ppt IT industry

C.Z. PATEL COLLEGE OF BUSINESS AND MANAGEMENT

“Macro Analysis In Respect To Information Technology Industry”

Submitted by:-

Group:- F

Class:- Fo. Yr. B.com Hons. (I/A)

Batch:- 2013-14

Name Of The Students:- Roll No.

Arpit Dalwadi 04

Yash Joshi 55

Vrunda Patel 54

Dipesh Kalal 13

Dilip Gajera 11

CONTENT- Industry: A bird eye view

Major players And Market share

Products And Services

Financial Overview

Government Regulation

SWOT Analysis

PEST Analysis

Information Technology Industry : bird’s eye view:-

History of Information Technology:-

Information technology (IT) is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data often in the context of a business or other enterprise. The term is commonly used as a synonym for computers and computer networks, but it also encompasses other information distribution technologies such as television and telephones. Several industries are associated with information technology, including computer hardware, software, electronics, semiconductors, internet, telecom equipment, e-commerce and computer services.

Based on the storage and processing technologies employed, it is possible to distinguish four distinct phases of IT development: pre-mechanical (3000 BC – 1450 AD), mechanical (1450–1840), electromechanical (1840–1940) and electronic (1940–present).

INFORMATION Technology Industry Mainly Focuses On:-

Create awareness among the youth and policy makers of the region about the potential of Information Technology.

Offer comprehensive and challenging advanced course in Information Technology which is able to attract most brilliant and talented young students.

Promote creativity, capability and competence among students to make them first-rate professionals in Information Technology.

Provide sample opportunity both to students and faculty to meet outside the institute to update their knowledge.

Develop and promote national and international, linkages by way of partnership in teaching and research.

Provide a stimulating intellectual environment by holding seminars, peer lectures and national and international conferences/workshops round the year.

Develop and promote national and international, linkages by way of partnership in teaching and research.

Provide a stimulating intellectual environment by holding seminars, peer lectures and national and international conferences.

Now a days the business value of information technology lies in the automation of business processes, provision of information for decision making, connecting businesses with their customers, and the provision of productivity tools to increase efficiency.

Worldwide IT spending (billions of U.S. dollars)

Category 2012 spending 2013 spending

Devices 627 666

Data center systems 141 147

Enterprise software 278 296

IT services 881 927

Telecom services 1,661 1,701

Total 3,588 3,737

Major Players of Information Technology:-

Competitors at global level:-

Microsoft

Oracle

SAP (System Application Product)

Symantec

CA Technology

Intuit

Amadeus IT Holdings

Adobe System

VM Ware (Virtual Machine File System)

Check Point Software

Competitors in INDIA:-

TCS (Tata consultancy Services)

Infosys

Wipro

HCL Technologies

Mahindra Satyam

Tech Mahindra

MPHASIS

Oracle Financial Services

Mind Tree

Polaris Tech

Market Shares:-

According to the information given by IT market analysis firm Gartner, worldwide IT spending is projected to total US$3.7 trillion in 2013, a 4.2% increase from 2012 spending of US$3.6 trillion. The 2013 outlook for IT spending growth in US dollars has been revised upward from 3.8% in the Q3 2012 forecast. Gartner said much of this spending increase is the result of projected gains in the value of foreign currencies versus the dollar. When measured in constant dollars, 2013 spending growth is forecast to be 3.9%.

Market Segment:-

Export of IT services has been the major contributor, accounting for 57.9 per cent of total IT exports (excluding hardware)

Market Size:-

The contribution of the IT sector to India’s GDP rose to approximately 8 per cent in FY

Sources: - www.IBEF.org

Products and Services of Information Technology:-

Products:-

Adobe Acrobat Professional

Microsoft Windows

Office Suite Windows

Network Services Request

McAfee Virus Scan Enterprise

Services:-

Application Services

Enterprise Content Management Services

Information Protection Services

Resources Management Services

Virtual Data Center Services

Financial Overview of Information technology:-

The era of information-driven technology constantly changes the way mankind approaches the corporate world, particularly in doing business transactions, the continuous advancement of other information technology sub-fields such as multimedia and programming, are considered to be the ones responsible for the success of big companies like Microsoft, Apple and Intel.

Nowadays, social media networking sites like Facebook has opened new doors for the innovation of Information Technology. Aside from this, a number of sites all over the world promote businesses by offering web-related services such as Web Developing and Search Engine Optimization.

