SOFTWARE INDUSTRY

PRESENTATION BY: ANJALI SINGH

ANKIT KACHAWA

ANJALI KAUSHAL

INTRODUCTION

• SOFTWARE INDUSTRY IS THE MOST FASTEST GROWING INDUSTRY ACROSS GLOBE.

• THE SOFTWARE INDUSTRY INCLUDES BUSINESSES FOR DEVELOPMENT, MAINTENANCE AND PUBLICATION OF SOFTWARE

• THE INDUSTRY ALSO INCLUDES SOFTWARE SERVICES, SUCH AS

TRAINING,

DOCUMENTATION

CONSULTING

INTRODUCTION-HISTORY

• THE WORD "SOFTWARE" WAS COINED AS A PRANK AS EARLY AS 1953, BUT DID NOT APPEAR IN PRINT UNTIL THE 1960S

• BEFORE THIS TIME, COMPUTERS WERE PROGRAMMED EITHER BY CUSTOMERS, OR THE FEW COMMERCIAL COMPUTER VENDORS OF THE TIME, SUCH AS UNIVAC AND IBM.

• THE FIRST COMPANY FOUNDED TO PROVIDE SOFTWARE PRODUCTS AND SERVICES WAS COMPUTER USAGE COMPANY IN 1955

• THE SOFTWARE INDUSTRY EXPANDED IN THE EARLY 1960S , UNIVERSITIES, GOVERNMENT, AND BUSINESS CUSTOMERS CREATED A DEMAND FOR SOFTWARE.

• INFLUENTIAL OR TYPICAL SOFTWARE COMPANIES BEGUN IN THE EARLY 1960S INCLUDED

ADVANCED COMPUTER TECHNIQUES,

AUTOMATIC DATA PROCESSING,

APPLIED DATA RESEARCH,

INFORMATICS GENERAL.

• DOS, MICROSOFT'S FIRST OPERATING SYSTEM PRODUCT, WAS THE DOMINANT OPERATING SYSTEM AT THE TIME

INTRODUCTION-HISTORY

INTRODUCTION-SIZE OF INDUSTRY

• ACCORDING TO INDUSTRY ANALYST GARTNER, THE SIZE OF THE WORLDWIDE SOFTWARE INDUSTRY IN 2013 WAS US$407.3 BILLION, AN INCREASE OF 4.8% OVER 2012.

• THE LARGEST FOUR SOFTWARE VENDORS WERE

MICROSOFT

ORACLE CORPORATION

IBM

SAP RESPECTIVELY

• MERGERS AND ACQUISITIONS

• DEALS

INTRODUCTION-BUSINESS MODELS

• SOFTWARE-AS-A-SERVICE, OR SAAS

SAAS REDUCES THE CONCERNS ABOUT UNAUTHORIZED COPYING

• NETWORK EFFECTS IN SOFTWARE ECOSYSTEMS

NETWORKS OF COMPANIES, AND THEIR CUSTOMERS ARE AN IMPORTANT ELEMENT IN THE STRATEGY OF SOFTWARE COMPANIES.

SOFTWARE INDUSTRY IN INDIA

• INFORMATION TECHNOLOGY IN INDIA IS AN INDUSTRY CONSISTING OF TWO MAJOR COMPONENTS:

IT SERVICES

BUSINESS PROCESS OUTSOURCING (BPO).

• THE SECTOR HAS INCREASED ITS CONTRIBUTION TO INDIA'S GDP FROM 1.2% IN 1998 TO 7.5% IN 2012

• ACCORDING TO NASSCOM, THE SECTOR AGGREGATED REVENUES OF US$100 BILLION IN 2012, WHERE EXPORT REVENUE STOOD AT US$69.1 BILLION AND DOMESTIC AT US$31.7 BILLION, GROWING BY OVER 9%.

• THE IT SECTOR IN INDIA IS GENERATING 2.5 MILLION DIRECT EMPLOYMENT

• IT IS ALSO THE WORLD'S LARGEST SOURCING DESTINATION, ACCOUNTING FOR APPROXIMATELY 52 PER CENT OF THE US$ 124-130 BILLION MARKET.

SOFTWARE INDUSTRY IN INDIA

SOFTWARE INDUSTRY IN INDIA

•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.

•MARKET SIZE 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 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.

SOFTWARE INDUSTRY IN INDIA

•SHARE IN GDP

INDIA’S GROSS DOMESTIC PRODUCTION (GDP) AT CURRENT PRICES IS ESTIMATED TO BE RS. 11355073 CRORE (US$ 1879.66 BILLION).

