among these top six (in descending order of reported figures for 2007 - TCS, Wipro, Infosys, Cognizant, Satyam, and HCL), the first three clocks almost 60%

Now, a Forrester Research forecast reports says that the total Global IT spend (IT industry potential) is projected to be at USD 1.55 trillion in 2007-08.

Wow! A quick back of an envelop analysis reveals some pretty interesting monetarily figures. (above: rather front of the envelop; the back was already taken by the groceries' list...) Enjoy:

Global IT industry at USD 1.55 tn (2007)
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66% of it is served by companies in India
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50% of which is with the top 6 players of India
i.e. 33% of global IT services business is with 6 Indian cos.
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About 7% of Global IT business is with Infy
and
Infy has about 70k employee-base
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So, an Individual net-worth could be 7/70,000 = 0.00001%
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applying a multiplying factor* p @ p = 3.5
0.00001% x 3.5 = 0.000035%
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net-worth of 0.000035% of Global IT business
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my net-worth could be 0.000035% of USD 1.55 trillion
= USD 1.55 tn x 0.00000035 = USD 5425000
= approx USD 5.5 million

* To account for the disparity of "value-add" across various levels and roles in a given organization and in the industry at large, let me introduce a 'premium' factor p, which takes into account factors such as experience, longevity and loyalty, value-add-over-tradition, client-relationship-quotient, niche skills/domain knowledge, roles/management abilities, innovations/leadership demonstrations, reputation/recommendations/published papers/blogs etc., I-am-the-best-attitude, and alike.

As the base, a 'pure' and productive software engineer in Infosys would have her contributions to the industry measured at p = 1.

For my p factor, I have considered value 1 for 10 years of industry experience, 1 for effectively delivering in client-relationship and value creation (business development) roles, added 1 to it for venturing into and bringing back 'goodies' from unchartered territories (business development, and successful greenfield projects), and 0.5 for doing more than 3 years at Infosys (longevity and loyalty), which makes my p = 3.5.

And, in terms of the Global IT industry, that brings my current 'Professional' net-worth at USD 5.5 million!

Now, that 'Feels' good!

How much is your worth? Aren't you a millionaire yet!

For relevant Forrester Research forecast for 2007-08, go here.
For the corresponding NASCOMM story of 2007, go here.
For Forbes.com report on Ambani's 'costliest home in the world', go here.