indian IT industry Ppt

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Guided By: Prof. Supriti Mishra:

IT Industry Guided By: Prof. Supriti Mishra Presented By: Rajesh Kumar Pradhan (16) Debasis Panda (09)

Flow of presentation:

Flow of presentation Introduction about IT Industry. Global Scenario. Indian Scenario. SWOT Analysis. PESTLE Analysis. Porter’s Five Force Analysis. Stage of Industry Life Cycle. Scope of IT sector in INDIA. Top three players of the sector.


INTRODUCTION What is IT???? As defined by INFORMATION TECHNOLOGY ASSOCIATION OF AMERICA (ITAA) “ IT ” is the “study, design, development, implementation, support or management of computer based information system particularly software's applications & computer hardware.


GLOBAL SCENARIO Today the IT’s advancement around the world cannot be imagined. Integrated the world economy through removal of barriers. Global sourcing of technology related services is estimated to have grown. There is estimated growth regarding spending on world wide technology products & related services sector. Global IT spends projected to grow at steady rate.


INDIAN SCENARIO Creating opportunities for the ‘out-of-the-mainstream’ candidates. India is a popular choice for customers seeking outsourced services because it is able to offer a 24*7 services by reduction in costs while maintaining quality. Every job created in IT sector accounts for creation of four jobs in rest of the economy. Some flagship companies that are providing good career in IT sector are – Infosys technologies, TCS, Wipro Technologies, Satyam Mahindra, Persistent, Cognizant, Amdocs, Cybage , Castech , HCL technologies etc.

SWOT Analysis:

SWOT Analysis Strengths Ability to innovate Highly skilled human resource Following Quality Standards such as ISO 9000, SEI CMM etc. Flexibility and Adaptability Mathematical and Logic Expertise Indians in Silicon Valley Weaknesses Lack of Domestic Computerisation Lack of Internet Penetration Contribution of IT sector to India’s GDP is still rather small. Employee salaries in IT sector are increasing tremendously. Low wages benefit will soon come to an end.

SWOT Analysis:

SWOT Analysis Opportunities High quality IT education market Increasing number of working age people India 's well developed soft infrastructure Upcoming International Players in the market Numbers of computers sold around world is increasing Threats Lack of data security systems Countries like China and Philippines with qualified workforce making efforts to overcome the English language barrier IT development concentrated in a few cities only Government regulation

PESTLE Analysis:

PESTLE Analysis Political Factors Government rules and regulation toward a particular business environment. Other factors: customer protection law, competitive regulation, and terrorist attacks. Indian government has decided to contract IT job to Indian IT companies creating more opportunities for the company and the industry at large. Indian government has strengthened the IT act, 2000 to provide a sound legal environment.

PESTLE Analysis:

PESTLE Analysis Economical Factors Rising working pay, global recession, competition, contract available and fee. Domestic IT spending grew by 20% and reached $20 billion in 2009. Currency fluctuations cased by the devaluation of the dollar has affected the industry during the last recession. Recession cause low attribute rate due to job layouts and job cuts. India’s global IT spending yet to decline due to entry of new IS companies and the cause of the recession. With the decline of banking and financial sectors, the revenue from there is expected to decline, hurting the bottom line of IT majors

PESTLE Analysis:

PESTLE Analysis SOCIAL FACTORS The social factors affecting IT industry ranges from employee right, language barriers, race nationality of company or other issues. English language being widely spoken in India has help in fostering the industry’s relationship and interaction in India and on the global stage. Great number of institute and universities offer IT course creating room for availability of IT professional at lower cost since there is job competition. SOCIAL ISSUES:- Being a major player in the global IT market Infosys has introduces measure to help in the reduction of carbon emission by trying to reduce its water consumption, electricity utilization, carbon emission and partnering with other companies in troubleshooting this global dilemma.

PESTLE Analysis:

PESTLE Analysis TECHNOLOGICAL FACTORS: TELEPHONY: Cellular mobile telephony tariffs in India are the lowest in the world. The airtime tariffs have plunged by over 75% in the last three years alone. INDIA HAS THE SECOND LARGEST TELEPHONE NETWORK AFTER CHINA. ENTERPRISE TELEPHONE SERVICES, 3G, WI-MAX AND VPN ARE TO GROW. INTRNET: India had as on 2011, 100 million active internet users. India now third biggest internet user after China (300 million) and US(207 million). NEW IT TECHNOLOGY: Web2.0 represents the next transition in the evolution of web applications. Computer-aided design (CAD)

PESTLE Analysis:

PESTLE Analysis LEGAL ASPECTS AND POLICIES IT Act 2000: Email would now be a valid and legal form of communication in our country that can be duly produced and approved in a court of law. Companies shall now be able to carry out electronic using the legal infrastructure provided by the Act. Digital signatures have been given legal validity and sanction in the Act. The Act now allows Government to issue notification on the web thus heralding e-governance. Indian Copyright Act ( 10 May 1995 ): The right of a copyright holder. Position on rentals of software. The right of the user to make backup copies. Most importantly the amendments imposed heavy punishment and fines for infringement of copyright of software.

