PGDM: 09-11

Submitted
Submitted to: By:

Prof. Ritesh Srivastava

 A project on
With profound sense of gratitude and regard, we exp

His through understanding of the subject and the pro

Inside this issue:
Table of contents
 Introduction
SAS TECH is a start-up organization whose vision is to create the finest
education/entertainment software for non-reading individuals with developmental
disabilities. The software product has been designed and created by IT specialist
with vast industry experience and knowledge, to meet the needs of this targeted
customer segment. The software will be constructive by giving customization to
the product and will be according to client’s choice and requirement. SAS TECH
will be formed in August 2009 as a Customer oriented IT platform idea founded
and owned by partners Ms. Anu Gupta, Ms Rachna Anupama Mishra, Ms.
Priyanka Prashar, Mr. Abhishek Shahi, Mr. Prateek Sharma, and Mr. Rakshit
Chabra.

SAS Tech is the software house which is concentrating on Indian projects specially
to participate in development of India thus enhancing IT value and strength in
country.

Mission Statement:
Giving quality products to the active economy drivers in market
Vision:
Focusing on providing quality services to the target market which is playing
important role in country economy and progress i-e Business concerns,
manufacturing concern, banks and educational institutes. Thus we can promote
technology within these working concerns which results into their efficient
participation in Indian’s economy and progress.
Departments:
Our main idea is to open a software house in Karachi which would be the biggest
software house in the Pakistan. We will have mainly two departments.

Prospecting Projects

➢ Supporting ANR:
We will support ANR project in collaboration with NADRA by using SQL, Oracle
➢ Data Base for Institutions:
Basically concentrating on the projects and solutions for institutions like
Educational, Medical and Business Growing Institutes.
➢ Launch of New software:
○ SAS TECH will launch new software and will introduce a new idea in
history of Pakistan.
○ We will introduce software that will help the disable people.

Competitive Edge
There is several companies on the market selling business and educational
products for this target segment. SAS TECH will leverage their competitive edge
by incorporating entertainment into their software product, a means of creating
interest while using the software. This interest will increase the amount of time
that the users use the software, thereby increasing the effectiveness of the program.
SAS TECH is convinced that the customer interest and trust towards the product
instead of having to be forced to use it.
SAS TECH has been inspired by development in IT industry. SAS TECH has
forecasted revenues of Rs.400, 397 and Rs.490, 000 for years two and three.

Keys to Success
• Develop business and educational software that is constructive and
supportive. If it is not so, it likely will not be used.
• Implement a strong marketing campaign to develop awareness of the
software and its benefits within all of the business centers, educational
institutes, brokerages.
• Design strict financial controls for the organization.

Objectives
• Increase sales by triple for the first two years.

• Achieve 20% market penetration by year four.

• Assist more than 10,000 different individuals with development disabilities.

500,000

400,000

300,000

200,000

100,000

(100,000)

2009 2010 2011

Start-up operations
SAS TECH is a start-up organization. The following assets and professional
services will be needed for the formation and start of operations.
• Legal services for company formation.
• Accounting services to set up the accounting shell of the company
QuickBooks Pro software.
• Computer programmers (3) to rapidly develop the software. An individual
programmer could complete the coding of this product however; SAS
TECH is interested in launching the product fast therefore they will employ
multiple programmers to speed the process up.
• Eight computer workstations, including one server. Seven of the stations
will have Microsoft Office; one of them will have QuickBooks Pro. Three
networked laser printers.
• A broadband Internet connection.
• Office cubicle furniture for seven employees.
• Seven extension telephone system.
• Copier and fax machine.
• Lunch room furniture and appliances including a refrigerator and
microwave.
• Shipping materials including boxes scales, etc.
• Promotional materials.

India's IT Industry

Information Technology is one of the most important industries in the Indian

economy. The IT industry of India has registered huge growth in recent
years. India's IT industry grew from 150 million US Dollars in 1990-1991 to
a whopping 50 billion UD Dollars in 2006-2007. In the last ten years the
Information Technology industry in India has grown at an average annual
rate of 30%.

