24714165 IT Industry in India(2)

download 24714165 IT Industry in India(2)

of 16

Transcript of 24714165 IT Industry in India(2)

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

    1/16

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

    2/16

    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

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

    3/16

    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

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

    4/16

    Structure ofITindustry

    IT sector has four major categories:

    IT Services

    IT Enabled Services

    Software Product

    Hardware

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

    5/16

    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

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

    6/16

    Topplayersin the Industry

    Major companies in IT industry

    Tata consultancy services (TCS)

    Infosys Wipro

    HCL Technology

    Patni

    Satyam

    Hexaware

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

    7/16

    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

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

    8/16

    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

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

    9/16

    Cotn..

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

    10/16

    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.

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

    11/16

    Cotn..

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

    12/16

    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

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

    13/16

    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

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

    14/16

    Weaknesses Absence of practical kwoledge

    Less research and development

    Employee salaries are increasing rapidly

    Contribution of IT sector to GDP is rather small

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

    15/16

    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

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

    16/16

    THANK YOU