SBMJCE - 1 - SUMMER INTERNSHIP PROJECT REPORT “Strategic Analysis and Market Research for EducationERP.Net” At Globals Inc., Bangalore.” (Submitted in partial fulfillment of the requirement for the award of Degree of Master of Business Administration) Visvesvaraya Technological University, Belgaum. Submitted By Mr. Sreedhara K.R (USN: 1BJ08MBA51) Under the Guidance of Dr. K. Karunakaran Professor, MBA Department SBMJCE SRI BHAGAWAN MAHAVEER JAIN COLLEGE OF ENGINEERING DEPARTMENT OF MANAGEMENT STUDIES Jakkasandra post, Kanakapura Taluk, Bangalore-562 112 April – 2010
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
SBMJCE - 1 -
SUMMER INTERNSHIP PROJECT REPORT
“Strategic Analysis and Market Research for EducationERP.Net”
At
Globals Inc., Bangalore.”
(Submitted in partial fulfillment of the requirement for the award of Degree of
Master of Business Administration)
Visvesvaraya Technological University, Belgaum.
Submitted By
Mr. Sreedhara K.R
(USN: 1BJ08MBA51)
Under the Guidance of
Dr. K. Karunakaran
Professor, MBA Department
SBMJCE
SRI BHAGAWAN MAHAVEER JAIN COLLEGE OF ENGINEERING
DEPARTMENT OF MANAGEMENT STUDIES
Jakkasandra post, Kanakapura Taluk, Bangalore-562 112
April – 2010
SBMJCE - 2 -
DECLARATION
I declare that the ―Summer Project‖ undergone by me at Globals Inc, Bangalore, is
carried out by me under the guidance of Dr. K. Karunakaran, Internal Guide, Department of
Management Studies, Sri Bhagawan Mahaveer Jain College of Engineering, Bangalore and is an
independent work. The report has not been submitted earlier to Visvesvaraya Technology
University or to any other Institution. The matter in this report is based on the information
collected by me at Globals Inc. under the guidance of Anmol Vij –Associate Manager,
External Guide.
The report is towards the fulfillment of the requirement of the Master of Business Administration
course of Visvesvaraya Technological University.
Date: SREEDHARA K.R.
Place: Bangalore (USN: 1BJ08MBA51)
SBMJCE - 3 -
ACKNOWLEDGEMENT
I wish to thank all those who helped me and without whose
support, I could not have completed this project successfully.
First and foremost I express my heart felt thanks to Mr. Anmol
Vij, Associate Manager of Globals, for granting me the
permission to do the project and for his constant guidance
during my project.
I would like to thank with immense gratitude Dr. Y Vijay
Kumar, the Principal of Sri Bhagawan Mahaveer Jain College
of Engineering and Prof. L P Rajan, the Head- Department
of Management Studies for allowing me to undertake this
project.
I have immense pleasure in expressing my deep sense of
gratitude to Dr. K. Karunakaran, Professor – MBA,
Department of Management Studies for his valuable guidance,
time, co-operation and support without which this project
report would not have been completed.
Last but not least, I would like to thank my family and friends
for their wholehearted support for the completion of this project.
SBMJCE - 4 -
CONTENTS
CHAPTERS PARTICULARS
PART - A
1 EXECUTIVE SUMMARY
2
GENERAL INTRODUCTION
INDUSTRY PROFILE
COMPANY PROFILE
3 MCKINSEY‟S 7 S MODEL
4 SWOT ANALYSIS
5 LEARNING EXPERIENCE
PART - B
7 GENERAL INTRODUCTION
8
RESEARCH METHODOLOGY
Statement of the problem
Objectives of the study
Scope of the study
Methodology
Limitation of the study
9 ANALYSIS AND INTERPRETATION
10 FINDINGS
11 RECOMMENDATIONS AND
CONCLUSION
12 ANNEXURE AND BIBLIOGRAPHY
SBMJCE - 5 -
EXECUTIVE SUMMARY
Indian IT/ITeS sector has seen too much of up and downs in this decade. It has become very
crucial for every company to acquire and retain best talent, getting clients and serving them
profitably, providing cost effective solutions without compromising on quality.
Indian IT/ITeS sector is dominated by a few large corporations along with presence of large
number of small and medium scale organizations. Intense competition can be seen in this sector.
This project Titled ―Strategic analysis and Marketing for EducationERP.net‖ aims at analyzing
Globals Inc and its flagship product EducationERP.net strategically.
Primarily, Indian IT and ITeS industry and its Macro Environment are analyzed.
In the later part, Market Research is done on Indian Education Sector to get insight about the
industry since, it is EducationERP. Net‘s target market.
