bg it sector(1)

8/4/2019 Bg It Sector(1)

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IT INDUSTRY

Keerthi (305)Nithilesh (310)

Debashree (312)

Shane(314)

Giridhar (315)Hareesh reddy (319)

Ekambar(320)

Surya Theja (331)


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INTRODUCTION

Today the software industry has become the backbone of companies around

the world.

IT industry not only providing employment, but it is well as creating an

opportunity for innovation.

India is now the leading country in providing IT Enabled Services in the

world.

65% of the global market in offshore IT and 46% of the ITES market.

Information technology is the use of computers and software to manage

information.

In some companies, this is referred to as Management Information Services

(or MIS) or simply as Information Services (or IS).


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CORE BUSINESSACTIVITIES

IT services

Enterprise solutions

Consulting

Business process outsourcing

Business intelligence and performance management

Engineering and industrial services

IT and business solutions for SMEs


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IT INDUSTRY IN INDIA

The industry was begun by Bombay-based conglomerates which

entered the business by supplying global IT firms located overseas

with programmers.

India's IT Services industry was born in Mumbai in 1967 with the

establishment of Tata Group in partnership with Burroughs.

The Indian Information Technology industry accounts for a 5.19% of

the country's GDP and export earnings as of 2009, while providing

employment to a significant number of its tertiary sector workforce.

More than 2.5 million people are employed in the sector either directly

or indirectly, making it one of the biggest job creators in India and a

mainstay of the national economy


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India's outsourcing industry is expected to increase to US$225

billion by 2020.

The most prominent IT hub is Bangalore.

The other emerging destinations are Chennai, Hyderabad,

Coimbatore, Kolkata, Kochi, Pu.ne, Mumbai, Ahmadabad.

NCR

India's growing stature in the Information Age enabled it to

form close ties with both the United States of America and

the European Union.

Today, Bangalore is known as the Silicon Valley of India and

contributes 33% of Indian IT Exports.
http://en.wikipedia.org/wiki/Silicon_Valley_of_Indiahttp://en.wikipedia.org/wiki/Silicon_Valley_of_India


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CURRENTPOSITIONOF IT SECTORIN INDIA


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TECHNOLOGY USED

Programming Languages : JAVA , C++

Data base management : DBMS , RDBMS ,

ORACLE , SAP

Operating systems : Windows, Linux, Solaris


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India's IT industry (USD bn)[16]Particulars FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

IT Services 10.4 13.5 17.8 23.5 31.0

Exports 7.3 10.0 13.13 18.0 23.1

- Domestic 3.1 3.5 4.5 5.5 7.9

ITES-BPO 3.4 5.2 7.2 9.5 12.5

- Exports 3.1 4.6 6.3 8.4 10.9

- Domestic 0.3 0.6 0.9 1.1 1.6

Engineering

services, R&D

and Software

products

2.9 3.9 5.3 6.5 8.6

- Exports 2.5 3.1 4.0 4.9 6.4

- Domestic 0.4 0.7 1.3 1.6 2.4

Hardware 5.0 5.9 7.0 8.5 12.0

- Exports 0.5 0.5 0.6 0.5 0.5

- Domestic 4.4 5.1 6.5 8.0 11.5

Total IT

industry

(includinghardware)

21.6 28.4 37.4 48.0 64.
http://en.wikipedia.org/wiki/Information_technology_in_Indiahttp://en.wikipedia.org/wiki/Information_technology_in_India


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TOP 5 COMPANIES

IBM

ACCENTURE

ORACLE

POLARIS


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IBM

International Business Machines nicknamed Big Blue

Founder - Thomas J. Watson

Headquarters in Armonk, New York, United States

IBM manufactures and sells computer hardware and software, and

offers infrastructure services, hosting services, and consulting services in

areas ranging from mainframe computers to nanotechnology.

CEO - Samuel J Palmisano

Has 388,000 employees

Holds more patents than any other U.S. based technology company

Has eight research laboratories worldwide


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Revenue - US$ 99.870 billion

Operating income - US$ 19.273 billion

Net income - US$ 14.833 billion

IBM was among the first corporations to provide group life insurance(1934), survivor benefits (1935) and paid vacations (1937).

In 1932 IBM created an Education Department to oversee training for

employees, which oversaw the completion of the IBM Schoolhouse at

Endicott in 1933.
http://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/United_States_dollar


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SWOT ANALYSIS

Strengths The Advanced business action management and innovative culture of IBM is one of its

strengths.

The successful strategic outsourcing, mergers and acquisitions of IBM are its strengths.

High economical consummation centre and flexible marketing management of the company is

the reason for its success.

The creative service that International Business Machines provides is its strength. It is handling

almost 95% of business tasks of top 1000 companies all over the world. The company have some of the worlds fastest important frame and many subverted

technologies like: speech recognition software, chromatic gene, supercomputers etc. Through

such extraordinary and innovative technologies IBM is able to wage some of the prizewinning

back hand facilities.

