Unit 5
• Case study of an IT industry (Product based
and Services based)
• Recent technology advancement
• Current affairs related with the IT industry
• Diversity in the Workforce
1. Product-based IT Companies:
• Example: Microsoft
• What They Do: They create and sell products
like software (e.g., Windows, Microsoft Office)
and hardware (e.g., Surface laptops, Xbox).
• How They Make Money: By selling their
products, either as one-time purchases or
through subscriptions (like Office 365).
• Advantages:
– Big Reach: Products can be sold worldwide to
many people.
– Steady Income: Subscription models (like Office
365) bring in regular payments.
• Challenges:
– They have to keep updating and improving their
products to stay competitive.
2. Service-based IT Companies:
• Example: Accenture
• What They Do: They provide services like
consulting, IT support, and helping companies
improve their technology (e.g., cloud services,
custom software development).
• How They Make Money: By charging clients
for services, often based on the project or
ongoing contracts.
• Advantages:
– Long-Term Relationships: They work closely with
clients and can get repeat business.
– Tailored Solutions: They customize services to
meet the client’s specific needs.
• Challenges:
– They rely heavily on skilled workers and need to
manage costs carefully.
Product-based IT Companies:
• Apple
– What They Do: Apple makes and sells products like
iPhones, MacBooks, iPads, and software like iOS.
– How They Make Money: By selling their devices and
software. They also earn from their App Store and
subscription services like iCloud and Apple Music.
– Example of Products: iPhone, MacBook, Apple Watch,
iPad, and software like iOS.
• Adobe
– What They Do: Adobe creates software products
used for creative and design purposes (e.g.,
Photoshop, Illustrator, Premiere Pro).
– How They Make Money: Adobe sells its software
(now mostly through subscription services like
Adobe Creative Cloud).
– Example of Products: Photoshop, Acrobat Reader,
Adobe Premiere Pro.
• Sony
– What They Do: Sony develops electronic products
like PlayStation consoles and also produces
entertainment content (movies, music).
– How They Make Money: Through sales of gaming
consoles, media content, and consumer
electronics.
– Example of Products: PlayStation gaming
consoles, Xperia phones, Sony Bravia TVs.
Service-based IT Companies:
• Tata Consultancy Services (TCS)
– What They Do: TCS provides IT services like
software development, consulting, cloud services,
and IT support to businesses across the world.
– How They Make Money: By offering IT consulting
and development services to businesses.
– Example of Services: Custom software
development, cloud migration, IT infrastructure
management.
• Infosys
– What They Do: Infosys helps companies by
providing IT consulting, software development,
and business process outsourcing services.
– How They Make Money: Charging businesses for
technology services like software development, IT
infrastructure, and consulting.
– Example of Services: Digital transformation, IT
outsourcing, enterprise software solutions.
• Accenture
– What They Do: Accenture provides consulting,
technology services, and business solutions to
help companies improve their performance and
implement new technologies.
– How They Make Money: By charging clients for
consulting services, custom IT solutions, and
technology implementation.
– Example of Services: IT strategy, management
consulting, and cloud solutions.
• Hybrid Examples (Companies that do both products and
services):
• Microsoft
– What They Do: Microsoft not only sells products like
Windows OS and Surface devices but also offers services
like Azure cloud and Microsoft 365 (subscriptions).
– How They Make Money: By selling software (like
Windows), hardware (like Surface), and services (like cloud
storage and business solutions).
– Example of Products: Windows, Surface devices.
– Example of Services: Microsoft Azure (cloud computing),
Microsoft 365 (subscription for office tools).
• Amazon
– What They Do: Amazon sells products like books,
electronics, and other goods (through its
marketplace), but also provides services like Amazon
Web Services (AWS).
– How They Make Money: From product sales,
subscriptions (like Amazon Prime), and cloud services
(AWS).
– Example of Products: Electronics, books.
– Example of Services: Amazon Web Services (cloud
computing), Amazon Prime (subscription service).