The liberalization of the Indian economy in the early nineties has played a
major role in the growth of the IT industry of India. Deregulation policies
adopted by the Government of India have led to substantial domestic
investment and inflow of foreign capital to this industry. In 1970, high
 import duties had forced IBM to leave India. However, after the early
nineties, many multi national IT companies, including IBM, have set up
their operations in India. During the ten year period 1992-2002, the Indian
software industry grew at double the rate as the US software industry.

Some of the major reasons for the significant growth

of the IT industry of India are -
•  Abundant availability of skilled manpower
•  Reduced telecommunication and internet costs
•  Reduced import duties on software and hardware products
•  Cost advantages
•  Encouraging government policies

Some of the major companies in the IT industry of

India are -
•  Tata Consultancy Services (TCS)
•  Infosys
•  Wipro
•  IBM
•  HP
•  HCL
•  Cognizant Technology Solutions (CTS)
•  Patni
•  Satyam
•  NIIT

India's IT industry caters to both domestic and export markets. Exports

contribute around 75% of the total revenue of the IT industry in India. The
IT industry can be broadly divided into four segments -
•  IT services
•  Software (includes both engineering and Research and Development)
•  ITES-BPO
•  Hardware

Structure of India’s IT Industry

The IT industry has emerged as one of the most important industries in the Indian
economy contributing significantly to the growth of the economy. The IT industry
of India got a major boost from the liberalization of the Indian economy. India's
software exports have grown at an annual average rate of more than 50% since
1991. The structure of the IT industry is quite different from other industries in the
Indian economy. The IT industry of India is hugely dependant on skilled
manpower. Primarily a knowledge based industry, the IT industry of India has
reordered significant success due to the huge availability of skilled personnel in
India.

The industry structure in the IT sector has four major

categories. These are -
 IT services
 IT enabled services
 Software products
 Hardware

Size of India’s IT Industry

The size of India's IT industry has grown significantly over the years. The
size of this sunshine industry of India grew from 150 million US Dollars to
50 billion US Dollars between 1990-1991 and 2006-2007. The growth of the IT
industry has been very high in the last few years. The size of the Information
Technology industry of India was 5.7 billion US Dollars in 1999-2000. After the
turn of the century the industry experienced exponential growth to reach the 50
billion mark by 2006-2007.

Soft wares and services are exported to bout 95 companies from India. North
America accounts for 61% of the software exports from India.

The projections about the size of India's IT industry present a very optimistic
picture. The industry is expected to grow to double its current size by the year
2012. India's IT industry is expected to grow at an annual average rate of 18% in
the next five years. The industry is also expected to cross the 100 billion US
Dollar mark by 2011. One of the major areas of growth for the IT industry of India
is by tapping the potential in the domestic market. The IT industry of India is
largely dependant on the export market. Penetrating more into the domestic
market would create further opportunities of growth for the IT industry.

Growth of India's IT Industry

India's IT industry has recorded phenomenal growth over the last

decade. During the period from 1992- 2001, the compounded annual growth
rate of the Indian IT services industry has been over 50%. The software sector in
India has grown at almost double the rate of the US software sector. The statistics
of the India's IT industry substantiates the huge momentum acquired by the IT
sector in the recent past. During the financial year 2000-2001, the software
industry in India accounted for $8.26 billion. The corresponding figure was $100
million 10 years back.

The growth of India's IT sector has brought about many other positive changes in
the Indian economy. The purchasing power of a large section of Indian population
has increased dramatically. This has resulted in an increase in the average standard
of living of the majority of population of the country. The increase in purchasing
power of the common people has propelled the growth rate of the other sectors of
the economy as well.

India is now home to a number of IT giants. The operations of IT firms like Wipro,
Infosys, Accenture, Capgemini, Tata Consultancy Services and many more in
different locations of India have changed the entire scenario of the Indian job
market. The ITES sector has also come up to complement the growth of Indian IT
sector.

