UNIT II2.pdf

Unit II
SYLLABUS
• Companies : Introduction to IT and ITES industry
(Product based, Services based), Introduction to
• NASSCOM, STPI, Overview on latest IT projects with
global impact, Case study of an IT industry
• (Product based and Services based), Recent
technology advancement, Current affairs related with
the
• IT industry, Diversity in the Workforce

How you can start
a company ?
Is there any law in
India related to
companies?
From where we should
start ?

COMPANY ACT
• Started in→1956. (company act ,
1956)
• Need →enabled companies to be
formed by registration, sets out the
responsibilities of companies, their
directors and secretaries and also
provides for the procedures for its
winding
• Till a date two new act passed by
INDIAN government
• Company act 1956→ company act ,
2013→ company act 2017

Highlights
• Companies Act 1956 explains about the whole
procedure of
✓ How to form a company
✓ Its fees procedure,
✓ Name
✓ Constitution,
✓ Its members,
✓ The motive behind the company,
✓ Its share capital,
✓ Its general board meetings
✓ Management and administration of the company including an
important part which is the directors as they are the decision makers
and they take all the important decisions for the company their main
responsibility and liabilities about the company matter the most.
✓ The Act explains about the winding of the business as well and what
happens in detail during liquidation period.

Process to start a company
Step 1: DSC
• The Information Technology Act, 2000 provides for use of Digital Signatures on the
documents submitted in electronic form in order to ensure the security and
authenticity of the documents filed electronically
• Names of Certification Agency (CA) from where DSC can be acquired are MTNL
CA, TCS, IDBRT, SAFESCRYPT (SATYAM), nCODE Solutions, NIC, Central Excise &
Customs
Step 2: Acquire Director Identification Number
• The concept of a Director Identification Number (DIN) has been introduced for the
first time with the insertion of Sections 266A to 266G of Companies (Amendment)
Act, 2006. As such, all the existing and intending Directors have to obtain DIN
within the prescribed time-frame as notified.
Step 3: Register DSC
• Third step is to register DSC of the person authorized to sign E-forms on MCA21
Step 4: Apply for Reservation of Name [S.4(4)]
As per section 4(4) of Companies Act, 2013 read with rule 9 of Companies
Incorporation Rules, 2014, application is to be made to registrar for reservation of
name. 6 names can be proposed after checking its availability at MCA21 and as per
guidelines given in the said rules

Step 5: Drafting and Printing of Memorandum and Articles of Association
After ascertaining name availability from the Registrar of Companies steps should be taken to get the
memorandum and articles of association for the proposed company drafted and printed. The memorandum of a
company limited by shares shall be in Tables – A in Schedule – I of the Companies Act, 2013.
If the promoters plan to get the securities of the proposed company listed with one or more designated stock
exchanges, it is advisable to send the draft of the memorandum and articles of association to those stock
exchanges for their scrutiny and suggestion to the effect whether they would like to have certain articles
incorporated therein in compliance with the provisions of the Listing Agreements of the stock exchanges.
Step 6: Filing of Company Incorporation form – eform INC 7, DIR 12 & INC 22
• As per Rule-12 of Companies (Incorporation) Rules, 2014, application for incorporation of a private and
Public company, with the Registrar, within whose jurisdiction the registered office of the company is
proposed to be situated, shall be filed in Form no. INC 7 [Rule 12 to 18] along with Form no. INC.22 for
situation of registered office of the Company, (as the case selected in form no. INC 7) and DIR -12.
Note:
• Form is required to be filed within 60 days as the name is reserved only for this time period.
• Stamp Duty is payable online as it exceeds Rs. 100/-
• If you have to file INC 22 with INC 7, then:
Step 7: Filing of Commencement of Business – eform INC 21
• On registration, a company cannot commence business or exercise any borrowing powers until it files a
declaration by directors in Form INC – 21 to the effect hat every subscriber to the memorandum has paid
the value of the shares agreed to be taken by them as specified in section 1(1)(a).
• E-form INC.21 is required to be filed with concerned Registrar of Companies for obtaining approval for
commencement of Business and exercise of borrowing powers. This E-form is required to be filed by all
companies incorporated under Companies Act 2013.

