Annual Issue, March 2011

SummIT (The Technology Cell @ NMIMS)

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Foreword
Dear Students, The SUMMIT team this year too has excelled in making information technology reach out to all of you. They had conducted several guest lectures and panel discussions ranging from topics such as “Careers in the IT Industry” to “The Changing Role of the CIO”. Specific mention must be made of the fact that the SUMMIT team organized a highly interactive session by Prof. Mohan Tanniru Dean and Professor of MIS at Oakland University, USA, for students of the MBA 1st and 2nd year. I am also delighted to see a huge amount of interest from the students to participate in the Computer Associates Global Case Study Competition. I am sure you will all benefit immensely from this competition. It really does not matter who wins. The very fact that you have participated is a big achievement and it will help you in the long run. I wish all the second year students all the very best in their careers and I look forward to their involvement in

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SUMMIT activities next year too – as an Alumni, of course! I also wish all the first year students all the very best in their Summer Projects. The first year students will soon decide on their choice of electives. As I had explained to all the first year students in the Open House session on March 21st, our Information Systems Area electives have been designed keeping the industry requirements (IT Industry , Consulting Industry , User Industry) and also the roles in mind. The demand for an MBA with Information Systems Major or Minor is very high. Therefore, if you have any questions about careers, roles or Information Systems Area electives please feel free to drop in any time and get your queries clarified. I wish you all once again all the very best for the future! Regards Dr.Nilay Yajnik Professor and Chairman – Information Systems Area SBM, NMIMS

CONTENTS Table Of Content
EDITORIAL ………………………………………………….…...5 ABOUT SUMMIT ………………………..…………….………...6 ARTICLES
Are we ready to harvest in the clouds ? ….…………....…….. Solutions to the IT industry to penetrate the SME market ….……..……..….……..……..….……...……...…

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13 Latest Trends in the field of IT ….……..…………...………...22 Indian I.T. and the 2020 vision ….……..…………..……….28
The new era challenges of IT: the 2 C’s-

33 Innovations in IT……..….……..……..….……..……..…….……..38 Why West, Why not East…….……..…………………...…....….42 BRAIN TEASERS.………………………….…….……….……..48
Consolidation and compliance …….……..……...............…
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TEAM SUMMIT………………………………………....….…..50

Editorial

“You can't just ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new. “ -Steve Jobs MANTHAN is a unique initiative undertaken by SummIT. It invites articles all over the top B-schools of the country like IIMs, XIMB, etc. and publishes the top ones. MANTHAN has also enabled the confluence of diverse industry perspectives on IT and business. This year’s theme: IT 20-20 Vision and strategies

Best Wishes TEAM MANTHAN, 2011

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IT. The club members therefore regularly bring to campus distinguished people from the IT world & other prominent industry people to interact with students and to get broader perspectives on pertinent issues of future importance. Sr. Milind Rumade. i. AmSoft Consulting Theme: ‘The current and future trends and the role of MBAs in IT industry’. Manager. Ideation & Information Technology. Lokesh Bhagwat. be it new business or running existing business efficiently. Microsoft Office 2010 Workshop SummIT cell has always stressed on adding 6 value for the students and there was no better way than asking Microsoft to conduct a . This is the event where panel discussion or Seminars are conducted. needs to be understood at a macro level and ideation is what keeps any business going.About SummIT SUMMIT is a student body at NMIMS that involves itself with developments in the fastest changing domains of world business.e. Accenture Mr. Patni Computers Mr. Activities (2010-11) Ideas – Our Flagship Event IDEAs is the flagship event of SummIT. The purpose of IDEAs is to be the only source which keeps the budding managers updated on the industry front. The rapid changes in the business environment have resulted in increased complexities and responsibilities for the information manager today. being essentially borderless. Director. This year the Guests of Honour for IDEAs were: Mr. Shailesh Mahajan. VP-Strategy.

is the interactive IT newsletter. etc. Paragana. It was conducted in a 2-day period (March 5-6th) and featured the popular multiplayer games (“Counter Strike 1. Manthan. Mumbai. The session was a huge success. It was a very successful event. Ideate Ideate. cultural event at NMIMS. This year. 2010. Every issue invites articles on various broad topics of IT.the IT e-Magazine Manthan is a unique initiative undertaken by SummIT. projectors. Zero Respect ‘Zero Respect’ was the inter-collegiate LAN Gaming event organized by the SummIT cell as part of Euphoria 2011. Manthan has also enabled the confluence of diverse industry perspectives on IT and business. Nitin Paranjape. “FIFA 11”. the Microsoft Guru.6”. The gaming room was equipped with gaming boards and LED lights. “NFS Most Wanted”. as part of the college annual fest. Manthan has gone online in e-versions. 7 . From last year. The brand new and powerful Alienware laptops on which the gaming was conducted added to the ambience and gave the participants a rich gaming experience. Paragana Khoj . SummIT launched two editions of Ideate. Rock music played while the gamers took on the battle.the online treasure hunt game was organized on November 17. “Call of Duty” MW II).session on Microsoft Office. The session was conducted by Dr. SummIT cell received accolades from all the attendees.

” The idea of the "cloud" simplifies the many network connections and computer systems involved in online services. SIBM Pune Sitting on a bench in my campus on lavale hill. eating hot samosa under naked sky.Internet based development and use of computer technology whereby dynamically scalable virtualized resources are provided as a service over the Internet.” The reaction of the non engineers said it all. To elucidate it our marketing student jump into discussion claiming cloud computing reduce cost.1st Prize Are we ready to harvest in the clouds ? Rajkumar Singh. you don’t need to install software etc. Computer science engineer were there to flaunt their knowledge while nonengineers (hard to find in a B-school) were looking equally puzzled. After watching the discussion one of non engineer anxiously enquired -What is cloud computing? Before anyone can answer properly. Proper definition comes from a fin guy –“Cloud computing is a technology that uses the internet and central remote servers to maintain data and applications. 8 . I heard few of my batch mates talking about cloud computing. Cloud computing allows consumers and businesses to use applications without installation and access their personal files at any computer with internet access. My friend sitting beside me jump into discussion (most common time pass in Bschool) arguing about the benefits and threats of cloud computing. one of my friend working on his laptop immediately googled it (the work MBA’s are best) and opened the first link and read “Cloud computing is .

