The Indian IT sector is growing rapidly and it has already made its presence felt in all parts of
the world. IT has a major role in strengthening the economic and technical foundations of
India. Indian professionals are setting up examples of their proficiency in IT, in India as well
as abroad.
The sector can be classified into 4 broad categories - IT Services, Engineering Services,
ITES-BPO Services, E Business
IT Services can further be categorized into Information Services (IS) outsourcing, packaged
software support and installation, systems integration, processing services, hardware support
and installation and IT training and education.
Engineering Services include Industrial Design, Mechanical Design, Electronic System
Design (including Chip/Board and Embedded Software Design), Design Validation Testing ,
Industrialization and Prototyping.
IT Enabled Services are services that use telecom networks or the Internet. For example,
Remote Maintenance, Back Office Operations, Data Processing, Call Centers, Business
Process Outsourcing, etc.
E Business (electronic business) is carrying out business on the Internet; it includes buying
and selling, serving customers and collaborating with business partners.
Swot Analysis
Strengths Weaknesses
Highly skilled human resource • Absence of practical knowledge
Low wage structure
Quality of work • Dearth of suitable candidates
Initiatives taken by the Government
(setting up Hi-Tech Parks and • Less Research and Development
implementation of e-governance
projects) • Contribution of IT sector to India 's GDP
Many global players have set-up is still rather small.
operations in India like Microsoft,
Oracle, Adobe, etc. • Employee salaries in IT sector are
Following Quality Standards such increasing tremendously. Low wages
as ISO 9000, SEI CMM etc. benefit will soon come to an end.
English-speaking professionals
Cost competitiveness
Quality telecommunications
infrastructure
Indian time zone (24 x 7 services to
the global customers). Time
difference between India and
America is approximately 12 hours,
which is beneficial for outsourcing
of work.
Opportunities Threats
High quality IT education market Lack of data security systems
Increasing number of working age Countries like China and
people Philippines with qualified
India 's well developed soft workforce making efforts to
infrastructure overcome the English language
Upcoming International Players in barrier
the market IT development concentrated in a
few cities only
GROWTH
he domestic IT-BPO services segment is expected to grow from $12.8 billion in FY'2009 to $16.7
billion in FY'2011, translating into a CAGR of 14 per cent, it added.
The annual growth rate of India’s software exports has been consistently over 50 percent since 1991.
Significant cost benefits to customers, availability of low cost skilled professionals and labour, ability
to effectively integrate onsite and offshore execution capabilities to deliver seamless and scalable
services and increase in depth and breadth of the services offered to customer are some of the key
factors which are responsible for the sustained growth of Indian software
Nature of competition:
India’s competitiveness in the software industry is of world class quality, cost-effectiveness, high
reliability and rapid delivery to the customer. The software industry in India has matured as
compared to earlier days. The industry has moved beyond ‘Body Shopping’ to ‘End to End delivery of
business solutions’
Labour:
the Indian software industry depends heavily on its human resources for revenue generation. The
greater number of employees provides the capability to fetch more work thus generating more
profit and growth. In other words a company’s headcount and revenue are in direct proportion.
Availability of a large pool of skilled labour in the Indian market makes it easy for software
companies to leverage the demand for IT in the global market. This business model is effective and
successful to a certain extent.
R & D:
As our IT industry has globalised, leading product vendors abroad have set up R&D operations in
India, our IT professional have acquired deeper domain knowledge and familiarity with product
development life cycles and more venture capital has become available.