Difference between MOA AND AOA

• Minimum Requirement of a Private Company:
❖ Minimum 2 Shareholders
❖ Minimum 2 Directors (The directors and shareholders can be same person)
❖ Minimum Authorised Share Capital shall be Rs. 100,000 (INR One Lac)
❖ DSC (Digital Signature Certificate) for all the Directors (for applying of DIN)
❖ DIN (Director Identification Number) for all the Directors
• Minimum Requirement of a Public Company:
❖ Minimum 7 Shareholders
❖ Minimum 3 Directors (The directors and shareholders can be same person)
❖ Minimum Authorised Share Capital shall be Rs. 500,000 (INR Five Lac)
❖ DIN (Director Identification Number) for all the Directors
❖ DSC (Digital Signature Certificate) for one of the Directors

Company act, 2017
• Amendment done in 2017

TRADE ASSOCIATION
an organization founded and funded by businesses
that operate in a specific industry

NASSCOM
The National Association of Software and Services
Companies (NASSCOM) is a trade association of Indian
Information Technology (IT) and Business Process
Outsourcing (BPO) industry.
Established in 1988, NASSCOM is a non-profit
organisation.
Vision:
To help the IT and IT enabled products and services
industry in India to be a trustworthy, respected,
innovative and society friendly industry in the world.

Headquarters
NASSCOM is a global trade body with over 2000
members, of which over 250 are companies from China,
EU, Japan, the U.S. and the UK.
NASSCOM's member companies are in the business of
software development, software services, software
products, IT-enabled/BPO services and E-commerce.
NASSCOM is headquartered in New Delhi(Noida), India,
with regional offices in the cities of Bengaluru, Chennai,
Hyderabad, Kochi, Kolkata, Mumbai, Pune and
Thiruvananthapuram.

Partnership with the government
•NASSCOM acts as an advisor to the Indian
government at the centre as well as state levels.
•With adequate representation in various
ministries of the government, the organization
ensures that the government frames industry
friendly policies.
•It also forms partnerships at the global level for
promoting the Indian IT and ITES industries

Protection of Intellectual Property
Rights
The organization is a strong proponent of
intellectual property rights.
It supports software anti piracy by setting up
hotlines and facilitating law enforcement.

Research on IT and ITES
NASSCOM conducts in depth research on the IT and ITES
industries to keep its members well aware of the global
trends, best practices, threats and opportunities.
IT companies are those which do projects related to
programming , testing , database and other project
related works
ITES as a form of outsourced service which has emerged
due to involvement of IT in various fields such as
banking and finance, telecommunications, insurance,
etc.

• ITES stands for Information Technology
Enabled Services. It includes a wide variety of
operations which uses information technology
to improve the efficiency of an organization.
Most of the major companies in the world
prefer India for outsourcing IT Enable Services
(ITES)

Support for Quality Products and
Services
NASSCOM encourages its members to maintain
high quality of products and services with the
aim of developing global public confidence for
its members and the industry.
It also helps the members achieve international
quality certifications through regular seminars
and workshops on quality standards.

Talent Pool in India
•India has one of the largest talent pool in the
world with 300,000 engineers and 2.1 million
graduates being produced by its 11,200 higher
education institutions each year.
NASSCOM ensures that the quality and quantity
of professionals in the country increases with
time and that the country is able to cater to the
global demand of IT and ITES outsourcing
services

Role
Industry Development
As the industry has expanded into multiple sub-sectors,
NASSCOM has built an Industry Council structure that addresses
the needs of the specific sector. Focused programs, research,
events, industry initiatives are implemented through Industry
Councils.

Ex: IT Services Council
• With the advent of digital technologies,
traditional businesses are being disrupted
with technology central to this transition.

• By 2025, it is expected that the total addressable
technology market would have grown to almost $ 4 trillion
– however with one big difference.
• Almost 80% of this incremental spends on technology will
be driven by digital technologies including mobile systems,
social media, cloud, analytics, machine to machine, cyber
security and integration platforms to connect these to
legacy systems.
• How will the Indian IT services industry react to this
opportunity?
• NASSCOM has constituted a cross section of senior industry
executives, forming the IT Services and Solutions Council, to
address the needs of this industry during this inflection
time.

Ex: Internet, Mobile and E-Commerce Council
• The number of internet users in India have
surpassed 400 million mark, making it the second
largest market after China. Increase in internet
penetration in India has also led to the
exponential growth in e-commerce sector in
India.
• With an annual growth of around 20%, it is
estimated that the e-commerce industry will
surpass $ 100 billion mark by 2020.

