CHAPTER - 1

INTRODUCTION

Today business sees a drastic change in their marketing practices. New inventions and

philosophies are cropping up in market to attract the customers and retain them. Sales and

marketing concepts are presented into different forms of segmentation. The overall business

world recognizes customer as king. Perception can be defined as the process by which people

translate sensory impressions into a coherent and unified view of the world around them.

Though necessarily based on incomplete and verified information, perception is evaluated

with reality for most practical purposes and guides human behavior in general. When an

individual looks at a target and attempts to interpret what he or she sees, that interpretation is

heavily influenced by the personal characteristics of the individual perceiver. Personal

characteristics that affect perception included a person’s attitudes, personality motives

interest, past experiences, and expectations.

Theoretical background:

Customer perception is a marketing concept that encompasses a customer impression

awareness and/or consciousness and its products. Perception is the process whereby sensory

stimulated into organized experience. That experience is the joint product of stimulation and

of the process itself. Relation found between various types of stimulation and their associated

percepts suggests inferences that can be made about the properties of the perceptual process;

theories of perceiving then can be developed on the basis of these inferences. Because the

perceptual process is not itself public or directly observable, the validity of perceptual

theories can be checked only indirectly.

Perception is a process by which organism interpret and organize sensation to produce a

meaningful experience of the world. Sensation usually refer to immediate, relatively

unprocessed result of stimulation of sensory receptor . Perception on the other hand better

describes one’s ultimate experience of the world and typically involves further processing of

sensory input.

Perception is the process by which organisms interpret and organize sensation to produce a

meaningful experience of the environment they live in. It is a complex cognitive process and

differs from one individual to another depending on the needs, values and expectations of the

individual consumers. They could differ from products to products.

Definition:

In psychology and the cognitive science, perception is the process of acquiring, interpreting,

selecting and organizing sensory information. The word perception comes from the Latin

word meaning “receiving, collecting, and action of taking possession, apprehension with the

mind or senses. Method of studying perception range from essentially biological or

physiological approaches, through the philosophy of mind and in empiricist epistemology.

History:

Perception is one of the oldest fields within scientific psychology, and there are

correspondingly many theories about its underlying processes. The oldest quantitative law in

psychology is weber-fechner law, which quantifies the relationship between the intensity of

physical stimuli and their perceptual effects.

1.3 REVIEW OF LITERATURE

Hon Tshin, Emily Yapp, Tanakinjal, Geoffrey Harvey, Sondoh Jr., Stephen Laison”

May2014, (1) The Key Dimensions of Online Service Quality: A Study of Consumer

Perceptions.” Vol. 13 Issue 2, p7-18. 12p. Service quality is one of the major aspects of

success of any business, including online retailing. This study attempts to identify the key

dimensions of online service quality as perceived by the online air ticket buyers. The six key

dimensions identified are promptness/reliability, personalization, website content, flexibility,

trustworthiness and ease of navigation. The results further reveal that all these six dimensions

have a positive influence on online buyers' evaluation of overall service quality. Out of these

six key dimensions, personalization followed by trustworthiness are identified as the most

influential service quality dimensions in achieving a higher level of overall service quality as

perceived by online buyers.

Menon and Kahn, (2002) (2) in their study on online shopping: “consumer perception of

functional and utilitarian dimension” (Vol 9pp 14-23) concluded that online shopping features

can be either functional and utilities dimensions aspects from the information systems or

technology literature, as well as the consumer behavior literature are integrated in our

framework.

Benedict et al (2001) (3) in his study on an investigation :customer perceptions towards online

shopping” .(Vol- 8 pp 1-30) reveals that perception towards online shopping and intention to

shop online are not only affected by ease of use, usefulness and enjoyment, but also by

exogenous factors

Joe Morris (2011) (4) conducted on consumer perception and purchase behavior” the study

concerned with the software industry has become a major issue of public concern, encouraging

the UK Government & the software industry to take steps to rebuild consumer confidence.

This paper attempts to identify & review the factors influencing consumer perception of

software industry on purchasing behavior.

Consumer Perception of Value: Literature Review and a New Conceptual

Framework(5):

Consumer value begins to emerge in the 1990s as an issue of growing interest to business

and, in particular, to marketing, at both the academic and practitioner levels. This concept is

considered to be one of the most significant factors in the success of an organization and it

has been pointed to as an important source of competitive advantage for the firm. Consumer

value has been recognized as the fundamental basis in every marketing activity and it has

been envisioned as a critical strategic weapon in attracting and retaining customers.

Customer Perception: Mizik and Jacobson 2003; Spiteri and Dion 2004; Woodruff 1997.

