IT Term Paper

8/2/2019 IT Term Paper

1/26

INFORMATIONTECHNOLOGY

SAHEB JEET SINGH

ROLL NO. 117044

TERM PAPER SUBMITTED IN PARTIAL FULFILLMENT OF REQUIREMENTS OF PGDIM


2/26

2 | P a g e

ACKNOWLEDGEMENT

I have taken efforts in this TERM PAPER. However, it wouldnot have been possible without the kind support and help of manyindividuals and organizations. I would like to extend my sincere thanks toall of them.

I am highly indebted to Mrs. SANGEETA DODRAJKA for theirguidance and constant supervision as well as for providing necessary

information regarding the project & also for their support in completingthe project.

I would like to express my gratitude towards member ofPGDIM for their kind co-operation and encouragement which helped mein completion of this project.

My thanks and appreciations also go to all other individuals indeveloping the term paper and people who have willingly helped me outwith their abilities.


3/26

3 | P a g e

EXECUTIVE SUMMARY

Information technology is playing an increasingly importantrole in the work and personal lives of citizens. Computers,communications, digital information, softwarethe constituents of theinformation ageare everywhere.

Between those who search aggressively for opportunities tolearn more about information technology and those who choose not to

learn anything at all about information technology, there are many whorecognize the potential value of information technology for theireveryday lives and who realize that a better understanding ofinformation technology will be helpful to them. This realization is basedon several factors:

Information technology has entered our lives over a relatively briefperiod of time with little warning and essentially no formaleducational preparation for most people.

Many who currently use information technology have only a limitedunderstanding of the tools they use and a (probably correct) beliefthat they are underutilizing them.

Many citizens do not feel confident or in control when confronted byinformation technology and they would like to be more certain ofthemselves.

There have been impressive claims for the potential benefits ofinformation technology, and many would like to realize thosebenefits.

There is concern on the part of some citizens that changes implied

by information technology embody potential risks to social values,freedoms or economic interests, etc., obligating them to becomeinformed.


4/26

4 | P a g e

TABLE OF CONTENTS

TECHNOLOGY A DEFINITION

INFORMATION TECHYNOLOGY IN BRIEF HISTORY OF INFORMATION TECHNOLOGY

TECHNOLOGICAL CAPACITY AND GROWTH INDUSTRY SECTOR STANDARDS

INFORMATION TECHNOLOGY OCCUPATIONS INFORMATION TECHNOLOGY INDUSTRY SECTOR STANDARDS

SCOPE OF INFORMATION TECHNOLOGY CONTRIBUTION OF IT SECTOR IN GDP

CHALLENGES AND POSITIVES DEPENDNCY ON THE US INDIAN IT FIRMS RUPEE APPRECIATION AND FII IT SEZS DIVERSIFICATION IN THE VERTICALS TELECOM AND 3G DOMESTIC MARKET

WIPRO A CASE STUDY ACHIEVEMENTS OF WIPRO FINANCIALS WIPRO WITH THE SIX SIGMA WHAT IS SIX SIGMA EVOLUTION OF THE SIX SIGMA AT WIPRO PROBLEMS IN IMPLEMENTATION OF SIX SIGMA

o BUILD THE CULTUREo PROJECT SELECTION

o TRAINING

o RESOURCESo PROJECT REVIEWS

SIX SIGMA CONSULTANCIES AT WIPRO

BENEFITS FROM SIX SIGMA

FUTURE FOCUS AND CHALLENGES


5/26

5 | P a g e

INFORMATION TECHNOLOGYA DEFINITION

We use the term information technology or IT to refer to anentire industry or also known as IT sector. In actuality, informationtechnology is the use of computers and software to manage information.In some companies, this is referred to as Management InformationServices (or MIS) or simply as Information Services (or IS).

The information technology department of a large companywould be responsible for storing information, protecting information,processing the information, transmitting the information as necessary,

and later retrieving information as necessary.


6/26

6 | P a g e

INFORMATION TECHNOLOGYIN BRIEF

IT is the area of managing technology and spans wide varietyof areas that include but are not limited to things such as

processers, computer systems, information systems, computer hardware,

programming languages and data constructs. In short, anything that

renders data, information or perceived knowledge in any visual format

whatsoever, via any multimedia distribution mechanism, is considered

part of the IT domain. IT provides businesses with four sets of core

services to help execute the business strategy: business process

automation, providing information, connecting with customers, etc.