The most recent merge of IBM is with the Lenovo; Lenovo is providing the outer element

profession and IBM providing all of its latest chip technology can result in greater success ofthe company.

Today, IBM has entered a wide range of fields including Business continuity, snap services,

End user services, integrated subject services, IT strategy and architecture services etc. The

good will of the company along with its huge base of loyal customers is one of its greatest

strengths.


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Weaknesses At International Business Machines there are high costs involved in the value chain and also the

company is dealing with some acquisition issues.

Since, IBM spends quite a lot on its research and development where as the implementation of

new processes is a little difficult. This is also because there are very few suppliers in the value

chain o IBM and it can act as a loophole.

IBM has a good position in the market but needs to change its strategies with the change in

market. This also causes the cost to the company to be greater as compared to other software

and hardware dealers.Opportunities The rising demand for wireless and internet services provides the company new opportunities

to explore.

There are many possible acquisitions and merger opportunities that the company can seize andincrease its market share greatly.

By making its distribution channels stronger and increasing its retail outlets and suppliers

canresult in more profits for the company.

The rising energy prices and cost makes running and operations of the business difficult. IBM

has addressed by making its strategy related to environment. With its green strategy it is able to

save up to forty percent of energy costs.


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THREATS

There are many competitors like HP, Dell, Accenture and Microsoft etc

that have captured large segments of the market.

The market has perfect competition state and switching cost is low for

the customers.

At IBM, there is a constant high threat of new substitutes as well asservice switching.

The technology market is very flexible, entry is easy and even

small companies like Compaq can reduce the market share of IBM

greatly.

The global recession is a large threat for IBM. The company prices are

higher as compared to other service providers in the same industry

therefore; the IBM needs to take effective cost reduction strategies to

deal with the unstable market conditions.


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MISSION

At IBM, we strive to lead in the invention, development and manufacture

of the industry's most advanced information technologies, including

computer systems, software, storage systems and microelectronics.

We translate these advanced technologies into value for our customers

through our professional solutions, services and consulting businesses

worldwide.


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TOP 5 COMPANIESIN INDIA

Tcs

Wipro

Infosys

HCL Tech Mahindra


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TCS Established in 1968

Headquarters - Mumbai, India.

First IT Company to cross US$ 3 Billion mark in revenues

Over 83,500 employees from 60 nationalities

Major Business areas: BFSI, Insurance, Telecom, Transportation,

Healthcare etc.

It first started as the Tata Computer Center


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SERVICESOFFEREDBYTCS

IT services

IT infrastructure services

Enterprise solutions

Consulting

Business process outsourcing

Business intelligence and performancemanagement

Engineering and industrial services IT and business solutions for SMEs


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MARKET PENETRATION STRATEGY:

Current Markets: USA and Europe

Current Products: BPO, KPO, consultancy services

(in BFSI, manufacturing and retail) and softwareproducts (financial products).

Recommendations: As most large clients in US and

Europe are cutting costs, TCS needs to be moreaggressive on cost and quality front.


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MARKET DEVELOPMENT STRATEGY:

New/Emerging Markets: India, Middle-east andAustralia

Current Products: BPO, KPO, consultancyservices (in BFSI, manufacturing and retail) andsoftware products (financial products).

Recommendation: Since these are fastdeveloping IT market, TCS needs a paradigmshift in focus from US and EU markets to thesemarkets.


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PRODUCT DEVELOPMENT STRATEGY

Current Market:USA and Europe

New Product: Consultancy and package

implementation services in relatively growingsectors esp. life sciences & healthcare, aviationsector, and KPO services.

Recommendation: Concentrate on buildingexpertise in these domains by strategic

acquisitions.


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BCGMATRIX


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Strength

Extensive global reach

Strong financialperformance Employee management

OpportunitiesFocus on SMB segment Growth in worldwide IT services Focus on high end business andIT consulting Expanding operations incountries like China

ThreatsIncreasing employee costsIntense competition from foreign firms like

Accenture, IBM etc.Consolidation in the end markets

Rupee appreciationIncreased competition from low-wagecountries like China, Indonesia etc.

Weaknesses

Significant exposure to

financial services market

Lack of scale in consulting

operations


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FINANCIALPERFORMANCE


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SUGGESTIONS

Expect to see the landscape continue to consolidate. Clients will seek

to cut costs and focus on fewer provider relationships as the economy

worsens. TCS should take this opportunity to improve your market

positioning. Ensure marketing articulates your value proposition to all

stakeholders concerned. In a recession, marketing can work as a

differentiator.

TCS need to create specific value propositions aimed directly at the

relevant stakeholdersand in the new tech ecosystem, these relevant

stakeholders must include business executives, not just IT personnel

Dont be influenced solely by short-term shareholder pressure.

changes in industry dynamics that will emerge


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TCS must provide diverse services to refrain from being over-

dependent

Provide more high-end services in value chain

There is a move required from ADM (Application Development and

maintenance) to value added services, BPO to Consulting and

Package Implementation, etc.

TCS should shift focus from Low cost advantage to high quality

services commanding a premium being the pioneer in the industry


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