Export Revenue:-

Total exports from the IT services at a compound annual growth rate (CAGR) of 13.1 per cent during

FY08-13.

Export Segments

BFSI is a key business vertical for the IT-BPM industry. It generated export revenue of around US$ 31 billion during FY13, accounting for 41 per cent of total IT-BPM exports from India.

Government Regulations:-Industrial Approval Policy:-

The major highlights of Industrial Approval Policy include the following: 

Industrial Licensing has been virtually abolished in the Electronics and Information Technology sector except for manufacturing electronic aerospace and defence equipment.

There is no reservation for public sector enterprises in the Electronics and Information Technology industry and private sector investment is welcome in every area.

Foreign Trade Policy:-

In general, all Electronics and IT products are freely importable, with the exception of some defence related items. All Electronics and IT products, in general, are freely exportable, with the exception of a small negative list which includes items such as high power microwave tubes, high end super computer and data processing security equipment.

Second hand capital goods are freely importable.

Foreign Investment Policy:- 

India welcomes investors in Electronics and IT sector. Government of India is striving to bring greater transparency in policies and procedures to provide an investor friendly platform.

Fiscal Policy:- 

The salient features of the Fiscal Policy as applicable to the Electronics Hardware Sector are as

follows:

Customs duty on specified raw materials / inputs used for manufacture of electronic components and optical fibers and cables is 0%.

Customs duty on specified capital goods used for manufacture of electronic goods is 0%

SWOT Analysis Of Information Technology

Strength:-

Ability To Innovate

Highly Skilled Human Resource

Following Quality Standards Such As ISO 9000,

Flexibility And Adaptability

Mathematical And Logic Expertise

Indian In Silicon Valley

Weaknesses:-

Lack of Domestic Computerizations

Lack Of Internet Penetration

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.

Opportunity:-

High Quality IT Education Market

Increasing number of working age people

India’s well developed soft infrastructure

Upcoming international players in the market

Numbers of computer sold around world is increasing

Threats:-

Lack of data security systems

Countries like china and Philippines with qualified workforce making efforts to overcome the English language barriers

IT development concentrated in a few cities only

Government Regulation

PEST Analysis:-

Political Factors:-

Government rules and regulation toward a particular business environment.

Other factors:-Customer protection law, competitive regulation and terrorist attacks.

Indian government has decided to contract IT job to IT Indian companies creating more opportunities for the company and the industry at large.

Indian government has strengthened the IT act, 2000to provide a sound legal environment.

Economical Factors:-

Rising working pay, global recession,competitioncontract available and free.

Domestic IT spending grew by20% and reached $20 billion in 2009.

Currency fluctuation caused by the devaluation of the dollar has affected the industry during the last recession.

Recession cause low attribute rate due to job layouts and job cuts.

Micro Analysis on Infosys co.ltd.

The Infosys Story:- In 1981, seven engineers started Infosys Limited with just US$250. From the beginning, the

company was founded on the principle of building and implementing great ideas that drive progress for clients and enhance lives through enterprise solutions. For over three decades, Infosys have been a company focused on bringing to life great ideas and enterprise solutions that drive progress for our clients.

Infosys recognize the importance of nurturing relationships that reflect our culture of unwavering ethics and mutual respect. It’ll come as no surprise, then, that 97 percent (as of December 31, 2013) of our revenues come from existing clients.

Vision:-‘Infosys will be a globally respected corporation.

Mission:-‘Strategic partnerships for building tomorrow’s enterprise.

Stakeholder of Infosys:-

Recent global events have shown that sincere two-way dialog is vital for any business organization to win and keep the trust of its stakeholders. Infosys have always ensured that Infosys communication channels with customers, employees, investors, vendors and society are open and collaborative. Their valuable feedback influences the business decisions we take and the sustainability strategies that we implement. Infosys engaged with key stakeholders through various programs and communication initiatives.

Products and services of Infosys co.ltd.

Products of Infosys:-

• Customer Service

• Digital Commerce

• Digital Marketing

• Distribution

• Sourcing & Procurement

• Talent Management

Services of Infosys:-

• Business Applications

• Management Consulting

• Oracle

• SAP

• Sustainability Services

Human Resources:-

The Infosys BPO Human Resources Outsourcing (HRO) practice combines global sourcing and delivery capabilities to offer flexible and cost-efficient solutions for acquiring, administering and developing talent.