COMPUTER SOFTWARE / SERVICES PRODUCTION ESTIMATED AT US$ 103 BILLION ACCOUNTS FOR A SHARE OF 5.48 PERCENT IN INDIA’S GDP AT CURRENT PRICES DURING THE YEAR 2013-14.

SOFTWARE INDUSTRY IN INDIA

SOFTWARE INDUSTRY IN INDIA

•INVESTMENTS

ACCORDING TO DATA RELEASED BY THE DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION (DIPP), THE COMPUTER SOFTWARE AND HARDWARE SECTOR ATTRACTED FOREIGN DIRECT INVESTMENT (FDI) WORTH US$ 13,238.58 MILLION BETWEEN APRIL 2000 AND SEPTEMBER 2014.

INFOSYS PLANS TO INVEST RS 1,400 CRORE (US$ 228.04 MILLION) IN A CAMPUS PROPOSED TO BE BUILT IN NOIDA, UTTAR PRADESH.

•INVESTMENTS

THE PROJECT IS ESTIMATED TO GENERATE 35,000 DIRECT AND INDIRECT JOBS.

GENPACT LTD HAS SIGNED AN AGREEMENT WITH THE US-BASED AUTOMATION ANYWHERE TO PROVIDE AUTOMATED BUSINESS PROCESSES FOR ITS CLIENTS.

VISA PLANS TO SET UP A TECHNOLOGY CENTRE IN INDIA IN 2014 AND JOIN A HOST OF GLOBAL SYSTEM PLAYERS WHO HAVE ESTABLISHED TECHNOLOGY CENTRES IN THE COUNTRY TO ACCESS ITS SOFTWARE AND ENGINEERING TALENT.

SOFTWARE INDUSTRY IN INDIA

•GOVERNMENT INITIATIVES

ITS SPENDING ON INFORMATION TECHNOLOGY (IT) WILL REACH US$ 7.2 BILLION IN 2015, A FIVE PER CENT INCREASE OVER 2014, ACCORDING TO A REPORT BY GARTNER INC.

THE GOVERNMENT OF INDIA THROUGH THE BOARD OF APPROVAL (BOA) UNDER THE UNION MINISTRY OF COMMERCE AND INDUSTRY HAS APPROVED WIPRO LTD'S PLAN OF SETTING UP A SPECIAL ECONOMIC ZONE (SEZ) IN VISAKHAPATNAM.

SOFTWARE INDUSTRY IN INDIA

•GOVERNMENT INITIATIVESTHE GOVERNMENT OF INDIA HAS LAUNCHED THE .BHARAT DOMAIN NAME WHICH

WILL COVER EIGHT LANGUAGES.

THE DOMAIN WILL HELP TO BRIDGE THE DIGITAL DIVIDE AND ENHANCE THE REACH OF THE INTERNET TO REMOTE VILLAGES.

THE CENTRAL GOVERNMENT AND THE RESPECTIVE STATE GOVERNMENTS ARE EXPECTED TO COLLECTIVELY SPEND US$ 6.4 BILLION ON IT PRODUCTS AND SERVICES IN 2014, AN INCREASE OF 4.3 PER CENT OVER 2013, ACCORDING TO A STUDY BY GARTNER

SOFTWARE INDUSTRY IN INDIA

STRENGTH WEAKNESS

OPPORTUNITIES THREATS

SOFTWARE INDUSTRY IN INDIA

SWOT ANALYSIS

•STRENGTHSHIGHLY 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.

LOWER ATTRITION RATES THAN IN THE WEST.

SWOT ANALYSIS

SWOT ANALYSIS

•STRENGTHSDEDICATED WORKFORCE AIMING AT MAKING A LONG-TERM CAREER IN THE

ROUND-THE-CLOCK ADVANTAGE FOR WESTERN COMPANIES DUE TO THE HUGE TIME DIFFERENCE

LOWER RESPONSE TIME WITH EFFICIENT AND EFFECTIVE SERVICE.

OPERATIONAL EXCELLENCE

CONDUCIVE BUSINESS ENVIRONMENT

•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.

SWOT ANALYSIS

•WEAKNESSES

MANPOWER SHORTAGE

LOCAL INFRASTRUCTURE

POLITICAL OPPOSITION FROM DEVELOPED COUNTRIES

SWOT ANALYSIS

•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

SWOT ANALYSIS

•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

SWOT ANALYSIS

TYPES OF PRODUCT

SOFTWARE

APPLICATION TOOLS & EQUIPMENTS

SYSTEM

I.T. SERVICES

B.P.O. CLOUD COMPUTING

K.P.O.

