IT industry Scenario, Scope,

Emerging Trends & Challenges

Presented By : -
Utkarsh Kagalkar - 122
Amit Kamble - 123
Swapnil Kangutkar - 124
Jatin Kansara - 125
Suhas Kokate - 127

IT industries in INDIA
INTRODUCTION
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.

GLOBAL SCENARIO
Today the ITs advancement
around the world cannot be
imagined.

Integrated the world
economy through removal of
barriers.

Global sourcing of technology
related services is estimated
to have grown.

There is estimated growth
regarding spending on world
wide technology products &
related services sector.

INDIAN SCENARIO
India is a popular choice for customers seeking outsourced services
because it is able to offer a 24*7 services by reduction in costs while
maintaining quality.
Impressive 27% CAGR over last 5 years.
Key contributor to Indias Re-Branding, it accounts for 7% of Indias GDP,
and 35% of Export.
Attractive Sectors: Government, healthcare, education, telecom, Financial
services .
Domestic IT market witnessing huge growth .
Less than 3% of people in India own a computer today (1/5th that of
China). Huge potential
Government key spender through its ambitious eGovernance Projects
(INR 23,000 Cr. Worth projects envisaged under Five-year Plan launched
in 2006)
Information technology is spread over and involved in every sector,
whether related to education, farming, health-hospitality, research-
development, weather-environment, communication, banking, travel,
share-marketing and many more factors.

SCOPE OF IT SECTOR IN INDIA
India's revenue from IT-BPO is more than 50 billion US dollar, which is
uttermost in Asian countries.
Indian IT sector is going to reach $300 billion and also reduced the
Foreign Direct Investment (FDI), science and technology is expanding in
the fields of research and education in India.
The Indian IT infrastructure market - comprising server, storage and
networking equipment - is expected to grow by four per cent in 2014 to
touch US$ 1.9 billion.
The sector has increased its contribution to India's GDP from 1.2% in
1998 to 7.5% in 2012.
Tata Communications plans to invest more than US$ 200 million to
double its data centre capacity in India to 1,000,000 square feet over
three years.
Wipro has bagged a US$ 1.2 billion outsourcing deal from Canadian
utilities major ATCO
Indian IT Industry SWOT

STRENGTH
*Skilled manpower availability
/ Elaborate training
infrastructure
* Mature GDM, Quality
Processes
* Cash-rich; Can invest in
innovative business models

WEAKNESS

*Known as low-cost destination
* High Attrition, Rising salary
levels and other cost bases
* Linear business model and
concomitant scale-diseconomy
OPPORTUNITIES

*Exploding domestic market
* High government
spending and export-
promotion Sops * Biz-Model
innovation for SMBs
THREATS

*Economic uncertainty /
Currency fluctuations
* Other emerging competitors
* Protectionist sentiments

IT Products Industry

Trends:
Stiff competition, Rapid technology changes
Changing customer needs forcing frequent product introductions
Cloud computing to gain momentum
Security issues becoming increasingly important

Concern:
Growth rate expected to be subdued going forward
Customer-centric Innovation
Piracy major concern (Global loss ~US$ 48 Bn)


IT Services Industry

Services lines:
Projects based
Outsourcing
Support / Training

Trends:
Outsourcing to grow, but enhanced pressure on billing rates and Top
line growth
Big players to try moving towards
Higher value-add services
Greater workforce utilization, and
Lowering SG&A expenses


IT Hardware Industry

Growth rate in Asia is three times the growth rate in North America


Trends:
Cost optimization across value-chain (Design, Manufacturing,
Warranty, Operations etc)
Increased focus on R&D
Supply chain optimization required for reducing inventory


Domestic Market

Growth 1.0 (2003 2008)

Off-shoring Revolution
Unprecedented growth of Indian Economy as well as in Domestic ICT
demand; Revenue growth of 300%
Domestic demand mainly led by large Corporate / Public sector

Growth 2.0 (2010 Onwards)

Growth to be led by End-users, SMBs
Consolidation and Leveraging of IT and telecom infrastructure built
in Growth Phase 1.0, to realize greater business efficiencies and launch
innovative product/solution offering
Increased adoption and acceptance of game changing technologies
Governments economic stimulus is unlocking market potential