• New emerging fields like
Internet of Things (IoT)
are thriving on the success
of internet and has started
revolutionizing various
sectors such as
manufacturing, energy,
transportation, medical,
health care etc.
• Globally IoT market is
expected to cross $300
billion by 2020 and India
aims to capture 20
percent of its market
share by this time.

• Software Technology Parks of India(STPI) ,
is an Autonomous Society set up by the
Ministry of Electronics and Information
Technology(MeitY), Government of India
in 1991.
• OBJECTIVE- to encourage, promote and
boost the Software Exports from India.
• STPI maintains internal engineering
resources to provide consulting, training
and implementation services.
• Services cover Network Design, System
Integration, Installation, Operations and
maintenance of application networks and
facilities in varied areas.
• Software Technology Parks of India centre
also adhere to ISO 9001 certification.

• The STP Scheme provides various benefits to the
registered units, including 100% foreign equity, tax
incentives, duty-free import, DTA entitlement, and
deemed exporting.
• HISTORY- Software Technology Parks of India was
established and registered as an Autonomous Society
under the Societies Registration Act 1860, under the
Ministry of Electronics & Information Technology,
Government of India on 5th June 1991 with an objective
to implement STP Scheme, set-up and manage
infrastructure facilities and provide other services like
technology assessment and professional training.

• International Communication is one such factor which needed
much attention and India was factored -2 as against +8 factored
to Ireland.
• This is one of the primary reasons why STPI took up the
responsibility of improving the International Data
Communication facilities exclusively for the Software Export
Industry.
• Even though the intention was not to become an International
Carrier, but because of the better quality of service provided by
STPI and with a high rate of acceptance from the Industry,
STPI's International Data Communication Services have grown
much beyond anybody's imagination.
• STPI has truly emerged as an unconventional International
carrier within a short span of time and developed relationships
with 26 International carrier companies worldwide.

Objectives of Software
Technology Parks of India
(a) To promote the development and export of software
and software services including Information Technology
(I.T.) Enabled Services/ Bio-IT.
(b) To provide statutory and other promotional
services to the exporters by implementing Software
Technology Park/ Electronics and Hardware Technology
Park Schemes and other such schemes which may be
formulated and entrusted by the Government from time to
time.
(c) To provide data communication services including
value added services to IT / IT Enabled Services related
industries.
(d) To promote micro, small and medium
entrepreneurs by creating conducive environment for
entrepreneurship in the field of IT / IT Enabled Services.

Functions of
Software
Technology Parks in
India

(1) To establish Software Technology
Parks / centres at various locations in
the country-
(a) to perform all functions in the capacity of the successor to the
erstwhile Software Technology Park Complex which were taken
over by the Software Technology Parks of India
(b) to establish and manage the infrastructural resources such as
integrated infrastructure including International communication /
Data center / Incubating facilities etc. for 100% export oriented
units and to render similar services to the users other than
exporters.
(c) to undertake other export promotional activities such as
technology assessments, market analysis, market segmentation as
also to organize workshops/exhibitions/seminars/conferences etc.
(d) to facilitate specialized training in the niche areas to meet the
above objectives.
(e) to work closely with respective State Government and act as
an interface between Industry and Government.

(f) to promote entrepreneurship through incubation
programmes / seed funds / IP development and other
awareness programmes.
(g) to assist State Governments in formulating IT policies
and liaison for promoting the IT industries in respective
states to achieve an exponential growth of exports.
(h) to promote quality and security standards in the I.T
industries.
(i) to work jointly with venture capitalists for providing
financial assistance to the IT industries.
(j) to provide Project Management and Consultancy
services both at national and international level in the
areas of expertise of Software Technology Parks of India

(2) To perform financial
management functions
(a) to obtain or accept grants, subscription, donations, gifts from
Government, Corporations, Trusts, Organizations or any person for
fulfilling the objectives of the Software Technology Parks of India
Note: Whenever any gifts from foreign Governments/ organizations
are accepted / obtained they shall be routed through Government
and be regulated by such directions as may be issued by
Government.
(b) to maintain a fund to which shall be credited:
-all money provided by Central Government, State Governments,
Universities etc.
-all fees and other charges received by the Software Technology
Parks of India .
-all money received by the Software Technology Parks of India by
way of grants, gifts, donations, benefactions, bequests or transfers;
and
-all money received by the Software Technology Parks of India in
any other manner or from any other source.

