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Information technology (IT) is concerned with the development, management, and use of

computer-based information systems. 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.

Features of the IT Industry at a Glance:
Economies of scale for the information technology industry are high.
Unlike other common industries, the IT industry is knowledge-based.
Efficient utilization of skilled labor forces in the IT sector can help an economy
achieve a rapid pace of economic growth.
The IT industry helps many other sectors in the growth process of the economy
including the services and manufacturing sectors.

Major IT Companies and their market shares:

WIPRO 7.2%
TCS 10.7%
HCL Tech 4.2%

Some of the current trends of IT sector are:
Strong growth opportunities: The IT-BPM sector in India is estimated to expand at a
CAGR of 9.5 per cent to USD300 billion by 2020. The sector increased at a CAGR of
25 per cent over 200013, 3-4 times higher than global IT-BPM spends.
Leading sourcing destination: India is the worlds largest sourcing destination,
accounting for approximately 52 percent of the USD124130 billion market. The
countrys cost competitiveness in providing IT services, which is approximately 3-4
times cheaper than the US continues to be its USP in the global sourcing market.
Most lucrative sector for investments: The sector ranks fourth in Indias total FDI
share and accounts for approximately 37 percent of total Private Equity and Venture
investments in the country.

Major risks involved and its impact on Infosys would be as follows:
Economic risk: For the IT service industry, the demand momentum is looking healthy in the
major markets. Discretionary spend is increasing. However, there are pockets of global
markets where there are still some uncertainties. IT service industry is closely linked with the
global economic situation
Restrictive cross border mobility legislations: Some countries may lead to multiple
challenges: Non-tariff trade barriers proposed by some countries may lead to multitude of
challenges. Mobility of resources across the globe will be impacted, leading to increased
costs and margin pressures.
Business Model redundancy: The new disruptive technologies, such as cloud, big data,
mobile smart devices and social media are impacting the behavior of the consumers, posing
business challenges to the traditional customers.
Integration risks in M&A: The Companys post-acquistion challenges include cultural,
financial and technology integration risks which if not addressed adequately could result in
failure to achieve the strategic objectives of the acquisition and the resultant synergy