Licenses under their model aren’t "per computer" as is the case with a lot of other software.Cloud computing is a general term for anything that involves delivering hosted services over the Internet. directly from an application service provider. reaching over $40 billion in revenues by 2014.com. Under Salesforce. Platform-as-a-Service (PaaS) and Software-as-a-Service (SaaS). After gathering momentum over the last 5 years. SaaS will grow six times faster than traditional packaged software.com’s SaaS model. The service that we are going to discuss is SaaS –It is a class of software that is available on demand and. IDC predicts that over 2010-2014.com’s web-based system and buy only enough licenses for their users. particularly the small and medium business segment. a customer relationship management (CRM) application used by many businesses. users connect to Saleforce. These services are broadly divided into three categories: Infrastructure-as-a-Service (IaaS). 9 . One of the best known SaaS applications is Salesforce. oftentimes. witnessing massive adoption from all sectors of the economy. In a recent report. the “cloud” and “software-as-aservice” are now more than mere buzzwords.

Rapid growth of virtualized resources across multiple environments Relationship of virtualized resources to underlying physical infrastructure Health monitoring and problem determination across a physical and virtualized infrastructure 10 . Lower total cost of operations Challenges Managing a Cloud Environment Cloud computing enables organizations to provide reliable. Rapid. With these benefits also come new complexities that must be properly managed. anywhere access to IT resources 2. on-demand services in a flexible and affordable manner offering the benefits of open standards.So once cloud computing is clear then discussion start on it being a blessing or a threat in the future Benefits of cloud Computing 1. request-driven provisioning 4. scalable systems and service oriented architecture.Predictable anytime. Flexible scaling of resources (resource optimization) 3.

Threat of Cloud computing 11 .

Closing it with the statement of David Girouard. he said “we believe that 100% web is the future of the cloud computing model” and so do we.Even though some threats are present in cloud coming but future look too promising for Cloud computing. 12 . the president of Google’s Enterprise business.

COMMON PROBLEMS IN SMES: Limited ability to gather information regarding the market opportunities. small and medium industries play a vital role in the growth of the economy. China and Brazil following at 22. Meyappan. They contribute nearly 35% in direct export and 45% in the overall export from the country . with Russia. LIBA Chennai GROWTH OF SMES The total spending by Indian small and medium enterprises on IT.2nd Prize Solutions to the IT industry to penetrate the SME market K. It is estimated that. growing revenues. SMEs are getting all the focus across different sectors including manufacturing. outside the agriculture sector. apart from revenues. which has been growing rapidly over the past few years. The SMEs provide employment for about 85% of all factory related works more than 80% of IT industry belongs to SME. trading. increasing profits and beating competition – SMEs are obsessed to break away and become large companies. Small industries have a 40% share in industrial output. 20.4 per cent respectively. the SMEs account for more than half the GDP and employment in the country. In India. This growth rate is the fastest amongst all BRIC (Brazil-Russia-IndiaChina) countries. employee verifications in new territories 13   . says a new study from Microsoft-AMI Partners. professional services amongst others. is set to continue at 24 per cent. Acquiring more customers. As operations grow from a ‘garage-like’ size to larger establishments. but they contribute only 30%. upcoming changes and competitors Limitations to get client /prospective partner. distribution.9 per cent. producing over 8000 value-added products.4 per cent and 19. employees are growing.

Inspection reports required on time. easy to use and requiring less manpower Communicating needs to vendor and to large firms. Cash flow forecasting. The services provided must be easy to use and does not require much training and can be used immediately after installations. Difficulty in handling different sets of purchase orders. Too much manual effort required. The services must also make sure no special training is required to operate the soft14 . inventory. Completion not as per schedule. Unavailability of vendor performance systems. payroll. Informatization Promotion. Lack of expected receipt information. Difficulty in integration and predicting outcomes in terms of finished goods. thus they can get on large markets. Information not available on time. No co-ordination in scheduling and set-up of material. hence difficulty in management. finances. suppliers. Need to remind vendors. and customer demands Accounting software. Alerts on stock levels. personnel. Need to keep track of enquiries.                    Lack of technological infrastructure Too many items to be procured. SERVICES TO BE PROVIDED BY IT: The IT services must concentrate on only the common SME related issues and not on niche market.

ware. advancement in existing prod15 . since most of Indian industry has only IT solution provider 40% of market cannot be looked in but the other 55% of market can be captured with only IT solutions. service.  Billing methodology. THE SERVICES MUST BE: Visibility must be very high Intuitive – Works the way you do Adaptable – Adapts as your business needs change Predictable – Reduces your risk and cost with industry best practices built in. support and IT staffing. hardware investments.  The communication setup to contract IT vendor easily. where paying and bill value can be accessed and checked. The overall IT costs must be reduced by user training. The 45% has just started to implement in technology and they require completely new product where as nearly 40% has no access to new technology or even PC’s. The new products can be updation of existing product with minimum cost. The trial pack of services for 1 to 2 weeks must be provided. The pricing techniques provided below can be used even in hardware implementation by which 40% of the big market can be captured. since only 2% of entire SME has good ERP or any system this market is small but still has ability and willingness to new system.  Website that shows the new products. The installation time and time taken to go o operation must be reduced(Cycle time reduced to bare minimum). OTHER SPECIAL SERVICES TO BE PROVIDED BY IT INDUSTRY:  Tracker tool which shows the highly used application or software.

