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By Bharat D.

Jadhav
Topics
 Introduction
 Structure
 Growth
 Size of the industry
 Top players
 Contribution To Economic Progress
 FDI in IT Industry
 Export Potential
 Challenges
 SWOT Analysis
 Future And Conclusion
Introduction
 Boom started in late 1990’s

 Impact of Y2K problem

 One of the most important industry

 Development activity not confined to particular city

 Large number of English speaking people


Structure of IT industry
IT sector has four major categories:

 IT Services

 IT Enabled Services

 Software Product

 Hardware
Size of IT industry in
India
 Total business of $ 50 billion
 2.2 million employment by 2008
 Contribution to GDP is more than 7.5%
 FDI of $ 4.5 billion by the end of 2008
 Comprises 35% of Total export from India
 $ 225 billion worth Market Cap from IT shares
 Expected to cross $ 100 billion mark by 2011
Top players in the
Industry
Major companies in IT industry
 Tata consultancy services (TCS)
 Infosys
 Wipro
 HCL Technology
 Patni
 Satyam
 Hexaware
Contribution to Economic
progress
 Recorded growth of 22.4% in last fiscal year
 Total revenue of 2.46 trillion INR in 2007
 Domestic IT market account 900 billion INR
 Brought significant change in Indian job Market
 Have contributed to solving unemployment
problem
 Improved gross production goods and services
FDI in IT industry
 IT sector has been attracting large amount
of FDI

 Major investment in four principal sector

 Will receive $ 4 billion to $5 billion by 2008

 Major IT companies are setting up base in


India
Cotn..
Export Potential
 Export potential recognized across world

 Software product are renowned all over the world

 Accounts 35% of total export. Expected to grow by


33% in 2008.

 Software export of $ 40 bn in 2008. Expected to


reach $60 by 2010.
Cotn..
Challenges
 Keep maintaining its excellent performance
standard

 Rupee appreciation and competition from other


global players

 Skill level of IT professional

 Co-ordination with academic circle and other


industries

 Problem with outsourcing countries like U.S


Swot Analysis
Strengths

 Highly skilled human resources


 Low wage structure and quality of work
 Initiative taken by government
 Following quality standard such as ISO, SEI CMM
 Cost competitiveness
 Quality telecommunication infrastructure
 English speaking professional
Weaknesses
 Absence of practical kwoledge

 Less research and development

 Employee salaries are increasing rapidly

 Contribution of IT sector to GDP is rather


small
Opportunities and
Threats
Opportunities Threats
 High quality IT education  Lack of data security
market system

 Increasing number of  Countries like china


working age people Philippines are making
efforts to overcome the
 Upcoming international English language barrier
players in market
 IT development need to
expand in other cities