INDUSTRY INTERNSHIP

PROJECT

NAME OF THE STUDENT: SWATI PAYAL

NAME OF THE MENTOR: PROF.

PADMAVATI

CATEGORY OF IIP: COMPANY SPONSORED

CONSULTING
INTERNSHIP PROGRAMME

ORGANIZATION: JBA INFOTECH PVT.

LTD.
TOPIC OF THE PROJECT:-

The topic for the Industry Internship Project Report is Indian

Software Industry.

Indian software industry is the uncrowned king in the outsourcing

of software services now. Despite of recession, which was always
in the offing, once the boom got going, most software companies
are facing the crisis head-on. They have started to scout for
newer markets, improved on the per capita efficiency,
concentrate on the future technologies, and revamp their
organizational and marketing structure. In short the companies,
that are taking slowdown as an opportunity to reorient them in
the new scenario, are creating the foundation for a long innings in
the IT industry while those that are wary about taking the hard
steps will soon find the going tough.

Indian software industry has grown at an exponential rate over

the past 10 years, fetching foreign business for India’s
development, propping up the stock market with its share prices
reaching the height even after the scams, and last but not the
least, giving employment to more than 2 lakh professionals which
can give rise to around 20 lakh in another 3 years.

Indian software companies grew at a mind blowing rate of 200-

500% lucrative projects from all over the world, especially from
U.S. With the right dedication, our companies are able to provide
the training and have been able to continuously improve their
knowledge base. They have used new technologies effectively
winning customer satisfaction and we have something at which
Chinese and Russians are lacking that is the experience of
dealing with foreign customers who are very quality conscious. To
be very realistic software industry is a booming sector and have
lots of opportunities in future.

OBJECTIVE OF THE Study

 To analyze the financial statements of several companies in
this sector and also set up the benchmark.

 To analyze market trend of this industry.

 To compare the fundamental and technical analysis of

different companies.

 To understand the software industry as per its positive and

negative points, the major factors that motivates to join this
sector, factors which can help India to grow faster, the
strategic advantage of this industry, how a technological and
functional improvement affects the market. It will give depth
knowledge of the software market.

 To provide strategy whether to BUY/HOLD/SELL the stock

and also the trading signals.

Indian software companies are offering a wide variety of services

including application development, web development, and e-
commerce, making it one of the biggest names for the success of
Indian economy.

 To be analyzing some companies in this sector and find what

are the factors for its success? These companies are as
follows:
 • IBM India

• Tata Consultancy Services

• Infosys Technologies Ltd.

• Wipro Technologies Ltd.

• Patni Computer Systems

• Cognizant Technologies

• HCL Technologies

• I-flex Solutions Limited

• L&T InfoTech

• Tech Mahindra

These are 10 of those software firms in the country which shows

the monumental advancement that the Indian Software Industry
has experienced. This project will help in finding out the exact
reasons for its performance against the global competition.

 At last, to analyze the government policies and scheme role

in this industry and how these rules and policies helping it to
grow at a faster pace.

SCOPE:-
The software industry is continuously expanding in India. It is a
leading destination for the IT and IT-enabled services worldwide.
The software solutions industry is a major revenue earner.
Besides, there are newer areas that are emerging that are
making India a potential winner for investors.
The BPO industry is continuously growing. Per the NASSCOM
study, the BPO sector is set to reach US$ 30 billion in exports by
2012 and has been growing at a rate of around 35% for the past
3 years. The verticals offer more possibilities for the future.

The KPO industry that is currently estimated at US$ 4 billion is set

to grow to US$ 10 billion by 2012. Software giants, such as
Infosys, Wipro, and TCS, are providing software solutions to
clients overseas. Many MNCs have forayed into the Indian market
and are tapping the huge talent base in India. The software
solutions industry is thus expanding continuously. The web
development and design industry is also a prominent area. The
animation industry is growing fast in India and is attracting
investors. According to a study by CRISIL, engineering services
outsourcing (ESO) is likely to be the next big thing in the
outsourcing industry. This sector is projected to increase to US$
7.5 billion by 2012.

The government has created Special Economic Zones and is

contemplating to create Investment regions to further boost this
industry. As per proceedings taking place in the software
industry, the future of the Indian Software Industry looks
promising. Thus, the scenario for this industry looks good and
potential investors can look towards India’s software industry as a
good bet.

PROJECT DESIGN:-
 Data source- Company websites, NSE website.

 Sample of the study- Since this industry has lots of

players with all size (large, mid, small cap), so it would be
 very difficult to analyze all those companies and will also
take a long period to be completed. So, it would be better to
analyze the entire industry along with the top 10 companies.
By analyzing the strategy of these top players in the market
of software, would give the complete picture of this industry.
Addition to that, interviewing the professionals working for
this industry would give clear insights on their products and
services and industry potential.

 Methodology proposed- Primary and Secondary research.

Primary research- Interview
professionals and analyze the stocks of the companies.

Secondary research- Data will be

collected from the company websites, Wikipedia, NSE website
and some research papers. The methods proposed for this
research are Financial Statement Analysis, Market Trend study,
Porter’s Model, SWOT & PEST Analysis on the basis of services
and products they are providing, Government policies and rules,
and shares of the top 10 companies in this sector.

 Tools and techniques to be used- Graphs, Charts, TTV,

Running TTV, Running Volume, ATP, MACD, CAGR, Buy and
Sell strategy, Buy and Hold strategy, Bollinger Bands, RSI, R,
Excel formulas.

 Timeframe of the study- The study of this sector will be

on the basis of last 5 years of data for financial statement
analysis and last 10 years data for the stock analysis.
 Limitations of the study- The information provided in the
websites could be limited and cannot have the official data
for this research process. In this project, the financial
statement analysis will be on the basis of last 5 years data.