Systematic review on B2B branding:

The purpose of this study is to review the current body of the B2B branding literature, and

identify research issues that hamper current B2B branding research. The study identifies five

possible issues hampering current B2B branding research: the lack of systematic theory

development, the transference of consumer concepts, the dominance of quantitative research,

the lack of longitudinal research, and the focus on single industries. his study provides the

first systematic review to identify and evaluate the current B2B branding literature. The

review identifies the key literature related to B2B branding, provides an overview of past

research and identifies emerging research issues to be addressed in future research.

Problems with B2B Branding:

Despite the number of benefits a strong brand can convey to both the seller and the buyer it is

surprising that more industrial companies are not utilizing it. There are a number of factors

which

May be contributing to B2B Company’s reluctance to brand.

Lack of Academic Research - Whilst there has been a vast amount of research into branding

in a business-to-consumer context. There has been little research into branding in the

business-to-business context.

Systematic Review (6) Joona Keränen, (Lappeenranta University of Technology,

Lappeenranta, Finland), Kalle A. Piirainen, (Ramboll Consulting, Helsinki, Finland), Risto T.

Salminen, (Lappeenranta University of Technology, Lappeenranta, Finland

Lack of Academic research: Lynch et al 2004, Ohnemus 2009

Building Brand Equity: Balmer 2001 and Gronroos 1997.

B2B Branding: Nilson, 1998 in Blombäck, 2005.

Importance of B2B Branding: Bendixen, et al., 2004; Michell et al., 2001

Jha, Shalini Bharti Singh,K P, Suresh” Consumer Perception scale in Store Environment for

measuring Buying Behaviour” (7)

“IUP Journal of Marketing Management. Aug2014, Vol. 13 Issue 3, p48-70. 23p.Developing

a scale which would capture all the data required by a study is a time consuming and difficult

process. The present paper reviews the process of developing a scale for measuring consumer

buying behavior in a store environment in three stages, namely, item generation, scale

development and scale evaluation. To measure the effect of store environment cues,

specifically background music and behavior of salesperson on consumer buying behavior, a

scale was developed using six factors, namely, perception of merchandise quality, perception

of overall environment, perception of ambient music, perception of affability of salesperson,

emotion (pleasure/arousal), and behavior (approach/avoidance). Validation measures such as

face validity, content validity and construct validity were employed to standardize the

questionnaire with 43 statements. Factor analysis was used to check the unidimensionality of

the scale to assess the consumer behavior.

Lowe, BenBarnes, Bradley(8) “Consumer perceptions of monetary and non-monetary

introductory promotions for new products” R Journal of Marketing Management. May2012,

Vol. 28 Issue 5/6, p629-651. 23p. Little research has examined how consumers respond to

sales promotions in new product categories. This article fills this gap by integrating research

on reference prices with literature on sales promotions for new product categories. Existing

research suggests that consumers respond more favourably to non-monetary promotions (e.g.

extra free promotions) than monetary promotions (e.g. price discounts) because non-

monetary promotions are framed as segregated gains rather than reduced losses. However,

both kinds of promotions are widely used in practice, suggesting the importance of other

contributory factors. With a consumer experiment on a national panel of consumers, this

research demonstrates that extra free product promotions are most preferred for existing

products, and introductory low-price promotions are preferred for innovative products. The

moderating effect of a product's innovativeness is explained via a new relationship in the

marketing literature, whereby perceived risk mediates the relationship between perceived

innovativeness and a consumer's tendency to stockpile.

Noël, Noel Mark (9) “A benchmark process for measuring consumer perceptions of total

quality” International Journal of Market Research. 2014, Vol. 56 Issue 2, p149-166. 18p. 1

Diagram, 3 Charts, 4 Graph Researchers and business practitioners have made much progress

in the last several decades towards both the measurement and management of the many

aspects of quality. However, a standardised and comprehensive methodology for the

measurement of consumer perceptions of total quality has remained elusive for a variety of

reasons. This article proposes an illustrative pilot study that applies magnitude estimation

(psychophysics) as a valid and convenient method to benchmark consumer perceptions of the

various marketing dimensions that come to define total quality. The magnitude estimation

approach allows specific quality-related information to be generalised and extended to other

similar studies using small-size samples of targeted respondents. The ability to validate and

generalise these findings across studies allows researchers and managers to observe

functional relationships between existing and new marketing stimuli for related patterns and

potential innovations. The observation and analysis of treatment effects over time allows

management to implement a consumer-driven quality improvement programme. An empirical

pilot study is presented for illustration of the methodology.