Future of Indian IT Industry

The current scenario in the IT industry of India and the tremendous growth
registered in recent years has generated much optimism about the future of the
Indian Information technology industry. Analysts are upbeat about the huge
potential of growth in the Information Technology industry in India.
The major areas of benefit that the future growth in the IT
industry can generate for the Indian economy are -
 Exports - The IT industry accounts for a major share in the exports from India.
This is expected to grow further in coming years. The information technology
industry is one of the major sources of foreign currency or India.
 Employment - The biggest benefit of the IT industry is the huge employment it
generates. For a developing country like India, with a huge population, the high
rate of employment in the IT sector is a big advantage. The IT industry is expected
to generate employment of 2.2 million by the end of 2008 which is expected to
increase significantly in coming years.
 FDI (Foreign Direct Investment) - High inflow of FDI in the IT
sector is expected to continue in coming years. The inflow of huge volumes of
FDI in the IT industry of India has not only boosted the industry but the entire
Indian economy in recent years.

Contribution of India's IT Industry to

Economic Progress

The contribution of India's IT industry to economic progress has been quite

significant. The rapidly expanding socio-economic infrastructure has
proved to be of great use in supporting the growth of Indian information
technology industry. The flourishing Indian economy has helped the IT sector to
maintain its competitiveness in the global market. The IT and IT enabled services
industry in India has recorded a growth rate of 22.4% in the last fiscal year. The
total revenue from this sector was valued at 2.46 trillion Indian rupees in the fiscal
year 2007. Out of this figure, the domestic IT market in India accounted for 900
billion rupees. So, the IT sector in India has played a major role in drawing foreign
funds into the domestic market.
The growth and prosperity of India's IT industry depends
on some crucial factors. These factors are as follows:
 India is home to a large number of IT professionals, who have the necessary
skill and expertise to meet the demands and expectations of the global IT industry.

 The cost of skilled Indian workforce is reasonably low compared to the

developed nations. This makes the Indian IT services highly cost efficient and this
is also the reason as to why the IT enabled services like business process
outsourcing and knowledge process outsourcing have expanded significantly in
the Indian job market.
 India has a huge pool of English-speaking IT professionals. This is why the
English-speaking countries like the US and the UK depend on the Indian IT
industry for outsourcing their business processes.

The emergence of Indian information technology sector has brought about sea
changes in the Indian job market. The IT sector of India offers a host of
opportunities of employment. With IT biggies like Infosys, Cognizant, Wipro, Tata
Consultancy Services, Accenture and several other IT firms operating in some of
the major Indian cities, there is no dearth of job opportunities for the Indian
software professionals. The IT enabled sector of India absorbs a large number of
graduates from general stream in the BPO and KPO firms. All these have solved
the unemployment problem of India to a great extent. The average purchasing
power of the common people of India has improved substantially. The
consumption spending has recorded an all-time high. The aggregate demand has
increased as a result. All these have improved the gross production of goods and
services in the Indian economy. So in conclusion it can be said that the growth of
India's IT industry has been instrumental in facilitating the economic progress of
India.

Market Analysis
The market for life skills training software can be segmented into four groups. The
first is centers for independent living, the second is school districts, the third is
proactive parents, and the last is agencies charged with special education
administration. Each of the four segments is distinct and will be communicated
with in different ways. These four segments have been chosen because they are the
main purchasers of products for individuals with developmental disabilities.

The software industry for individuals with developmental disabilities has just
begun to grow. Only within the last few years has there been a significant increase
in the number of computers found in classrooms using specialized software.
Competing with the software companies are products that have printed pictures on
them, typically laminated cards. While these cards are helpful, they are less
interactive.

Market Segmentation

SAS TECH has identified four distinct market segments for their products:
• Centers for Independent Living- These are typically not-for-
profit entities that assist individuals with developmental disabilities.
The centers help clients with transition skills, making them more
independent. These centers offer a wide range of life skills training for the
individuals.

• School Districts- All students are guaranteed an education therefore

the school districts must provide the appropriate education until the
individual is 21 years old. School districts are consumers of these products
in pursuit of their goal of providing the students with an appropriate
education.

• Proactive Parents- These are parents of individuals with

developmental disabilities who are taking an active role in their child's
education/life skill training. Reinforcing these skills as much as possible is
useful; therefore there are many parents that will purchase the software for
home use.