   uct. Some SMEs might not use the software to that level others do. There should be a website where. With limited tolerance for risk. so same initial pricing may look very odd to SMEs. 16 . the old softwares or leased ones can be traded to other SMEs Online query clearance must be provided to all SME from primary or secondary trading. All SMEs may not require same level of software.  The cost of marketing should be reduced so that it can be transferred to its customers. SMEs are not sure how new technology would provide ROI. Most of software applications may not be used so instead of spending on unwanted software applications others can be used. IT ISSUES IN PRICING:  Intellectual property must be maintained  Reaching larger markets at no loss or profit. they should have achieved at least the break even point. they prefer to spend more on incremental investments that drive additional benefits or ROI from previous IT purchases but only 2% of entire SMEs have proper IT infrastructure. The software updating which are free should be done through online and online payment facility must be provided to the SMEs NEED FOR NEW PRICING TECHNIQUE:        SMEs are not ready for high initial installments If technology updates or changes required the. so few SME might choose lower level at lower cost.

the 17 . The pricing of project must be based on its demand and also based on market available. After initial investment. attracting larger market and making same clients to buy or recommend their dependents to buy higher end solutions from the same client. Penetration pricing is the pricing technique of setting a relatively low initial entry price. how much. and how well software is used. IT industry must take into account a new breed of customer that judges software by its ability to contribute value to the organization—measuring where. a price that is often lower than the eventual market price. The paper is on penetration in Indian SMEs so the pricing methods followed are penetration pricing techniques.    Boost Adoption rates of new customers Control Cost for acquiring new customers and up-selling the existing base Generate Healthy Margins and Profit Generate new customers by allowing existing customers to sell their software to other SMEs INNOVATIVE PRICING METHODOLOGY: Pricing method by which each software product can be priced: Since not all software packages are homogeneous and many applications are available with in a software package it is difficult to price software package. when. The pricing must not be complex which may not attract the customers. more or less IT spending is on knowledge and work force level rather than on any infrastructure or sources.

profit doesn’t come last even when we like to penetrate into new market so profit is a must in any new technique developed. Thus each customer becomes a parent nod which on time will produce new child which 18 . the IT industry must list their solutions and cost clearly on website which helps them to choose the product. New pricing techniques. The market must be wide spread at the same time quickly reach the SMEs end. The awareness of the product and related issue in them should be focused and reach the every end of the SMEs. The most of the software solutions are add-ons hence price must also based on the existing product cost. TECHNIQUES: MULTILEVEL MARKETING: In word of mouth has always been the best way to attract new customers. Mobile pricing technique Leasing technique Rental method Monthly installment package Usage pricing Differential pricing MARKETING: The cost of marketing SME related IT product must be reduced so that it can be transferred to SMEs. The use of each customer to attract new customer by which marketing cost of attracting each new customer is transferred to existing customer and providing them with better product and cost saving.

Affiliates are people who will promote and sell our software products from their websites. in return of a small commission for every sale. or any combination. or a commission for each customer or sale (Pay per Sale). RETAIL SALES: A cluster of SMEs which are interdependent may require same product. Thus the marketing grows without much cost spending and benefits are reaped. The compensation may be made based on a certain value for each visit (Pay per click). new customers can be attracted and also new customers join the market it also enables the existing customer to buy any new product since existing not that comfortable can be sold. by retail sales all these clusters can be attracted and we can add up new market. TRIAL PACKAGES: Most important part of software marketing is providing trial packages of 19 . registrant (Pay per lead). BLOGS: The IT industry must concentrate on developing separate blog where SMEs can update their request and also interact on various software tools and their pricing techniques. SECONDARY MARKET: By creating secondary market for existing customers to sell their product. AFFILIATES MARKETING There is a vast network of affiliates on the internet.apparently becomes new parent.

The IT spending by some companies also concentrate completely on HR and accounting software which are not updated from time to time. dollar value and many other factors.software at least cost to understand the value added by such projects to SMEs. Dropping your price to a popular price point might mean a lower margin. POPULAR PRICE POINTS There are certain "price points" (specific prices) at which people become much more willing to buy a certain type of product. "under Rs500" is a popular price point. CONCLUSION: The IT spending by SMEs are growing YOY but Indian IT industry is still focused on outsourcing phenomenon which is highly dependent on world market. Maintaining IPR is must to even think about of entering 20 . Most of SMEs are reluctant because of high initial investment and fast changing technology as main reasons. The SMEs are ready to adopt IT but it must show clear ROI and time spent on it must be fruitful. For example. Low initial investment will attract more SME who can be upgraded to new better products based on the returns they produce. It is not necessary for IT to produce high end software attract SMEs a software package which would solve the common problems of SMEs could attract a million. Hence there is a large SME market in India which needs no high end solution but solutions which could give good returns and long lasting. but more than enough increase in sales to offset it. The multilevel marketing and trial packages. creating secondary market for old softwares etc are must to attract the SMEs in India. The most important part where IT has to concentrate is on pricing methods by which can attract the SMEs.

Additional information on global SMES Kind of products expected by global SMEs: The software with non enterprise solution is still 31% across the globe is research finding by SIIA. The reasons to adopt IT by SMES It also shows more than 35% spend on communication and more than 55% on efficiency. 21 .SMEs.

Intel and Wipro are some of the companies that are investing heavily in the above mentioned technologies to gain the first mover advantage and to later capitalize on the same. MDI. HP. Social Communications and Collaboration. and storage services that do not require end-user knowledge of the physical location and configuration of the system that delivers the services. Cloud Computing: Cloud computing to put it in layman’s terms-is a computation. Dell. Virtualization and Storage Techniques and Development of Knowledge Centre especially for SME businesses.just to name a few.3rd Prize Latest Trends in the field of IT Vivek Mogili. Green Computing. which is going to change the landscape of the Industry and is going to bring about a tectonic paradigm shift in the way business is conducted. Unified Communications. Apple. Social Analytics. if we get into the article and try to understand the different technologies and how impactful they can be. Gurgaon This article tries to focus on the key technological trends in the field of Information Technology. data access. This article also does not delve deep into the different trends and the sweeping changes that the same is going to bring about but rather emphasizes on providing with a broad overview of the different trends and technologies and what exactly are they at a macro level. Introduction: Of late there has been a considerable amount of changes that the IT industry has been witnessing-be it in the form of Cloud Computing.Next Generation Analytics. IBM. Parallels to this concept can be drawn with the electricity grid where end-users consume power resources without any necessary under22 . Now. IT Behemoths like Microsoft. software.

who no longer have need for expertise in. the technology infrastructure "in the cloud" that supports them. Advanced Analytics: 23 . Cloud computing is a natural evolution of the widespread adoption of virtualization. autonomic and utility computing. Details are abstracted from end-users. or control over. service-oriented architecture. only Operational Costs)  Reliability  Security(due to centralization of data and better utilization of security focused resources)  Metering(can be easily measured) Companies like Microsoft and SalesForces.standing of the component devices in the grid required to provide the service. Fig: Cloud computing sample architecture The following are the key characteristics of Cloud Computing:  Multi-tenancy  Reliability  Scalability(On demand scaling possible at ease)  Cost (There are no Capital Expenditure costs involved.com are providing exclusive solutions in this sphere and are making substantial margins and exploiting the scales of economy that this sphere offers.