•SOFTWARE:-

1. APPLICATION

2. SYSTEM

3. TOOLS & EQUIPMENTS

TYPES OF PRODUCT

•I.T. SERVICES

1. B.P.O.

2. K.P.O.

3.CLOUD COMPUTING

TYPES OF PRODUCT

•EXPORTED

INDIA HAS ALREADY ESTABLISHED HER BRAND EQUITY IN THE GLOBAL IT MARKET.

INDIAN IT SOFTWARE AND SERVICES FIRMS OFFER SOFTWARE PRODUCT/PACKAGES; A WIDE SPECTRUM OF IT SERVICES INCLUDING SYSTEM MANAGEMENT AND MAINTENANCE, MOBILE APPLICATIONS, CLOUD COMPUTING

NEXT GENERATION USER INTERFACES, GPU COMPUTING, CONSULTANCY SERVICES, SYSTEM INTEGRATION, CHIP DESIGN, E-GOVERNANCE, E-COMMERCE, IT ENABLED SERVICES COVERING BANKING/FINANCIAL/ INSURANCE SECTOR.

TYPES OF PRODUCT

•EXPORTED THEIR IT ENABLED SERVICES ALSO INCLUDE CAD/CAM MULTIMEDIA, ANIMATION WORK.

BPO (BUSINESS PROCESS OUTSOURCING) ASSIGNMENTS, CALL CENTRE RELATED ASSIGNMENTS, AS WELL AS KNOWLEDGE PROCESS OUTSOURCING (KPO) / LEGAL PROCESS OUTSOURCING (LPO), MEDICAL LAB, DIAGNOSTIC AND DENTAL SERVICES, MEDICAL TRANSCRIPTION SERVICES, E-PUBLISHING DATA CONVERSION OR DIGITIZATION, TYPE-SETTING, COPY EDITING, CONTENT AND DESIGN, GRAPHICS ETC.

TYPES OF PRODUCT

FIVE SOFTWARE COMPANIES OF INDIA AND THEIR PRODUCTS

INDIAN SOFTWARE COMPANIES

1. INFOSYS TECHNOLOGIES LTD. –

INDIA’S MOST WELL-KNOWN LARGE SOFTWARE FIRM.

• BANCS 2000 – A BANKING PRODUCT FOR THE DOMESTIC AND INTERNATIONAL MARKET.

2. RAMCO SYSTEMS –

ONE OF INDIA’S LARGER PRODUCT-FOCUSED SOFTWARE FIRMS.

• MARSHAL (LATER RE-NAMED E-APPLICATIONS) – ENTERPRISE RESOURCE PLANNING PRODUCT.

INDIAN SOFTWARE COMPANIES

3. CONCEPT SOFTWARE –

A SMALL SOFTWARE COMPANY FOCUSSING ON MULTI-LANGUAGE DESKTOP PUBLISHING PRODUCTS.

• INPAGE – AN ARABIC SCRIPT BASED MULTILANGUAGE DESKTOP PUBLISHING SOFTWARE PRODUCT.

4. EASTERN SOFTWARE SYSTEMS –

A SMALL SOFTWARE COMPANY FOCUSING ON ENTERPRISE RESOURCE PLANNING PRODUCTS.

• MAKESS - ENTERPRISE RESOURCE PLANNING PRODUCT TARGETED AT SMALL COMPANIES.

INDIAN SOFTWARE COMPANIES

5. TATA CONSULTANCY SERVICES –INDIA’S LARGEST SOFTWARE COMPANY. PART OF THE TATA CONGLOMERATE AND

PRIVATELY HELD.

• EX – FINANCIAL ACCOUNTING PRODUCT POSITIONED AS THE WORLD'S FRIENDLIEST ACCOUNTING SOFTWARE.

REGIONS OF SOFTWARE INDUSTRY IN INDIA

• BANGALORE

• CHENNAI

• HYDERABAD

• DELHI

• MUMBAI

• PUNE

• COIMBATORE

• BHUBANESWAR

• THIRUVANANTHAPURAM

• KOCHI

OWN POINT OF VIEW• INDIA CONTINUES TO BE THE TOPMOST OFFSHORING DESTINATION FOR IT COMPANIES

FOLLOWED BY CHINA AND MALAYSIA IN SECOND AND THIRD POSITION, RESPECTIVELY.

• LEADING IT SERVICES FIRMS ARE EXPANDING THEIR TRADITIONAL OFFERINGS (IN INDIA) TO INCLUDE RESEARCH AND DEVELOPMENT (R&D), PRODUCT DEVELOPMENT, AND OTHER NICHE SERVICES

• 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.