Industry Megatrends
Strategic M&As / Alliances for Platform creation
Alliance-driven Sales model
Greater Partnership with client for End-to-end
offering
Larger share of wallet and connecting with
stakeholders so as to create barrier to entry
Sharper customer segmentation, Sub-
Verticalization and Domain-Specific Branding
Multiplicity of Business Models and Growth
Agendas
Cost optimization across Value-Chain


Era of Strategic Alliances
Emerging Trends
Building innovation culture
Foster Innovation and Creativity, Revolutionize service offering
Successfully differentiate from overcrowding competition
Identify approaches to non-linear revenue growth
Building a learning organization (Knowledge-centric organization)

Planning under uncertainty
Appreciate the changing Business Dynamics
Discern inflection points. How current business models might be
rendered obsolete
Establish organizational ability for adapting to possible futures

People management for higher performance
Energizing the workforce
Leading high-performance teams
Leading in a matrix organization Influencing without authority
Managing the new generation talent - tools to motivate people

Emerging Trends
Developing Strategic Thought Process
Strategic Planning Process
Strategy Execution
Competitive Strategy, Globalization Strategy, Corporate Strategy

Customer Centricity
From being operations/product focused to being customer focused and
developing the sales and marketing competencies
Silo-busting that promotes Customer Focus

Leadership Development
Transitioning through Leadership Stages (Ram Charans Model)
Change management: Overcome overt and covert resistance to change
Self Leadership: Breaking the inward looking mould
Looking at the big picture, developing a vision and motivating people
to achieve that vision
Emerging Trends
Product companies
Customer centric innovation
Leveraging informal networks for Innovation

Corporate teams
Finance for Non-Finance Executives
Value creation through M&A
Post-merger integration

Sales and Marketing
Accelerating Sales Performance
Relationship management : Engaging the client like a strategic partner
Marketing Strategy, Services Marketing, B2B Marketing

HR Teams
Aligning HR with Business Strategy
Strategic Talent Management
Cross-cultural integration


IT Industry: Challenges

Growth: Organic / Inorganic, linear vs. non-linear
Coping with speed of change and continually innovate / reinvent
itself
Develop innovation capability. Also ability to sell Innovation
Successful differentiation (Branding)/ staying ahead on the curve
(Business model Innovation)
Identifying strategic targets for Acquisition / Alliances.
Quantifying Synergy
Alliance management. Moving up the value-chain with clients
Ability to sell high value-add services (e.g. Business Process
Integration)
Transitioning top-talent from Technocrats to Business Managers
Sales team need to understand data and communicate Business
Value of IT
Attrition


Strategic options to cope with Challenges

Understand Competitive Strategy; Invest in Execution
Capability
Industry is in Growth stage hence Identify Niches, Innovate in
Business Model and invest in Branding
Scenario Planning: Understand forces shaping Business
Landscape
Change Management - to successfully transition Organization
Appreciation of Marketing, and Customer-Centric Innovation
Co-opetition: Cooperate in Value-Chain, Compete in Core-
competence
Develop capability of Cross-cultural Integration, Strategic
Alliance Management and Strategic Account Management
Move beyond Delivery Capability: Understand Clients
Business
Because your customer may not understand Technology



Strategic options to cope with Challenges
Create various platforms to bring together key Decision Makers and
enable them to experiment with IT

Proactively build enhanced awareness to transformation potential of
IT adoption

Evolve multi-tiered Capability Enhancement Strategy
Tackle knowledge-attrition of your Senior Managers
Create Leadership Pipeline; Support transition through
Leadership stages

Strategic Human Resource Management
HR as Strategic Partner. Alignment with Business Strategy
Robust Supply Chain, Continuous re-skilling, Attrition
Management
Case Study :

http://www.microsoft.com/india/casestudies/micr
osoft-azure/wipro-limited/it-services-company-
reduces-costs-expands-opportunities-with-new-
cloud-platform/4000006700

http://www.microsoft.com/india/casestudies/micr
osoft-windows-server-2003/tata-consultancy-
services/global-it-services-major-supports-rapid-
business-growth-by-implementing-active-
directory-for-its-80-000-users-with-six-
people/4000008532

THANK YOU