However. The momentum will continue to build making advanced analytics more pervasive. dealing with brand image and voice of the customer have also sprung up. Operationalzing Predictive Analytics: While not every company can or may want to build a predictive model. have already partnered with online providers to offer this service. vendors Aha! Software and Clario are providing predictive capabilities to users in a cloud-based model. Those that haven’t will do so this year. Analyzing complex data streams. Social Analytics: Analyzing unstructured text will continue to be a hot area for companies. For example. For example. such as Attensity and Clarabridge. numerous “listening post” services.These are the five advanced analytics trends that one can expect to see in the near future. to name a few use cases. Vendors in this space have weathered the economic crisis well and the technology is positioned to do even better once a recovery begins. there was a lot of buzz about predictive analytics. Forward looking companies are already using this as part of the call center process. Additionally. Expect this trend to continue in 2010. and churn analysis. there are certainly a lot of uses for operationalizing predictive models as part of a business process. IBM bought SPSS and other vendors. Predictive Analytics Model Building: In 2009. such as SAS and Megaputer. in fraud analysis. A number of forward-looking companies with large amounts of real-time data (such as RFID or financial data) are already investing in analyzing these data streams. Some are using the ondemand capacity of cloud based model to do this. While different in approach they both speak to the trend that predictive analytics will be hot in 2010. also beefed up offerings. while voice of the cus24 . A newish development that will continue to gain steam is predictive analytics in the cloud. Social media analysis really took off in 2009 and a number of text analytics vendors.

call control and speech recognition with nonreal-time communication services such as unified messaging (integrated voicemail. data sharing(including web connected electronic whiteboards aka SMARTBoards). SMS and fax). telephony (including IP telephony). e-mail. There is a lot of data out on the Internet that can be used to gain insight about markets. trends. I think other application areas such as competitive intelligence will also gain momentum. presence information. These are the following things that any Social Analytics software primarily tries to gauge:  Volumetric tracking of conversations  Affinity / Sentiment measurement  How are people saying it?  Social Graph Measurement  Monetization  Unified Communications: Another key trend in the field of Information Technology that is fast catching up is-Unified Communications. UC allows an individual to send a message on one medium and receive the 25 . In its broadest sense UC can encompass all forms of communications that are exchanged via the medium of the TCP/IP network to include other forms of communications such as Internet Protocol Television (IPTV) and Digital Signage Communications as they become an integrated part of the network communications deployment and may be directed as one to one communications or broadcast communications from one to many. UC to put it in simpler terms is the integration of real-time communication services such as instant messaging (chat). video conferencing. UC is not a single product.tomer has been a hot area and will continue to be. but a set of products that provides a consistent unified user interface and user experience across multiple devices and media types. and competitors.

on an appliance using software. one can receive a voicemail message and choose to access it through e-mail or a cell phone. If the sender is online according to the presence information and currently accepts calls. start simple and evolve. the response can be sent immediately through text chat or video call. it may be sent as a non real-time message that can be accessed through a variety of media. Specific types of virtualization solutions and technologies may have more relevance for different size environments. UC finds its applications in the following areas:  Telemedicine  Education (especially distance education)  Healthcare  Financial Services  Hospitality  Defense and Space Research  Virtualization and Storage Techniques: The fundamental idea behind virtualization is to abstract. 26 . For example. in a storage system or on a switch using software and hardware. Where to put and deploy the technology depends on your needs and preferences. Otherwise. Figure 1 below shows how storage-related virtualization techniques and technologies can be deployed to address more than storage pooling and volume management in an IT environment. Virtualization technologies and solutions can have great benefits for almost any IT organization regardless of size.same communication on another medium. Virtualization can be done at many different locations in many different forms. When it comes to virtualization technology. emulate and facilitate aggregation among different capabilities. including on a server using software.

com/2010/01/04/five-predictions-for-advancedanalytics-in-2010/ http://www. References http://www.com/customsites.jsp?id=1454221 http://en.gartner. Done right. and then aligning those capabilities to your needs. can be the key to a successful storage virtualization technology deployment.com/management/features/ article.org/wiki/Cloud_computing http://fbhalper. virtualization technology should be transparent and reduce your management activities and eliminate complexity. Realizing that different solutions are targeted at various functions.com/it/page.php/3640401/Storage-Virtualization-Its-More-Common-Than-YouThink. and keep in mind what the specific virtualization technology is designed and intended to support. Conclusion We are living in interesting times where change is the only constant and only those companies that embrace change wholeheartedly would stay relevant in this era of cut-throat competition.slideshare.aspx http://www.enterprisestorageforum.ciol.wordpress.net/gcahill/practical-social-analytics http://www.wikipedia.htm 27 .understand your scaling issues.

