For Office Use:

Grade

Communication for Managers

Group Assignment
Company Analysis Report
On
L&T InfoTech

Submitted To: Prof. Harismita Trivedi

Submitted By: Irfan Ali (151421)
Keval Kotecha(151423)
Nidhi Mehta (151431)
Date of Submission: 30th October, 2015
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Acknowledgement
Our team wants to express sincere gratitude towards all the people who have helped us in the
preparation of this project. The whole team would like to thank the Institute of management, Nirma
University.
We express our deepest gratitude towards Prof. Harismita Trivedi and Mr. Maulik Bhatt, who guided
and mentored us throughout the project and gave us the most valuable feedback, suggestions,
encouragement and motivation which helped us make this project an impactful and enriching learning
experience.

Executive Summary

Table of Contents
BUSINESS INFORMATION......................................................................................................................................................4
ORGANIZATION INFORMATION........................................................................................................................................9
REFERENCES........................................................................................................................................................................12

Business Information
1. Brief Industry Analysis
Indian IT sector is considered to be one of the fastest growing sectors of Industry. It is also worlds
largest destination for IT outsourcing which accounts for 52% of US $124-130 billion market. The ITBPM sector in India grew at a compound annual growth rate (CAGR) of 25 per cent over 2000-2013,
which is 3-4 times higher than the global IT-BPM spend, and is estimated to expand at a CAGR of 9.5
per cent to US$ 300 billion by 2020.
Indias internet economy is expected to touch Rs 10 trillion (US$ 161.26 billion) by 2018, accounting
for 5 per cent of the countrys gross domestic product (GDP). In December 2014, Indias internet user
base reached 300 million, the third largest in the world, while the number of social media users and
smart phones grew to 100 million.
The IT industry has not only transformed India's image on the global platform, but has also fuelled
economic growth by energizing the higher education sector especially in engineering and computer
science. India's cost competitiveness in providing IT services, which is approximately 3-4 times
cheaper than the US, continues to be its unique selling proposition (USP) in the global sourcing market.
[1]

2. GDP Contribution:
Size of the Industry 9.5% of the country's GDP
Geographical
distribution

Bangalore, Chennai, Hyderabad, Delhi,

Kolkata, Pune

Output per annum

Compound annual growth rate (CAGR) of

23.72% during FY15.

Market
capitalization

According to NASSCOM the revenue from

information technology sector has risen
from 1.2 % of the GDP in FY98 to 9.5% of
GDP in FY15.

Major Players
Contribution

The top six firms contribute around 36 per

cent to the total industry revenue, indicating
the market is fairly competitive, with TCS
being the leader accounting for about 10.1
per cent. [2]

3. Domestic/ Export Revenue:

4. Major Segments:
The Indian IT and ITeS industry is divided into four major segments IT services, business process
management (BPM), software products and engineering services, and hardware. Products & Services
offered under these segments:
1. Project-oriented
IT Services
2. Outsourcing
3. Support and training
BPM:

1. Horizontal-specific
2. Vertical-specific

Software products 1. System Software

and engineering 2. Enterprise applications
services
3. Vertical applications
4. Embedded systems
Hardware

1.
2.
3.
4.
5.

Personal computers
Network equipment
Storage and security
Servers
Printers

Sector-wise Revenue:

Source:NASSCOM

Domestic Revenue:

Source:NASSCOM

Export Revenue:

Source:NASSCOM

5. Major players

6. Opportunities and Concerns

Opportunities
Emerging new markets in the global context as all businesses are switching on to digital mode.
Emerging Cloud computing technology.
Threats

High exposure to the foreign markets

Bigger MNC's entering India and competing for global clients
Economic slowdown and uncertainty in USA and Europe respectively

7. Trends in IT

Social, mobility, analytics and cloud (SMAC) collectively provide a US$ 1 trillion opportunity. The
cloud represents the largest opportunity under SMAC, increasing at a CAGR of approximately 30 per
cent to around US$ 650-700 billion by 2020. Social media is the second most lucrative segment for IT
firms, offering a US$ 250 billion market opportunity by 2020.
The US$ 12 billion plus rising Indian e-commerce business market is witnessing a rush of hiring and
may need 100,000 people over the next six months, as per the industry experts. The industry offers a
slew of opportunities and scope for innovation, thereby attracting the young mind to push their limits.