(c) to deposit all money credited to the Fund in Scheduled Banks /
Nationalized Banks or to invest in such a manner for the benefit of
the Software Technology Parks of India as may be prescribed.
(d) to draw, make, accept, endorse and discount cheques, notes or
other negotiable instruments and for this purpose, to sign, execute
and deliver such assurance and deeds as may be necessary for the
purposes of the Software Technology Parks of India
(e) to pay out of the funds maintained by Software Technology
Parks of India or part thereof, the expenses incurred by the Software
Technology Parks of India from time to time including all expenses
incidental to the formation and reorganization of the Software
Technology Parks of India and management and administration of
any of the foregoing activities including all rents, rates, taxes,
outgoings and the salaries of the employees.
(f) to acquire, hold and dispose of the property in any manner
whatsoever for the purposes of the Software Technology Parks of
India, with the prior approval of Governing Council as per the
procedure laid down by Government.

PRODUCT BASED COMPANIES
VS
SERVICE BASED COMPANIES

SERVICE COMPANY
• They fulfil software requirements for a client.
• Examples of a service-based company are TCS,
Infosys and Wipro.
• Statement :-

PRODUCT COMPANY
• They fulfil product requirements of the
general consumer.
• Product-based company examples are
Microsoft, Google, Yahoo, Amazon.
• Statement:-

CASE STUDY OF SERVICE BASED
COMPANY - TCS
• TCS’ offerings include application development and
maintenance, business intelligence and business process
services.
• TCS employs more than 285,000 professionals in 44
countries and in FY13 generated annual revenue of US$11.6
billion. In 2005, TCS created TCS IT Infrastructure Services
(TCS-IT IS) to help businesses develop infrastructure that
improved revenues, facilitated cost management and
delivered better customer service. TCS-IT IS is growing at
30% annually and generates more than US$1 billion in
revenue each year.

The Challenge(TCS)
• In 2009, TCS-IT IS noticed that businesses around the world
were adopting on-demand access to third-party infrastructure.
rather than investing in on-premise servers, storage and
networking equipment TCS-IT IS found many of these
businesses wanted to extend this model to access applications
such as enterprise resource planning as part of an integrated
solution stack—comprising hardware, networking, software and
services—from a third-party provider. TCS-IT IS started
addressing this need by delivering infrastructure and applications
as a service from its datacentres to small businesses in industries
such as healthcare, education, retail and manufacturing
What exactly a problem that is faced by a company ?
How can they solve the problem?

OPTION AVAILABLE TO COMPANY
• In 2010, TCS-IT IS decided to develop a cloud service that
would extend its multi-tenant datacentre offerings to larger
businesses. The proposed India Cloud Platform (ICP) would
allow businesses of all sizes to access infrastructure and
applications from the cloud.
• TCS-IT IS wanted the ICP to scale easily, enable new
customers to be added quickly and keep sensitive
information secure. The ICP would also complement TCS-
IT IS’ consulting services, which businesses could use to
ensure their data in the cloud complied with internal
policies and governance regimes, as well as external
regulations.
What type of option is available with company and how it
is beneficial for them ?

The Solution
• After reviewing its options, TCS-IT IS decided to implement VMware datacentre
virtualization for the first stage of the ICP project.” said Menon.[1]
• In 2011, TCS-IT IS began ramping up from a multi-tenant datacentre to a full cloud
service and conducted a more comprehensive evaluation of the virtualization
market. This included completing proofs of concept with two technology providers
headquartered in the United States.
• “With one of the providers, we couldn’t mix and match data storage types,” said
Menon. “We needed this because our existing storage area network did not have
the capacity on its own to manage our workloads. “We also found that the
products supplied by the other vendors were far behind in providing centralized
management over a single console.”
• At this time, VMware was finalizing a new release of VMware vSphere® and
briefed TCS-IT IS on features that made it easier to provision physical and virtual
machines, enforce security and compliance, manage networks and control traffic
flows. “We opted to stay with VMware because of its technical superiority and our
comfort with the technology,” said Menon.
• “When it came to this stage of the project, we wanted to ensure that our choice
of platforms and technologies was right, and that we could support a range of
usage scenarios,” said Menon. “We selected VMware PSO to undertake the
deployment so we could draw on the team’s experience and expertise,”[2]