These include the BPO-KPO and maintenance functions which constitute a huge chunk of India’s IT pie. The IT-BPO industry revenues have grown from 1 billion USD in 1990 to 65 billion in 2009. 28 . NMIMS Where we stand: The Indian IT industry has come a long way since its modest beginnings post Globalization of the Indian economy. There are several key factors involved which have had a role to play in this success stories. India’s literacy rate has risen from 52 to 71% in the last two decades.e 30% of India’s entire service sector revenues. i. India has managed to produce skilled professionals through its robust school and graduation system which is a pre-requisite in knowledge based industry like this. We will now try to examine these factors in detail: The workforce: At the heart of India’s progress in this industry is a workforce which is talented and is conversant with the English language. telecom. It has traversed the long journey of partnering global IT giants to provide services for their products to becoming the world’s premier destination for outsourcing software solutions. What has contributed significantly to this is India’s impressive leap in literacy figures over the last two census surveys.4th Prize Indian IT and the 20-20 vision Kaustubh Giri. Rapid advances in ICT (IT. broadcast) have fuelled the growth in this sector. Relative familiarity with the English language assures that this workforce is well equipped to handle the middle and lower level demands of the IT value chain. It currently contributes upto 14% of India’s GDP.

It is among the world’s youngest population and this potential will be exploited even more fully in the coming decade. Mexico etc. which accounts for 61%. India’s key strength in this field is that it can produce superior technical expertise at similar costs to other competitors like China. The Demographic Dividend: The break-up of India’s population map reveals the fact why investors from all over the world continue to bank upon India’s unimpeded growth in this field.Cost competition: The lower and middle level jobs in the IT sector are highly dependent on cost competition. These figures are testament to the fact that India can maintain its advantage for a long time to come if it adapts itself continuously to changing business scenarios. South East Asian countries. The IT industry as a result of these factors has been growing at an average rate of 25-30% over the past decade. while Europe accounts for a large part of the remaining. 29 . Where we are heading According to a recent estimation by NASSCOM. In stark contrast to aging populations of the west and Japan. a substantial part of its revenues come from US. India will have only 19% of its population above the working age as compared to 40% and above in the rest. the 3 scenarios for India in 2020 read like this: Low growth: 185 billion USD in revenues Medium growth: 255 billion USD High growth: 350 bn.

followed by telecom. but should be innovators in these fields. BFSI is the highest contributor with a share of 38%. the solution providers will be the ones who will be the most sought after. manufacturing and retail. then the revenues from the ownership of these technologies will be significantly higher and it will promote a culture of innovation in the industry. As business all over the world have integrated and will continue to integrate Information Systems.Among the revenues. We must now strive to move up the value chain and provide services which are compatible with changing business models around the globe. knowledge and management systems like SAP. That means. India now has to gradually move away from competing on costs to start competing on quality. The Stumbling Blocks 30 . Oracle etc. The blue ocean ventures are still a stranglehold of the developed nations and India must strive to enter that arena. The key parameter for this is investment in R&D. When India is able to achieve that. that in future our Indian IT companies should not just be implementers of cutting edge technologies. ERP into their fabric in an even larger way. A move has to be made to move away from BPOs to KPOs and from maintenance and support dominated services to developing customized business solutions and IT information systems. Where we should strive to reach As is clear from the facts. India has established itself as a pioneer in middle and lower level demands of the IT industry. and India must tap that potential opportunity.

it raised questions about the sustainability of India’s outsourcing led growth. Education: India needs to invest more in higher education and invest more in R&D to fully exploit the opportunities discussed above. Diversification: India needs to reduce its continued dependence on USA and BFSI vertical in order to sustain its progress. and several other countries who will compete on pricing for the lower end of the IT industry. It also set back Indian IT industry in no small measure. In the near future India will face fierce competition from Mexico. name BPO related opportunities. It should work towards harnessing the unlimited potential in other areas of the world which are in31 . A Weakening Dollar: The constantly declining exchange rate of the US dollar since 2004 is a warning bell to Indian outsourcing as it is the prime currency for trade USA’s increasingly protectionist stand: The democratic US government has already shown signs of imposing government sanctions on outsourcers in order to generate more employment in their local economy post recession. Education and Diversification: The 2 answers Indian IT’s heavy dependence on USA and the BFSI vertical was clearly highlighted during the recent meltdown that sent the banking world plummeting and jolted the US economy in particular. The global IT expenditure was cut down heavily and 3 main factors emerged which could threaten India’s supremacy in the field Competition: India’s success story is one worth emulating and our competitors have started to equip themselves with the infrastructure and education system to compete with us.The global economic meltdown of 2008-09 was an eye opener in many ways for India. Vietnam.

It provides India the opportunity in the fields of SCM. along with the rest of the world. Also venturing into business with regions other than USA. India’s retail and manufacturing is showing huge signs of expansion. Domestically. These steps will ensure the sustainability of India’s relentless growth and guide it towards India’s 2020 IT vision. like Europe and Asia will reduce the dependence on Dollar and outsourcing would depend on multiple currencies like Pound and Euro which are gaining ground on dollar.vesting heavily in infrastructure. which will result in higher margins and steer India clear of the cost competition cannibalism. Also a move has to be made from BPOs to KPOs so as to engage a a more quality oriented services industry. 32 . CRM and PRM to design customized business solutions for these products.

5th Prize The new era of challenges of IT: the 2Cs Consolidation and compilance Shubham Prakash. From ensuring that research is independent & high quality to maintaining smooth and controlled operations in an efficient manner. One of the primary aims of merged companies is to reduce costs by sharing resources and eliminating redundancies. As firms look for growth overseas. NMIMS The firms gunning for global dominance in their respective areas of business are increasingly dependent on technology for a competitive edge. organizations must leverage technology to reduce costs. The primary challenge of the dominant players who aim to gain global leadership are creating a scalable environment. It is a nightmare for IT managers to: 33 . In addition to cost and efficiency benefits. lower costs. many have considered both Greenfield and brownfield operations as a part of their growth strategies (setting up base in new locations or even acquiring existing line of businesses in the destination nation). experts predict a handful of dominant players reigning the markets in line with survival of the best theory. With globalization being the word of the century. it is mandatory for a firm to invest in IT solutions that help the organizations meet the compliance standards set by the regulatory body in that particular industry. The merger of multiple firms poses many challenges and management of resources & IT systems is the primary hurdle. save time and squeeze every ounce of value from their information assets. maintain a high uptime to support critical functionalities of businesses and automating manual processes and employing IT tools to reduce time required for several processes.