• Agencies- Many states, often as a reaction to a lawsuits (individual and

class actions) have set up agencies or brokerages whose purpose is to
dispense money from the state to the service providers assisting the
individuals in need.

• Money from the state to the service providers assisting the individuals in
need.
 SWOT Analysis:
Strengths
• Highly skilled human resource
• Low wage structure
• Quality of work
• Initiatives taken by the Government (setting up Hi-Tech Parks and
implementation of e-governance projects)
• Many global players have set-up operations in India like Microsoft, Oracle,
Adobe, etc.
• Following Quality Standards such as ISO 9000, SEI CMM etc.
• English-speaking professionals
• Cost competitiveness
• Quality telecommunications infrastructure
 • Indian time zone (24 x 7 services to the global customers). Time difference
between India and America is approximately 12 hours, which is beneficial
for outsourcing of work.

Weaknesses

• Absence of practical knowledge

• Dearth of suitable candidates

• Less Research and Development

• Contribution of IT sector to India 's GDP is still rather small.

• Employee salaries in IT sector are increasing tremendously. Low wages benefit

will soon come to an end.

Opportunities

• High quality IT education market

• Increasing number of working age people
• India 's well developed soft infrastructure
• Upcoming International Players in the market

Threats

• Lack of data security systems

• Countries like China and Philippines with qualified workforce making
efforts to overcome the English language barrier
• IT development concentrated in a few cities only

Technical Analysis
Labor
A professional software house normally consists of at least three dedicated sub-
teams:
 • Business Analysts who define the business needs of the market

• Software Designers/programmers who creates the technical specification

and next do a coding

• Software Testers who are responsible for the whole process of quality
management

The pros:

• Each person has full knowledge about the full production cycle
• People are doing various tasks what makes especially young people
excited about their work
• There is a very good possibility to manage the work load especially in
crisis situations like "all hands on pump"

Location and Size:

Our software house will be situated in IT Park Banglore. Size of our software
house would be approximately 2 acre.

Machineries and technology

We need to install high quality machinery. For this purpose we will import our
computers from U.S market and their technical people will install the computers
and networking.
Training
For better and efficient use of the imported machinery we will send our
experiences programmers to U.S for training.
Software House capacity:
We will arrange 24-hours open at our software house and employees will have
morning and night shifts. So we can increase the production capacity of our
software house and ultimately more people will get employment.
Input Constraints
Biggest constraint is load shedding. For this purpose we will arrange generators.
Generators will increase our cost but it will increase our results accordingly

Methodologies

Software house may use a number of various methodologies to produce the code.
These can include:

• The Waterfall Model, including project management methodologies like

PRINCE2 or PMBoK

• Agile Software Development, such as Extreme Programming and SCRUM

There are also some methodologies which combine both, such as the Spiral Model,
RUP or MSF.

Projects in Controlled Environments

We will mainly follow PRINCE2. (Projects in Controlled Environments)

 Financial Analysis
Cost of Project
The estimated cost of project is Rs 5,00,00,000 according to proposal research and
market studies.

Means of Financing
 ✔ Partner’s Equity:

Partners Name Equity in Rs Shareholding

Ms Anu Gupta 45,00,00,000 15%
Ms Rachana Anupama Mishra 60,00,00,000 20%
Ms. Priyanka Prashar 45,00,00,000 15%
Mr. Abhishek Shahi 60,00,00,000 20%
Mr. Prateek Sharma 45,00,00,000 15%
Mr. Rakshit Chabra 45,00,00,000 15%

✔ Borrowings
➢ Borrowing from bank Rs 1,00,00,000
➢ Long-term Loan Rs 1,00,00,000

Projections
Start-Up Expense
Expense Heads Amount in Rs
Legal 5,00,000
License 25,00,000
Marketing 15,00,000
Furniture 20,00,000
Fixtures 10,00,000
Computers
 Hardware & software 1,50, 00,000
 Laptop
 Printer
 Projector
 Main Server -Networking
Equipments
 Photostat machine 75, 00,000
 Fax machine
 Stationery
 Generator
 Telephone
Research & Development 1,00,00,000
Rent Advances and Rent 10,00,000
Other expenses 50,00,000
• recruitment and selection of employees
• salaries of employees, etc
Total Start-Up Expense 4,60,00,000
Required cash in hand 40,00,000
TOTAL 5,00,00,000
Strategy and Implementation

SAS TECH will leverage their competitive edge of combining business, education
and manufacturing concerns within their software product to help them quickly
gain market share. All of the competitors software concentrates on skill
development. While this is useful, it does have customer oriented. SAS TECH has
added entertaining elements into their software, encouraging the students to use
the software and have fun while they learn.

