IT Sector new.pptx

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IT Sector

Group 3

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Main Instruction

Every individual has to contribute to the group by preparing individualslides and have to present it also in the class during presentation

Contents wont be changed by anyone

Only slide layout will be changed after all the contents are filled

Please check your allotted topic and prepare maximum two slides on it

Please submit it by 30th evening 7pmSend it on [email protected]

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Heading 16Font style-Bookman Old Style

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mailto:it%E2%80%[email protected]:it%E2%80%[email protected]


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Content

IT Sector- Definition- Saurabh srivastava

Contribution of it sector with respect to Contribution to gdp- yogeswar Employment

Direct employment- sunil kumar

Indirect employment-- -- rakesh ranjan

Export maheep

R&D /Technolgogy upgradation- Shashank kumar/sumit kumar

FDI and FII- Ritesh/Shailesh Characterstics of indian It setor- pawan yadav

Basic constituent of it sector--- naveen

List of Companies- kadir

Performance of sector as whole- maharath/Manish kumar arya

Issues related to it sector- aditi Contribution and linkages to world economy Anuj jha

Strength- Gargi

Weakness-Prachi

Threat-Prateek

Opportunity-Bhoomika3


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Definition

Information Technology

The collection of technologies that dealspecifically with processing, storing, andcommunicating information, including all types

of computer and communications systems aswell as reprographics methodologies.(Martin et al., 1999 )

Any technology that help to produce, manipulate,process, store communicate, and/or disseminateinformation.(William&Sawyar,2005)


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Information Technology Association OfAmerica (ITAA)

IT is the study, design, development,

implementation, support or managementof computer based information system

particularly software's applications &computer hardware

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Contribution of IT sectorContribution to GDP

GDP is the market value of all officially recognized final goodsand services produced within a country in a given period.The sector revenues have grown from 1.2 per cent in FY1998 toan estimated 7.5 per cent in FY2012 (proportion to GDP)

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Employment

sunil kumar

rakesh ranjan

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R&D /Technolgogyupgradation-

Shashank

kumar/sumit kumar

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Exports

Export revenues (including Hardware) estimated to

reach USD 69.1 billion in FY2012 growing by over

16 per centDomestic revenues (including Hardware) at about

USD 31.7 billion, growing by over 9 per cent.

GDP -$1.85 Trillion US dollars at current prices -

2011

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Export

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IT Sector

IT Sevices

IT-BPO


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Revenue

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2007-08 2008-09 2009-10 2010-11 2011-12

Export Revenue

Domestic Revenue


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FDI and FII

FDI is the investment made by ForeignMultinational companies in India.The Economy high and low depends on the

FDI's Investment .At present India is the leading country

pertaining to the IT industry in the Asia -Pacific region.

The IT sector has witnessed the third largestof FDI inflow from April 2000 to Jan 2012

with amount of 49626.45 cr. behind servicesector and telecommunication sector. Percentage of total FDI inflows are 6.94 of IT

sector.

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FII is Foreign Institutional Investment , isinvestment made by foreign Mutual Funds inthe Indian Market.

The Stock market fluctuations are generallybecause of FII

FIIs investing into Indian companies throughthe FDI route face a cap of 10%.

Under the portfolio route FIIs can individuallyacquire up to 10 percent equity in an Indiancompany though the aggregate FII limit ispegged at 24 percent

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Constituent of IT Sector

IT- SoftwareThese companies help in developingand implementation of different software for theirclients worldwide. These software could be fordocumentation, security services, banking

softwares etc. ITeS Business process outsourcing (BPO)Major

Corporations across the world outsource theirback-office operations to some companies. E.g.

Employee payroll for a US companys globalworkforce is maintained by an Indian BPO. Slowlythe definition is expanding to Human resources,accounting, logistics, legal processes etc.


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Contd..


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Contd.. IT- Hardware and peripherals - The stuff you can

actually see and touch, and would likely break ifyou threw it out a fifth-story window, is hardware.This would include laptops, desktops, Storagedevices, Networking devices, LCD, printers etc.

IT- Education- This segment provides training foremployment in the other segments. This wouldinclude companies providing various certificationcourses, like Java, Oracle etc. These companies

also provide training for employees in corporatesector


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Characteristics of Indian IT sector More service oriented than manufacturing

Export based industry

Focus on IT-enable services

Customer Interaction Services

Business Process Outsourcing / Management

Back Office Operations Insurance Claims Processing

Legal Databases

Web site Services

Cost effectiveness Skilled human capital as competitive advantage

Strong customer-relationship in US and EUROPEANmarket

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IT Companies

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Top 20 Indian IT/ITES companies(2010)

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Performance of Sector

The Indian IT-BPO Industry (includinghardware) reached a significant milestone inthe year 2011-12 by aggregating revenue ofUS $ 101 billion, a growth of about 14.7 per

cent over 2010-11. Aggregate IT software and services revenue

(excluding hardware) is estimated at USD 88billion.

IT industrys share of total Indian exports(merchandise plus services) increased fromless than 4 per cent in FY1998 to about 25per cent in FY2012

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The Indian software and services exportsincluding BPO exports is estimated atUS $ 68.7 billion in 2011-12, compared

to US $ 59 billion in 2010-11, anincrease of 16.4 per cent.

Within the global sourcing industry,

India was able to increase its marketshare from 51 per cent in 2009, to 58per cent in 2011.

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Issues related to it sector

Inadequate Quality & Skill Of Graduates

Rising salaries & weak Infrastructure (resulting infrequent power shortages)

Low level of PC use and Internet Penetration

Low level of domestic technology development

Limited Bandwidth

Inadequate availability of venture capital

Limited domestic market for knowledge basedtechnology and products

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Contribution and linkages to world

economy

anuj

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Strength

Large Pool of Knowledge Workers

High Quality & Price Performance

Management experience

State-of-the-art Technologies

Flexibility and Adaptability

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Weaknesses

Bureaucracy

Brand India

Security concerns.

Excessive dependence on USA forrevenues

Excessive dependence on BFSI sectorfor revenues

High rates of attritionDecreasing competitive advantage.

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Opportunities

Increased off-shoring Under-penetrated geographies and verticals

Greater scope for product innovation

Increased focus on high end work like consulting and KPO

Greater scope to service domains other than BFSI such as

Transportation, Infrastructure, etc.

Satyam fiasco Likely to have positive impact on businessconsidering corporate governance, possibility of shifting ofbusiness, getting higher incremental business fromoverlapped clients, and winning new business from new

clients

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Threats

Competition: Philippines, Malaysia, South Africa Increasing public opposition to off-shoring in

higher-wage Reducing margins Global economic slowdown. US Govt. against outsourcing Shrinking margins due to rising wage inflation Rupee-dollar movement affects revenue and

hence margins

Increased competition from foreign firms likeAccenture, IBM etc.

Increased competition from low-wage countrieslike China, Indonesia etc

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References

Annual Report 2011-12 Government of India

Ministry of Communications & Information

Technology, Department of Electronics and

Information Technology.

Nasscom annual report 2010-11

Nasscom website

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IT Sector new.pptx

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