monitoring and control. It was realized that the road ahead was a lot tougher than they expected as both banks were already employing complex IT systems for their operations. BOA announced the takeover of Merrill Lynch: making it the largest financial services organization. The result was a huge loss in license fees as most systems of FleetBoston had to be done away with and migration plan spanned three years which in turn led to problems with operations. While BOA employed IBM’s Lotus Notes. the mail infrastructure seemed to be impossible to integrate for they were based on different systems altogether. In August 2007. BOA’s technology group started looking at adopting more scalable systems and technologies to be in line with the Bank’s strategy of inorganic growth. Besides the immediate benefits in cost and ease of management. EX proved its mettle when it successfully accommodated new mail systems as a part of BOA’s inorganic growth since 2005. Because of the critical nature of the mailing requirements in Merrill Lynch. Henceforth. Soon. For the IT managers of both the firms.Eliminate existing systems (from the smaller company) Upgrade resources (in the parent company) making the systems scalable for accommodating the growing needs of the smaller (acquired) companies Creating a migration plan and it’s execution henceforth Some examples of consolidation and compliance challenges are as follows: Bank of America’s IT revamp to meet the consolidation strategy: BOA acquired FleetBoston financial in 2004 for $47 billion through a cash and preferred stock arrangement. This was one of the largest takeovers by the bank in recent times. it was impossible to migrate to Lotus Notes. The in house technology groups decided to use EX to 34 . a request for preparation of a consolidation plan was made and the IT departments of both organizations got to work. Merrill Lynch had a license for Microsoft Exchange 2003.

The legalities of document retention and e-mail retention is as follow in different regions:  SEC and FINRA rules are applicable to the BFSI sector  Tools for good business governance and ethical audits of business practices  Enable periodic enterprise audit with a turn-around time of 48 hours. (California: 36 months)  12 months (Europe.archive mails from both the banks and maintain the storage and backup. When expanding across geographies. there is a constant pressure to meet the different compliance requirements across different geographies. APJ and other US states)  Access control: 35 .  Data retention period  As specified by the US state in question. Before (Pre-FleetBoston era) After EMC EX The consolidation of data was completed well within schedule and EX enabled both the mailing systems to co-exist in the merged organization.

While many a firms were able to provide the data as per FBI’s request. In the recent sub-prime crisis that rocked the world.  Extended user search enabled in APJ Specific user search in Europe & US to meet the privacy laws Importance of Compliance in the era of sub-prime crisis Due to nature of the business. The loss of trust in such cases translates to incalculable long term losses for firms. Running a complex environment spreading over numerous servers across the world. banks are often under the scrutiny of regulatory authorities to produce their records when asked for in stipulated time. several firms were caught off guard including prestigious names like Goldman Sachs. 14 firms were investigated by the FBI to assess the effect their operations had in creating the financial bubble. A drive to meet both these issues is primarily being canvassed by the concept of virtualization of the infrastructure. it was discovered that the compliance dated software solution of some of these firms was unable to meet the search compliance standards of the government. Most technologists foresee a future where hardware systems are deemed irrelevant as user’s only interaction remains with a virtual ma 36 . Virtualization refers to the creation of a virtual machines that acts like a real computer with an operating system.

routers can still maintain compatibility once they merge. Hence companies using different servers. The products would help Standardize cloud partitions and govern cloud provisioning across the infrastructure of the organization.pdf http://www. Products developed within virtualization giants such as VMware as well as Citrix promise to enable transparent operations on a cloud infrastructure by saving hardware costs at the same time in the near future.html 37 .chine.vmware.html www.com/partners/programs/alliances/financialservices.com/collateral/industry-overview/h3170-industry-solutionsinvestment-banking-iov.asp http://www.com/guide/news/2008/Jan/31/ Goldman_Sachs_investigated_by_FBI.bobsguide.com/ http://www.advisormail. References http://www.emc.com/forms/email-compliance-checklist.bostoncapital.

coupled with its reinvestment strategy is helping it not only avoid the political ‘chop shop’ rhetoric.3% in June 2009 to 35. Cognizant. The gap in revenues from the banking and financial services (BFSI) vertical has reduced to $19 million a quarter when compared with Infosys. In the last twelve months. but also narrow gap with the Indian firms . The question is how did it achieve it in such a less time ? The answer is : specific IT innovation strategy named Two-in-a-Box 38 .6th Prize Innovations in IT Tejas Kulkarni. Pricing pressures . due to its significant offshore presence (almost 75% of the company’s employees are located in India)has developed a fine blend of business culture of India and the West.9% during June this year when the company added $145 million — more than twice what Wipro and Infosys managed during the same period. This flexibility appears to be helpful in penetrating the accounts of global corporations. WIPRO lagged Cognizant both on account of gross margins and operating margins. Retail. volatile exchange rates has resulted in project cancellation and delays. Cognizant’s image of an American company. Cognizant’s share of incremental revenues or new business increased from 28. Companies in BFSI . Cognizant’s revenues from the US geography are 26% higher than Wipro and just 5% short of Infosys’. NMIMS In the wake of current economic downturn in the US . Amidst all this. Manufacturing are facing bankruptcy in US. Cognizant Technology Solutions seems to have weathered the storm compared to other Indian IT giants and especially WIPRO which is roughly double in terms of size and scale of operations. the IT industry is hit quite hard resulting in lower growth rates.

changing array of vendor representatives or business units who are responsible for various project phases and deliverables. assigned to the place of business. with deep industry expertise. This keeps them at arm’s length from the client. project management responsibility is enacted by an ever. Then. with a tangential understanding Pass the baton In this model. the Client Partner (CP). The success of the TIB model is directly linked to the quality and pedigree of Client Partner and Delivery Manager. who remotely monitor client needs and performance milestones. The CP and DM are in constant contact. working closely with senior members of client’s IT management team. each of whom typically has around 7-10 years of experience. Another critical TIB team member is the dedicated global delivery manager (DM). operational processes. or. either when they are called on the carpet to explain delivery challenges or to attend project planning or status meetings. working in lockstep to ensure that the Cognizant team operates as an extension of client’s organization. if it is. translating IT requirements to the DM. Tight Integration Starts at the Core Most third-party IT service vendors have delivery models that work in one of two ways: Thrown over the wall Once an outsourcing contract is signed. They know what it takes to deliver superior IT that aligns with business strategy and corporate objectives. The team’s leader. and helping coordinate services delivery back to you. Without one central point of contact. the CP functions as the communication conduit. More tactically. challenges and business goals. the CP — who typically holds an MBA degree — assists with client’s strategic planning initiatives. The relationship between the CP and DM is essential to ensure that Cognizant’s IT services are delivered with precision and that they are tailored to client’s unique needs. Senior staff occasionally visit the client’s premises. it becomes a hot potato continuously 39 .Two-in-a-Box (TIB) The TIB model begins with a relationship management team. accountability for project performance is rarely established. works onsite to absorb the client’s culture. all decision making reverts to project managers offshore.

