IT industry
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The document discusses the IT and ITES sectors in India. It defines IT as the study, design, development and management of computer-based information systems, while ITES refers to the outsourcing of processes that can be enabled by IT, such as finance, HR and administration. India has become a major global outsourcing destination for IT and ITES due to an English-speaking workforce, lower costs, and a large skilled talent pool. The sectors have grown significantly and now contribute over 7% to India's GDP, with major hubs located in Bangalore, Chennai, Hyderabad and Pune. Leading companies in the space include TCS, Infosys and Wipro.
IT industry
- 3. INTRODUCTION What is IT???? As defined by INFORMATION TECHNOLOGY ASSOCIATION OF AMERICA (ITAA) “IT” is the “study, design, development, implementation, support or management of computer based information system particularly software's applications & computer hardware. The Information technology industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector.
- 4. What is ITES??? ITES is INFORMATION TECHNOLOGY ENABLE SERVICES. It is defined as outsourcing of processes that can be enabled with IT & covers divers areas like FINANCE, HR , ADMINISTRATION.... etc. The IT–ITES industry has two major components: IT Services and business process outsourcing (BPO).
- 5. GLOBAL SCENARIO Today the IT’s 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 at steady rate.
- 6. INDIAN SCENARIO Creating opportunities for the ‘out-of-the- mainstream’ candidates. India is a popular choice for customers seeking outsourced services because it is able to offer a 24*7 services by reduction in costs while maintaining quality. Every job created in IT-ITeS sector accounts for creation of four jobs in rest of the economy. The sector has increased its contribution to India's GDP from 1.2% in FY1998 to 7.5% in FY2012. Some flagship companies that are providing good career in IT-ITES sector are - Infosys technologies, TCS, Wipro Technologies, Tech Mahindra, Persistent, Cognizant, Amdocs, Cybage, Castech, HCL technologies, Satyam Computers etc.
- 7. Some of the major reasons for the significant growth of the IT Industry of India 1. Abundant availability of skilled manpower 2. Reduced telecommunication & internet costs 3. Reduced import duties on software & hardware products 4. Cost advantages 5. Encouraging government policies
- 9. Comparative contribution Of IT & ITeS in different sectors 25% 22% 21% 20% 15% 15% 14% 11% 11% 10% 6% 5% 0%
- 10. Contribution in terms of Revenue
- 11. SCOPE OF IT-ITES SECTOR IN INDIA 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 8.9 million people. According to NASSCOM, the IT–BPO sector in Indiaaggregated revenues of US$100 billion in FY2012, where export and domestic revenue stood at US$69.1 billion and US$31.7 billion respectively, growing by over 9%. IT industry will attract Foreign Direct Investment (FDI) of U.S. $ 4-5 billion. IT services will contribute over 7.5 % of the overall GDP. The industry’s share of total Indian exports increased from less than 4% in FY1998 to about 25% in FY2012.
- 12. Major IT Hubs Ranking City 1. Bangalore Popularly known as the capital of the Silicon Valley of India is currently leading in Information Technology Industries in India. It leads the pack of outsourcing destinations in the world. Recently the city has become an international hub for software R&D as well. 2.Chennai It is the second largest exporter of Software in India (City-wise). Chennai is the largest center for TCS, Cognizant, HCL, L&T Inotech and second largest for Infosys and Wipro. Almost every major software company in India has a presence in Chennai. 3.Hyderabad Hyderabad is called as Cyberabad. Hyderabad is the head-quarters of Microsoft India and many multi national companies.Currently the city is the third largest exporter of software after Bangalore and Chennai. 4. Pune Pune, a major industrial point in India. It is also referred to as Education Hub of India. It was declared as Gamma-Global City recently. As one of the largest cities in India, and as a result of its many colleges and universities, Pune is emerging as a prominent location for IT and manufacturing companies to expand.