Thakur, Rakhi Srivastava, Mala (10)” A study on the impact of consumer risk perception and

innovativeness on online shopping in India”. International Journal of Retail & Distribution

Management. 2015, Vol. 43 Issue 2, p148-166. 19p. The purpose of this paper is to develop

and empirically test a conceptual model to establish how consumer innovativeness can be

used as a variable to positively influence online retailing adoption intention both directly and

reducing consumer perceived risk (PR). Design/methodology/approach -- The literature

concerning personal innovativeness toward information technology and major components of

PR have been systematically reviewed to develop a conceptual model. The impact of

innovativeness and PR on online shopping adoption intention has been empirically validated

by structural equation modeling using a sample of 433 internet users in India. Findings --

Results reveals consumer innovativeness as a key construct to improve online retail adoption

intention both directly and by its effective role in reducing consumer risk perception of using

internet channel for making purchase of physical goods. Originality/value -- There is a lack

of studies which connect consumer innovativeness and PR in the online retailing context

especially in Indian scenario. The results expand one's knowledge on this relationship,

propounding interesting empirical evidence of the model among current and potential online

shoppers. 

1.4 STATEMENT OF THE PROBLEM

Micro Genesis is one of the growing software development comapny. It is found that

document management system is growing nowadays. Communication for organizations

fosters brand awareness and often, improved customer service. Completion is very high so

it’s too difficult to manage it technology up gradation this study on Business client perception

will provide better understanding which will help in enhancing the business.

1.5 OBJECTIVES OF THE STUDY

The following are the objectives of the study

To find the perception of D-store among the IT products.

To knew the expectation of the customers of D-store.

To Identify the Market potential.

1.6 SCOPE OF THE STUDY

The study intends to know about the customer perception towards the software products. The

study is conducted to the customers of the company.

1.7 METHODOLOGY

1.7.1 Type of Research

This study is based on Descriptive research. Descriptive research means Investigation into

a problem or situation which provides insights to the researcher. The research is meant to

provide details where a small amount of information exists. The study area refers to various

features to know about D-store in Micro Genesis through survey by Questionnaire.

1.7.2 Tools for Data Collection

The study depends only on Primary data. Primary data is collected using a structured questioner.

1.7.3 Tools for Analysis

The tools used for data analysis is Descriptive Analysis. The descriptive analysis is

mainly performed to assess the distribution and percentage of respondents under each

category. This analysis is carried out for all the features taken for the study. All the tests are

carried at 5% level of significance and also the analyses are performed using SPSS, chi-

squire, percentage analysis, cross tabs.

1.8 LIMITATIONS

The study is restricted to the customers in Bangalore.

The study is limited to the period of Three month.

The study is restricted to the clients of the company.

CHAPTER SCHEME

Chapter 1: INTRODUCTION

This chapter gives an introduction about the research conducted. It deals with the background

study, theoretical background of the study, review of literature, statement of the problem,

objectives of the study, scope of the study, research methodology adopted and the limitations

of the study.

Chapter 2: ORGANIZATIONAL PROFILE

The chapter organization profile deals with the history of the organization, the management,

organization structure, product profile and the market potential, competitive strengths of the

company, future plans and the description about various functional areas.

Chapter 3: MACRO-MICRO ECONOMIC ANALYSIS

The chapter micro-macro analysis gives an insight about the industry in the Global scenario

as well as the Indian scenario.

Chapter 4: DATA ANALYSIS AND INTERPRETATION

Analysis and interpretation deals with the analysis of the data collected for the study and the

interpretation of the results obtained.

Chapter 5: CONCLUSION

This chapter deals with the discussions on the findings and the suggested recommendations

based on the find.

CHAPTER – 2

ORGANIZATIONPROFILE

2.1 HISTORYOFTHEORGANIZATION

Micro Genesis Tech Soft was set up in 2000 as part of Micro Genesis expansion strategy to

address the burgeoning needs of software development in the IT Industry.

Micro Genesis Tech Soft in its quest constantly looks for niche technology solutions which

can possibly address different business needs of customers in IT with advent of time.

2.2 MANAGEMENT

Director – Mr. Manoj Tharian

CEO – Mr R L Luthra

Vice President, Technical Services – Mr Dhananjaya K

Business Head, Corporate – Mr. Santy Nelson

Business Head, Defence – Mr. Naveen M S

2.3 ORGANIZATION STRUCTURE

2.4 PRODUCT PROFILE AND MARKET POTENTIAL

Rational Software

Rational Software enables flexible software development through enhanced team

collaboration and better control of risk and change. This modular, solution-focused set

of products and services helps increase efficiencies by aligning key capabilities

including DevOps, continuous engineering and enterprise modernization with your

business strategy.

IBM ECM

Enterprise Content Management (ECM) solutions from IBM help companies realize

the strategic value of content for better business insight and outcomes. IBM ECM

delivers high value solutions that can help companies transform the way they do

business by enabling them to put content in motion: capturing, activating, socializing,

analyzing and governing it throughout the entire lifecycle.

DStore

DSTORE offers an easier, faster, affordable electronic document management

solution to efficiently capture, distribute, store, and manage any type of documents.