SAS Tech’s marketing strategy will be to raise visibility of the software

product among the decision makers who are business and institutional handlers.
The campaign will be targeted to reach these people/organizations so that they are
aware of the options they have in developing IT environment. Lastly, the sales
strategy will seek to convince the prospective customers that there can be
significant gains in learning through SAS Tech’s carefully designed software.

Marketing Strategy

SAS TECH's marketing strategy reflects their perception of the industry: that most
of the companies operating today are operated by business and manufacturing
concerns; that they make number of products; but not many people know about the
products, and overall awareness is poor. The reality is that so many prospective
customers in Pakistan are unaware of the different available products. SAS TECH
will employ an aggressive marketing strategy to raise awareness of their
products among customers who are in need of these products, and thereby
increasing software purchases. SAS TECH will be advertising heavily in various
industry journals and magazines as a proven method of reaching the target
audience. The ads will generate awareness of SAS TEC Hand will lead the
customers to SAS TECH's website where they can demo the software. This
strategy is based on the philosophy that you can have a great product, but if no one
knows about it you are not going to be successful.

Sales Strategy

SAS TECH will use an aggressive sales campaign that will rely on conference
participation as well as target cold calling. There are numerous industry
conferences throughout the country that are specifically for educators. The
conferences are the places where people get together and share strategies that
work with their colleagues in different departments and different states. While the
conferences are not typically packed with vendors, SAS TECH will be present
since the conferences are a captive assortment of the right people – the educators
that are in the trenches working with the special students. The conferences will be
an excellent networking opportunity and should develop significant sales.

The second prong of the sales strategy will be a campaign aimed at contacting key
decision makers and introducing them to SAS TEC Hand their products. Research
will be done to determine target business, manufacturing concerns and educational
institutes and money has been given to agencies to disperse to various service
providers. This information will be valuable in determining who the proper
consumer for the special software is. These personal contacts will help generate
significant sales.

Milestones (Action Program)

SAS TECH has several milestones, presented in the following chart, which will be
instrumental in the success of the organization.
Web Plan

SAS TECH will develop a website that will be used as both a marketing and sales
tool. On the site interested parties can receive more information regarding the
company and the current product list. Once the beta version of the software is
ready interested customers can download a trial version of the software for their
evaluation. The website will also provide people with company contact
information to allow them to ask any questions that they may have.

Online sales will be contracted to one of the third party Internet sales businesses,
such as Yahoo! Shopping. The site will provide customers with a download only
purchase option.

Website Marketing Strategy

The website will be marketed using simple yet effective means. The first method is
inclusion of the URL address in all promotional activities. This will be especially
important because it will allow all interested parties to view screen shots of the
software and download a trial version of the product. SAS TECH recognizes that
no ad will be able to communicate everything; therefore SAS TECH will rely on
the website to provide the additional information. The second marketing tool for
the website will be comprehension search engine submission. The submission
process will provide SAS TECH will many visitors to the website. This will be
accomplished when an interested party searches on "autism software" or some
other set of keywords. The search engine will then list a number of "hits" that
correspond to the search terms.

Development Requirements

SAS TECH will employ one computer science student for the design and
development of the website. Development will occur concurrently with the
development of the software.

Personnel Plan

SAS TECH will require the following employees:

• Assistant to Manager will be doing a little of everything from HR to

business development to product development to finance.
• Accounting- an accounting clerk will be hired.

• Software development- two employees will be in charge writing

manuals, instructions, and product bug updates, and version upgrades.

