Pestel India
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Political Factors: In India, political factors influence the business development. Taxes are levied by three-tier federal structure, comprising of union government, state government and urban or rural local bodies. The incumbent government has proposed a uniform tax structure throughout the country, to be implemented within 2-3 years, thereby increasing transparency The incumbent government in India is keen on development and investment from foreign companies Government’s thrust on IT initiatives such as “Digital India” campaign and increased spending on implementation of technology in healthcare, manufacturing, transportation and agriculture sector is expected to provide an opportunity of $5.9 billion [CRISIL Research Report: IT Services, Issue September 2015] Increased regulation by government bodies such as SEBI to prevent frauds Economic Factors: 2014-15 Growth rate: 12.7 % Expected CAGR: 10-12% in IT industry The cost of operations is 30-40% lower than low-cost countries. [As per NASSCOM report, from CRISIL Research report September 2015] The detrimental effect of wage hike and competitive billing rates on the operating margins in this sector would get offset by weaker rupee against dollar and increased employee productivity. Social Factors: Employee growth in IT sector: 5-6% CAGR
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Factors affecting busines development
Transcript of Pestel India
Political Factors:
In India, political factors influence the business development.
Taxes are levied by three-tier federal structure, comprising of union government, state government and urban or rural local bodies. The incumbent government has proposed a uniform tax structure throughout the country, to be implemented within 2-3 years, thereby increasing transparency
The incumbent government in India is keen on development and investment from foreign companies
Government’s thrust on IT initiatives such as “Digital India” campaign and increased spending on implementation of technology in healthcare, manufacturing, transportation and agriculture sector is expected to provide an opportunity of $5.9 billion [CRISIL Research Report: IT Services, Issue September 2015]
Increased regulation by government bodies such as SEBI to prevent frauds
Economic Factors:
2014-15 Growth rate: 12.7 %
Expected CAGR: 10-12% in IT industry
The cost of operations is 30-40% lower than low-cost countries. [As per NASSCOM report, from CRISIL Research report September 2015]
The detrimental effect of wage hike and competitive billing rates on the operating margins in this sector would get offset by weaker rupee against dollar and increased employee productivity.
Social Factors:
Employee growth in IT sector: 5-6% CAGR
