Introduction Evolution Major Players SWOT Analysis Growth In IT/ITES Expansion To TEIR II And TIER III Cities Emerging

Destinations IT/Ites Growth: At Glance IT companies look beyond engineers Pricing power INDIA As A Global Technology Hub Service Areas Conclusion

According to the U.K. department of trade & industry, I.T. is the acquisition, processing, storage & dissemination of vocal, pictorial, textual & numeric information by a micro-processor-based combination of computing & telecommunications ITeS : Business processes & services performed or provided from a location different from that of their users or beneficiaries & are delivered ,using I.T. over telecom networks.

IT 1968: The Tata industrial conglomerate forms software services unit Tata Consultancy Services. 1994: Telecom liberalized. 1999: Y2K contracts pile into India. 2003: Led by service conglomerates such as Wipro, TCS and Infosys, India becomes a primary destination.

ITES First Phase : MNCs establishing units in India (Pre 1997)

Second Phase : Entry of established software co. (1997 2002)

Third Phase : Geographical dispersion of Activities (2002-2004) Fourth Phase : Move towards acquisitions (2004 Till now)

Infosys Started in 1981 by seven people with US$ 250 Today, it is an IT and consulting with revenues of over US$ 4 billion. TCS Established in 1968, TCS has grown to its current position as the largest IT services firm in Asia HCL Tech. Started in 1998 Wipro

Highly skilled human resource Low wage structure Quality of work Initiatives taken by the Government Many global players have set-up operations in India like Microsoft, Oracle, Adobe, etc. English-speaking professionals Cost competitiveness Quality telecommunications infrastructure Indian time zone

STRENGTHS

Absence of practical knowledge Dearth of suitable candidates Less Research and Development Contribution of IT sector to India 's GDP is still rather small.

WEAKNESSES

High quality IT education market Increasing number of working age people India 's well developed soft infrastructure Upcoming International Players in the market

Opportunities

Lack of data security systems Countries like China and Philippines making efforts to overcome the English language barrier IT development concentrated in a few cities only

Threats

Employee salaries in IT sector are increasing tremendously.

It started with the onset of globalization in India during the early 1990s
According to NASSCOM, the ITBPO sector in India aggregated revenues of US$88.1 billion in FY2011 The industrys share of total Indian exports (merchandise plus services) increased from less than 4 per cent in FY1998 to about 25 per cent in FY2012

Software and services revenues (excluding Hardware), comprising nearly 87 per cent of the total industry revenues, expected to post USD 87.6 billion in FY2012; estimated growth of about 14.9 per cent over FY2011 A DRIVER FOR ECONOMIC GROWTH -The industry continues to be a net employment generator expected to add 230,000 jobs in FY2012, thus providing direct employment to about 2.8 million, and indirectly employing 8.9 million people As a proportion of national GDP, the sector revenues have grown from 1.2 per cent in FY1998 to an estimated 7.5 per cent in FY2012

While the global macroeconomic scenario remained uncertain, the industry exhibited resilience and adaptability in continually reinventing itself to retain its appeal to clients. Embracing emerging technologies, increased customer-centricity, deepening focus on new markets, adopting new business models are some successful growth strategies followed by the industry. THE IT / ITeS NAVARATNAS

Tier I cities account for over 85 percent of IT sector employment and over 90 percent of BPO employment. Approximately 50 percent of additional talent requirements to be met from Tier II and Tier III cities. Tier II cities can offer cost advantages of 30 50 percent over mature locations due to lower labor and real estate cost and reduced staff attrition rates. Tier II cities to account for 40% BPO jobs by 2018.

Figure growth in Tier II cities to occur in SEZs.

Bhubaneswar Chandigarh Coimbatore Indore Jaipur Lucknow Madurai Mangalore Nagpur Thiruvananthapuram Tiruchirapalli Vadodara Visakhapatnam

YEAR 1999-2000 2000-2001 2001-2002 2005-2006 2010 2012 2013 2020

REVENUES Rs. 2400 Crores Rs. 4100 Crores Rs. 7100 Crores Rs. 1,32,300 Crores Rs. 2,70,000 Crores Rs. 4.9 lakh Crores Rs. 5.5 lakh Crores Rs. 11 lakh Crores

About 20-25% of technical work in the IT industry can be done by non-engineers. However less than 10% of the staff in IT industry are non-engineers. Top 5 IT players to hire about 20-30% nonengineers
Low entry-lrvrl salary costs(30-50% lower) Right skilling Optimize resource utilization

Advantages:

A percent rise in rupee against dollorleads to a: 1.2% loss in earnings of wipro 1.9% for Infosys 2.2% for satyam Most major IT/ITeS players increased prices on new contracts and tried to negotiate on existing contracts Infosys raised prices for new customers and 2% increase in existing contracts TCS prices new contracts at higher prices However small and mid-sized companies which lacked pricing power were hit by the rising rupee

India promisingly climbed 10 spots to 34th in Global Ranking of Information Technology Competitiveness. AT Kearneys Global Services Location Index 2011 ranks India as the most preferred destination for companies looking to offshore their IT and back-office functions. India holds its leadership position in the offshore services market despite growing competition from rival sites (Eastern Europe, Latin America, Philippines, South Africa).

Within the global sourcing industry, India was able to increase its market share from 51 per cent in 2009, to 58 per cent in 2011, highlighting Indias continued competitiveness and the effectiveness of India-based providers delivering transformational benefits

Finance HR, Administration, Healthcare, Biotech research Telecommunication and manufacturing Customer care, Web sales/marketing Back-office operations

India still has the benefit of long term cost competitiveness and an abundant supply of highly trained scientists, engineers and technicians. Combined with continued governmental support of the technology sector, these assets promise to sustain Indias standing as a highly attractive country for global companies seeking to strengthen their cost competitiveness and service delivery capabilities.

http://www.nasscom.in/indian-itbpo-industry http://www.thehindubusinessline.com/multime dia/archive/00889/ASSOCHAM_ECO_PULSE__8 89307a.pdf http://www.cci.in/pdf/surveys_reports/it-itessector.pdf http://en.wikipedia.org/wiki/Information_techn ology_in_India

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