IT professionals perform a variety of functions (ITDisciplines/Competencies) that ranges from installing applications todesigning complex computer networks and information databases. A fewof the duties that IT professionals perform may include datamanagement, networking, engineering computer hardware, database andsoftware design, as well as management and administration of entiresystems. Information technology is starting to spread further than the

conventional personal computers and network technologies, and moreinto integrations of other technologies such as the use of cell phones,televisions, automobiles, and more, which is increasing the demand forsuch jobs. The Worldwide IT services revenue totalled $763 billion in2009.

HISTORY OF INFORMATION TECHNOLOGY

In relative terms, it wasn't long ago that the InformationTechnology department might have consisted of a single ComputerOperator, who might be storing data on magnetic tape, and then putting

it in a box down in the basement somewhere. The history of informationtechnology is fascinating!

In the recent past, the Accreditation Board of Engineering and

Technology and the Association for Computing Machinery havecollaborated to form accreditation and curriculum standards for degrees in


7/26

7 | P a g e

Information Technology as a distinct field of study as compared to

Computer Science and Information Systems today. SIGITE (Special

Interest Group for IT Education) is the ACM working group for defining

these standards 2009.

TECHNOLOGICAL CAPACITY AND GROWTH

Based on a global inventory of the world's IT capacity, Hilbert

and Lopez identify the exponential pace of technological change andmachine applications - specific capacity to compute information per capita

has roughly doubled every 14 months between 1986-2007; the per capita

capacity of the worlds general-purpose computers has doubled every 18

months during the same two decades; the global telecommunication

capacity per capita doubled every 34 months; the worlds storage

capacity per capita required roughly 40 months to double (every 3 years);

and per capita broadcast information has doubled roughly every 12.3

years.


8/26

8 | P a g e

INDUSTRY SECTOR STANDARDS

Industry Sectors are an integral part of education reforminitiatives and the systems approach to learning by linking academics tothe real world of work. Industry sectors are designed to better aligncareer path coursework with the current and projected employmentopportunities in specific career fields.

Industry sectors create the linkage between what studentslearn in the classroom to what they need to know when making informedcareer choices, and provide students the opportunity for career awarenessand exploration of careers in industry.

The fifteen most prominent industry sectors reflected in theCalifornia economy are: Agriculture and Natural Resources; Arts, Mediaand Entertainment; Building Trades and Construction; Energy andUtilities; Engineering and Design; Fashion and Interiors; Finance andBusiness; Health and Human Services; Hospitality, Tourism andRecreation; Manufacturing and Product Development; Public and PrivateEducation Services; Public Services; Retail and Wholesale Trade;Transportation; and Information Technology.

INFORMATION TECHNOLOGY OCCUPATIONS

The four career path clusters in the Information Technologyindustry sector are based on research and align occupational

opportunities projected by government and employment agencies.According to the California Employment Development Department LabourMarket Info, five of the top ten occupations are related to the InformationTechnology industry sector.

Included in this document are two listings of relatedoccupations: (1) O Net Occupations by Career Path and (2) OccupationalSpecializations by Career Path 2.


9/26

9 | P a g e

INFORMATION TECHNOLOGY

INDUSTRY SECTOR STANDARDS

The purpose of the industry sector standards is to ensure thatstandards are consistent with industry practices and that theseeducational programs prepare students for entry into a career field, aswell as prepare them for postsecondary education. Focus groupsconsisting of educators, business partners and academic administratorswere established to review the current state and national guidelines onindustry sector standards. The objective of the focus group was to reviewand determine the appropriate state skill standards for theInformation

Technology industry sector. After the focus group determined theirexpectations for the standards, the standards were posted on theBusiness Education Resource Consortium website for field review. Afterinput from the field, the standards were finalized.


10/26

10 | P a g e

SCOPE OF INFORMATION TECHNOLOGY

The Indian information technology sector has beeninstrumental in driving the nations economy onto the rapid growth curve.