PESTLE Analysis:

PESTLE Analysis ENVIRONMENTAL FACTORS:- Environmental conservation and protection is an issue which has gained prominence because of deteriorating environmental balance which is threatening the sustainability of life and nature. Environment factors like natural disasters or calamities like flood, earth quake, cyclone, tsunami etc. can affect the IT industry, for example recently due to which Japan suffers. Due to natural calamities the investors will not invest or withdraw their Money. ENERGY EFFICIENT PROCESS AND EQUIPMENTS:- Companies are focusing on reducing the carbon footprints, energy utilization, water consumption etc.

Porter’s Five Force Analysis:

Porter’s Five Force Analysis Rivalry: Growth stage: There is enough room for expansion for existing players and new entrants With the entry of many multinational companies (MNC) are opening their operations in India to leverage the low cost advantage provided by India, has increased the completion ratio (CR) of the industry. Also as there is no huge capital investment required to start a new company, the industry see a very large numbers of small and medium-size companies operating in a niche market. Presence of such large number of players has made the industry as one of the most competitive industry in the market.

Porter’s Five Force Analysis:

Porter’s Five Force Analysis Threat of Substitutes The Indian IT industry currently enjoys a very high growth rate due to following advantages. High availability of skilled labour Availability of large English speaking population Low cost of labour Good government policies (like tax holidays till 2009 for IT companies & setting up of special economic promotion zones). But there are many countries such as China, Philippines, and many east European countries that has started to provide similar opportunities and Indian IT industries always need to innovate and move into new sectors to keep out the competition

Porter’s Five Force Analysis:

Porter’s Five Force Analysis Buyer Power Buyers in IT industry can be briefly classified into following categories: Institutional buyers: Institutional buyers comprises of big and small enterprises which outsource part of their work or implement an IT solution for improving their processes. As the IT industry has large number of suppliers and few entry barriers for new entrants, the buyer has a many option to choose from thus have a large bargaining leverage. Individual or small consumers: Similarly the individual consumer enjoys options of plenty and has large bargaining power.

Porter’s Five Force Analysis:

Porter’s Five Force Analysis Supplier Power As there exist many competitive suppliers in the market the supplier has very little or no power in this industry. BARRIERS TO ENTRY An IT company can be started with very low initial cost, further the government policies also promotes the entrepreneurs by providing benefits in terms of tax holidays and building Software Technology Parks. Apart from this there is large amount of venture capitalist who are ready to fund new start-ups enabling them to scale up.

Comparative contribution Of IT in different sectors:

Comparative contribution Of IT in different sectors

Stage of Industry Life Cycle:

Stage of Industry Life Cycle IT industry is in GROWTH phase since last 5 years. It is growing at a fast pace. It can be seen through contribution of IT in -GDP -No.of employees in this sector -Revenue generated from this sector

Contribution in GDP:

Contribution in GDP

No.Of Employees:

No.Of Employees

Comparative Revenue Of IT :

Comparative Revenue Of IT


SCOPE OF IT SECTOR IN INDIA Economic survey revealed that IT sector created almost 3 million additional jobs this year and number will go on in the immediate future IT services will contribute over 7.5 % of the overall GDP. IT Exports will account for 35% of the total exports with potential for 5 million jobs in IT by 2012. IT industry will attract Foreign Direct Investment (FDI) of U.S. $ 4-5 billion.

Strategic groups in the IT Industry on the basis of Hardware:

Price High Low Sony, HP Zenith, Next Apple Strategic groups in the IT Industry on the basis of Hardware Quality High Low Acer, Dell, Lenovo



No. of Employees (2010):

No. of Employees (2010)

Comparison of Market Capitalization of 3 companies (2010):

Comparison of Market Capitalization of 3 companies (2010)

Revenue (2010):

Revenue (2010)

Profits of three companies:

Profits of three companies


CONCLUSION Very good future prospects. IT is on going requirement of every nation. Opportunities for Investors, Entrepreneur, Youth and Countries. Continuous growth year by year.

Slide 32:

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