.e. They realized that the company’s success would also need to be defined by its ability to: Build exceptionally close relationships with clients by investing in onsite teams focused on delivering business results that meet or exceed expectations (i. 40 . combined with ever elevating degrees of domain expertise. project management assurance or timetables for problem resolution. To nip these issues in bud the following model is developed.The TIB model Cognizant’s TIB relationship model represents a radically different approach to IT services delivery compared with offshore providers based in India. the client’s IT team leaders must call or e-mail the service provider’s account manager. cost containment as well as operational flexibility and process improvements. Whether it’s strategic guidance. who then searches for the appropriate offshore staffer to coordinate a response. Cognizant’s founders foresaw that it wouldn’t be enough to provide lower cost delivery and mastery of leading-edge technologies. Frustrations simmer and can boil over as minor project shortcomings and delivery delays elongate into insoluble challenges and missed opportunities. the answers tend to lie offshore and often require an after-hours or pre-work conference call to resolve. Maintain tight strategic alignment between the client’s IT strategy and business goals to ensure exceptional satisfaction. When problems emerge.

It is embedded in Cognizant’s culture from the upper echelon of the company’s management team.. The results Cognizant’s founders believed they could differentiate the company from its competitors by offering a hybrid model that blended the best of traditional consulting firms. Continuously measure results to keep engagements on track to ensure predictable and positive business outcomes. Importantly. thrown over the wall).e. This level of satisfaction compares with ratings of consumer brands studied in recent years by JD Power and the American Consumer Satisfaction Index 41 . this relationship and delivery model has become a critical competitive differentiator for Cognizant. the model is consistently cited by clients for delivering a superior customer experience like “extremely satisfied” or “satisfied” with their work with Cognizant.Enforce strict accountability and governance through rigorous project / program planning discipline and delivery best practices to mitigate risk associated with traditional offshore IT outsourcing approaches (i. Dubbed TIB.. pass the baton. Regularly transfer knowledge to help clients facilitate continuous improvement and to identify new ways to leverage technology for business advantage.

Rabindra Nath Tagore. Why not East? Aditya Das Financial Consultant. Infosys.com ………. …. From then on.Guest Article Why West. where the sun rises. To a new chapter in history. Delhi soumendra. I shall look forward to a new dawn. from the east.I had at one time believed that the springs of civilization. Through this path of prosperity. Delhi adityadas07@yahoo.. TCS. 42 . IT stood for the sunshine industry and companies like. Wipro. NIMS. through the eyes of margin profitability and organic and inorganic growth. I look around and see the crumbling ruins of the proud civilization strewn like a vast heap of futility. many of the Indian IT companies of smaller entity went thin. and yet I shall not commit the grievous sin of losing faith in man. But today when I am about to leave the world. Perhaps the dawn will come from this horizon. with the spirit of service and sacrifice.com Soumendra Roy Assistant Professor. With the advent of market economy rouse the sun in IT horizon in India. but if the second thought is given a chance it will speak for the relevance of the above speech even in today’s IT industry. with flying colours till date. atleast.roy@gmail. that faith has deserted me. returned fat. would issue out of the heart of Europe. in his last public speech on his 80th birthday (7th May. when the holocaust will end and the error will be rendered clean. 1941). HISTORY TEXTBOOK It may sound a little offbeat to start with Rabindra Nath Tagore’s vision from “Crisis in Civilization”. just marched.

Even in India 43 . Innumerable causes could be found for recession. Hence. but none of that entire gamut of reasoning could do away with the crisis in question.WATERLOO Demand supply mismatch surfaced in 2007. what marked the black era of recession. JAB JAAGO TAB SAVERA Almost sixteen years have passed since the IT sunrise we talked about. Perhaps we have got space. the entire Indian IT or ITES companies. within this span to think about it. Little by little many of them ceased to exist. The entire IT universe started with knee-jerk reaction. Now we are not only habituated but exposed to IT industries. were mostly dependent on the west as solution and service providers. There had been little scope for implementing IT solutions in eastern part of the world. There’s no denying the fact. It can be described in two ways: It took a little more time for the east to get updated with IT boom. the west had been the sole hunting ground for Indian IT companies.

I am trying in a humble way to 44 . so come the promises from the south and north block of our honorable parliament house. Belonging to the same democratic fraternity. The IT renaissance is to be borne and cultivated in this country. Kapra aur Makaan Come what may rain or sunshine the basic three human quests for food. In a nutshell. internet. What we intend to say is the repercussations of such comment of Uncle Sam’s uncledom on Indian bourses. he is most likely do away with all the outsourcing and generate employment. this is to woo us which in course of time become our woes. MOTHER INDIA Roti. reality giants are already here. clothing and to address the third quest. KUMBH MELA After a certain interval of time the general elections in India come. cloth and shelter will never ever extinguish. However. banking. I am not spinning a yarn. Uncle Sam’s country does the same abra-ka-dabra before presidential election. IT companies irrespective of their sizes lose fat. Hopefully.where. Now the Indian bell and Uncle Sam’s bell have the same intention. And to address the premention quests we are to look for fresh avenues of food production and preservation. good percentage of population still fights to discover from the lines and curves their very names. politics is not our intention. Needless to say. to count the list …. There are endless possibilities. IT and ITES companies have been the household names. And IT solutions have been a must in our Indian lives either in the form of telephony. as a part and parcel of each industry services from IT and ITES companies are going to be a must in every sphere of productivity. Each incumbent President must promise to his fellow citizens that if voted to power. ATM services. Thanks to our vast and her ever increasing population.