DStore is suitable for every organization or department, regardless of size or industry.

MARKETING TRENDS:

1. Computing everywhere - As mobile devices continue to proliferate, Gartner predicts an

increased emphasis on serving the needs of the mobile user in diverse contexts and

environments, as opposed to focusing on devices alone. According to David Cearley of

Gartner, as phones and wearable devices become part of an expanded computing

environment, it's the overall environment that will need to adapt to the requirements of the

mobile user. This will create significant management challenges for IT organizations as they

lose control of user endpoint devices. It will also require increased attention to user

experience design.

2. The internet of things - The combination of data streams and services created by

digitizing everything creates four basic usage models? Manage, monetize, operate and

extend. These four basic models can be applied to any of the four "internets." Enterprises

should not limit themselves to thinking that only the Internet of Things (IoT) (assets and

machines) has the potential to leverage these four models. For example, the pay-per-use

model can be applied to assets (such as industrial equipment), services (such as pay-as-you-

drive insurance), people (such as movers), places (such as parking spots) and systems (such

as cloud services). Enterprises from all industries can leverage these four models.

3. 3D printing - Worldwide shipments of 3D printers are expected to grow 98% in 2015,

followed by a doubling of unit shipments in 2016. New industrial, biomedical and consumer

applications will continue to demonstrate that 3D printing is a real, viable and cost-effective

means to reduce costs through improved designs, streamlined prototyping and short-run

manufacturing.

4. Advanced, pervasive and invisible analytics - Analytics will take center stage as the

volume of data generated by embedded systems increases and vast pools of structured and

unstructured data inside and outside the enterprise are analyzed. Organizations will have to

find ways to manage how best to filter the huge amounts of data coming from the IoT, social

media and wearable devices, and then deliver this information to the right person, at the right

time. Big data remains an important enabler for this trend.

5. Context-rich systems - Ubiquitous embedded intelligence combined with pervasive

analytics will drive the development of systems that are alert to their surroundings. Context-

aware security is an early application of this new capability, but others will emerge. By

understanding the context of a user request, applications can not only adjust their security

response but also adjust how information is delivered to the user.

6. Smart machines - Deep analytics applied to an understanding of context provide the

preconditions for a world of smart machines. This foundation combines with advanced

algorithms that allow systems to understand their environment, learn for themselves, and act

autonomously. Prototype autonomous vehicles, advanced robots, virtual personal assistants

and smart advisors already exist and will evolve rapidly, ushering in a new age of machine

helpers. The smart machine era will be the most disruptive in the history of IT.

7. Cloud computing - The convergence of cloud and mobile computing will continue to

promote the growth of centrally coordinated applications that can be delivered to any device.

In the near term, the focus for cloud/client will be on synchronizing content and application

state across multiple devices and addressing application portability across devices. In the

future, games and enterprise applications alike will use multiple screens and exploit

wearables and other devices to deliver an enhanced experience.

8. Software-defined applications and infrastructure - Software-defined networking,

storage, data centers and security are maturing. Cloud services are software-configurable

through API calls, and applications, too, increasingly have rich APIs to access their function

and content programmatically. To deal with the rapidly changing demands of digital business

and scale systems up? Or down? Rapidly, computing has to move away from static to

dynamic models.

9. Web-scale IT - Web-scale IT is a pattern of global-class computing that delivers the

capabilities of large cloud service providers within an enterprise IT setting. The first step

toward the Web-scale IT future for many organizations should be DevOps? Bringing

development and operations together in a coordinated way to drive rapid, continuous

incremental development of applications and services.

10. Risk-based security and self-protection -Organizations will increasingly recognize that

it is not possible to provide a 100% secured environment. Security-aware application design,

dynamic and static application security testing, and runtime application self-protection

combined with active context-aware and adaptive access controls are all needed in today's

dangerous digital world. This will lead to new models of building security directly into

applications. Perimeters and firewalls are no longer enough; every app needs to be self-aware

and self-protecting.

3 Competitive strength of the company

Over 14 Years IT Solutions and Services Business.

Consultative sales approach and comprehensive support plan.

Dedicated, total solutions provider for all of your IBM software related requirements.

Focused in software development tools and processes.

Garnered several top awards and recognitions from IBM.

Identity in the market as a recognized/trusted partner in ALM Business.

Implementation and Solution Integration Experience.

Solutions for Cross Industry and Applications.

Premier IBM Business Partner and Service Provider.

Reputation in Support and Customer references.

Specialized Testing in Medical devices/Healthcare (QE).

4 FUTURE PLANS

Target Broader Customer Segments, Geographies and Verticals.

Asset Management – IT and Non IT Assets.

Big Data – Analytics, Digitization, Storage.

Enterprise Content Management.

Cloud, Storage and Security.

Services/Innovation Division.

