INDUSTRY ANALYSIS

(IT)

SUBMITTED BY
LIVJOT KAUR (58)
 CONTENTS
 Introduction
 Segments of industry
 Key players
 SWOT Analysis
 PESTLE Analysis
 Barriers to growth
 Recent activity
 References
 INTRODUCTION

What is IT?
As defined by the Information
Technology Association of
America(ITAA) ‘IT’ is the study,
design, development, implementation,
support or management of computer
based information system particularly
software’s
applications and computer hardware.
 The Information technology industry in
INDIA has gained a brand identity as a
knowledge economy due to its IT.
Information Technology in India is an
industry consisting of two major
components: IT services and
business process outsourcing (BPO). The
sector has increased its contribution to
India's GDP from 1.2% in 1998 to 7.7% in
2017. According to NASSCOM, the sector
aggregated revenues of US$160 billion in
2017,with export revenue standing at
US$99 billion and domestic revenue at
US$48 billion, growing by over 13%. The
United States accounts for two-thirds of
India's IT services exports.
SEGMENTS OF IT INDUSTRY

IT HARDWARE IT SERVICES
27% 19%

TELECOM
SOFTWARE
SERVICES
13%
41%
 SEGMENTS:
IT IT SOFTWARE TELECOM
HARDWARE SERVICES SERVICES
Servers Planning and Applications Fixed voice
Implementation
Personal computers Support System Fixed data
services infrastructure
software
Storage Operations Wireless
management voice
Smartphone Training Wireless
data
Tablets
Network equipments
Printer& other
peripherals
 KEY PLAYERS IN IT SECTOR

1. TATA Consultancy Limited Services.

2. Infosys Technologies
3. Wipro Technologies
 TATA Consultancy Limited
Services
Year of 1968
establishment
Founder JRD Tata
Company’s profile TCS is an Indian multinational
information technology services
business solution, outsourcing
services. It is one of the India’s
valuable company. It is one of the 5
largest India-based IT services firms.
Headquarters Mumbai, Maharashtra
Marketing network As of 2012, company has around
2,43,545 employees. TCS operate in
more than 47 countries. It has
development centers&/ regional offices
in Delhi, Lucknow, Baroda, Chennai,
etc.
Subsidiaries CMC limited
 Infosys Technologies

Year of 1981
establishment
Founder N.R Narayan Murthy, Nandan Nilekani, N.S
Raghvan, S.ARORA
Company’s profile It is an Indian provider of business consulting,
technology, engineering, outsourcing services.
Headquarters Bangalore, Karnataka
Marketing As of 2012,the company has over 1,51,151
networks employees. It has 30 offices across countries
and development centers in India, Canada,
UK, Japan, Australia, &many other.
Division Healthcare, Education, Culture and Rural
Development
Profit US$1.71 Billion
 Wipro Technologies

Year of Establishment 1997

founder Azim Premji
Company’s profile It is a global services provider delivering
technology-driven business solution.
Headquarters Bangalore, Karnataka
Marketing network As of 2012, the company has over
1,30,000 employees & a worldwide
presence with centers across 54
countries.
Division IT products &services, Customer care &
lighting, Healthcare and Infrastructure.
Profit US$1.09 Billion
 SWOT ANALYSIS
 SWOT stands for Strengths, Weaknesses,
Opportunities, and Threats, and so a SWOT
Analysis is a technique for assessing these
four aspects of your business.
 We can use SWOT Analysis to make the
most of what you've got, to your
organization's best advantage. And you
can reduce the chances of failure, by
understanding what you're lacking, and
eliminating hazards that would otherwise
catch you unawares.
 Strength

 Highly skilled, english-speaking workforce.

 Abundant manpower;
 Cheaper workforce than their western
counterparts. According to Nasscom, the
wage difference is as high as 70-80 % when
compared to their western counterparts;
 Dedicated workforce aiming at making a long-
term career in the field;
 Round-the-clock advantage for western
companies due to the huge time difference;
 Lower time response with efficient and
effective service.
 Weakness
 Recent months have seen a rise in the level
of attrition rates among ITES workers who
are quitting their jobs to pursue higher
studies;
 The cost of telecom and network
infrastructure is much higher in India than
in the US;
 Manpower shortage;
 Local infrastructure;
 Political opposition from developed
countries.
 Opportunities
 To work closely with associations like
Nasscom to portray India as the most
favored IT destination in the world.
 Indian IT companies should work closely
with Western governments and assuage
their concerns and issues.
 India can be branded as a quality IT
destination rather than a low-cost
destination.
 $69 billion IT business by 2010.
 $97.5 billion IT market by 2010.
 Threats
 The anti-outsourcing legislation in the US
state of New Jersey. Three more states in
the US are planning legislation against
outsourcing;
 Slowdown of demand;
 Other IT destination such as China,
Philippines and South Africa could have and
edge on the cost factor;
 Workers in British Telecom have protested
against outsourcing of work to Indian BPO
companies.
A PESTEL analysis is a
framework or tool used
by marketers to analyze
and monitor the macro-
environmental (external
marketing environment)
factors that have an
impact on an
organization. The result
of which is used to
identify threats and
weaknesses which
are used in a
SWOT analysis.
Economic factors– Global recession, increasing
working pay, competition from other IT
companies an increased contract fee are a
number of factors that impact the IT sector.
Currency fluctuation and devaluation has
affected the industry greatly during the
recession time. Recession has been one of the
core factors that affect global economy. It
causes low attribute rate due to job layouts
and cuts. The decline in the financial and
banking industry has led to a decline in
revenue and this has affected the IT sector
greatly.
Political factors– These are factors that include
government rules and regulations on any business
environment. Factors such as customer protection
law, terrorist attracts or threats and competitive
regulations are also known to impact operations of
any business regardless of status. The Indian
government has been supportive and on the front
line on the growth of IT services. The government
has decided to contract IT job to IT companies
developing new and more opportunities for the
company and the IT industry in general. The Indian
government has made it easy and strengthened the
Information Technology act, 2000 to provide a
comprehensive legal environment.
Legal factors– India has come up with great
Acts that have made it easy for the IT sector
to develop on. It has become easy for IT
companies to carry out electronic using legal
infrastructure made possible by the Legal
Aspects and Policies IT Act 2000. Government
can easily issue notification in the web
signaling e-governance.
Environmental factors– Environmental
conservation and protection is an issue
that has been causing a lot buzz and it has
gained prominence with time. Deteriorating
environmental balance has been
threatening the sustainability of life and
nature. IT sector has also been affected by
floods, earthquake, cyclone and tsunami.
Social factors– These are factors that range
from employee rights, race nationality of the
IT Company of choice, language barrier or
other common social factors. Due to the
large number of people in India who can
speak in English, this has helped fostering
good relations in the industry
Technological factors– India offers lowest tariffs
in the world. Today, India has the second
largest telephone network after china
offering 3G , enterprise telephone services,
WI-MAX and VPN have become the in-thing.
on the global platform. Many institutions in
the country offer IT course creating jobs for
many people at lowers costs.
 Barriers to growth

 Ignoring business indicators.

 Overlooking the competition.
 Forgetting about people until its
too late.
 Not accounting for the risk early in
the Growth Phase.
 Failing to plan for Cash Flow
issues.
 Artificial Intelligence (AI)
 Machine Learning
 Robotic Process Authentication or
RPA
 Edge Computing
 Virtual Reality and Augmented
Reality
 Blockchain
 Internet of Things (IoT)
 Cyber Security
Thank you