Infosys componentized HRO offerings enable customers to embark on the HRO journey easily and realize benefits promptly. Through Infosys transformational expertise, our customers save up to 40% on operational costs and enhance productivity by up to 30%. Our suite of innovative tools measure and improve HR/ business metrics.

Infosys serve clients from co’s global delivery centers in India, China, Philippines, Mexico, Brazil, Poland, and the Czech Republic.

4 p’s of marketing:- Product:-

The Product aspects of marketing deal with the specifications of the services, and how it relates to the end- user’s needs and wants. The scope of a product generally includes supporting elements such as warranties, guarantees and support.

Price:-

The pricing decision is one of the most critical decisions. Software pricing has been concentrated the internal business objectives of vendors such as costs, specified, margins, and the competition.

Place:-

In service place refers to location and use of distribution channels. It is referring to the channel by which a service is sold (e.g. online vs. retail), which geographic region or industry, to which segment (young adults, families, business people), etc. also referring to how the environment in which the product is sold and can affect sales.

Promotion:-

Over here, services and project consulting is through contract or agreement between the parties and promotions are carried out only for the particular client selected as upgrading and extended service for a particular period etc. This includes advertising, sales promotion, publicity and personal selling. Branding refers to the various methods of promoting the product, brand or company.

Financial analysis of Infosys:-Net Profit Ratio:-

Year Net Profit(%)

2009 27.52

2010 26.36

2011 24.28

2012 25.60

2013 23.38

Current Ratio:-

Year Current Ratio

2009 4.71

2010 4.28

2011 5.34

2012 4.91

2013 4.75

Liquid ratio:- Earning Per Ratio:-

Year Liquid Ratio

2009 4.67

2010 4.20

2011 5.28

2012 4.88

2013 4.69

year Earning Per ratio

2009 101.58

2010 101.13

2011 112.22

2012 147.50

2013 158.75

SWOT Analysis of Infosys:- Strengths:-

Infosys has strong brand recognition in the IT industry in India and abroad. It was the first Indian company to list on a US Stock Exchange. It is ranked among the 50 most respected countries in the world by Reputation Institute’s Global Pulse 2009. It has also been voted most admired Indian company in the Wall Street Journal Asia since 2000.

Weaknesses:-

Although Infosys attracts some of the best talent, it has a problem retaining the talent due to the low compensation structures. Infosys faces the highest attrition rate of 16% in the Indian software industry. These attrition numbers are thrice as much as the general industry rate. With an increasing number of international firms such as IBM, Microsoft, Accenture, and Deloitte competing with Infosys for hiring from the same pool of software engineering professionals, the gap between the demand and availability of skilled manpower in India and abroad is likely to increase further.

Opportunities:-

Infosys has traditionally been averse to acquisitions, held its premium pricing strategy and focused on its core IT enabled services business. However, the recent changes in the corporate leadership in 2011 and slowdown in growth have prompted a strategic shift towards global expansion and moving up the value chain with consulting and technology partnership.

Threats:-

Infosys is competing globally with other Indian offshore technology services firms such as TCS, Wipro, HCL Technologies, and Cognizant as well as international consulting firms such as Accenture, Atos Origin, Cap Gemini and Deloitte for clients as well as human resources.

Michael Porter’s of Infosys:-1.Bargaining Power Of Suppliers:-

Due to slow down the jobs-cut, the layoffs and bleak IT outlook.

Demand And Supply of Infosys professionals are no longer that favorable to employees.

Avability of vast talent pool-fresher’s and experienced.

Switching Costs

2.Bargaining Power of Buyers:-

Infosys resulting in high competition

Size of Buyers

Volume Purchased

Threats of backward integration

3. Threats of new entrants:-

Barriers to entry

Economies of scale

Capital requirement(finance required for business operations, cost of entry)

MNCs are ramping up capacity and employee strength

4. Threats of substitute:-

Levels of brand loyalty

Buyers propensity to substitute(based on comparison of benefits ,features, price & availability of information)

The quality of a product being same 

5. Rivalry among existing competitors:-

Number of competitors

Infosys growth rate

Fixed costs (e.g. investment in salaries, rent etc)

Product differentiation