5 DESCRIPTION OF VARIOUS FUNCTIONAL AREAS

Sales

Effective Sales is the main mantra of this department. The basic objective is obviously the

achievement of profit through service. Result of the sales effort would naturally depend also

on the effort of the other operations and departments such as research, marketing and finance.

Marketing

Promotes the business and drives sales of its products or services. It provides the necessary

research to identify the target customers and other audiences.

Administration

Administration department is the link between various departments of an organization and

ensures the smooth flow of information from one part to the other. Thus without an effective

administration, an organization would not run professionally and smoothly.

Accounts

Accounting department keeps a business operation without hitches and delays. Department’s

exclusive functions include Payroll, Cash collection & disbursement, property accounting,

etc.

Technical

Technical support department workflow begins with receiving customer request and task

assignment and finishes when customer request is satisfied and all technical issues with

product are resolved. When the user contacts the support team for help, one of the technical

engineers logs the call or the e-mail request in an issue-tracking system and creates a

reference number. Main functions includes: (1) Providing technical support service and

consultation; (2) Processing and transferring product enhancement requests; and (3) Product

pre-sales and demonstration.

CHAPTER 3

MACRO-MICRO ECONOMIC ANALYSIS

Introduction

Information Technology (IT) has made possible information access at gigabit speeds. It has

created a level playing field among nations and has a positive impact on the lives of millions.

Today, a country's IT potential is paramount for its march towards global competitiveness,

healthy gross domestic product (GDP) and meeting up energy and environmental challenges.

The Indian IT and Information Technology enabled Services (ITeS) sectors go hand-in-hand

in every aspect. The industry has not only transformed India's image on the global platform,

but also fuelled economic growth by energizing the higher education sector (especially in

engineering and computer science). The industry has employed almost 10 million Indians

and, hence, has contributed significantly to social transformation in the country.

India is one of the fastest-growing IT services markets in the world. It is also the world's

largest sourcing destination, accounting for approximately 52 per cent of the US$ 124-130

billion market. The country's cost competitiveness in providing IT services continues to be its

USP in the global sourcing market.

India has the potential to build a US$ 100 billion software product industry by 2025,

according to Indian Software Product Industry Roundtable (iSPIRT). The software products

market in India, which includes accounting software and cloud computing-based telephony

services, is expected to grow at 14 per cent in 2014.

Market Size

The Indian IT-BPM industry is expected to add revenues of US$ 13-14 billion to the existing

revenues by FY15, according to National Association of Software and Services Companies

(NASSCOM).

The industry grew at a compound annual growth rate (CAGR) of 13.1 per cent during FY08-

13.Total exports from the IT-BPM sector (excluding hardware) were estimated at US$ 76

billion during FY13. Export of IT services has been the major contributor, accounting for

57.9 per cent of total IT exports (excluding hardware) in FY13. BPM accounted for 23.5 per

cent of total IT exports during the same fiscal. The IT outsourcing sector is expected to see

exports growing by 13-15 per cent during FY15.

The data centre infrastructure market of India is estimated to reach US$ 2.03 billion in 2015,

a 5.4 per cent increase from US$ 1.92 billion in 2014.

The sale of personal computers (PC) in India has registered significant growth as 2.55 million

units were sold in January-June, 2014 compared to 2.03 million units in the corresponding

period of 2013.

E-commerce space in India is expected to grow at 20-25 per cent over the next 2-3 years in

terms of jobs, salaries and growth, which in turn could create at least 150,000 jobs. The

current estimated size of the industry is about Rs 18,000 Crore (US$ 2.91 billion) and is

expected to reach Rs 50,000 Crore (US$ 8.08 billion) by 2016 and as the industry grows, the

demand for talent would grow proportionally.

Employment:

The IT and ITeS sector has generated massive employment in the past and continues the

trend of providing jobs. With online shopping, social media and cloud computing flourishing

more than ever before, there is great demand for IT professionals in e-commerce and business

to consumer firms.TCS recently hired 20,000 fresh graduates from all over India in 2013 and

other organizations like Wipro, Infosys, IBM and Dell among others also add highly to the

employment rate. After Bangalore – the silicon city of the country, Pune is also a hiring

sphere. The IT and ITeS sector are likely to grow 12-15% in the year 2014 and Pune is

amongst the top 3 preferred cities for these tech jobs.

