Prospects for Indian It

7/31/2019 Prospects for Indian It

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According to the U.K. department of trade & industry,

I.T. is the acquisition, processing, storage &dissemination of vocal, pictorial, textual & numeric

information by a micro-processor-based combination ofcomputing & telecommunications

ITeS :

Business processes & services performed or providedfrom a location different from that of their users orbeneficiaries & are delivered ,using I.T. over telecomnetworks.


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IT1968: The Tata industrial conglomerate formssoftware services unit Tata Consultancy

Services.

1994: Telecom liberalized.

1999: Y2K contracts pile into India.

2003: Led by service conglomerates such asWipro, TCS and Infosys, India becomes aprimary destination.


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ITESFirst Phase : MNCs establishing units in India

(Pre 1997)

Second Phase : Entry of established software co.(19972002)

Third Phase : Geographical dispersion of Activities

(2002-2004)

Fourth Phase : Move towards acquisitions(2004Till now)


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InfosysStarted in 1981 by seven people with US$ 250 Today,

it is an IT and consulting with revenues of over US$ 4billion.

TCSEstablished in 1968, TCS has grown to its current

position as the largest IT services firm in Asia

HCL Tech.Started in 1998

Wipro


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STRENGTHSHighly skilled human resourceLow wage structureQuality of workInitiatives taken by the GovernmentMany global players have set-up operationsin India like Microsoft, Oracle, Adobe, etc.English-speaking professionals

Cost competitivenessQuality telecommunications infrastructureIndian time zone

WEAKNESSES Absence of practical knowledge Dearth of suitable candidates Less Research and Development Contribution of IT sector to India 's GDP isstill rather small.

OpportunitiesHigh quality IT education marketIncreasing number of working age peopleIndia 's well developed soft infrastructureUpcoming International Players in themarket

ThreatsLack of data security systemsCountries like China and Philippinesmaking efforts to overcome the Englishlanguage barrierIT development concentrated in a fewcities only

Employee salaries in IT sector are

increasing tremendously.


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It started with the onset of globalization inIndia during the early 1990s

According to NASSCOM, the ITBPO sector

in India aggregated revenues of US$88.1billion in FY2011

The industrys share of total Indian exports(merchandise plus services) increased fromless than 4 per cent in FY1998 to about 25per cent in FY2012


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Software and services revenues (excluding Hardware),comprising nearly 87 per cent of the total industry revenues,expected to post USD 87.6 billion in FY2012; estimated growthof about 14.9 per cent over FY2011

A DRIVER FOR ECONOMIC GROWTH

-The industry continues to be a net employment generator -expected to add 230,000 jobs in FY2012, thus providing direct

employment to about 2.8 million, and indirectly employing 8.9million people

As a proportion of national GDP, the sector revenues havegrown from 1.2 per cent in FY1998 to an estimated 7.5 per cent

in FY2012


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While the global macroeconomic scenario remaineduncertain, the industry exhibited resilience andadaptability in continually reinventing itself to retain its

appeal to clients.

Embracing emerging technologies, increasedcustomer-centricity, deepening focus on new markets,adopting new business models are some successful

growth strategies followed by the industry.

THE IT / ITeS NAVARATNAS


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Tier I cities account for over 85 percent of IT sectoremployment and over 90 percent of BPO employment.

Approximately 50 percent of additional talentrequirements to be met from Tier II and Tier III cities.

Tier II cities can offer cost advantages of 3050percent over mature locations due to lower labor and

real estate cost and reduced staff attrition rates.

Tier II cities to account for 40% BPO jobs by 2018.

Figure growth in Tier II cities to occur in SEZs.


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Bhubaneswar Chandigarh Coimbatore Indore Jaipur Lucknow Madurai Mangalore Nagpur Thiruvananthapuram Tiruchirapalli Vadodara Visakhapatnam


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YEAR

1999-2000

2000-2001 2001-2002

2005-2006

2010 2012

2013

2020

REVENUES

Rs. 2400 Crores

Rs. 4100 Crores Rs. 7100 Crores

Rs. 1,32,300 Crores

Rs. 2,70,000 Crores Rs. 4.9 lakh Crores

Rs. 5.5 lakh Crores

Rs. 11 lakh Crores


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About 20-25% of technical work in the ITindustry can be done by non-engineers.However less than 10% of the staff in IT industryare non-engineers.