According to the Nasscom-Deloittestudy, the IT/ITES industrys

contribution to the countrys GDP has increased to a share of5.2 percent

in 2007, as against 1.2 percent in 1998.

Further, the IT and BPO industries are poised to clock

revenues worth US$ 64 billion by the end of fiscal year 2008, registering

a growth of 33 per cent with exports expected to cross US$ 40 billion and

the domestic market estimated to clock over US$ 23 billion, according to

a study. Simultaneously, the Indian IT services market is estimated to

remain the fastest growing in the Asia Pacific region with a CAGR of18.6

per cent.

Indias IT growth in the world is primarily dominated by IT

software and services such as Custom Application Development and

Maintenance (CADM), System Integration, IT Consulting, Application

Management, Infrastructure Management Services, Software testing,

Service-oriented architecture and Web services.

CONTRIBUTION OF IT SECTOR IN GDP

The information technology (IT) industry has increased its

contribution to the country's GDP from 1.2 per cent in 1997-98 to 5.2 per

cent in 2006-07, according to a Nasscom-Deloitte study.

The report, titled Indian IT Industry: Impacting the Economy

and Society, further says that export earnings in 2007-08 will hit $40

billion, a growth of 36 per cent. Meanwhile, direct employment is


11/26

11 | P a g e

expected to be 2 million in 2007-08, growing at a CAGR of 26 per cent in

the last decade.

The report, while bringing forth the contribution of the IT/ITeSsector, points out that the industry has been the trigger for many 'firsts'

and has contributed not only to unleashing the hitherto untapped

entrepreneurial potential of the middle class but also taking Indian

excellence to the global market.

CHALLENGES AND POSITIVESIn the recent past we have seen that the Globalization

3.0 has resulted in Outsourcing and Off-shoring spreading to various

other countries like China,Vietnam, Philippines and the Eastern

European countries.

In the wake of such competition can we still remain

competitive? The answer is pretty much yes. We know that our assets are

the talented pool of people who are not only competent technically but

also linguistically better at English compared to the other competitors.

Also the government support, labor pool, infrastructure, educational

system, cost, political and economic environment, cultural

compatibility, global and legal maturity, and data and intellectual

property security and privacy give Indian IT companies and edge. But

contradicting this is the Nasscom survey, which states that majority of the

graduates coming out of the colleges today are unemployable. We need to

introduce training programs in colleges to train the talent pool of students

not only technically but also on soft skills. The training should also be

imparted to the faculty to generate a better equipped talent force. These

measures have already being taken by the IT companies, which also helps

in reducing the training costs incurred by the IT companies after

recruitment.


12/26

12 | P a g e

Dependency on the US: In the wake of the Sub-Prime crisis

and subsequent economic recession in the US, the companies therestarted cutting down costs and one of them being IT expenditures.

Because the majority of the IT companies in India have an export driven

business model and majority of it is to the US, the companies have been

facing a lot of heat. Some of the clients of these IT companies have gone

bankrupt; some others have incurred heavy losses (Citigroup, Bear

Sterns, and HSBC etc.) The IT companies should therefore explore

options in Europe, the western Asia and Asia-Pacific and reduce direct

dependency on the US.

Though it seems paradoxical but recession in the US is only

going to make the Industries over there outsource more, primarily to

reduce their costs by efficient application of IT, cheaper labor and cost

effectiveness.

Indian IT firms outsourced and Off-shored!: Itis observed that competitive markets have emerged in Latin America,

Eastern Europe and South East Asia. Moreover there are emerging

economies present in these areas like Brazil, Russia etc. The IT

companies have already forayed in these countries for two primary

reasons: First, it provides them to take advantages of cost-

effectiveness in these areas due to new talent pool, Lower wages and

greater advantage by making their exports cheaper and competitive.

Second, places like Mexico have emerged as a major outsourcing and

offshore development centre for the IT companies due to the proximity to

their major business clientele in the USA. This not only provides cost-

effectiveness, but also helping the client in round the clock service

providing environment.


13/26

13 | P a g e

Rupee Appreciation and FII: In the wake of US crisis it

was observed that the rupee appreciated due to the weakened USeconomy, Federal bank interest cuts and subsequent FII inflows in the

country. Due to this IT companies in India incurred lower profit margins.

