24714165 IT Industry in India(2)

8/8/2019 24714165 IT Industry in India(2)

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Topics Introduction Structure

Growth

Size of the industry

Top players

Contribution To Economic Progress

FDI in IT Industry

Export Potential Challenges

SWOT Analysis

Future And Conclusion


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Introduction

Boom started in late 1990s

Impact of Y2K problem

One of the most important industry

Development activity not confined to particular city

Large number of English speaking people


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Structure ofITindustry

IT sector has four major categories:

IT Services

IT Enabled Services

Software Product

Hardware


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Size ofITindustry in India

Total business of $ 50 billion

2.2 million employment by 2008

Contribution to GDP is more than 7.5%

FDI of $ 4.5 billion by the end of 2008

Comprises 35% of Total export from India

$ 225 billion worth Market Cap from IT shares Expected to cross $ 100 billion mark by 2011


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Topplayersin the Industry

Major companies in IT industry

Tata consultancy services (TCS)

Infosys Wipro

HCL Technology

Patni

Satyam

Hexaware


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Contribution to Economicprogress

Recorded growth of 22.4% in last fiscal year

Total revenue of 2.46 trillion INR in 2007

Domestic IT market account 900 billion INR

Brought significant change in Indian job Market

Have contributed to solving unemployment

problem Improved gross production goods and services


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FDI in ITindustry

IT sector has been attracting large amount of FDI

Major investment in four principal sector

Will receive $ 4 billion to $5 billion by 2008

Major IT companies are setting up base in India


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Cotn..


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Export Potential Export potential recognized across world

Software product are renowned all over the world

Accounts 35% of total export. Expected to grow by33% in 2008.

Software export of $ 40 bn in 2008. Expected toreach $60 by 2010.


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Cotn..


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Challenges Keep maintaining its excellent performance

standard

Rupee appreciation and competition from otherglobal players

Skill level of IT professional

Co-ordination with academic circle and otherindustries

Problem with outsourcing countries like U.S


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Swot AnalysisStrengths

Highly skilled human resources

Low wage structure and quality of work Initiative taken by government

Following quality standard such as ISO, SEI CMM

Cost competitiveness Quality telecommunication infrastructure

English speaking professional


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Weaknesses Absence of practical kwoledge

Less research and development

Employee salaries are increasing rapidly

Contribution of IT sector to GDP is rather small


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Opportunities and Threats

Opportunities Threats

High quality IT education

market

Increasing number ofworking age people

Upcoming internationalplayers in market

Lack of data security system

Countries like chinaPhilippines are making effortsto overcome the Englishlanguage barrier

IT development need toexpand in other cities


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THANK YOU

24714165 IT Industry in India(2)

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