Industry Awareness

Information Technology Consulting

Industrial Awareness Presentation

Submitted by
Arwanker Pyngrope(2016IPM023)
Dinesh Kumar(2019PGP134)
Kaviyashree Rajkumar (2016IPM049)
Sarika Ray (2019PGP528)
Shubham Ashok Jawade (2019PGP515)
Shweta Kale (2019PGP401)
Rounak Ghosh (2019PGP350)
Ishita Sahu(2019PGP183)
Overview
Focuses on providing insights to organisations on the best way to use information technology

Trends in IT consulting:
● Artificial Intelligence and automation
● Cloud-based solutions
● Cyber security

Global IT consulting market was valued at over $157 billion in 2017 and expected to grow at 11.8% from 2018 to
2025

IT contributed to 7.9% of country’s GDP

In India the IT sector is expanding at a rate of 10.71%

Business Process Management contributed to around 19.2% in Indian IT sector revenue. The market size of this
segment stood at US$32 billion in FY18

As per IBEF, IT market is expected to grow at 7-8% and reach a revenue target of US$350 billion by 2025

The boost in demand for automation and IT services is likely to facilitate the growth of the market
Major threat:

CPI expected to increase. With increase in CPI, consumers use

disposable income on everyday goods and neglect IT systems and
services.

Opportunity:

Innovation and the start of the fourth industrial revolution increases

demand for IT services and consulting. Private investment in
software and automation expected to increase in 2019.
TECHNOLOGICAL TRENDS
AND MAJOR INNOVATIONS
Current and Emerging Trends:

● Artificial Intelligence and

Smart Machines
● Virtual Reality
● Blockchain data
● Cloud Computing
● Big Data Analytics
● Internet of Things (IoT)
Key drivers for Innovation and Growth:

*Digital exports will be a major growth driver in India, global digital spend is expected to increase from US $180 billion in 2017 to US
$310 billion by 2020
India’s IT industry is increasingly focusing on digital opportunities as digital is poised to be a major segment in the next few years. It is
also currently the fastest growing segment, growing over 30 percent annually. Export revenue from digital segment already forms about
20 percent of the industry’s total export revenue.
Also, it is predicted that**:
● AI solutions will permeate enterprise applications and deliver over $52B in global market revenue by 2021, attaining a
compound annual growth rate (CAGR) to 46.2% through 2021.
● By 2024, AI-enabled user interfaces and process automation will replace one-third of today's screen-based apps. By 2022, 30%
of enterprises will use conversational speech tech for customer engagement.
● By 2022, the top four cloud "mega platforms" will host 80% of IaaS/PaaS deployments, by 2024, 90% of Global 1000
organizations will mitigate lock-in through multi- and hybrid cloud technologies and tools.
● Global spending on security solutions will reach $120.7B in 2021 with a 2018-2021 CAGR of 10.0%.
*IBEF ** IDC, published by Forbes
L&T acquisition of Mindtree
Major Players’ Profile
Major Player’s Profile (Domestic)

Company Revenue (2018) Net Income (2018)

Tata Consultancy Services $214564 m $4610 m

Wipro Ltd $8582 m $1,319 m

HCL Technologies Ltd $8632 m $1441 m

Infosys $12110 m $2,256 m

Tech Mahindra Ltd $5,089 m $630 m

Mindtree $1029 m $110 m

L&T Technology Services $744 m $112 m

Larsen & Toubro Infotech $1,384 m $222 m

Major Player’s Profile (International)

Company Revenue Net Income

Accenture $41603 m $4060 m

Deloitte Ltd $36,800 m -

Capgemini $15,574 m $861 m

The Boston Consulting Group $5600 m -

Booz Allen Hamilton Holding Corp $6704 m $419 m

Ernst & Young Global Ltd $34,800 m -

KPMG International Coop $26,400 m -

Cognizant Technology Solutions Corp $16,125 m -

Tata Consultancy Services

● Regarded as India's largest IT services provider and is one of the top technology firms in the world.
● The company has an employee base of over 4 lakh professionals across the world.
● More than 1,000 clients across various industry segments.

Key Products:

Enterprise Solutions, iON Small and Medium Business, IT Infrastructure Services, IT Services, Platform
Solutions

Relative Strengths:

1. Research And Development

2. Financial Performance
3. Global Market Presence
Wipro
● An information technology company that offers software solutions, IT consulting and other services
● Its various services consist of IT consulting, custom application design, cloud services development, re-engineering
and maintenance, systems integration etc
● Also services computing, storage, networking, security and software products.

Key Products:

Software Products, Data Storage, Contact Centre Infrastructure, Enterprise Security, IT Optimization
Technologies, Video Solutions, End-User Computing

Relative Strengths:

1. Global Delivery Model Growth

2. R&D
3. Customer Base
Effects of Government Regulations and
Policy Changes
 Issues

● The IT Act 2000 - Legal recognition for transactions carried out electronically.
● Almost all tech sector giants like Facebook, Google, Amazon and Uber faced regulatory challenges from many
governments.
● Guidelines to host Indian data in India itself. Eg. FB, Google, Amazon etc. while Paytm Jio having an edge.
● Customs Bonding for the companies operating under the STP scheme.
● Difference of opinion between Central/State Government, hence double taxation on the same transaction.
● Demand for clarity on taxes applicable to IT software.

Incentives by Indian Government

● IT Act 1961 - 100% exemption on profits from export of software

● Higher rate of depreciation on computers and software
● Incubation facilities in 49 centres with plug and play facilities
● Concessions like 100% import duty exemption
● Reimbursement of Central Sales Tax paid on capital goods
 Government Policies outside India
China
● A maximum rate of 10% is applicable for key
software enterprises identified by the state
against the normal tax rate of 30%.
● Exemption from payment of custom duties
and import VAT for software enterprises.
Singapore
● Pioneer Status titled companies have 100%
exemption from income tax for first 5-10y
● Double deduction of all expenses related to
R&D
● More than 20% revenue generation gives
exemption on export profits.
Malaysia
● Cyberjaya Flagship zone.
● 100% income tax exemption for first 10
years, duty free import.
● 100% deduction on approved capital
expenses for first 5 years.
Korea
● 100% exemption for corporate income tax
for first 7 years in which profit generated or
5 years of operations
● Upto 50% income tax exemption on
technology transfer by patent holder
 Union Budget 2019- 20

● $10 trillion economy in the year 2032

● Corporate Tax
● Individual Taxation
● National Programme on ‘Artificial Intelligence’
● Development of 1 lakh digital villages
● Make in India
Government Laws facilitating the IT Boom

1. 100 percent Foreign direct investment

2. The Exemption from Industrial Employment (Standing Orders) Act, 1946
Exports