PREFACE

Information Technology has gone through a revolutionary change since its inception. IT

sector is an emerging industry; in spite of recession worldwide IT sector has sustained its

position and continue with providing maximum number of job vacancies.

This report includes Macro and Micro Analysis dealing with evolution of IT Sector. In this

report the origin of Information Technology and the phases of Information Technology

system in India as well abroad are discussed in detail.

Macro analysis includes about IT Industry, Major Players, products and services, financial

overview, government regulations and SWOT and PEST analysis.

Micro analysis include about Infosys, Human resources policies,4 p’s of marketing, Financial

Analysis, SWOT analysis and Michael Porter’ s Model.

We hope our work duly fulfills the requirement of the partial fulfillment of our graduation

that is fourth year of B.com Honors (IA) for the year ended 2013-14.

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ACKNOWLEDGEMENT

It is really a matter of pleasure for us to get an opportunity to thank all the persons who

contributed directly or indirectly for the successful completion of the project report, On

“Information Technology as well Infosys co. ltd.”

First of all we are extremely thankful to my I/C principal Mr.Nishith Dave for continues

support .We also thankful to C Z Patel College of Business and Management family for

providing us cooperation. I also express my gratitude to our project guide Dr. Manisha Bhatt.

We are highly thankful to our respected project guide for giving the encouragement for the

completion of this project.

We also grateful to all my faculty members for their valuable guidance and suggestions for

our entire study.

Exam No. Name of the Students Signatures

04 Arpit Dalwadi ----------------

11 Dilip Gajera ----------------

13 Dipesh Kalal ----------------

52 Vrunda Patel ----------------

53 Yash Joshi ----------------

Class: - Fo.Y.B.Com. (Hons.) (IA)

Supervised By: - ________________

Dr. Manisha Bhatt

Assistant Professor_ Commerce & Management

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Executive Summary of IT Industry -Macro Analysis

1. History of Information Technology:-

Information technology (IT) is the application of computers and telecommunications

equipment to store, retrieve, transmit and manipulate data often in the context of a

business or other enterprise. The term is commonly used as a synonym for computers

and computer networks, but it also encompasses other information distribution

technologies such as television and telephones. Several industries are associated with

information technology, including computer hardware, software, electronics,

semiconductors, internet, telecom equipment, e-commerce and computer services.

2. Major Players of Information Technology:-

Competitors at global level:-

A. Microsoft

B. Oracle

C. SAP (System Application Product)

D. Symantec

E. CA Technology

F. Intuit

G. Amadeus IT Holdings

Market Shares:-

According to the latest forecast by IT market analysis firm Gartner, worldwide IT spending is

projected to total US$3.7 trillion in 2013, a 4.2% increase from 2012 spending of US$3.6

trillion. The 2013 outlook for IT spending growth in US dollars has been revised upward

from 3.8% in the Q3 2012 forecast. Gartner said much of this spending increase is the result

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of projected gains in the value of foreign currencies versus the dollar. When measured in

constant dollars, 2013 spending growth is forecast to be 3.9%.

3. Products and Services of Information Technology:-

Products:-

A. Adobe Acrobat Professional

B. Microsoft Windows

C. Office Suite Windows

D. Network Services Request

E. McAfee Virus Scan Enterprise

Services:-

A. Application Services

B. Enterprise Content Management Services

C. Information Protection Services

D. Resources Management Services

E. Virtual Data Center Services

4. Financial Overview of Information technology:-

The era of information-driven technology constantly changes the way mankind approaches

the corporate world, particularly in doing business transactions, the continuous advancement

of other information technology sub-fields such as multimedia and programming, are

considered to be the ones responsible for the success of big companies like Microsoft, Apple

and Intel.

Nowadays, social media networking sites like facebook has opened new doors for the

innovation of Information Technology. Aside from this, a number of sites all over the world

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promote businesses by offering web-related services such as Web Developing and Search

Engine Optimization.

5. Government Regulations:-

IT spending by the Government of India is projected to reach US$ 6.4 billion in 2013, a

growth of 7 per cent year-on-year, according to a report by Gartner.

Some of the major initiatives taken by the Government to promote IT and ITeS sector in

India are:

• After a successful first-ever international delegation to Dubai, Gujarat-based small and

medium enterprises (SMEs) in the IT sector plan to send similar business delegations to

European and South East Asian countries.

• The Government of Karnataka plans to announce a new information technology (IT) policy

to boost investments in state’s tier-II and tier-III cities. The policy would enable the sector to

employ about two million people in the state directly by 2020.

