JPC Task 5 – Industry Analysis

Mathan Anto Marshine P IT/ITES

1. Industry Overview

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2. Critical Success & Performance Factors .

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3. cost of recruitment. only 25 percent of the technical graduates are competent enough to work in the offshore IT industry in India. training and development of the new recruits also becomes a major investment for these companies. High attrition rate results in loss of skilled manpower. managing attrition rate is becoming a big task for the IT companies in India. Apart from loss in skill sets.g.economic environment.. Italian etc. Spanish. According to McKinsey. Regulations and Treats that affect the industry • High Attrition Rate: Staff shortage can prove to be a major bottleneck to the growth of the industry. only 10.15 per cent of the graduates are suitable for employment. loss of skill sets etc. further growth of the industry has to come from small districts. excellent infrastructure. is proving to be a weakness of the Indian IT industry. French. In the BPO sector also. Lack of fluency in languages other than English. According to McKinsey & Co. These cities are competing with India on account of their stable socio. Competition from other emerging nations: Chinese IT hubs like Beijing and Shanghai are set to overtake Indian hubs by the year 2011. outside the Tier 1 and Tier 2 cities. • • • . e. according to a report by IDC. low attrition rates and skilled talent pool. Therefore. There is a need for improvement in the urban infrastructure.

Overdependence on US Economy: Almost 70% of the IT industry revenues comes from USA. which can be considered a major area of concern. recent downsizing and job cuts due to recession in the US market. Limited Domestic Market: The domestic market is still in the nascent stage in India. Lack of Product Innovation: India specialises in services but not in products. therefore Rupee appreciation becomes an area of concern for the industry. Rupee Appreciation: As most of the earnings are in foreign currencies. Therefore. Regulations and Treats that affect the industry • • End of Tax Benefits at STPIs: There is a dissimilarity in the tax regimes at STPIs. adversely impacts the Indian market too.g. any downscale in the US market. • • • .3. This would lead to conversion of these STPIs into SEZ units. E. The nation lacks in product innovation. This makes the whole industry vulnerable to export market only. It will be difficult to maintain competitive advantage if product innovation doesn‟t occur.

4. Analysis of competitive Strategies .

Analysis of Infosys .5.

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6. Future Outlook of Industry .

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org/ Perspective 2020: Transform Business.stpi.htm www. References http://timesofindia.blr.pdf . Transform India http://www.blr.in http://www.com/t/business/indias-outsourcing-valued-60-billion-2010-684 www.htm http://www.hyd.com/biz/india-business/IT-exports-to-touch-50billion/articleshow/5536663.com/nri/article2.naukri.cms http://blog.in/upload/Perspective%202020%20Press%20release%20presentation.in/pop_stpindustrygrowth.stpi.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/ http://www.stpi.infoworld.mindbranch.indiatimes.7.nasscom.com/India-Information-Technology-R302-10603/ http://www.ibef.in http://www.

8. Glossary .

Therefore. prepared by Mc Kinsey.9. The domestic sales revenue will also contribute US $ 50 billion by the year 2020.Conclusion The Indian Information Technology industry represents one of the most successful industry showing consistent rapid growth. we can say that the industry is shining and will continue to do so as well. „Perspective 2020: Transform Business. the export revenues of Indian IT industry will touch US $ 175 billion by the year 2020. . Transform India‟. In a report.

it has encouraged attention to technical excellence as a general requirement across the board. for that it does anyway.” . it has established exacting standards of economic success in the country. It makes enormous contributions: it generates significant incomes for many Indians.“My point is not that the IT industry should do something for the country at large. much more. it has encouraged many bright students to go technical rather than merely contemplative. and it has inspired Indian industrialists to face the world economy as a potentially big participant. indeed in some ways. rather. Amartya Sen. is that it can do even more. My point.Thank you It is apt to conclude with a remark made by Nobel Laureate Dr. power and ability to help the direction of Indian economic and social development. but also because the prosperity and commanding stature of the IT leaders and activists give them voice. about the Indian IT/ITES industry. not a tiny little bit-player. during his keynote address at the NASSCOM India Leadership Summit 2007 . This is partly because the reach of information is so wide and all-inclusive.

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