• Recent Technology Advancements
• Quantum Computing:
– a new type of computing that can solve complex
problems much faster than today’s computers.
– Example: Amazon introduced a new chip called
Ocelot, which helps make quantum computers
more powerful and efficient.
• AI and Machine Learning:
AI (Artificial Intelligence) is getting better at
understanding and doing tasks that usually need
human intelligence, like recognizing voices or
images.
– Example: AI is now used for things like predicting
what you might want to buy online or helping
doctors with medical diagnoses.
• Mixed Reality (AR/VR):
– What is it? Augmented Reality (AR) and Virtual
Reality (VR) are changing how we interact with the
world by mixing digital images with the real world
or creating entire digital worlds.
– Example: Apple’s Vision Pro is a new device that
uses AR/VR to give you a more immersive
experience.
Current Affairs in the IT Industry
• Amazon and Quantum Computing:
– Amazon is making big moves in the world of
quantum computing, competing with companies
like Google and Microsoft. This could change how
we solve big problems in the future, like curing
diseases or managing climate change.
• Tech Industry Diversity:
– The tech industry is still struggling with diversity—
there are fewer women and people from minority
groups in tech jobs.
– For example, women make up only about 28% of
all tech jobs, and minorities like Black and
Hispanic people are still underrepresented in tech,
especially in leadership roles.
Diversity in the Workforce
• Gender Diversity:
– There are fewer women in tech jobs compared to men. Women make
up about 28% of tech workers, even though they make up almost half
of the overall workforce.
• Ethnic Diversity:
– The tech industry also struggles with ethnic diversity. For example,
White Americans hold most tech jobs (about 62%), while Black and
Hispanic Americans are much less represented.
• Efforts to Improve:
– There are ongoing efforts to make the tech industry more inclusive by
hiring more women and people of color. But it’s still a work in
progress, especially in higher-level positions.
Introduction to IT and ITES
Industry
Product-Based vs. Services-Based
Companies, NASSCOM, STPI, and
Global IT Projects
What is IT and ITES?
• - IT: Information Technology
• - ITES: IT-Enabled Services
• - IT focuses on software & hardware
• - ITES includes BPO, KPO, and LPO
• - Growth driven by digitalization
• - Key role in global economy
Product vs. Services Companies
• - Product: Develop own software/hardware
• - Examples: Microsoft, Google
• - Service: IT solutions for clients
• - Examples: TCS, Infosys
• - Product: Higher R&D investment
• - Service: Client-based revenue model
NASSCOM: Industry Body
• - National Association of Software & Services
• - Represents India's IT-BPM industry
• - Helps policy-making & innovation
• - Focus on skill development
• - Encourages global collaborations
• - Organizes IT summits & reports
STPI: Software Technology Parks
• - Software Technology Parks of India
• - Supports software exports
• - Provides infrastructure & incubation
• - Tax benefits for IT companies
• - Promotes startups & innovation
• - Key to India's IT growth
Latest IT Projects
• - AI & Machine Learning in Healthcare
• - Cloud computing transformations
• - Blockchain for secure transactions
• - 5G technology advancements
• - Smart cities & IoT adoption
• - Cybersecurity & data privacy initiatives
Conclusion
• - IT & ITES drive innovation
• - Product vs. Service-based firms
• - NASSCOM & STPI key enablers
• - Emerging global IT projects
• - Future: AI, Cloud, and Cybersecurity
• - IT revolutionizing global industries
IT & ITES Market Trends
• - Rapid cloud adoption
• - AI & automation growth
• - Increased cybersecurity focus
• - Expanding remote workforce
• - Rise of data-driven decisions
• - Growing demand for IT talent
Major IT Hubs
• - India: Bengaluru, Hyderabad, Pune
• - USA: Silicon Valley, Seattle
• - Europe: London, Berlin
• - China: Beijing, Shenzhen
• - Emerging hubs: Vietnam, Poland
• - IT clusters drive innovation
Impact of Emerging Tech
• - AI: Intelligent automation
• - IoT: Smart devices
• - Cloud: Scalable solutions
• - Blockchain: Secure transactions
• - 5G: Faster connectivity
• - Quantum computing: Future potential
Govt Initiatives for IT
• - Digital India Program
• - Make in India
• - IT SEZs & incentives
• - Startup India support
• - NASSCOM’s skill programs
• - Global collaboration efforts
Successful IT Projects
• - Aadhaar (India’s digital ID)
• - Google’s AI-driven search
• - Amazon AWS cloud expansion
• - Tesla’s self-driving tech
• - Paytm’s fintech revolution
• - OpenAI’s ChatGPT & AI models
Future of IT & ITES
• - AI & ML growth continues
• - Cybersecurity challenges increase
• - More automation & robotics
• - Expansion of remote work
• - Tech-driven economies
• - Global IT talent demand rises
Introduction to IT and ITES
Industry
Product-Based vs. Services-Based
Companies, NASSCOM, STPI, and
Global IT Projects
What is IT and ITES?