• The Government of India has fast tracked the process of setting up of centers of National

Institute of Electronics and Information Technology (NIELIT) in Northeast India.

• The Government of Brazil has liberalized the issue of short term work visas, a move which

will make it easier for Indian IT professionals to take up assignments in Brazil.

• India and Vietnam have signed two memorandums of understanding (MOU) for partnership

in the field of information, communications and technology (ICT).

SWOT Analysis of Information technology:-

Strength:-

Ability To Innovate

Highly Skilled Human Resource

Following Quality Standards Such As ISO 9000,

Flexibility And Adaptability

Mathematical And Logic Expertise

Indian In Silicon Valley

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Weaknesses:-

Lack of Domestic Computerizations

Lack Of Internet Penetration

Contribution Of IT Sector To India’s GDP Is Still Rather Small

Employee Salaries in IT Sector are increasing tremendously. Low wages benefit will

soon come to an end.

Opportunity:-

High Quality IT Education Market

Increasing number of working age people

India’s well developed soft infrastructure

Upcoming international players in the market

Numbers of computer sold around world is increasing

Threats:-

Lack of data security systems

Countries like china and Philippines with qualified workforce making efforts to

overcome the English language barriers

IT development concentrated in a few cities only

Government Regulation

7. PEST Analysis:-

Political Factors:-

Government rules and regulation toward a particular business environment Other factors:-Customer protection law, competitive regulation and terrorist attacks Indian government has decided to contract IT job to IT Indian companies creating

more opportunities for the company and the industry at large Indian government has strengthened the IT act, 2000to provide a sound legal

environment

Economical Factors:-

Rising working pay, global recession, competition contract available and free Domestic IT spending grew by20% and reached $20 billion in 2009 Currency fluctuation caused by the devaluation of the dollar has affected the industry

during the last recession

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Recession cause low attribute rate due to job layouts and job cuts.

Social Factors:-

The social factors affecting IT industry ranges from employee rights, language barriers, race nationality of company or other issues.

English range being widely spoken in India has help in fostering the industry’s relationship and interaction in India and on the global stage.

Great number of institute and universities offer IT course creating room for availability IT professional at lower cost since there is job competition.

Technological Factors:-

Telephony:-

Cellular mobile telephony tariffs in India are the lowest in the world. The airtime tariffs have plunged by over 75%in the last 3 years alone.

INDIA has the second largest telephone network after china. Enterprise telephone services, 3G, WI-MAX, and VPN are the grow.

Internet:-

INDIA had has on 2011, 100 million active internet users. INDIA now third biggest internet users after china (300 million) and US (207

million).

New IT Technology:-

WEB 2.0 represents the next transition in the evolution of WEB applications. Computer –aided design (CAD)

Executive Summary of Micro Analysis on Infosys Co. Ltd.

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About Infosys:-

In 1981, seven engineers started Infosys Limited with just US$250. From the beginning, the company was founded on the principle of building and implementing great ideas that drive progress for clients and enhance lives through enterprise solutions. For over three decades, we have been a company focused on bringing to life great ideas and enterprise solutions that drive progress for our clients.

Infosys recognize the importance of nurturing relationships that reflect our culture of unwavering ethics and mutual respect. It’ll come as no surprise, then, that 97 percent (as of December 31, 2013) of our revenues come from existing clients.

Infosys has a growing global presence with more than 158,000+ employees worldwide, across 71 offices and 93 development centers in the United States, India, China, Australia, Japan, Middle East, and Europe.

Stakeholder of Infosys:-

Recent global events have shown that sincere two-way dialog is vital for any business organization to win and keep the trust of its stakeholders. Infosys have always ensured that Infosys communication channels with customers, employees, investors, vendors and society are open and collaborative. Their valuable feedback influences the business decisions we take and the sustainability strategies that we implement. Infosys engaged with key stakeholders

through various programs and communication initiatives.

Products of Infosys:-

• Customer Service

• Digital Commerce

• Digital Marketing

• Distribution

• Sourcing & Procurement

• Talent Management

Services of Infosys:-

• Business Applications

• Management Consulting

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• Oracle

• SAP

• Sustainability Services

Human Resources:-

The Infosys BPO Human Resources Outsourcing (HRO) practice combines global sourcing and delivery capabilities to offer flexible and cost-efficient solutions for acquiring, administering and developing talent.

