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IT

SECTOR
By GROUP AG2
ADIT SHAH
AVINASH DESHPANDE
FEBA THOMAS
SMITI CHATURVEDI
SURAJ THOTALU
NUMBER OF PLAYERS
• IT industry contributes largely to the Indian economic growth
• The number of players in the Indian IT sector are huge
• Exports dominate the industry
• 77% of the total industry revenue comes from exports alone
• The 5 top players are TCS, Infosys, Cognizant, Wipro and HCL

MARKET SIZE
• Indian IT industry is divided into four major segments – IT services,
business process management (BPM), software products and
engineering services, and hardware
• The IT services sector accounted for the largest share of the IT
industry, with a total market size of US$ 56.3 billion during FY13
• The industry grew at a compound annual growth rate (CAGR) of 13.1
per cent during FY08–13
• The IT outsourcing sector is expected to see exports growing by 13–
15 per cent during FY15.

NATURE OF COMPETITION
Almost perfect competition due to:
• Changes in customer IT spending habits and other shifts in market
demand
• A trend towards consolidation of companies
• Continued pressure on price/performance for data warehousing
solutions
• Changes in pricing, marketing and product strategies

DIFFERENTIATION PRACTICED BY
VARIOUS PLAYERS

• Trying to obtain government projects
• Move from the obvious consulting to product building strategy
• Hiring more employees showing them as bench strength
• Outsourcing projects from developed economies
• Creating unique product of high value to customers


BARRIERS IN INDUSTRY

• One of the major barriers is the rising competition in the global world
• The Chinese and the Dutch markets are growing
• The Indian IT companies mostly provide only consulting services
• The rising local competition is also contributing to the entry barriers
of IT industry.
• There are no mobility barriers in the IT sector of India.
• The exit barriers to the IT sector are almost negligible.
REFERENCES
• http://www.investorwords.com/425/barriers_to_entry.html
• http://www.ibef.org/industry/indian-it-and-ites-industry-analysis-
presentation
• http://www.equitymaster.com/research-it/sector-
info/software/Software-Sector-Analysis-Report.asp
• http://www.rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=
&ID=619