• - IT: Information Technology
• - ITES: IT-Enabled Services
• - IT focuses on software & hardware
• - ITES includes BPO, KPO, and LPO
• - Growth driven by digitalization
• - Key role in global economy
Product vs. Services Companies
• - Product: Develop own software/hardware
• - Examples: Microsoft, Google
• - Service: IT solutions for clients
• - Examples: TCS, Infosys
• - Product: Higher R&D investment
• - Service: Client-based revenue model
NASSCOM: Industry Body
• - National Association of Software & Services
• - Represents India's IT-BPM industry
• - Helps policy-making & innovation
• - Focus on skill development
• - Encourages global collaborations
• - Organizes IT summits & reports
STPI: Software Technology Parks
• - Software Technology Parks of India
• - Supports software exports
• - Provides infrastructure & incubation
• - Tax benefits for IT companies
• - Promotes startups & innovation
• - Key to India's IT growth
Latest IT Projects
• - AI & Machine Learning in Healthcare
• - Cloud computing transformations
• - Blockchain for secure transactions
• - 5G technology advancements
• - Smart cities & IoT adoption
• - Cybersecurity & data privacy initiatives
Conclusion
• - IT & ITES drive innovation
• - Product vs. Service-based firms
• - NASSCOM & STPI key enablers
• - Emerging global IT projects
• - Future: AI, Cloud, and Cybersecurity
• - IT revolutionizing global industries
IT & ITES Market Trends
• - Rapid cloud adoption
• - AI & automation growth
• - Increased cybersecurity focus
• - Expanding remote workforce
• - Rise of data-driven decisions
• - Growing demand for IT talent
Major IT Hubs
• - India: Bengaluru, Hyderabad, Pune
• - USA: Silicon Valley, Seattle
• - Europe: London, Berlin
• - China: Beijing, Shenzhen
• - Emerging hubs: Vietnam, Poland
• - IT clusters drive innovation
Impact of Emerging Tech
• - AI: Intelligent automation
• - IoT: Smart devices
• - Cloud: Scalable solutions
• - Blockchain: Secure transactions
• - 5G: Faster connectivity
• - Quantum computing: Future potential
Govt Initiatives for IT
• - Digital India Program
• - Make in India
• - IT SEZs & incentives
• - Startup India support
• - NASSCOM’s skill programs
• - Global collaboration efforts
Successful IT Projects
• - Aadhaar (India’s digital ID)
• - Google’s AI-driven search
• - Amazon AWS cloud expansion
• - Tesla’s self-driving tech
• - Paytm’s fintech revolution
• - OpenAI’s ChatGPT & AI models
Future of IT & ITES
• - AI & ML growth continues
• - Cybersecurity challenges increase
• - More automation & robotics
• - Expansion of remote work
• - Tech-driven economies
• - Global IT talent demand rises
