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Declaration Acknowledgement Executive Synopsis
Kirkpatrick Model 60 Comr. S. Peter model 62 G. Balucha model 62 Research Methodology 66 Data Analysis 70 Findings 89 Recommendations 90 Conclusions 91 Appendix QUESTIONNAIRE References
MAJOR TRENDS
The Indian IT Industry The Information Technology (IT) sector in India holds the distinction of advancing the country into the new-age economy. The growth momentum attained by the overall economy since the late 1990s to a great extent can be owed to the IT sector, well supported by a liberalized policy regime with reduction in telecommunication cost and import duties on hardware and software. Perceptible is the transformation since liberalization - India today is the world leader in information technology and business outsourcing. Correspondingly, the industry’s contribution to India’s GDP has grown significantly from 1.2% in 1999-2000 to around 4.8% in FY06, and has been estimated to cross 5% in FY07. The sector has been growing at an annual rate of 28% per annum since FY01. Indian IT companies have globally established their superiority in terms of cost advantage, availability of skilled manpower and the quality of services. They have been enhancing their global service delivery capabilities through a combination of organic and inorganic growth initiatives. Global giants like Microsoft, SAP, Oracle, and Lenovo have already established their captive centers in India. These companies recognize the advantage India offers and the fact that it is among the fastest growing IT markets in the Asia-Pacific region. Sector structure/Market size The Indian information technology industry has played a key role in putting India on the global map. Thanks to the success of the IT industry, India is now a power to reckon with. According to the National Association of Software and Service Companies (NASSCOM), the apex body for software services in India, the revenue of the information technology sector
Outsourcing A research by Gartner forecasts India as the undisputed leader in the outsourcing space in the year 2008. India's most prized resource is its readily available technical work force. India has the second largest English-speaking scientific professionals in the world, second only to the US. It is estimated that India has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which train more than 67,785 computer software professionals every year. The enormous base of skilled manpower is a major draw for global customers. According to NASSCOM software and services exports (including exports of IT services, BPO, engineering services and R&D and software products) reached US$47 billion in FY 2008-09, contributing nearly 78 per cent to the total software and services revenue of US$ 59.6 billion. Domestic Markets India's domestic market has also become a force to reckon with, as the existing IT infrastructure evolves both in terms of technology and depth of penetration.
According to NASSCOM, domestic IT market (including hardware) reached US$24. billion in FY 2008-09 as against US$ 23.1 billion in FY 2007-08, a growth of5.3 per cent. India Inc's demand for IT services and products has bolstered growth in the domestic sector with deal sizes going up remarkably and contracts worth US$ 50 million-US$ million up for grabs. Such growth in the software and services sector has been achieved because of spectacular growths in some segments. According to research firm Gartner, India's personal computer (PC) market is likely to grow by 13.7 per cent to 11.1 million units in 2009, aided by a surge in demand for laptops. The laptop market is expected to grow by 37 per cent in 2009 to 3.69 million units and constitute a third of the total PC market. Rural Penetration According to a report of the Internet and Mobile Association of India (IAMAI) rural India has 3.3 million active internet users. Since rural India was mapped for the first time, the year-on year growth of internet users in rural India could not be estimated. The research also notes there are 5.5 million people who claim to have used Internet at some point in time. Government Initiative The government set up the National Taskforce on Information Technology and Software Development with the objective of framing a long term National IT Policy for the country. Enactment of the Information Technology Act, which provides a legal framework to facilitate electronic commerce and electronic transactions. The government-led National e-Governance Program, has played an important role in increasing internet penetration in rural India. Road Ahead The Indian information technology sector continues to be one of the sunshine sectors of the Indian economy showing rapid growth and promise. According to a report prepared by McKinsey for NASSCOM, the exports component of the Indian industry is expected to reach US$ 175 billion in revenue by2020. The domestic component will contribute US$ 50 billion in revenue by 2020.
