IT industry overview 1. 2. 3. 4. 5. 6. IT is every where Be it in your kitchen to the Bank.
Your Education to your web From James bond to spy robots Indias IT industry Market size is USD101 Billion in 2012 with Export of USD69 billion.. Market size is going to increase up to USD225 Billion till 2020.
Industry domain analysis 1. Information technology in India is an industry consisting of two major components: IT
Services and business process outsourcing (BPO). The sector has increased its contribution to India's GDP from 1.2% in FY1998 to 7.5% in FY2012.
2. Today more than 100 fortune 500 companies has opened R&D labs in India. 3. Today India is known as the global IT HUB. About 73% of the global IT outsourcing happens to India. 4. As a proportion of national GDP, the sector revenues have grown from 1.2 per cent in
FY1998 to an estimated 7.5 per cent in FY2012. 5. The industrys share of total Indian exports (merchandise plus services) increased from less than 4 per cent in FY1998 to about 25 per cent in FY2012
Evolution of Indian IT industry
1. By early 90s, US based companies begin to outsource work due to low cost and skilled talent pool of India. 2. From 1995-2000 IT industry starts to mature. Increased investment in R&D and infrastructure begins. India increasingly seen as a product development destination. 3. Number of Indian firms grow in size and start offering complex services like product management, go-to market strategies etc. Western firms set up number of captives in India. 4. Indian firms become Multi National Companies with delivery centres across the globe (560 centers in 70 countries, as of 2011) Indian firms make global acquisitions. IT sector is employ around 2.8 million people directly and around 8.9 million indirectly, as of FY2012
Segments of Indian IT&ITES sectors 1. 2. 3. 4.
IT services Business Process Outsourcing (BPO). Software products and engineering services. Hardware
IT services include 1. IT consulting 2. System integration. 3. Customized application development and management. 4. Software testing. IT Enabled Services (ITES) include 1. 2. 3. 4. 5. Business process outsourcing (BPO). Knowledge process outsourcing (KPO). Engineering services outsourcing and R&D (ESO). Legal process outsourcing (LPO). Game process outsourcing (GPO).
Growth driver of IT Sector 1. 2. 3. 4. 5. 6. Easy availability of Talent pool and cost advantage Process and Quality Supportive government policies Unique geographic location Domestic Growth Infrastructure
Top IT companies globally 1. Apple 2. Google 3. Amazon.com 4. IBM ($22485mn Revenue) 5. Microsoft ($54270mn Revenue) 6. Samsung 7. Intel 8. Accenture 9. Ebay 10. Facebook 11. Oracle ($20958mn Revenue)
Top IT companies in India 1. TCS (Tata consultancy Services)( 48426.14 Cr Revenue with employee of around 276000) 2. Infosys(36765 Cr Revenue with employee of around 155000) 3. Wipro (31682 Cr Revenue with employee of around 145000) 4. HCL Technologies(8907 Cr Revenue with employee of around 90000) 5. Mahindra Satyam (5964 Cr Revenue) 6. Tech Mahindra (5243 Cr Revenue with employee of around 84000) 7. Mphasis (3420.84 Cr Revenue) 8. Oracle Financial services (2605.85 Cr Revenue) 9. MindTree(1915 Cr Revenue) 10. Polaris Tech(1762 Cr Revenue)
Opportunities in IT Sector
1. New Geography verticals and customer segments provide huge opportunity. 2. Spending on offshoring set to rise. Challenges in IT sector 1. 2. 3. 4. 5. 6. 7. 8. 9.
They are subject to different legal laws and norms. Issue of anti-outsourcing. Optimum mix of employees.
Expensive & Unskilled Manpower.
Management Security
Customer service Human Resources
Stiff competition from China, Philippines and Eastern Europe which are also proving to be low cost and competitive countries
Skills required in IT and ITES industry 1. Logical and analytical skills. 2. Basic programming skills 3. Communication skills 4. Basic soft skills 5. Deep dive into particular language and technology. 6. Ability to think beyond programming. 7. Knowledge of corporate culture. 8. Awareness of concept of software engineering. 9. Team management skills 10. Deep domain knowledge 11. Adequate client management skills