The 2014 Scenario of the IT- ITES sector in India

The information technology in India is looking towards a bleak future in general in the

current year. However, small sparks of encouragement are there. As per the statement of

BVR Mohan Reddy, chairman and managing director, InfoTech Enterprises Limited, a global

technology solution provider, “Such periods of uncertainty in the past have provided a great

platform for organizations to refine strategy and execute initiates that increase competitive

advantage and accelerate growth.” The Indian IT sector will witness a predictable slump of

growth from that of 16% last year to a discouraging 11% this year. However, growth in the

allied sectors like health care and insurance is a small ray of hope. Andhra Pradesh, ranking

as the fourth largest IT exporter of the country is being severely affected by power supply

shortage which is naturally slowing down the development of the state’s IT sector. It is to be

mentioned here that Andhra Pradesh accounts for 12% of the total IT export of India and the

turnover for 2012 was RS53, 246 crore. Hyderabad is in a little better position as it has been

proactive in changing its infrastructure to keep pace with the changing face of the global IT

export scenario.

The Recession period, the free fall of rupees against dollar compounded with other factors

has resulted in a severe decline in the hiring process of the IT sector. The employment

generation capacity of this sector has shrunk considerably. IT professionals including ex- IT

sector employees are now seeking employment in financial services, telecommunications and

manufacturing industries which have recently witnessed a phenomenal growth.

India’s Services

The share of services in India’s GDP at factor cost (at current prices) increased from 33.5

per cent in 1950-51 to 55.7 per cent in 2011-12 and to 56.9 per cent in 2012-13. If

construction is also included, the service sector’s share increases to 65.0 per cent in 2012-

13.The ratcheting up of the overall growth rate (CAGR) of the Indian economy from 5.7

percent in the 1990s to 8.8 percent during 2004-05 to 2010-11 was mainly due to an

acceleration in growth of the services sector from 7.5 per cent in the 1990s to 10.2 per

cent during 2004-05 to 2010-11. Since 2011-12, in line with the general growth trend, the

growth rate of services sector also decelerated. However the growth deceleration of the

services sector was lower than that of the overall growth. Services sector growth rates were

8.2 per cent in 2011-12 and 7.1 per cent in 2012-13. In the first two quarters of 2013-14,

growth of services sector was 6.6 per cent and 5.9 per cent respectively.

FDI in Services

The services sector remains the most attractive sector for foreign direct investment (FDI)

inflows in India. As per the latest data on FDI released by Department of Industrial

Promotion and Policy (DIPP), the combined FDI share of ‘financial and non-financial

services, construction development, telecommunications, computer hardware & software,

and hotel & tourism’ is 46.0 per cent of the cumulative FDI equity inflows during the

period April 2000-August 2013. (Table 1) These five sectors are also among the sectors

attracting the highest cumulative FDI inflows to the economy with financial and non-

financial services topping the list during the period April 2000 to August 2013.

India has also been moving towards a service led export growth. While the CAGR of

merchandise export growth during 2004-05 to 2008-09 was at 22.2 percent, services export

growth was at 25.3 percent. As a result of the slowdown in world economy, services sector’s

exports growth has slowed down in 2009-10 and was at (-) 9.4 percent. In 2010-11 it

jumped to 30.2 per cent which is also partly due to the base effect. However after that

services export growth started decelerating to 13.1 per cent in 2011-12 and 3.4 per cent in

2012-13. Services import growth which was at 35.3 per cent in 2010-11 became negative

at -4.5 per cent in 2011-12, but grew by 5 per cent in 2012-13. Net services which grew

by 21.8 per cent in 2010-11, grew sharply by 45.3 per cent in 2011-12, as import growth

was negative. However in 2012-13, with sharp deceleration in services export growth, net

services growth was a tepid 1.4 per cent resulting in a lower cushion provided by services

trade to finance the current account deficit (CAD).In 2013-14 (April-Sept), there is again a

pickup in services export growth to 3.4 per cent, while import growth was negative at (-)

3.9 per cent. As a result net services grew by 12.6 per cent. In 2012-13, among the major

services exports, there is negative growth in transport services (a reflection of the external

trade situation); travel services (a reflection of international trade situation and despite the

depreciation of the rupee) and financial services;

Low growth for software.

Government Initiative

Cloud computing is one of the thrust areas in the national IT and ITeS policy.

 In order to benefit from cloud, the Department of Electronics and IT (DeitY) has taken an

ambitious project known as ‘GI Cloud’. The ‘GI Cloud’ is the Indian government’s initiative

to enable the government (both Centre and States) to leverage cloud computing for effective

delivery of eServices.

 

In the twelfth Five Year Plan (2012-17), the Department of Information Technology

proposes to strengthen and extend the existing core infrastructure projects to provide more

horizontal connectivity, build redundancy connectivity, undertake energy audits of State

Data Centers (SDCs) etc. The core infrastructure including fibre optic based connectivity

will be leveraged and additional 150,000 Common Service Centre’s (CSCs) will be setup to

create the right Governance and service delivery ecosystem at the Panchayat.

 GLOBAL LEVEL:

Information technology, and the hardware and software associated with the IT industry, are

an integral part of nearly every major global industry.