On the flipside it surely gave them a wake-up call to effectively utilize the

resources and bench strength. FII inflows and FDI in the IT sector surely

helps in rolling out further expansion plans but excess FII also make the

exports incompetent. So the govt. should take steps to manage excess

FII inflows into the country and hedge the export driven sectors against

the rupee appreciation.

IT SEZs: To further make the IT fraternity competitive, the govt.should take steps to develop IT Sezs. This will reduce the excess tax

burden on these IT companies. Moreover STPI (Software Technology

Parks of India) have already enabled the IT companies and new start

ups to carry out the documentation and licensing and tax paymenthassles through a single window system. Moreover the govt. should also

relax norms for DTA (domestic Tariff Areas) to promote IT spending in

the country itself at a lesser cost leading to development of the country.

Diversification in Verticals: In the wake of US crisis, one

of the Indian IT company suffered major drop in profits because majority

of its clientele in the BFSI (Banking Financial Sector and

Insurance). This was the sector which took the brunt of the recession.

And the company BFSI clients cut down on their IT spending leading to

lower profits. Thus the companies should balance their presence in

various verticals which will surely make them immune to unforeseen

events.


14/26

14 | P a g e

Telecom and 3G: The roll out of 3G of mobile phones in India

should be seen as a positive development for the IT companies. In thelong run it is going to provide basic communication facilities in the rural

areas of the country. Unlike the US where 3G brings luxury, In India it is

going to provide basic communication and broadband access to the rural

youth. This will result in dissemination of information and creating further

talent pool for the country. We have already seen the IT industry moving

to Tier-II and Tier-III cities to tap local talent and maintain cost-

effectiveness. Moreover Growth in Telecom industry also demands greater

IT application in terms ofVAS (Value Added Services), Telecom

Billing Solutions, IVRS etc.

Domestic Markets: Dalian in China has been growing as themajor IT hub there. If actually compared Chinas IT spending is five times

that of India, most of it being domestically. This could be also seen in the

organization of retail sector in China showcasing the presence of Retailmajors like Wal-Mart there. Hence IT companies should also focus more

on the domestic markets with major projects lining up inside the country

as well for instance the Railways ERP project, the BSNL systems

integration, networking projects, IT work from ministry of finance

and private telecom companies, banks and others are offering multi-

year contracts that are over US$ 100 million. Moreover multinationals

have been lining up in India further strengthening the IT growth in India.

Capgemini, Europes largest consulting and computer services

firm is gradually moving its internal support services to India.

After sourcing IT applications from some IT firms last

year Wal-Martwill now expand its existing operations given Indias

impressive IT capability to cover more firms and augment its work in the

United States.


15/26

15 | P a g e

Intel-the globally renowned chip maker is looking to invest more thanUS$ 1 billion in India over the next three years in partnership with Indian

and foreign hardware firms to prepare light weight personal computers.

Ciscoposted over 100 per cent year-on-year growth in its SMEbusiness in India.

Oracle is expecting over 100 per cent growth in India for its CRMbusiness on the back of increased technology awareness and need for

cost-effective customer servicing.

Yahoo! Inc and Tata Sons subsidiary firm

Computational Research Laboratories

(CRL) have entered into a joint agreement to make available-EKA, asupercomputer (the fourth fastest) in the world for cloud computing

research in India.


16/26

16 | P a g e

DellIndia witnessed 80 per cent sales over last year with revenues tothe tune of US$ 700 million.

ARM: Worlds leading chip designer firm is expanding its India designcentre to make it the largest outside Britain.

IT biggies like Microsoft, IBM, Cisco, Oracle and a host of other IT entities

are working overtime to tap the smaller and medium businesses.

Conclusion: Thus we observe that the Indian IT industry has beenfacing some challenges but if effective steps are taken then it will surely

help it to remain competitive in the future as well.


