From Group 3 Section A Members:Priyang agarwal (11237) Kaushal Kishore (11220) Rohit Kr.

Shrivastwa (11245) Atreya Kumar (11205) Deepak malik (11210) Akhil kr. Juneja

IT sectors
Enterprise Software software Product based software Hardware Networking Services (support, maintenance, BPO & consultancy) Cloud computing apps In nascent stage. Mobile applications.

Porter five force analysis of IT industry

Availability of substitutes:- Medium Supplier power:- Low or No Buyer power:- Medium to High Threats of new entrant:- Very High Competitive rivalry:- High

Porter five forces analysis for software

Competitive rivalry:- Very Intense Bargaining power of suppliers:- Low Barriers to entry:- Quite low Bargaining power of customers:- High in enterprise software but low in product Software. Threat of substitutes:- (See explanation in notes)

History of IT

Growth drivers of IT
Easy availability of Talent pool and cost advantage Process and Quality Supportive government policies Unique geographic location

Things to look for

Threat of new emerging service economies Emergence of China as substitute Hardware Sector lagging behind Poor Infrastructure Exchange rate Domestic consumption

Future of IT
According to NASSCOM, India can reach $ 130 Billion in IT revenue by 2015, with CAGR of 14%. With this, it would be contributing to 7% of annual GDP and creating 14.3 million employment opportunities. BPO industry will experience high growth but the Software and ITeS segment is expected to see slower growth. Adapt new business models to compete with global players e.g. Cloud, Ondemand services, and SaaS. With increased threat from countries like China, the companies will suffer loss unless they change business models. It is very important that while investing in a company, an investor selects a sector, where the long-term future prospects are bright. In the above case, we have seen that the IT sector is expected to have good growth in the long run.

Options for Selection

IT hardware growing at a fast pace 28.41% IT Software has largest market, and a good growth rate

19.94% A number of small players in the market, working on small projects IT Education has a small market, and will take time to establish in this market BPO has good market and growth, but will not be considered Based upon the analysis, we can say that IT Software will be optimal for investment

How to enter the market???

Start a new company Issues May take some time to get clients Create a new team No experience in the field Acquire a company

Benefits A number of small companies present in the market Have got small clients for development and maintenance Have got a team Need capital to grow, so can be a good option for acquisition