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

8. Contribution of IT/ITES

9. Comparative contribution Of IT & ITeS
in different sectors
0%
5%
10%
15%
20%
25%
11%11%
6%
14%
21%
22%
15%

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
Establishment
1968
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
Establishment
1981
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 15
th
most
trusted brand in India.
Headquarters Bangalore, Karnataka
Marketing NetworksAs 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
Establishment
1997
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 NetworksAs of 2012, the company has over 1,30,000 employees & a
worldwide presence with centers across 54 countries.
Division
The company operates in 4 segments:
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 THANK
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