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IT Sector

Group 3

Main Instruction
Every individual has to contribute to the group by preparing individual slides 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 7pm Send it on prateeksri10@gmail.com Font size-12 Heading 16 Font style-Bookman Old Style

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-Bhoomika
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Definition
Information Technology

The collection of technologies that deal specifically with processing, storing, and communicating information, including all types of computer and communications systems as well as reprographics methodologies.

(Martin et al., 1999 )

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

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

Contribution of IT sector
Contribution

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

Employment sunil kumar rakesh ranjan

R&D /Technolgogy upgradationShashank 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 cent


Domestic

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

Export
80 70

60

50 IT Sector 40 IT Sevices

IT-BPO
30

20

10

0 1 2 3 4 5

Revenue
120 100

80

60

Export Revenue Domestic Revenue

40

20

0 2007-08 2008-09 2009-10 2010-11 2011-12

FDI and FII


FDI is the investment made by Foreign Multinational 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 largest of FDI inflow from April 2000 to Jan 2012 with amount of 49626.45 cr. behind service sector and telecommunication sector. Percentage of total FDI inflows are 6.94 of IT sector.
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FII is Foreign Institutional Investment , is investment made by foreign Mutual Funds in the Indian Market. The Stock market fluctuations are generally because of FII FIIs investing into Indian companies through the FDI route face a cap of 10%. Under the portfolio route FIIs can individually acquire up to 10 percent equity in an Indian company though the aggregate FII limit is pegged at 24 percent
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Constituent of IT Sector
IT- Software These companies help in developing and implementation of different software for their clients worldwide. These software could be for documentation, security services, banking softwares etc. ITeS Business process outsourcing (BPO) Major Corporations across the world outsource their back-office operations to some companies. E.g. Employee payroll for a US companys global workforce is maintained by an Indian BPO. Slowly the definition is expanding to Human resources, accounting, logistics, legal processes etc.

Contd..

Contd..
IT- Hardware and peripherals - The stuff you can actually see and touch, and would likely break if you threw it out a fifth-story window, is hardware. This would include laptops, desktops, Storage devices, Networking devices, LCD, printers etc. IT- Education- This segment provides training for employment in the other segments. This would include companies providing various certification courses, like Java, Oracle etc. These companies also provide training for employees in corporate sector

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 EUROPEAN market
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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 (including hardware) reached a significant milestone in the year 2011-12 by aggregating revenue of US $ 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 88 billion. IT industrys share of total Indian exports (merchandise plus services) increased from less than 4 per cent in FY1998 to about 25 per cent in FY2012
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The Indian software and services exports including BPO exports is estimated at US $ 68.7 billion in 2011-12, compared to US $ 59 billion in 2010-11, an increase of 16.4 per cent. Within the global sourcing industry, India was able to increase its market share from 51 per cent in 2009, to 58 per cent in 2011.
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Issues related to it sector


Inadequate Quality & Skill Of Graduates

Rising salaries & weak Infrastructure (resulting in frequent 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 technology and products for knowledge based
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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 for revenues Excessive dependence on BFSI sector for revenues High rates of attrition Decreasing 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 business considering corporate governance, possibility of shifting of business, getting higher incremental business from overlapped 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 like Accenture, IBM etc. Increased competition from low-wage countries like 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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