17/26

17 | P a g e

WIPROWipro Technologies is a global services provider delivering

technology-driven business solutions. Wipro is the No.1 provider ofintegrated business, technology and process solutions on a global deliveryplatform. Azim Premji is the Chairman of Wipro Technologies. He took

over the mantle of leadership of Wipro at the age of 21 in 1966. Under hisleadership, the fledgling US$ 2 million hydrogenated cooking fat companyhas grown to a US$1.76 billion IT Services organization serving customersacross the globe. Wipro is presently ranked among the top 100Technology companies in the world. It has 66,000+ employees, serves592 clients, and has 46 development centres across globe.

Wipro provides complete range of IT Services to theorganization. The range of services extends from Enterprise ApplicationServices (CRM, ERP, e-Procurement and SCM) to e-Business solutions.Wipro's enterprise solutions serve a host of industries such as Energy andUtilities, Finance, Telecom, and Media and Entertainment.

Top Information Technology Services Companies by Market Cap

Company Symbol Price Change Market Cap P/E

Tata Consultancy Services Ltd. TCS.NS 1,037.30 2.28% N/A N/A

Tata Consultancy Services Ltd. TCS.BO 1,037.50 2.15% 2.03T 944.04

Wipro, Ltd. WIPRO.NS 340.80 1.96% N/A N/A

Wipro, Ltd. WIPRO.BO 340.70 2.08% 831.31B 15.75

HCL Technologies Ltd. HCLTECH.NS 409.15 0.24% N/A N/A

HCL Technologies Ltd. HCLTECH.BO 408.30 0.43% 280.56B 17.29
http://finance.yahoo.com/q/pr?s=TCS.NShttp://finance.yahoo.com/q/pr?s=TCS.NShttp://finance.yahoo.com/q?s=TCS.NShttp://finance.yahoo.com/q?s=TCS.NShttp://finance.yahoo.com/q/pr?s=TCS.BOhttp://finance.yahoo.com/q/pr?s=TCS.BOhttp://finance.yahoo.com/q?s=TCS.BOhttp://finance.yahoo.com/q?s=TCS.BOhttp://finance.yahoo.com/q/pr?s=WIPRO.NShttp://finance.yahoo.com/q?s=WIPRO.NShttp://finance.yahoo.com/q/pr?s=WIPRO.BOhttp://finance.yahoo.com/q?s=WIPRO.BOhttp://finance.yahoo.com/q/pr?s=HCLTECH.NShttp://finance.yahoo.com/q?s=HCLTECH.NShttp://finance.yahoo.com/q?s=HCLTECH.NShttp://finance.yahoo.com/q/pr?s=HCLTECH.BOhttp://finance.yahoo.com/q?s=HCLTECH.BOhttp://finance.yahoo.com/q?s=HCLTECH.BOhttp://finance.yahoo.com/q?s=HCLTECH.BOhttp://finance.yahoo.com/q/pr?s=HCLTECH.BOhttp://finance.yahoo.com/q?s=HCLTECH.NShttp://finance.yahoo.com/q/pr?s=HCLTECH.NShttp://finance.yahoo.com/q?s=WIPRO.BOhttp://finance.yahoo.com/q/pr?s=WIPRO.BOhttp://finance.yahoo.com/q?s=WIPRO.NShttp://finance.yahoo.com/q/pr?s=WIPRO.NShttp://finance.yahoo.com/q?s=TCS.BOhttp://finance.yahoo.com/q/pr?s=TCS.BOhttp://finance.yahoo.com/q?s=TCS.NShttp://finance.yahoo.com/q/pr?s=TCS.NS


18/26

18 | P a g e

ACIEVEMENTS OF WIPRO First Indian IT Service Provider to be awarded Gold-Level Status in

Microsoft's Windows Embedded Partner Program. World's largest independent R&D Services Provider.

World's 1st PCMM Level 5 software company.

World's 1st IT Services Company to use Six Sigma.

The first to get the BS15000 certification for its Global Command

Centre.

Among the top 3 offshore BPO service providers in the world.

Only Indian company to be ranked among the 'Top 10 Global

Outsourcing Providers' in the IAOP-Fortune Global 100 listings.

First company in the world to be certified in BS 7799 (2002)

security standards.