Top 5 IT players to hire about 20-30% non-engineers

Advantages: Low entry-lrvrl salary costs(30-50% lower) Right skilling Optimize resource utilization


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A percent rise in rupee against dollorleads to a: 1.2% loss in earnings of wipro 1.9% for Infosys

2.2% for satyam

Most major IT/ITeS players increased prices on newcontracts and tried to negotiate on existing contracts

Infosys raised prices for new customers and 2%

increase in existing contracts TCS prices new contracts at higher prices

However small and mid-sized companies whichlacked pricing power were hit by the rising rupee


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India promisingly climbed 10 spots to 34th in Global Ranking ofInformation Technology Competitiveness.

AT Kearneys Global Services Location Index 2011 ranks Indiaas the most preferred destination for companies looking tooffshore their IT and back-office functions.

India holds its leadership position in the offshore services marketdespite growing competition from rival sites (Eastern Europe,Latin America, Philippines, South Africa).

Within the global sourcing industry, India was able to increaseits market share from 51 per cent in 2009, to 58 per cent in2011, highlighting Indias continued competitiveness and theeffectiveness of India-based providers deliveringtransformational benefits


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Finance

HR,

Administration, Healthcare,

Biotech research

Telecommunication and manufacturing Customer care,

Web sales/marketing

Back-office operations


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India still has the benefit of long term costcompetitiveness and an abundant supplyof highly trained scientists, engineers andtechnicians. Combined with continuedgovernmental support of the technologysector, these assets promise to sustain

Indias standing as a highly attractivecountry for global companies seeking tostrengthen their cost competitiveness andservice delivery capabilities.


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http://www.nasscom.in/indian-itbpo-industry

http://www.thehindubusinessline.com/multime

dia/archive/00889/ASSOCHAM_ECO_PULSE__889307a.pdf

http://www.cci.in/pdf/surveys_reports/it-ites-

sector.pdf

http://en.wikipedia.org/wiki/Information_technology_in_India
http://www.nasscom.in/indian-itbpo-industryhttp://www.thehindubusinessline.com/multimedia/archive/00889/ASSOCHAM_ECO_PULSE__889307a.pdfhttp://www.thehindubusinessline.com/multimedia/archive/00889/ASSOCHAM_ECO_PULSE__889307a.pdfhttp://www.thehindubusinessline.com/multimedia/archive/00889/ASSOCHAM_ECO_PULSE__889307a.pdfhttp://www.cci.in/pdf/surveys_reports/it-ites-sector.pdfhttp://www.cci.in/pdf/surveys_reports/it-ites-sector.pdfhttp://en.wikipedia.org/wiki/Information_technology_in_Indiahttp://en.wikipedia.org/wiki/Information_technology_in_Indiahttp://en.wikipedia.org/wiki/Information_technology_in_Indiahttp://en.wikipedia.org/wiki/Information_technology_in_Indiahttp://www.cci.in/pdf/surveys_reports/it-ites-sector.pdfhttp://www.cci.in/pdf/surveys_reports/it-ites-sector.pdfhttp://www.cci.in/pdf/surveys_reports/it-ites-sector.pdfhttp://www.cci.in/pdf/surveys_reports/it-ites-sector.pdfhttp://www.cci.in/pdf/surveys_reports/it-ites-sector.pdfhttp://www.thehindubusinessline.com/multimedia/archive/00889/ASSOCHAM_ECO_PULSE__889307a.pdfhttp://www.thehindubusinessline.com/multimedia/archive/00889/ASSOCHAM_ECO_PULSE__889307a.pdfhttp://www.thehindubusinessline.com/multimedia/archive/00889/ASSOCHAM_ECO_PULSE__889307a.pdfhttp://www.nasscom.in/indian-itbpo-industryhttp://www.nasscom.in/indian-itbpo-industryhttp://www.nasscom.in/indian-itbpo-industryhttp://www.nasscom.in/indian-itbpo-industryhttp://www.nasscom.in/indian-itbpo-industry


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Prospects for Indian It

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