Its road infrastructure. IT and ITES companies will have a fair share of interference. It’s only the decentralized way of power generation that can feed the growing needs. Now in absence of IT and IT enabled services. Just think of one India divided in her self-reliant villages. so many fields of productivity are there. It might sound a little euphoric to think of a village self-sufficient for its energy needs. but if looked through different angle. where each village will be efficient enough to meet its energy needs. 45 . So far the question of power generation. where . It is in the hands of today’s IT leaders and the upcoming leaders in the industry to shape their solutions or services to walk side by side with those explorations. neither they are likely to do in the time to come. What I intend to say. India has a coastal area of more than 8. Give me POWER Never the less.give a running commentary of the time to come. with those possibilities. the Himalayas in the north have innumerable brooks and tributaries. Again looking at the agricultural production. we can’t simply dream of the possibilities to come out. both IT and ITES will have got uncountable avenues to explore and thereby. Needless to say. to make both ends meet (demand and supply). earn the revenue. education and above all well-being. this long stretch of our coastline promises hydro-electricity. Power generation is not the sole way of productivity but an inalienable part. Hence to guide genetic engineering as well as carrying on biochemical activities. genetic engineering is becoming day by day a part and parcel of our agricultural activity. India’s total productivity during the last few fiscal years went from deep to deeper. like food production . cities and urban areas.000 kilometers that promises integrated and IT guided fishing activity both for domestic and overseas consumption. but the demand is ever increasing and seems to be endless. the gigantic power plants can hardly meet Indian energy needs so far. Apart from that. which can enhance this power generation. health.

IT companies has spaces to grow fat. telecom space has got sixty percent or more to go up. Bornio (now Asia Oceana zone). are here to beckon so many telecom service providers from within and outside of our country.Distant Chug Chug As an integral part of agricultural and industrial productivity. telecom solution being an integral part of each service provider. Now. they have got enough scope for lateral movement. Rim. Hence. Apne Ghar Me Bhi Hai Roti Indian business and commerce dared the boundaries of sea from time immoral. Tring Tring Through the floodgates of market economy. Aircel Vodafone. transportation is to grow in manifold. Although Indian railway has the second largest network in the world. but in the existing scenario too. (say35 -40%). that in city and urban sectors. MTS…. IT and ITES companies. Java. road. many parts of our country are still in the doom of untouchability. Here. railway. this present network is to grow atleast by 100 %. Hence. only 60%of our total population carries a mobile handset along with a sim. let me put you in the know. which are to give our IT and ITES companies a vertical movement. This overgrowing population across the globe may prove to be a boon for every industry. Having said that my argument is that actual number of Indian population that uses a mobile phone is way below sixty percent. Airtel. so is the space for IT and ITES. that provide solutions and services to Indian railway alone have got a head space of atleast 100%. Hence. it’s often found a single individual carries more than one mobile handset as well as sims. to link the untouchables with the touchable. air. 46 . telecom companies made a bee-line for Indian market. So far. History speaks of Indian trade and commerce that made their presence felt in Sumatra. Idea. So far I talked about the possibilities of would be Greenfield activities. if Indian railways grow by 100 %.

sultanate era.rather than a curse.com 47 ..com www................. is the scope for IT and ITES? In a word let’s conclude like: Des Paraya Chhor Ke AA Jaa ..... Hence.tcs. So.............. Apne Ghar Me Bhi Hai Roti References: www....wipro... Indian industries and service sectors have got every possibility to tread the same waterway it initiated in pre.com www..infosys.

Which one said that? Explain. All other things being equal. The store owner has called the farmer to see how much fruit is available for him to purchase. how many plums will the farmer be able to deliver? 3. "The other one said he is Fred". lose. If you were to step into a sealed room filled with 100% methane gas and strike a match. what would happen? 4. When Benjamin crossed the finish line. When can you add 'two' to 'eleven' and get 'one' as the correct answer? 2. Benjamin can never tell a lie. 5. Each branch has exactly 12 boughs and each bough has exactly 6 twigs. or will it be a tie in the second race? 6. jack was only at the 90 metre mark. A farmer in Somerset owns a beautiful pear tree. Benjamin would start 10 metres behind the starting line. and make it stop and return to you. Benjamin and jack were in a 100 metre race. without hitting anything and with nothing attached to it? 48 . He supplies the fruit to a nearby grocery store. Fred can never tell the truth.Brain Teasers 1. will jack win. This time. Since each twig bears one piece of fruit. One of them said. The farmer knows that the main trunk has 24 branches. How can you throw a ball as hard as you can. Benjamin suggested they run another race.

When you add two hours to eleven o'clock. In the second race. None. It was Fred. "The other one said he is Fred" since this would be a true statement made by Fred. The match cannot spark without oxygen. Jack will lose again. Nothing. Therefore the final 10 metres will belong to the faster of the two. A pear tree does not bear plums 3. 5. Be outside and throw it upwards . 6. you get one o'clock. 4. Benjamin will have caught up to him. 2. Since Fred can never tell the truth. he will win the final 10 metres and of course the race. Since Benjamin is faster than jack. By the time jack reaches the 90 metre mark. Benjamin started ten metres back. Benjamin couldn't have said.Brain Teasers’ answers (upside down) 49 1.

Nilay Yajnik Yogeshwar Kumar Venil Shah Samir Sethi Anusha Bonda Anshul Mahajan Tarun Gupta Ankit Jain Rajat Anand Mayank Golcha Bijo Mani Roshni Bansal Contact Us at summit@nmims. Vile Parle (W).co.Team SummIT Faculty-In-charge: Dr. March 2011 .org Website: http://summit-nmims. JVPD Scheme. Mumbai 400056 Tel: 26134577/26143177 Fax: 26114512 50 Annual Issue.in/ Address: Narsee Monjee Institute of Management & Higher Studies (University).

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