WIPRO.NS vs. Industry Leaders

Statistic Industry Leader WIPRO.NS WIPRO.NS Rank

Market Capitalization TCS.NS N/A N/A 3 / 198

P/E Ratio (ttm) AVV.L 2,780.63 N/A 40 / 198

PEG Ratio (ttm, 5 yr expected) SREV 17.51 N/A

Revenue Growth (Qtrly YoY) NBS.AX 621.00% 18.10% 65 / 198

EPS Growth (Qtrly YoY) SYKE 338.80% 0.40% 61 / 198

Long-Term Growth Rate (5 yr) ISS 38.00% N/A N/A

Return on Equity (ttm) SPIN.PK 65.92% 23.01% 16 / 198

Long-Term Debt/Equity (mrq)

23.704 N/A

Dividend Yield (annual) MNDO 18.40% N/A N/A
http://biz.yahoo.com/ic/ll/824mkt.htmlhttp://biz.yahoo.com/ic/ll/824mkt.htmlhttp://finance.yahoo.com/q?s=TCS.NS&d=thttp://finance.yahoo.com/q?s=TCS.NS&d=thttp://biz.yahoo.com/ic/ll/824per.htmlhttp://finance.yahoo.com/q?s=AVV.L&d=thttp://finance.yahoo.com/q?s=AVV.L&d=thttp://biz.yahoo.com/ic/ll/824peg.htmlhttp://finance.yahoo.com/q?s=SREV&d=thttp://biz.yahoo.com/ic/ll/824r1g.htmlhttp://biz.yahoo.com/ic/ll/824r1g.htmlhttp://finance.yahoo.com/q?s=NBS.AX&d=thttp://biz.yahoo.com/ic/ll/824e1g.htmlhttp://biz.yahoo.com/ic/ll/824e1g.htmlhttp://finance.yahoo.com/q?s=SYKE&d=thttp://finance.yahoo.com/q?s=SYKE&d=thttp://biz.yahoo.com/ic/ll/824g5r.htmlhttp://biz.yahoo.com/ic/ll/824g5r.htmlhttp://finance.yahoo.com/q?s=ISS&d=thttp://finance.yahoo.com/q?s=ISS&d=thttp://biz.yahoo.com/ic/ll/824roe.htmlhttp://finance.yahoo.com/q?s=SPIN.PK&d=thttp://finance.yahoo.com/q?s=SPIN.PK&d=thttp://biz.yahoo.com/ic/ll/824tbe.htmlhttp://biz.yahoo.com/ic/ll/824yie.htmlhttp://finance.yahoo.com/q?s=MNDO&d=thttp://finance.yahoo.com/q?s=MNDO&d=thttp://finance.yahoo.com/q?s=MNDO&d=thttp://biz.yahoo.com/ic/ll/824yie.htmlhttp://biz.yahoo.com/ic/ll/824tbe.htmlhttp://finance.yahoo.com/q?s=SPIN.PK&d=thttp://biz.yahoo.com/ic/ll/824roe.htmlhttp://finance.yahoo.com/q?s=ISS&d=thttp://biz.yahoo.com/ic/ll/824g5r.htmlhttp://finance.yahoo.com/q?s=SYKE&d=thttp://biz.yahoo.com/ic/ll/824e1g.htmlhttp://finance.yahoo.com/q?s=NBS.AX&d=thttp://biz.yahoo.com/ic/ll/824r1g.htmlhttp://finance.yahoo.com/q?s=SREV&d=thttp://biz.yahoo.com/ic/ll/824peg.htmlhttp://finance.yahoo.com/q?s=AVV.L&d=thttp://biz.yahoo.com/ic/ll/824per.htmlhttp://finance.yahoo.com/q?s=TCS.NS&d=thttp://biz.yahoo.com/ic/ll/824mkt.html


19/26

19 | P a g e

FINANCIALS

Wipro Limited saw a whooping growth in terms of its revenuewhich soared up by 450% from 2002 to 2007. In the quarter endedSeptember 30, 2009, the IT Services business of Wipro Ltd. reportedrevenue of`49.96 billion with a growth rate of 5% YoY. It also recordedPBIT of` 11.87 billion with a growth rate of 19% YoY. During the quarter,the operating income to the revenue was 23.8%.

During the quarter, Wipro Ltd. also added 37 new clients to itslist. Currently (as of September 30, 2009), Wipro has employee strengthof 97,891.