Infosys componentized HRO offerings enable customers to embark on the HRO journey easily and realize benefits promptly. Through Infosys transformational expertise, our customers save up to 40% on operational costs and enhance productivity by up to 30%. Our suite of innovative tools measure and improve HR/ business metrics.

Infosys serve clients from co’s global delivery centers in India, China, Philippines, Mexico, Brazil, Poland, and the Czech Republic.

4 p’s of marketing:-

Product:-

The Product aspects of marketing deal with the specifications of the services, and how it relates to the end- user’s needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees and support.

Price:-

The pricing decision is one of the most critical decisions. Software pricing has been concentrated the internal business objectives of vendors such as costs, specified, margins, and the competition.

Place:-

In service place refers to location and use of distribution channels. It is referring to the channel by which a service is sold (e.g. online vs retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold and can affect sales.

Promotion:-

Over here, services and project consulting is through contract or agreement between the parties and promotions are carried out only for the particular client selected as upgrading and

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extended service for a particular period etc. This includes advertising, sales promotion, publicity and personal selling. Branding refers to the various methods of promoting the product, brand or company.

Financial analysis of Infosys:-

A. Net Profit Ratio:-

Years Net Profit Ratio (%)

2009 27.52

2010 26.36

2011 24.28

2012 25.60

2013 23.38

B. Current Ratio:-

Years Current ratio

2009 4.71

2010 4.28

2011 5.34

2012 4.91

2013 4.75

C. Liquid Ratio:-

Years Liquid

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Ratio2009 4.67

2010 4.20

2011 5.28

2012 4.88

2013 4.69

D. Earning Per Share:-

Years Earning Per Share Ratio

2009 101.58

2010 101.13

2011 112.22

2012 147.50

2013 158.75

SWOT Analysis of Infosys:-

Strengths:-

Infosys has strong brand recognition in the IT industry in India and abroad. It was the first

Indian company to list on a US Stock Exchange. It is ranked among the 50 most respected

countries in the world by Reputation Institute’s Global Pulse 2009. It has also been voted

most admired Indian company in the Wall Street Journal Asia since 2000.

Weaknesses:-

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Although Infosys attracts some of the best talent, it has a problem retaining the talent due to

the low compensation structures. Infosys faces the highest attrition rate of 16% in the Indian

software industry. These attrition numbers are thrice as much as the general industry rate.

With an increasing number of international firms such as IBM, Microsoft, Accenture, and

Deloitte competing with Infosys for hiring from the same pool of software engineering

professionals, the gap between the demand and availability of skilled manpower in India and

abroad is likely to increase further.

Opportunities:-

Infosys has traditionally been averse to acquisitions, held its premium pricing strategy and

focused on its core IT enabled services business. However, the recent changes in the

corporate leadership in 2011 and slowdown in growth have prompted a strategic shift towards

global expansion and moving up the value chain with consulting and technology partnership.

Threats:-

Infosys is competing globally with other Indian offshore technology services firms such as

TCS, Wipro, HCL Technologies, and Cognizant as well as international consulting firms

such as Accenture, Atos Origin, Cap Gemini and Deloitte for clients as well as human

resources.

Michael Porter’s of Infosys:-

1. Bargaining Power Of Suppliers:-

Due to slow down the jobs-cut, the layoffs and bleak IT outlook.

Demand And Supply of Infosys professionals are no longer that favorable to

employees.

Avability of vast talent pool-fresher’s and experienced.

Switching Costs

2. Bargaining Power of Buyers:-

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Infosys resulting in high competition

Size of Buyers

Volume Purchased

Threats of backward integration

3. Threats of new entrants:-

Barriers to entry

Economies of scale

Capital requirement(finance required for business operations, cost of entry)

MNCs are ramping up capacity and employee strength

4. Threats of substitute:-

Levels of brand loyalty

Buyers propensity to substitute(based on comparison of benefits ,features, price &

availability of information)

The quality of a product being same

5. Rivalry among existing competitors:-

Number of competitors

Infosys growth rate

Fixed costs (e.g. investment in salaries, rent etc)

Product differentiation

OBJECTIVES OF STUDY

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The study is partial fulfillment of the curriculum of Fourth Year B.Com (Honors)

International Accounting.

In addition to this, it provides practical industrial exposure which would be helpful in

building up a bright career.

To identify the opportunities of and challenges of IT industry and Infosys co. ltd.

To determine various areas of management like human resources, marketing and

financial analysis.

Create awareness among the youth and policy makers of the region about the potential

of Information Technology for sustainable development with a various regions of the

country.

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