- 13. TOP THREE PLAYERS IN IT & ITeS SECTOR
- 14. TATA Consultancy Services Limited Year of 1968 Establishment Founder JRD Tata Company’s Profile TCS is an Indian multinational Information Technology (IT) Services business solutions, outsourcing services. TCS was founded in 1968. It is one of India’s valuable companies. It is also one of the 5 largest India-based IT services firms. On August 9, 2004 TCS became a Publicly Listed Company. Headquarters Mumbai Maharastra Marketing Network As of 2012, company has around 2,43,545 employees. TCS operates more than 47 countries. It has development centers &/or regional offices in the following Indian cities:- Lucknow, Baroda, Delhi, Chennai, Hyderabad, Pune, etc Subsidiaries CMC Limited Profit US$ 2.2 billion
- 15. Infosys Technologies Year of 1981 Establishment Founder N.R Narayan Murthy, Nandan Nilekani, N.S. Raghvan, S. Arora Company’s profile Infosys Technologies Limited is an Indian provider of business consulting, technology, engineering, outsourcing services. Today Infosys is a global leader in the “next generation” of IT. Infosys was also ranked as the 15th most trusted brand in India. Headquarters Bangalore, Karnataka Marketing Networks As of 2012, the company has over 1,51,151 employees. It has 30 offices across countries and development centers in India, Canada, UK, Japan, Australia & many other countries. Division Healthcare, Education, Culture and Rural Development Profit US$ 1.71 billlion
- 16. Wipro Technologies Year of 1997 Establishment Founder Azim Premji Company’s Profile Wipro Technologies is a global services provider delivering technology-driven business solution. In 2001, Wipro became the first Software Technology & Services Company in India to be certified for ISO 14001 certification. The company was incorporated on 29 dec 1945 at Mumbai by Mohamed Hasham Premji as Western India Products Limited Headquarters Bangalore, Karnataka Marketing Networks As of 2012, the company has over 1,30,000 employees & a worldwide presence with centers across 54 countries. The company operates in 4 segments: Division IT Products & Services, Consumer Care & Lighting, Healthcare and Infrastructure Profit US$ 1.09 billion
- 17. NET Profit of Top 4 Companies
- 18. Analysis of Indian IT sector STRENGTHS Highly skilled, English-speaking workforce. Abundant manpower Cheaper workforce than their Western counterparts. According to Nasscom, The wage difference is as high as 70- 80 percent when compared to their Western counterparts. Dedicated workforce aiming at making a long-term career in the field. Round-the-clock advantage for Western companies due to the huge time difference. Lower response time with efficient and effective service.
- 19. WEAKNESSES Recent months have seen a rise in the level of attrition rates among ITES workers who are quitting their jobs to pursue higher studies. Of late workers have shown a tendency not to pursue ITES as a full-time career. The cost of telecom and network infrastructure is much higher in India than in the US. Manpower shortage Local infrastructure Political opposition from developed countries
- 20. OPPORTUNITIES To work closely with associations like Nasscom to portray India as the most favoured ITES destination in the world. Indian ITES companies should work closely with Western governments and assuage their concerns and issues. India can be branded as a quality ITES destination rather than a low-cost destination. $69 billion ITES business by 2010 $97.5 billion IT (consulting, software solutions) market by 2010
- 21. THREATS The anti-outsourcing legislation in the US state of New Jersey. Three more states in the United States are planning legislation against outsourcing Connecticut, Missouri and Wisconsin. Workers in British Telecom have protested against outsourcing of work to Indian BPO companies. Other ITES destinations such as China, Philippines and South Africa could have an edge on the cost factor. Slowdown of demand
- 22. Positives of Indian Software Industry Outsourcing has really been the major reason which has caused the boom in the Indian software industry. Additional factors which are causing the I.T. sector to flourish are the visa restrictions Number of software engineers being produced in these western countries are not enough so companies have to eventually transfer their work to India. Additionally, software is a white collar job, meaning you are mostly sitting in a nice air-conditioned office Job placements in most engineering colleges is very good with many companies like Wipro, Infosys, and several multinationals competing to hire good students.
- 23. Negatives of Indian Software Industry The falling dollar Time difference Quality of Indian Engineers Layoff's (job loss) International competition increasing
- 24. CONCLUSION Very good future prospects IT & ITeS is on going requirement of every nation. Opportunities for Investors, Entrepreneur, Youth and Countries Continuous growth year by year But with more and more educated people in India, there will be even more engineers in the future, and software competition will be on a rise. Regardless of whatever happens to the future of software in India, the people who are outstanding in their profession will continue to be in demand
- 25. Presented BY ABHINAV YADAV SHUBHAM GUPTA NEHA CHAURASIA RAHUL KUMAR NIKHIL SINGH
- 26. THANK YOU