20/26

20 | P a g e

WIPRO WITH THE SIX SIGMA POLICY

Wipro has one of the most mature Six Sigma programs in theindustry ensuring that 91% of the projects are completed on schedule,much above the industry average of 55%. Six Sigma provides the toolsfor continuous improvement on existing processes thereby helping sustainthe SEI-CMM Level 5 and CMMi certifications.

WHAT IS SIX SIGMA?

The word is a statistical term that measures how far a givenprocess deviates from perfection. Six Sigma is named after the processthat has six standard deviations on each side of the specification window.It is a disciplined, data-driven approach and methodology for eliminatingdefects.

The central idea behind Six Sigma is that if you can measurehow many defects you have in a process, you can systematically figureout how to eliminate them and get as close to zero defects as possible.

Six Sigma starts with the application of statistical methods for translatinginformation from customers into specifications for products or servicesbeing developed or produced. Six Sigma is the business strategy and aphilosophy of one working smarter not harder.

One sigma gives a precision of 68.27%., two sigma, of95.45% and three sigma of 99.73%, whereas Six Sigma gives a precisionof 99.9997%.Although 99.73% sounds very good, it slowly dawned oncompanies that there is a tremendous difference between 99.73% and99.9997%. For example, for every million articles of mail, the difference

is between 66,738 lost items and 3.4 lost items.

To achieve Six Sigma Quality, a process must produce no morethat 3.4 defects per million opportunities. An opportunity is defined as achance for non-conformance, or not meeting the required specifications.This means one needs to be nearly flawless in executing key processes.The process and culture is conditioned for zero defects rather than beingone that accepts that it is inevitable, and acceptable, that mistakes willoccur.

Hence Six Sigma delivers substantial cost reductions, enhancedefficiencies, sustainable improvements and increased stakeholder value.


21/26

21 | P a g e

EVOLUTION OF SIX SIGMA AT WIPRO

Wipro is the first Indian company to adopt Six Sigma. Today,Wipro has one of the most mature Six Sigma programs in the industryensuring that 91% of the projects are completed on schedule, mushabove the industry average of 55%.

As the pioneers of Six Sigma in India, Wipro has already putaround ten years into process improvement through Six Sigma. Along theway, it has scaled Six Sigma ladder, while helping to roll out over 1000projects. The Six Sigma program spreads right across verticals andimpacts multiple areas such as project management, market developmentand resource utilization.

Six Sigma at Wipro simply means a measure of quality thatstrives for near perfection. It is an umbrella initiative covering all businessunits and divisions so that it could transform itself in a world classorganization. At Wipro, it means:

(i) Have products and services meet global benchmarks

(ii) Ensure robust processes within the organization(iii) Consistently meet and exceed customer expectations(iv) Make Quality a culture within.

PROBLEMS FACED BY WIPRO IN

IMPLEMENTATIONDifficulties encountered by Wipro and learning from them:

Build the Culture:Implementation of Six Sigma required supportfrom the higher level managers. It meant restructuring of theorganization to provide the infrastructure, training and the confidence in

the process. Wipro had to build this culture and that took time inimplementation.


22/26

22 | P a g e

Project selection: The first year of deployment was extremelydifficult for Six Sigma success. They decided to select the project on thebasis of high probability of their success and targeted to complete them ina short period to assess the success. These projects were treated as pilot

projects with a focus to learn. For the selection of the right project thefield data was collected, process map was developed and the importanceof the project was judged from the eyes of customers.

Training: After the set up, the first step of implementation was to builda team of professionals and train them for various stages of Six sigma.The training was spread in five phases: Defining, measuring, analyzing,improving and controlling the process and lastly increasing customer

satisfaction. These phases consisted of statistics, bench marking anddesign of experiments. To find the right kind of people and train them wasa difficult job. This motivated Wipro to start their own consultancy to trainthe people.

Resources: It was difficult to identify resources that required forshort-term basis and long-term basis as it varied from project to project.Wipro did it on the basis of seriousness and importance of the project.