Future of Information Technology IT will continue to gain momentum; telecom and wireless will follow the trend. The immense expansion in networking technologies is expected to continue into the next decade also. IT will bring about a drastic improvement in the quality of life as it impacts application domains and global competitiveness. Technologies that are emerging are Data Warehousing and Data Mining. They involve collecting data to find patterns and testing hypothesis in normal research. Software services that are being used in outsourcing will go a long way. Key Positives & Negatives for the Indian IT Industry
Sr. Numbers Companies
Type Public BSE: 500209 NASDAQ:INFY Founded July 2, 1981 Founder(s) N R Narayana Murthy Nandan Nilekani N. S. Raghavan Kris Gopalakrishnan S. D. Shibulal K. Dinesh Ashok Arora Headquarters Bangalore, India Key people N R Narayana Murthy (Chairman) Kris Gopalakrishnan (CEO) & (MD) S. D. Shibulal (COO) & (Director) Industry Software services Products IT Services Services Information technology consulting services and solutions Revenue ▲ $ 4.663 billion (2009)[1] Operating income ▼ $ 1.374 billion (2009) $ 1.374 billion (2009)[1] Net income ▼ $ 1.374 billion (2009) $ 1.281 billion (2009)[1] Total assets $ 4.376 billion (2009)[1] Total equity $ 3.784 billion (2009)[1] Employees 103,905 (2009)[2] Divisions Infosys BPO Infosys Consulting Infosys Public Services Infosys Australia Infosys Brazil Infosys China Infosys Mexico Infosys Sweden Website Infosys.com Type Public
Founded 1945 Founder(s) M. H. Premji Headquarters Bangalore, Karnataka, India Key people Azim Premji (Chairman) Girish Paranjpye (joint CEO) Suresh Vaswani (joint CEO) SA Sudarshan Industry IT Services Services IT Consulting Business Process Outsourcing Product Engineering Solutions Technology Infrastructure Services Revenue ▼ US$ 4.98 billion (2009) Net income ▼ US$ 0.82 billion (2009) Total assets ▼ US$ 5.38 billion (2009) Employees 98,391 (As on 27 October, 2009) Website Wipro.com SWOT ANALYSIS Strengths Weaknesses Highly skilled human resource Absence of practical knowledge. Low wage structure Dearth of suitable candidates Quality of work Less Research and Development Initiatives taken by the Government (setting up Hi-Tech Parks and implementation of e- governance projects) Contribution of IT sector to India’s GDP is still rather small
The bar chart shows that the recruitment of engineers and IT professionals in the industry is growing at the Compound Annual Rate of 14.5% approximately. In the FY06, the direct employment in the IT-ITES sector was 1.3 million people and the indirect employment was 3 million approximately. Trends in Salary Hikes Along with abundant growth opportunities, IT sector is one of the highest paying sectors. The average increase in salary in IT sector across the levels was around 16% and the average increase in the ITeS BPO sector across the levels was in between 16%-18% Requisites for balanced salaries - End to poaching Review of compensation according to the skills Developing talent in-house Entry of talented fresher’s in the industry
Software Technology Parks of India (STPI) was setup by the government in 1991 to provide: Fiscal benefits like tax holidays to attract investment into the industry Basic infrastructure Single–window clearances for setting up Export Oriented Units (EOUs) Virtual model allows firms to avail benefits without restrictions on location. Progressive policy reform (fiscal/trade/other ): No FDI restrictions. Fiscal reforms (international taxation, overseas investment, etc.) to facilitate ease of international transactions introduced. Recent initiatives:
behaviour (as a religious practice or a social custom). Cultural continuity in social attitudes, customs, and institutions." Cultural Continuity: Social attitudes have changed in that citizens of a society now expect the various elements of that society to be better informed than previously. They also expect to be able to access more information about a specific product, service or organization so that they can make informed decisions with regard to their interactions with that entity. Institutions: The word institutions can incorporate a wide variety of organizations. For the purposes of this report the institutions we will examine will be: Governments, Commercial businesses, News & media organizations, Educational organizations. The focus is on how information technology development has improved the processes by which these institutions accomplish their tasks or goals. Governments: The government of a nation is comprised of many varied institutions. However developments in information technology have helped governments to improve their "service" to their citizens. Information technology has also had a major impact on the defense capabilities of governments. This covers both a government's capability to wage war and their intelligence gathering capability. Advances in weapons technology and weapons design have increased the effectiveness of various governments' armed forces. For example it would have been impossible to design aero planes such as the B2 Bomber if it were not for the advances made in information technology. The B2 bomber relies on a "continuous curvature" design to minimize radar signature. It would have been impossible to design or build this machine without the development of computer modeling techniques. Commercial Businesses: The advances in information technology have heavily influenced commercial businesses in several areas. The most important role of information technology in a commercial business, however, is to provide a commercial advantage. Advances such as computer-aided design, relational database technologies, spreadsheets and word processing software provide a commercial benefit to the business, as does automation of manufacturing processes (which Sara- Lee did in 1964). Advances in information technology over the last thirty years have lead to the television.