Business Results & Benefits
• VMware vSphere —combined with technologies from
Cisco, HP and NetApp—has enabled TCS-IT IS to provide
cloud-based infrastructure services that meet the needs of
businesses of all sizes.
• “The ICP is a modular, scalable and configurable cloud
platform that gives Indian businesses the benefits of
increased efficiencies, faster go-to-market, market-leading
technologies; predictable spend, IT talent on call and better
business results,” said Menon.
• ICP customers pay monthly or quarterly to access
infrastructure on demand rather than investing several
hundred thousand dollars in on-premise datacentre
equipment. This gives them greater certainty over costs
and enables more accurate budgeting.

Taking reference of this case study
explain the need of Decision
making in company

CASE STUDY OF PRODUCT BASED
COMPANY (Amazon’s Echo)

“Alexa is my new BFF”: A Case Study
of the Amazon Echo’s Use by companies
and common man.

“Alexa, tell me the future of radio!”
• Amazon’s Alexa voice-controlled environment. Alexa exists
in an audio-centric world, performing a variety of tasks in
response to voice commands. And her integration into
Amazon’s family of wireless speakers, including Echo, allows
Alexa to play out live radio and on-demand audio content,
serving as a hub for entertainment and information.
• The radio industries in the US and UK, in particular, have
been quick to get friendly with Alexa, marking the start of a
new voice-activated journey for the medium, a journey that
may eventually change the way we interact with radios in
cars, at home and on the move.

Why companies are taking interest in
ALEXA
• Alexa has music at her heart, with TuneIn (the default radio service), Spotify
Premium, iHeartRadio and – naturally – Amazon’s own Prime Music among a
number of supported services. Sensing an opportunity to build a presence in this
new audio environment, the UK radio industry has made a fast entry to the fray,
through its market-level UK Radioplayer platform. Radioplayer is available as an
Alexa skill (Amazon’s name for the environment’s apps). When enabled,
Radioplayer gives voice-controlled access to more than 450 radio stations from
around the UK, allowing users to start a station by name or by recommendation
based on location, what’s popular at the time or on past listening. The integration
is the result of a close cooperation between Radioplayer’s R&D team and Amazon.
Ensuring seamless functionality across the whole country required all of the radio
stations names to be pre-recorded in a variety of regional dialects, and this
attention to detail seems to have paid off in terms of a smooth user experience,
according to reviews, making the Radioplayer skill more effective in selecting the
right station than, for example, the default TuneIn skill. “We’ve been prototyping
voice-controlled interfaces, but the Echo is by far the most capable device we’ve
seen” commented Michael Hill, Radioplayer’s Managing Director, in a press release
announcing the launch. “Voice interfaces will play a huge part in car dashboards
and home automation devices, and they can help people with impaired vision and
mobility too.

Interest of General public in ALEXA
• “My entire family enjoys Alexia! This device is in the center of our home! She keeps
our grocery list, many reminders, plays all of our favourite playlists, orders amazon
items, wakes us up, tells us when its time to leave, adds events to our calendars,
and much more!”

Question
• Why this type of social conversational agents
are that much popular.
• How companies are taking advantages from
them.
• Big question! Is it good for Human or question
to our existences . If yes/ No then why?

Why Companies are concerned for
Virtual assistant
• 50% of all searches will be voice searches by
2020.
• By 2019, the voice recognition market will be a
$601 million industry.
• 40% of adults now use voice search once per day.
• Mobile voice-related searches are 3X more likely
to be local-based than text.
• 28% think Voice Search is a more accurate way of
searching.

New advancement
• Hitachi’s robotics contributes to society in
various areas
• Hitachi develops a wide variety of robots
integrated with an IoT platform to improve
people’s lives.

EMIEW3
• EMIEW3 is a human symbiotic robot that aggregates
data obtained from various external sensors.
• Information necessary for providing services is then
processed over a cloud-based robotics IT platform and
fed back to the robot – helping it navigate,
communicate, and interact with its surroundings.
• This IT infrastructure can also be integrated with
existing operational systems to provide business
intelligence by processing various kinds of relevant
information. We also offer business solutions with
interconnected robots.

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