• Marketing Sales- two employees will be hired to generate sales.

• Customer Service- two employees will be used to field any questions

from customers or address any concerns/problems regarding orders as well
technical difficulties.

Competitors’ Analysis
Top Players in Indian IT Industry

The leading companies in the information technology industry of

India are Wipro Ltd, Aditya Technologies, NIIT Ltd, Asset Infotech
Ltd, Patni Computer Systems (P) Ltd, Atari Informatics Ltd, Polaris Software Lab
Ltd, Baan Info Systems India P Ltd, B-commerce Infosystems Pvt Ltd, HCL
Infosystems Ltd, Cerulean Information Technology Pvt Ltd, Hexaware
Technologies Ltd, Iflex Solutions Ltd, CMC Ltd, Igate Global Solutions Ltd, HCL
Corporation Ltd, Infosys Technologies Ltd, Satyam Computer Services Ltd,
Larsen & Toubro Ltd, Tata Consultancy Services, Tata Infotech Ltd and Mastek
Ltd.

Aditya Technologies was established on the 25th of October, 1988. The firm is
primarily a specialist in the field of making and selling of official equipments. A
member of the small scale industrial fraternity of India the company has offices all
over the country. Asset Infotech Ltd deals in the provision of education as well as
solutions in the field of information technology. Atari Informatics Ltd was
incorporated in 2000.

The company provides a number of services including - consultancy services,

providing education and training on life insurance and non life insurance services
and products and total solutions. It also operates a number of specialized and
professional training institutes as well.

Baan Info Systems India P Ltd is based in the city of Mumbai. It provides a
number of products and services to its clients like third party reporting software
that includes Safari and Crystal Reports manufacturing, projects, finance,
exchange, supply chain, EDI, sales, front office, distribution, e-commerce and
DEM. HCL Infosystems is one of the major software companies of India. It was
established in 1976 and deals in a number of products and services like desktops
and notebooks, security products, workstations, storage solutions, servers, HCL
storage solutions, chipsets, HCL IGL NAS servers, sun servers, SUN storage
solutions, thin clients, EMC storage solutions, display products, solutions,
networking products and software licenses.

Hexaware Technologies Ltd is one of the major global information technology

services providers in India. The company is based in the United States of America
and was incorporated in 1990 by Atul Nishar. It counts among the most prominent
business process outsourcing companies as well. The information technology
services and products of Iflex Solutions Ltd are provided only to companies that
deal in financial services. As such their main clients are UBS, Banco de Chile,
Citibank, Shinsei Bank and International Monetary Fund. The prominent partners
of Iflex Solutions Ltd are Sun Microsystems, IBM, Hewlett Packard, Oracle, Intel
and Microsoft.
Challenges before Indian IT Industry

At present there are a number of challenges that are facing the

information technology industry of India. One of the major challenges for
the Indian information technology industry was to keep maintaining its excellent
performance standards. The experts are however of the opinion that there are
certain things that need to be done in order to make sure that India can maintain
its status as one of the leading information technology destinations of the world.
The first step that needs to be taken is to create an environment for innovation that
could be carried for a long time.

The innovation needs to be done in three areas that are connected to the
information technology industry of India such as business models, ecosystems and
knowledge. The information technology sector of India also has to spread the
range of its activities and also look at the opportunities in other countries.

The improvement however, also needs to be qualitative rather than just being
quantitative. The skill level of the information technology professionals is one
area that needs improvement and presents a considerable amount of challenge
before the Indian information technology industry.

The Indian information technology industry also needs to co-ordinate with the
academic circles as well as other industries in India for better performance and
improved productivity. The experts are of the opinion that the business process
outsourcing service providers in India need to change their operations to a way
that is more oriented to the knowledge process outsourcing. One of the most
important crises facing the Indian information technology industry concerns the
human resources aspect. The problems with outsourcing in countries like the
United States of America are posing problems for the Indian information
technology industry as well.

Bibliography:

Resources from where the primary research work is done

✔ www.wikipedia.com
✔ www.economywatch.com
✔ www.google.com
✔ www.googlebooks.com
✔ www.nascomsurvey.com