Global IT Scenario

Global IT ScenarioPresented By:Prudhvi muni deepak

What is IT ?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.

What is ITES??Information technology enable services.It is defined as outsourcing of processes that can be enabled with IT & covers divers areas like finance, HR administrationetc.The IT-ITES industry has two major components: IT services and business process outsourcing.

Global Scenario Today the ITs advancement around the world cannot be imagined.Integrated the world economy through removal of barriers.Global sourcing of technology related services is estimated to have grown.There is estimated growth regarding spending on world wide technology products & related services sector.Global IT spends projected to grow steady state.

Global IT Size2014 Spending in Billion USDHardware/ Devices697Data Center Systems143Enterprise Software320IT Services963Telecom Services1,653Total3,777

Source: Gartner

Comparison of Global IT SpendingSource: GartnerAll Figures are in billion USD

Global Players in computer HardwareTop 3 Global playersLenovo(17.10%)HP(16.60%)Acer(7.80%)

Market Size: USD 311.91 BillionSource: Bloomberg

Global Players in Enterprise SoftwareTop 3 playersMicrosoft corporation(16.10%)IBM(7.5%)Oracle(7.4%)

Market Size- 320 Billion USD Source: Bloomberg

Global Players in IT ServicesTop 3 PlayersIBM(6.60%)HP(3.90%)Accenture(3.10%)

Market size- 963 Billion USDSource: Bloomberg

Indian IT SizeRevenue in Billion USD (2014)Hardware13Software products in E R &D18BPM23IT services64Total118

Top Indian players in Indian IT IndustryIT/ITESTCSInfosysCTS

Where India Stands in Global scenarioSource: Nasscom, GartnerAll Figures are in billion USD

Indias share in Global IT Hardware- 1.86%Indias Share in Global Enterprise Software-5.62%Indias share in Global IT/ITES-6.64%Overall Share in IT Industry- 5.55%Growth rate is 8.25%Exports growth rate- 13.15% in dollar terms.Domestic growth rate- 13-15% in rupee terms.Source: Nasscom, Gartner

Opportunities Increase in domestic salesMoving up the value chainStill have more than 90% of the market to penetrate.

ThreatsHigh attrition rateCompetition from other emerging nationsOver-dependency on US economyLack of product innovationRisk of rupee appreciation.

Porters five forces analysis

Competitive Rivalry - (High)Intense competitive rivalry - Low switching cost

Little Product differentiation - Most of the big firms offer same service Threats of new Entrants -(Medium)

Easy entry as the capital required is low

Small players not able to win large deals

Substitute Products (Medium)

Philippines and china, are fast gaining grounds (Low cost advantage)Bargaining power of Suppliers(Low)Due to slowdown , the job cuts and layoffDemand & supply of IT professional is no longer that favourable Availability of vast talent pool(both freshers and experienced)

Bargaining power of buyersHigh - Many IT firms fighting for similar projects.

Firms dependent on same geography - increases customer power

Benefits of porters five forcesFive forces analysis helps organisations to understand the factors affecting profitability in a specific industry, and can help to inform decisions relating to: whether to enter a specific industry; whether to increase capacity in a specific industry; and developing competitive strategies.