The information technology (IT) industry has become of the most robust industries in the

world. It, more than any other industry or economic facet, has an increased productivity,

particularly in the developed world, and therefore is a key driver of global economic growth.

Economies of scale and insatiable demand from both consumers and enterprises characterize

this rapidly growing sector.

The information technology association of America (ITAA) explains 'information technology'

as encompassing all possible aspects of information systems based on computers.Both

software development and the hardware involved in the IT industry include everything from

computer systems, to the design, implementation, study and development of it and

management systems.Owing to its easy accessibility and the wide range of it products

available, the demand for it services has increased substantially over the years. The it sector

has emerged as a major global source of both growth and employment.

GLOBAL IT SPENDING:-

Indian enterprises spending on information communications and technology (ICT) in 2005 is

expected to grow at more than twice the rate in the Asia pacific region. Enterprise spending

in the Asia Pacific (APAC) on hardware next year will rise 6.3 per cent to $36.9bn, with

software increasing 12.4 per cent to $5.6bn while telecom will grow 7.5 per cent to $132.5bn

and IT services will gain 8.4 per cent to $33.6bn.in India, of the $22.88bn spend in 2005 on

enterprise ict, $3.34bn is the projected spend on hardware, an increase of 21.1 per cent over

2004; $0.52bn (16.4 per cent increase) on software; $16.7bn (15.5 per cent increase) on

telecom and $2.32bn (18.3 per cent increase) on it services. India will remain the highest

growth market for telecommunications with around 35 million new subscribers in 2005, an

18 per cent increase from 2004, with the growth occurring in selected technologies mainly

mobile. This accounts for almost one fourth of the new subscribers forecasted in Asia pacific.

Consumer segment is rapidly gaining importance, driven by adoption of mobile services. This

is reflected in their increased contribution towards spending for telecommunication services,

from 35 per cent in 2002 to 43 per cent in 2005. By2008 the consumer segment will account

for more than half of telecommunications spending, the report said. Gartner also said that

open source and offshore it services will continue to grow, while it warned global it vendors

to take emerging competition from china seriously with at least three Chinese it companies

becoming significant global competitors by 2010. The growth in offshore bpo services

outpaces the growth in global sourcing of it services. Offshore component of global bop

services spend is expected to grow from $3 billion (2.4 per cent of total markets spend of

$124 billion in 2004) to $24 billion (15 per cent of the total markets spend of $161 billion in

2007).

EXPORT

The current global economic downturn is likely to impact India’s it software and services

export with the industry expected to register single-digit growth in 2009-10."software exports

of Indian it industry are projected to grow single digit this fiscal due to economic slowdown

and lower budgets in major markets like the us and Europe" nasscom president some mittal

told reporters after presenting the nasscom-mckinsey report on perspective 2020."On a wider

basis, export growth, in single digit is not bad. The growth pace may not be as scorching as it

was till last fiscal or in double digits in the last fiscal. We are not talking about de-growth but

lesser growth," he said.

Nasscom is expected to come with an estimate for this fiscal in June, he said. Nasscom

chairman pramod bhasin said 80 per cent of incremental growth would come from outside the

current core sectors, verticals and customer segments. Demographic shifts and change in

social environmental and technology trends would create opportunities for the Indian it

industry.

According to the report, new opportunities are expected to emerge in healthcare services,

productivity solutions and redesign processes to address the talent shortage. Basin said India

should become a hub of innovation in areas like clinical research, climate change, energy

efficiency and climate change. According to department of information technology, the

Indian software and services exports was expected to reach us$ 49.7 billion in 2009-10 as

compared to us$ 47.1 billion in 2008-09, with an increase of 5.5% in dollar terms. Further,

the Indian it industry's services exports is estimated to grow from us$ 25.8 billion in 2008-09

to us$ 27.3 billion in 2009-10, with a growth of 5.8 %.in the year 2008-09, the domestic it

attained revenues worth us$ 24.3 billion as compared to us$ 23.1 billion in fy 2007-08, with a

growth of 5.4%. The tremendous demand for it services and goods by India inc., has majorly

strengthened with the expansion of the domestic market as agreements worth extraordinarily

to us$ 100 million. Till 2012, the domestic sector is estimated to expand to Us$ 1.7 billion

against the existing us$ 1 billion. It exports software and services of India are to nearly 95

countries around the world.

Chapter 4

Data Analysis & Interpretation

This chapter deals with the analysis and interpretation of data as collected through

questionnaire. The data is presented under various headings as below.

