IT SECTOR IN INDIA

PRESENTED BY ATUL GOPHANE (19)

• Information Technology (IT) is defined as the design, development, implementation and management of computer-based information systems, particularly software applications and computer hardware. Today, it has grown to cover most aspects of computing and technology.  The largest firms globally include IBM, HP, Dell and Microsoft.

• The Information Technology-Enabled Services (ITES) industry provides services that are delivered over telecom or data network to a range of external business areas. Examples of such business process outsourcing (BPO) include customer service, web-content development, back office management and network consultancy etc.

INTRODUCTIONINTRODUCTION

EVOLUTION OF THE INDIAN IT EVOLUTION OF THE INDIAN IT SECTOR SECTOR 1) Pre – 1995

a)By early 90s, US based companies begin to outsource work due to low cost and skilled talent pool of India.

2) 1995-2000

a.IT industry starts to mature.

b.Increased investment in R&D and infrastructure begins.

c.India increasingly seen as a product development destination.

3) 2000-2005

a.Number of Indian firms grow in size and start offering complex services like product management, go-to market strategies etc.

b.Western firms set up number of captives in India.

4) 2005 onwards

a.Indian firms become Multi National Companies with delivery centers across the globe.

b.Indian firms make global acquisitions.

c.IT sector employs over 2 million people directly and over 8 million indirectly.

I. Market Size: USD46.0 billion during FY11.

II. Over 73 per cent of the revenue comes from the export market.

III.BFSI has been the major sector in this segment.

I. Market size: USD17.3 billion during FY11 II. US accounts for over 60 per cent of the

export market. III.Around 81 per cent of the revenue

comes from the export market.

I. Market size: USD12.9 billion during FY11.

II. Over 70 per cent of the revenue in the segment comes from exports.

I. Market size USD11.8 billion during FY11. II. Over 80 per cent revenue comes from

domestic market Domestic market is seeing good growth as penetration of personal computers is rising in India.

Indian technology and BPO sector is estimated to have generated USD88.1 billion in revenue during FY11 at a year-on-year growth rate of 20.1 per cent

As a proportion of India's GDP, the contribution of IT sector has risen from 1.2 per cent in FY98 to 6.4 per cent in FY11

TCS is the market leader commanding over 8.5 per cent of the total Indian IT & ITeS revenue.

Top firm firms share around 35 per cent of total industry revenue showing that the market is fairly competitive.

Company Name

Market Share

TCSTCS 8.5%8.5%

WIPROWIPRO 7.9%7.9%

INFOSYSINFOSYS 6.9%6.9%

COGNIZANTCOGNIZANT 5.2%5.2%

HCL TECHHCL TECH 4%4%

TECH MAHINDRATECH MAHINDRA 1.2%1.2%

MAHINDRA MAHINDRA SATYAMSATYAM

1.2%1.2%

THANK YOU !!