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A Project Report on


Submitted to Sanskrithi School of Business, Puttaparthi, an Affiliated Institution under JNTU-A, in Partial Fulfillment of Master of Business Management

By (CHATTA.SUNITHA) (11HX1E0012) Under the Supervision of B.VENKAT PRASAD (Assistant Professor)


It is certified that the research work incorporated in the Mini project titled …………………………………. submitted by ……………………………… original work and was carried out under my supervision and guidance. Date: Signature of the Mentor Name: his


I,………………………………., Roll No…………….,Batch………… hereby declare the project work titled …………………………. is an original work conducted by me under the supervision of my revered mentor…………………………….

I further declare that no part of project, neither the whole nor in part, has been submitted or published in any form as compliance towards any other degree or similar title to any of the institution and the sources refereed in this project is duly acknowledged.


Signature of the Student

It gives me immense pleasure to submit my project work as compliance to internal assessment of the MBA program. I am fortunate enough to have Prof. ………………………… as my mentor who with his/her professional acumen and experience encouraged me to study the scope and various dimensions of project from broad perspectives and enrich my knowledge to produce this piece of work. Despite his busy schedule of professional and social commitments, he/she was always available to me, whenever needed, for consultation, discussion and deliberation on the various aspects of my research work. I have no words to express my deep sense of gratitude and just salute him for his humbleness and invaluable support. I cannot forget the overwhelming support and encouragement; I received from Prof Sreekanth Reddy who have remained behind me as the guiding instruments during the entire period of the project work, keeping me intact in Lab I simply salute them for sustaining me the most congenial atmosphere within the institutional premises. Name: Date:


Abstract (Project Specific)
The Indian Information Technology and Information Technology Enabled Services (ITITES) industry has been Contributing its role in the economic development of India since post liberalization era. The pace growth of this industry is considered as a growth driver for the economy. India has become as ―IT Super Power‖. The performance of IT industry can be revealed with the evidence of its contribution to the GDP (Gross Domestic Product) of the country, provision of employment opportunities all over the country, IT services and software exports and revenue to the country. This paper examines how does the IT industry is playing its predominant role in Indian economy with its various trends in the contribution to the GDP of India , IT exports, IT revenue trends and employment opportunities.

The information technology (IT) industry has become of the most robust industries in the world. IT, more than any other industry or economic facet, has an increased productivity, particularly in the developed world, and therefore is a key driver of global economic growth. Economies of scale and insatiable demand from both consumers and enterprises characterize this rapidly growing sector. The Information technology industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector. The IT–ITES industry has two major components: IT Services and business process outsourcing (BPO). The growth in the service sector in India has been led by the IT–ITES sector, contributing substantially to increase in GDP, employment, and exports. The sector has increased its contribution to India's GDP from 1.2% in FY1998 to 7.5% in FY2012. According to NASSCOM, the IT– BPO sector in India aggregated revenues of US$100 billion in FY2012, where export and domestic revenue stood at US$69.1 billion and US$31.7 billion respectively, growing by over 9%. The major cities that account for about nearly 90% of this sectors exports are Bangalore, Chennai, Delhi, Mumbai, Hyderabad, Pune, Kolkata. Export dominate the IT– ITES industry, and constitute about 77% of the total industry revenue. Though the IT– ITES sector is export driven, the domestic market is also significant with a robust revenue growth. The industry’s share of total Indian exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in FY2012. According to Gartner, the "Top Five Indian IT Services Providers" are Tata Consultancy Services, Infosys, Cognizant, Wipro and HCL Technologies. This sector has also led to massive employment generation. The industry continues to be a net employment generator - expected to add 230,000 jobs in FY2012, thus providing direct employment to about 2.8 million, and indirectly employing 8.9 million people. Generally dominant player in the global outsourcing sector. However, the sector continues to face challenges of competitiveness in the globalized world, particularly from countries like China and Philippines. India's growing stature in the Information Age enabled it to form close ties with both the United States of America and the European Union. However, the recent global financial crises has deeply impacted the Indian IT companies as well as global companies. As a result hiring has dropped sharply, and employees are looking at different sectors like the financial service, telecommunications, and manufacturing industries, which have been growing phenomenally over the last few years. India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs. The first software export zone SEEPZ was set up here way back in 1973, the old avatar of the modern day IT park. More than 80 percent of the country's software exports happened out of SEEPZ, Mumbai in 80s.

What is information technology?

We use the term information technology or IT to refer to an entire industry. In actuality, information technology is the use of computers and software to manage information. In some companies, this is referred to as Management Information Services (or MIS) or simply as Information Services (or IS). The information technology department of a large company would be responsible for storing information, protecting information, processing the information, transmitting the information as necessary, and later retrieving information as necessary

