IT SECTOR IN INDIA

PRESENTATION BYU . LAKSHMI NARASAMAMBA

S.HASMAD KHATOON SD.AYESHA

CH.SATISH KUMART.SRINIVAS

What is IT???? As defined by INFORMATION TECHNOLOGY

ASSOCIATION OF AMERICA (ITAA) “IT” is the “study, design, development, implementation, support or management of computer based information system particularly software's applications & computer hardware

WHAT IS ITES?? ITES is INFORMATION TECHNOLOGY ENABLE

SERVICES. It is defined as outsourcing of processes that

can be enabled with IT & covers diverse areas like FINANCE, HR , ADMINISTRATION.... etc.

INTRODUCTION

India’s information and technology services date back in 1967 with the establishment of TCS of TATA groups in Mumbai.

IT includes hardware and software which helps us to change, secure, send, receive, save and process the information.

Information Technology (IT) industry in India is one of the fastest growing industries. Indian IT industry has built up valuable brand equity for itself in the global markets.

The industry information comprising of IT & IT enabled services has been fueling Indian economic growth and also influencing livelihood to different multifaced parameters like diversity, standard of life ,employment & profession directly or indirectly.

Government policy towards IT sector changed when Rajiv Gandhi became Prime Minister in 1984 .

IT Industry in India

Abolition of licenses Rationalization of taxes Export thrust Reduction of import tariffs Abolition of wealth tax Foreign exchange reforms Free pricing of IPOs Foreign portfolio investments Employee stock option plans

Liberalization of the economy & the seeds of IT boom in India

IT Enabled Services (ITES) has been the key

driver of growth for the Indian IT industry.

IT software and services in India accounted for 2.4% of the country’s GDP and 20.4% of exports in 2002-2003.

This share is projected to increase to 7% of India’s GDP and 35 per cent of total exports by 2008.

IT Enabled Services (ITES) Sector

more than a decade of experience in this area fluency in the English language lower real estate costs and administrative expenses in

comparison with developed countries large and rapidly growing pool of qualified IT-enabled services

providers, who collectively cover a wide range of services, with different levels of complexity and value addition.

lower manpower costs (30-40% of equivalent costs in the US and UK)

Advantage of time zone differences and availability of 24x7 services

supportive government policy infrastructure locating ITES. high quality offerings

India offers a distinct set of advantages , which make it a preferred destination for ITES :

The Government of India recognises ITES as a major thrust area. Some of the key incentives to the industry are:

100 % Foreign Direct Investment (FDI) permitted in call

centres Sharing of bandwidth for disaster recovery and mission

critical applications between multiple entities Call centre approval is not required to be customer-based but

specific to a place of presence (PoP), or by installed capacity at the place of termination. This not only assists in reducing the lead-time for implementation of programmes for new customers but also adds to the savings in costs and time that can be channelised for more productive usage

Policy Framework

Approved Internet and IPLC connectivity on the same LAN Allowed connectivity of a LAN in an international call centre to a domestic ISP.

This enables a call center operator to choose his service provider.

Competition is expected to drive down prices while offering a higher service-reliability value proposition

Duty-free imports of capital goods permitted for BPO companies (under the Export Promotion of Capital Goods scheme

The Government of India has allowed total income tax exemption on export of IT enabled outsourcing services (Sections 10A/10B of the Income Tax Act).

These cover a wide range of services such as customer interaction services, BPO/Back office operations, medical transcription, legal databases, digital content development, engineering and design services, support centres, payroll/HR services, web-site services, data digitisation/GIS and online education

Low-cost-to-high quality 2nd largest English Speaking manpower resources in the

world Supportive Government Policies Adaptability to new technologies Geographical Advantage

INDIAN IT ADVANTAGE

Constitution of national task force on it and software development to make a frame work of long term it policy nationally

Legislation of information technology act to furnish a legal patronage facilitating electronic and business and trade

CURRENT STATUS OF INDIAN IT SERVICES

On the basis of NASSCOM Estimation of revenue from exports According to IDC indian report the nation’s

data center services market has been expected to reach almost $2.2 billion at the end of the year 2011

GROWTH HISTORY OF IT & IT ENABLE SERVICES

Wal - mart has been planning to elaborate its existing executions given Indian its dominence and its capability of tracking more business.

Capgemini , the biggest consulting and computer servicing company in europe has steeped into provide internal support services to India

INVESTMENTS IN DOMESTIC IT INDUSTRY

Planning and Management in IT E-Business/E-Commerce and the Internet Knowledge Management Mobile Commerce and Technology The management of information systems Information technology/information systems and

sustainability Social aspects of information systems Web site development and evaluation Usefulness of Bar codes in identification and fast processing Customer relationship management

Importance of IT sector

  According to global competitiveness report of the forum, whichasserts information technology as a new source of competitiveness, thereare at least three aspects to this.

  - E-mail  - Internet  - E-commerce

IT IN GLOBAL COMPETITIVENESS

- E-mail: has greatly expanded the possibilities for interpersonal inter-firm and international communication

  - Internet : it has allowed for much more extensive and rapid discrimination of information

- Emerging area of e- commerce offers a potentially huge increase in the customer base for companies and huge savings in marketing costs and search costs in finding low cost suppliers.

-   Provides new ways to design organizations that can lead to structure  like the T-form organization  - Creates new relationships between customers and suppliers who electronically link themselves together  - Enables tremendous efficiencies in production and service industries through electronic data interchange to facilitate just-in-time production  - Contributes to the productivity and flexibility of knowledge workers  - Provides the manager with electronic alternatives to face- to-face communications and supervision

IT REVOLUTION AND BUSINESS ENVIRONMENT

There are many predictions and forecasting pertaining to it and IT & ITES in India across various segments

A study by management adviser firm zinnov states that IT adaption in india.

IT AND ITES IN INDIA ROAD AHEAD

Another study by consulting and advisory services for cyber media research suggests that the PC market in india would have witnessed sales of 11.15 Million units in the 2011.

Internet retailing is also emerging as anentirely new avenue to be explored. According to estimates made by an industrial body,india’s online retailing industry is anticipated to surge to Rs 70 billions by 2015 from Rs 20 billions as broadband is becoming increasingly accessible and internet penetration is increasing.

THANK YOU