Percentage analysis

Cross-Tab

Chi-square

Table 4.1.1Distribution of respondents based on industry segment:

S.NO PARTICULARS NO OF

RESPONDENTS

PERCENTAGE %

1 Manufacturing 19 64

2 Automotive 3 10

3 Banking 1 3

4 Healthcare 3 10

5 Education 3 10

6 Energy 1 3

TOTAL 30 100

Source: Primary data

63%10%

3%

10%

10%

3%

Industry segmentManufacturing Automative banking healthcare education energey

The above Tables shows that 64% (19) of the respondents are from manufacturing industry ,

10% (3) of the respondents are from automotive industry, 3% (1) of the respondents are from

banking industry, 10% (3) of the respondents are from healthcare industry, 10% (3) of the

respondents from education industry, 3% (1) of the respondents from energy industry.

Table 4.2 Enterprise solutions being used in your organization:

S.NO PARTICULARS NO.OF

RESPONDENTS

PERCENTAGE %

1 ERP 23 78

2 CRM 2 6

3 OTHERS 5 16

TOTAL 30 30

Source: primary data

78%

6%

16%

Enterprise solution being usedERP CRM OTHERS

From the above table it is found 78 %( 23) of the respondents are using ERP solution in their

organization, 16 %( 5) of the respondents are using others solution, 6 %( 2) respondents of

the respondents are using CRM.

Table 4.3: Technological investment?

S.NO PARTICULARS NO.OF

RESPONDENTS

PERCENTAGE %

1 Document 15 50

Management

2 Enterprise Content

Management

4 13

3 Business Analytics 7 24

4 Cloud Computing 3 10

5 Enterprise Security 1 3

6 Other, Please

Specify.

Total 30 100

Source: primary data

From the above table shows 50% (15) of the respondents priority is document management

system , 13% (4) of the respondents priority is enterprise content management system , 24%

(7) of the respondents priority is business analytics , 10% (3) of the respondents priority is

cloud computing , 3 % (1) of the respondents priority is enterprise security.

Table 4.4 Willingness to implement new and upgrade solution:

S.NO PARTICULARS NO.OF

RESPONDENTS

PERCENTAGE

%

1 A need is recognized and all solution

requirements are defined.

0 0

2 A need is recognized and solution

requirements are yet to be defined.

0 0

3 No identified need at this time. 30 100

TOTAL 30 100

Source: primary data

100%

Your need to implement new or upgrade your current technologies

A need is recognized and all solu-tion requirements are defined.A need is recognized and solution requirements are yet to be de-fined.No identified need at this time.

Above table shows that 100 % ( 30) of the respondents said they are not identified their need

at this time.

Table 4.5: Budget approval system & time frame to buy

Yes No TOTAL

Immediately 0 0 0

3-6 months 16 0 16

1 year 14 0 14

TOTAL 30 0 30

Source: Primary data

From the table shows 53 % (16) of the respondents are having budget system between 3-6

months, 47 % (14) of the respondents are having 1 year time frame budget approval system in

their organization

Table 4.6: Willingness to here more information:

S.NO PARTICULERS NO.OF

RESPPONDENTS

PERCENTAGE %

1 Yes 0 0

2 No 30 100

TOTAL 30 100

Source: primary data

100%

Does your company having budgetYES NO

From the above table shows 100 %( 30) of the respondents are they don’t want any

information and demo of the product (D-store)

CHAPTER 5

CONCLUSION & FINDINGS

This chapter deals with the discussions on the findings and the suggested recommendations

based on the findings.

5.1 RESULTS AND DISCUSSIONS

This section deals with the results and discussions regarding the findings.

5.1.1 Industry segment

64% (19) of the respondents are from manufacturing industry , 10% (3) of the respondents

are from automotive industry, 3% (1) of the respondents are from banking industry, 10% (3)

of the respondents are from healthcare industry, 10% (3) of the respondents from education

industry, 3% (1) of the respondents from energy industry.

5.1.2 Enterprise solutions being used in your organization:

78 % ( 23) of the respondents are using ERP solution in their organization, 16 % ( 5) of the

respondents are using others solution, 6 % ( 2) respondents of the respondents are using

CRM.

5.1.3 Business priority when it comes to technological investments this year:

50% (15) of the respondents priority is document management system , 13% (4) of the

respondents priority is enterprise content management system , 24% (7) of the

respondents priority is business analytics , 10% (3) of the respondents priority is cloud

computing , 3 % (1) of the respondents priority is enterprise security.

5.1.4 Describes your need to implement new or upgrade your current technologies:

100 %( 30) of the respondents said they are not identified their need at this time.

5.1.5 Have you have budget &time frame for installing solution;

53 % (16) of the respondents are having budget system between 3-6 months, 47 %( 14) of the

respondents are having 1 year time frame budget approval system in their organization

5.1.6 Would you like to have more information/ demo on the solutions you are

interested:

100 %( 30) of the respondents are they don’t want any information and demo of the product

(D-store).

RECOMMENDATION

Company needs to improve in their marketing part

Company has to concentrate on their promotion part of the product