History of Information Technology:
In relative terms, it wasn't long ago that the Information Technology department might have consisted of a single Computer Operator, who might be storing data on magnetic tape, and then putting it in a box down in the basement somewhere. The history of information technology is fascinating! Check out these history of information technology resources for information on everything from the history of IT to electronics inventions and even the top 10 IT bugs. The Indian Government acquired the EVS EM computers from the Soviet Union, which were used in large companies and research laboratories. In 1968 Tata Consultancy Services—established in SEEPZ, Mumbai[4] by the Tata Group—were the country's largest software producers during the 1960s. As an outcome of the various policies of Jawaharlal Nehru (office: 15 August 1947 – 27 May 1964) the economically beleaguered country was able to build a large scientific workforce, third in numbers only to that of the United States of America and the Soviet Union. On 18 August 1951 the minister of education Maulana Abul Kalam Azad, inaugurated the Indian Institute of Technology at Kharagpur in West Bengal. Possibly modeled after the Massachusetts Institute of Technology these institutions were conceived by a 22 member committee of scholars and entrepreneurs under the chairmanship of N. R. Sarkar. Relaxed immigration laws in the United States of America (1965) attracted a number of skilled Indian professionals aiming for research. By 1960 as many as 10,000 Indians were estimated to have settled in the US. By the 1980s a number of engineers from India were seeking employment in other countries. In response, the Indian companies realigned wages to retain their experienced staff. In the Encyclopedia of India, Kamdar (2006) reports on the role of Indian immigrants (1980 - early 1990s) in promoting technology-driven growth: The United States’ technological lead was driven in no small part by the brain power of brilliant immigrants, many of whom came from India. The inestimable contributions of thousands of highly trained Indian migrants in every area of American scientific and technological achievement culminated with the information technology revolution most associated with California’s Silicon Valley in the 1980s and 1990s.[6] The National Informatics Centre was established in March 1975. The inception of The Computer Maintenance Company (CMC) followed in October 1976. During 1977-1980 the country's Information Technology companies Tata Infotech, Patni Computer Systems and Wipro had become visible. The 'microchip revolution' of the 1980s had convinced both Indira Gandhi and her successor Rajiv Gandhi that electronics and telecommunications were vital to India's growth and development. MTNL underwent technological improvements. During 1986-1987, the Indian government embarked upon the creation of three wide-area computer networking schemes: INDONET (intended to serve the IBM mainframes in India), NICNET (the network for India's National Informatics Centre), and the academic research oriented Education and Research Network (ERNET).

Some of the major reasons for the significant growth of the IT industry of India are     

Abundant availability of skilled manpower Reduced telecommunication and internet costs Reduced import duties on software and hardware products Cost advantages Encouraging government policies

Information Technology Certifications:
Having a solid education and specific specialty certifications is the best way to progress in an information technology career. Here are some of the more popular information technology certifications:
    

Information Security Certifications Oracle DBA Certifications Microsoft Certifications Cisco Certifications PMP Certification

Commercial perspective
Worldwide IT spending forecast[35] (billions of U.S. dollars) Category 2011 spending 404 2012 spending 420

Computing hardware Enterprise software IT services Telecom equipment Telecom services

269 845 340 1,663 3,523

281 864 377 1,686 3,628

Challenges before Indian IT Industry
At present there are a number of challenges that are facing the information technology industry of India. One of the major challenges for the Indian information technology industry was to keep maintaining its excellent performance standards. The experts are however of the opinion that there are certain things that need to be done in order to make sure that India can maintain its status as one of the leading information technology destinations of the world. The first step that needs to be taken is to create an environment for innovation that could be carried for a long time. The innovation needs to be done in three areas that are connected to the information technology industry of India such as business models, ecosystems and knowledge. The information technology sector of India also has to spread the range of its activities and also look at the opportunities in other countries. The improvement however, also needs to be qualitative rather than just being quantitative. The skill level of the information technology professionals is one area that needs improvement and presents a considerable amount of challenge before the Indian information technology industry. The Indian information technology industry also needs to co-ordinate with the academic circles as well as other industries in India for better performance and improved productivity. The experts are of the opinion that the business process outsourcing service providers in India need to change their operations to a way that is more oriented to the knowledge process outsourcing. One of the most important crises facing the Indian information technology industry concerns the human resources aspect. The problems with outsourcing in countries like the United States of America are posing problems for the Indian information technology industry as well. In the recent times a bill has been passed in the state of New Jersey that allows only the citizens or legal non-Americans to be given contracts. This legislation has also affected some other states like Missouri, Connecticut, Wisconsin and Maryland. These states are also supposed to be considering these laws and their implementation. This is supposed to have an adverse effect on the outsourcing that is the source upon which the information technology industry of India thrives. The information technology professionals who aim at working in the country are also likely to be hindered by the legislation as a significant amount of these professionals have been going to work in the USA for a long time.

Growth of India's IT Industry India's IT industry has recorded phenomenal growth over the last decade. During the period from 1992-2001, the compounded annual growth rate of the Indian IT services industry has been over 50%. The software sector in India has grown at almost double the rate of the US software sector. The statistics of the India's IT industry substantiates the huge momentum acquired by the IT sector in the recent past. During the financial year 20002001, the software industry in India accounted for $8.26 billion. The corresponding figure was $100 million 10 years back. As per the report of a study undertaken by NASSCOM-McKinsey, the software export from Indian IT industry is likely to reach 50 billion US dollars in the year 2008. This growth rate of the software sector for the year 2008 has been projected on the basis of the 35% per year growth rate achieved in the last couple of years. Export of software and services from India is expected to add almost 41 billion US dollars to the annual revenue of the Indian government in the current year. The share of technology industry in India's GDP is expected to reach 5.5% in 2008; while the corresponding figure in 1998 was as small as 1.2%.The study of NASSCOM has revealed that the growth of India's IT industry has prompted the growth of Indian exports by almost 36%. Another favorable effect of India's IT boom is the expansion of opportunities of employment. By the end of fiscal year 2008, the IT sector of India is expected to employ around 2 million skilled Indian youths. The growth of India's IT sector has brought about many other positive changes in the Indian economy. The purchasing power of a large section of Indian population has increased dramatically. This has resulted in an increase in the average standard of living of the majority of population of the country. The increase in purchasing power of the common people has propelled the growth rate of the other sectors of the economy as well. There has been considerable increase in the amount of fund available for venture capitalism and equity financing.

India is now home to a number of IT giants. The operations of IT firms like Wipro, Infosys, Accenture, Capgemini, Tata Consultancy Services and many more in different locations of India have changed the entire scenario of the Indian job market. The ITES sector has also come up to complement the growth of Indian IT sector.