Organization Information
History and Development
Larsen & Toubro Infotech Limited (L&T Infotech), incorporated in 1997, is a wholly owned subsidiary
of the EUR 3.3 billion technologies driven engineering and construction major, Larsen & Toubro
Limited. Its main headquarter located at Mumbai, India Sanjay Jalona is the CEO & MD of the
company. IT Service management and IT Consulting are the major area of business. L&T InfoTechs
business is classified under two business Clusters Industrials and Services:
The Industrials Cluster leverages the parent Companys existing strengths and heritage to cater to
manufacturing plants, establishments, including wholesale, retail sale of products and establishments
dealing with Energy and Utilities. This cluster also houses horizontals of SAP, Oracle, Enterprise
Integration, as well as Manufacturing Execution Systems. The horizontals are responsible to serve
clients across both Clusters.
The Services Cluster focuses on Banking, Financial Services, Insurance, Media & Entertainment,
Travel & Logistics, and Healthcare. This cluster houses Testing horizontal.
Some of the key trends which are expected to drive industry growth are as follows:

Infrastructure Management Services (IMS): Traditional IMS would remain, however, cloud
based IMS and Automation would bring the growth in this segment.

Digital: Digital is the new Buzz word, especially in the Domestic market. Prime Ministers
Digital India plan, Smart Cities Initiatives are opening a lot of opportunities for the IT industry.

Internet of Things (IoT): IoT is the key to Digital world. It would lead to all physical devices
being connected, which would have numerous business benefits across industries. IDC forecasts
that the worldwide market for IoT solutions will grow from USD 1.9 Trillion in 2013 to USD
7.1 Trillion in 2020.

Newer Delivery models: Digital, IoT, Automation, SMAC is not only disrupting what IT
industry offers, but also how it is offered. Newer technologies are leading to newer delivery
models. Many players are trying different delivery models like Factory model.

Growth from Emerging markets: US and Europe has traditionally been the largest IT markets.
In the last few years, however, share of Emerging markets is slowly increasing, with significant
contribution in incremental IT growth.

L&T Infotech, a wholly owned subsidiary, grew at 18% Y-o-Y on a consolidated, like-to-like basis.
Profit after Tax grew by 4%, due to the impact of prior period adjustment. L&T Infotech has embarked
on building a strong sales and marketing team globally with emphasis on the Americas, Europe, Gulf
countries and the Far East. The Company has also undertaken certain major initiatives intended to
enhance the visibility, profile and sharpen its distinction through the differentiated solutions it offers on
multiple domains. Technology Services, a Strategic Business Unit of L&T, is being formed into a
subsidiary. This will result in consolidation of all engineering services business of L&T and L&T
Infotech. This subsidiary will provide an autonomous functioning in line with industry practices.

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Organizational Structure

Key Executives for Larsen & Toubro Infotech Limited

Mr. Sanjay Jalona
Chief Executive Officer, Managing Director, Director, Member of Stakeholders' Relationship
Committee, Member of Corporate Social Responsibility Committee, Member of Risk Management
Committee and Member of IPO Committee
Age: 46
Mr. Ashok Kumar Sonthalia
Chief Financial Officer and Member of Risk Management Committee
Age: 47
Mr. Sunil Pande
Business Head of Services
Age: 65
Mr. Makarand Deolalkar
Business Head of Industrials
Age: 53
Mr. Vinay Rajadhyaksha MBA
Chief Delivery Officer
Age: 53
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Key Alliances

Awards & Recognition

In 2015, L&T Infotech Awarded TOP SAP PARTNER in the STRATEGIC INDUSTRIES
category
In 2014, L&T Ranked Asias 2nd Most Sustainable Company in Industrial Sector
Ranks in the top 10 of NASSCOMs IT service providers list annually and was ranked 6th in
NASSCOMs IT service providers list for FY14.
Won two awards at World HRD Congress for driving Leadership and Talent Development
initiatives.
Won Asia Training & Development Excellence Award, 2014 at World HRD Congress,
Singapore, under the Best Education Training Campaign & Program category.
Won Innovation in Mobile Industry Award at the Mobbys Awards hosted by World Marketing
Congress.
Won three Awards at World Innovation Congress in Technology, Innovators and Entrepreneurs
categories.
L&T InfoTech's autoMATIC shines at NetApp Innovation Awards under the Big Data
category.

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References
1. http://indiainbusiness.nic.in/newdesign/index.php?param=industryservices_landing/395/3
2. http://www.ibef.org/industry/information-technology-india.aspx
3. http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=4440082

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