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7/29/2019 Mathan Anto Marshine IT&ITES

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JPC Task 5 Industry

AnalysisMathan Anto Marshine P

IT/ITES


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1. Industry Overview


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2. Critical Success & Performance Factors


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3. Regulations and Treats that affect the industry

High Attrition Rate: Staff shortage can prove to be a major bottleneck to thegrowth of the industry. According to McKinsey & Co., only 25 percent of thetechnical graduates are competent enough to work in the offshore IT industry in

India. In the BPO sector also, only 10- 15 per cent of the graduates are suitablefor employment. Therefore, managing attrition rate is becoming a big task forthe IT companies in India.High attrition rate results in loss of skilled manpower, loss of skill sets etc. Apartfrom loss in skill sets, cost of recruitment, training and development of the newrecruits also becomes a major investment for these companies.

Competition from other emerging nations: Chinese IT hubs like Beijing andShanghai are set to overtake Indian hubs by the year 2011, according to areport by IDC. These cities are competing with India on account of their stablesocio- economic environment, excellent infrastructure, low attrition rates andskilled talent pool.

There is a need for improvement in the urban infrastructure. According toMcKinsey, further growth of the industry has to come from small districts,outside the Tier 1 and Tier 2 cities.

Lack of fluency in languages other than English, e.g. French, Spanish, Italianetc. is proving to be a weakness of the Indian IT industry.


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3. Regulations and Treats that affect the industry

End of Tax Benefits at STPIs: There is a dissimilarity in the tax regimes at

STPIs. This would lead to conversion of these STPIs into SEZ units. Overdependence on US Economy:Almost 70% of the IT industry revenues

comes from USA. Therefore, any downscale in the US market, adverselyimpacts the Indian market too. E.g. recent downsizing and job cuts due torecession in the US market.

Rupee Appreciation:As most of the earnings are in foreign currencies,

therefore Rupee appreciation becomes an area of concern for the industry.

Lack of Product Innovation: India specialises in services but not in products.The nation lacks in product innovation, which can be considered a major area ofconcern. It will be difficult to maintain competitive advantage if productinnovation doesnt occur.

Limited Domestic Market: The domestic market is still in the nascent stage inIndia. This makes the whole industry vulnerable to export market only.


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4. Analysis of competitiveStrategies


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5. Analysis of Infosys


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6. Future Outlook of Industry


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7. References

http:/ / t imesofindia. indiat imes.com/biz/ india-business/IT-exports-to-touch-50-

bil l ion/art icleshow/5536663.cms

http:/ /blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/

ht tp: / /www.blr.stp i .in /pop_stpindustrygrow th.htm

www.blr.stpi. in

http:/ /www.infoworld.com/t/business/indias-outsourcing-valued-60-bil l ion-2010-684

www.hyd.stp i . in

http:/ /www.naukri.com/nri/art icle2.htm

http:/ /www.mindbranch.com/India-Information-Technology-R302-10603/

http:/ /www.ibef.org/

Perspect ive 2020: Transform Bus iness, Transform India

http:/ /www.nasscom.in/upload/Perspective%202020%20Press%20release%20presentat ion.pdf
http://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://www.blr.stpi.in/pop_stpindustrygrowth.htmhttp://www.blr.stpi.in/http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.hyd.stpi.in/http://www.naukri.com/nri/article2.htmhttp://www.mindbranch.com/India-Information-Technology-R302-10603/http://www.ibef.org/http://www.nasscom.in/upload/Perspective%202020%20Press%20release%20presentation.pdfhttp://www.nasscom.in/upload/Perspective%202020%20Press%20release%20presentation.pdfhttp://www.ibef.org/http://www.mindbranch.com/India-Information-Technology-R302-10603/http://www.mindbranch.com/India-Information-Technology-R302-10603/http://www.mindbranch.com/India-Information-Technology-R302-10603/http://www.mindbranch.com/India-Information-Technology-R302-10603/http://www.mindbranch.com/India-Information-Technology-R302-10603/http://www.mindbranch.com/India-Information-Technology-R302-10603/http://www.mindbranch.com/India-Information-Technology-R302-10603/http://www.mindbranch.com/India-Information-Technology-R302-10603/http://www.mindbranch.com/India-Information-Technology-R302-10603/http://www.naukri.com/nri/article2.htmhttp://www.hyd.stpi.in/http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.infoworld.com/t/business/indias-outsourcing-valued-60-billion-2010-684http://www.blr.stpi.in/http://www.blr.stpi.in/pop_stpindustrygrowth.htmhttp://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://blog.nasscom.in/nasscomnewsline/2009/02/a-view-on-the-indian-it-bpo-industry-in-2009/http://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cmshttp://timesofindia.indiatimes.com/biz/india-business/IT-exports-to-touch-50-billion/articleshow/5536663.cms


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8. Glossary


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9.Conclusion

The Indian Information Technology industry represents one ofthe most successful industry showing consistent rapid growth.In a report, Perspective 2020: Transform Business, Transform

India, prepared by Mc Kinsey, the export revenues of Indian ITindustry will touch US $ 175 billion by the year 2020. Thedomestic sales revenue will also contribute US $ 50 billion bythe year 2020. Therefore, we can say that the industry is

shining and will continue to do so as well.


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Thank you

It is apt to conclude with a remark made by Nobel Laureate Dr. AmartyaSen, about the Indian IT/ITES industry, during his keynote address at theNASSCOM India Leadership Summit 2007 - My point is not that the ITindustry should do something for the country at large, for that it doesanyway. It makes enormous contributions: it generates significant incomesfor many Indians; it has encouraged attention to technical excellence as ageneral requirement across the board; it has established exacting standardsof economic success in the country; it has encouraged many bright studentsto go technical rather than merely contemplative; and it has inspired Indianindustrialists to face the world economy as a potentially big participant, not a

tiny little bit-player. My point, rather, is that it can do even more, indeed insome ways, much more. This is partly because the reach of information is sowide and all-inclusive, but also because the prosperity and commandingstature of the IT leaders and activists give them voice, power and ability tohelp the direction of Indian economic and social development.

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