Project Reviews:As timely reviews play a very crucial role to judge the success of aproject. Wipro had to develop a team of experts for this purpose. The taskassigned was to see the timeliness, find out gap, week areas and to checkthe outcome as per the plan.

SIX SIGMA CONSULTANCIES AT WIPRO

Wipros Six Sigma consulting experience has peaked with theindigenous development of new methodologies that it takes to its

customers. As Wipro continues Six Sigma consulting journey, it builds onits expertise and experience- to provide enterprise-class coverage of


23/26

23 | P a g e

topics in business process management and information technologysystems integration. The focus is on supporting the project needs and isalso integrated with other methods to support process needs. Currentlythere are over 200 PMI certified consultants at Wipro.The Wipro quality consulting group trains in achieving the precision of Six

Sigma with Wipros own methodologies, training capabilities and globalexperience. Wipro also helps in institutionalizing Six Sigma across theorganization for transformation.9Wipro provides consulting in institutionalizing an organization wide SixSigma program that specializes in implementation across IT development,production support and core business operationsWipro offers the following Six Sigma consulting services (Exhibit 5):

BENEFITS FROM SIX SIGMA

Six Sigma process resulted in an achievement of close to250%, 6 minutes for 1 MB transfer and 18 minutes for average datatransfer. The set target was 200%.

Because quality is customer driven, the objective of Six SigmaImplementation at Wipro has continuously been on integrating andimplementing approaches through a simultaneous focus on defectreduction, timeliness, and productivity. This has translated to lowermaintenance costs, schedule-overrun costs, and development costs forcustomers. Measurements and progress indicators have been orientedtowards what the customer finds important and what the customer paysfor.

Improving performance through a precise quantitative understanding ofthe customers requirements thereby bringing in customer focus.

Improving the effectiveness in upstream processes of the softwaredevelopment life cycle by defect reduction (software defects reduced by

50%) and cycle time reduction (rework in software down from 12% to5%).


24/26

24 | P a g e

Waste elimination and increased productivity up to 35%.

Cost of failure avoidance (installation failures down from 4.5% to 1% inhardware business).

Tangible cost savings due to lower application development cost forcustomer.

Analysts remarked that Six Sigma was an indisputable success at Wiprowhether in terms of customer satisfaction, improvement in internalperformance, or in the improvement of shareowner value.

The results of achieving Six Sigma are rapid and overwhelming at Wipro.Its unique methodology provides Six Sigma knowledge and skills to the

client, enabling the client to create ownership, generate results andsustain success. The maturity of Wipros quality processes takes thebenefits to another level, ensuring that the customers benefit from:

-40% lower total cost of ownership-30% higher productivity-time deliveries (93% projects completed on time)

The performance enhancement enabled the client to have animproved product with the overriding benefit that the end customerperception of the quality of the clients product is improved.

FUTURE FOCUS AND CHALLENGES

Six Sigma certainly produces breakthrough improvement. Butto achieve this Wipro will have to combine the power of the Six Sigmamethod and tools with stretch goals, goals that almost seem tooaggressive, too optimistic.. Also Wipro will have to benchmark 11itselfagainst the competition on the level of performance achieved by rivals..This focus will lead to the adaptation of newer dimensions of the quality

management framework towards embodying a totality of process, people,product, and technology for achieving high process capability.


25/26

25 | P a g e

Six Sigma projects require continuous change. Black Belts andGreen belts develop improvements to systems and processes for whichthey are not accountable. And when these participants are done with theirproject, they ask the real system or process owner to implement and

sustain their solution and hence the challenge before Wipro lies inbringing the commitment towards continuing its process optimizationtheory.

The Challenge will be to transform Six Sigma from a tool forimproving product quality to an overall business improvementmethodology. The companys aim will be at having 100% of itsmanagement trained in Six Sigma.

To summarize, the quality system will continue to be based onincremental optimization, with rigorous implementation and sustenance ofthe same. The goal will be to make quality as the No.1 objective for allemployees.


26/26

BIBLIOGRAPHY

www.wikipedia.org www.google.com

www.nap.edu.com

www.nasscom.in

www.iitk.ac.in

www.itstartpage.com

www.mit.gov.in

www.ibef.org

IT Term Paper

Documents

Transcript of IT Term Paper