Competitive analysis for Education ERP is conducted considering the major competitors based
on their market share.
Finally, a client satisfaction survey is conducted using Online Questionnaire Survey method with
the objective to know client satisfaction level and their expectations from the company.
Based on the analysis of the industry and company, my recommendations to Globals is to focus
more on SaaS based IT solutions, increase breadth of its offerings, enter into new markets and
should focus more on growing its partners network to strengthen its distribution channel for
Education ERP. In addition, meeting the criteria to get SEI-CMM level 5 company status and
getting ISO certification is very essential for company.
SBMJCE - 6 -
INDUSTRY PROFILE
In an increasingly globalised world, significant complexity and uncertainty is being attached to
the unprecedented economic crisis. The Indian economy has also been impacted by the
recessionary trends, with a slowdown in GDP growth to seven per cent. The focus and
exponential growth in the domestic market has partially offset this fall and insulated the country,
resulting in net overall momentum.
The IT-BPO industry in India has today become a growth engine for the economy, contributing
substantially to increases in the GDP, urban employment and exports, to achieve the vision of a
―young and resilient‖ India. During the year, the sector maintained its double-digit growth rate
and was a net hirer. This growth has been fueled by increasing diversification in the geographic
base and industry verticals, and adaptation in the service offerings portfolio. While the effects of
the economic crisis are expected to linger in the near term future, the Indian IT-BPO industry has
displayed resilience and tenacity in countering the unpredictable conditions and reiterating the
viability of India‘s fundamental value proposition. Consequently, India has retained its
leadership position in the global sourcing market.
The Indian Information Technology industry accounts for a 5.9% of the country's GDP and
export earnings as of 2009, while providing employment to a significant number of its tertiary
sector workforce. More than 2.3 million people are employed in the sector either directly or
indirectly, making it one of the biggest job creators in India and a mainstay of the national
economy. In March 2009, annual revenues from outsourcing operations in India amounted to
US$60 billion and this is expected to increase to US$225 billion by 2020. The most prominent
IT hub is IT capital Bangalore. The other emerging destinations are Chennai, Hyderabad,
Mumbai, Pune, NCR and Kolkata.
The share of IT (mainly software) in total exports increased from 1 percent in 1990 to 18 percent
in 2001. IT-enabled services such as back office operations, remote maintenance, accounting,
public call centers, medical transcription, insurance claims, and other bulk processing are rapidly
expanding.
SBMJCE - 7 -
The Indian IT-BPO industry is estimated to achieve revenues of USD 71.7 billion in FY2009,
with the IT software and services industry accounting for USD 60 billion of revenues. During
this period, direct employment is expected to reach nearly 2.23 million, an addition of 226,000
employees, while indirect job creation is estimated to touch 8 million. As a proportion of
national GDP, the sector revenues have grown from 1.2 per cent in FY1998 to an estimated 5.8
per cent in FY2009. Software and services exports (including BPO) are expected to account for
over 99 per cent of total exports, employing over 1.76 million employees. While the current
mood is that of ―cautious optimism,‖ the industry is expected to witness sustainable growth over
a two-year horizon, going past its USD 60 billion export target in FY2011.
While the industry has significant headroom for growth, competition is increasing, with a
number of countries creating enabling business environments aimed at replicating India‘s
success in the IT-BPO industry. Hence, concentrated efforts are required by all stakeholders to
address the current challenges, to ensure that India realizes its potential, and maintains its
leadership position.
ITES:
ITES refers to Information Technology Enabled Services. BPO or Business process outsourcing
is the arm of ITES, which facilitates delivery of services through the use of information
technology. ITES services are diverse in nature. It's easier to understand by segregating it as
customer interactive services and back office operations for remote customers. India based
service providers can deliver services in diverse areas such as finance, HR, administration,
healthcare, telecommunication and manufacturing. Services ranging from customer care, call
centers and claims processing to medical transcription, HR hiring, biotech research, Web
sales/marketing and back-office operations such as accounting, data processing, and data mining
harness the power of IT. However, it necessitates transfer of ownership and management of the
process from the customer (offshore) to India-based service provider in order to deliver service
to remote areas through telecom and Internet medium. Sensing its advantages, host of fortune
500 and fortune 1000 businesses of all sizes have set up their own BPO units or have outsourced
to Indian firms to reap the advantages of this.
SBMJCE - 8 -
Today, Bangalore is known as the Silicon Valley of India and contributes 33% of Indian IT
Exports. India's second and third largest software companies are headquartered in Bangalore, as
are many of the global SEI-CMM Level 5 Companies.
KEY INDUSTRY HIGHLIGHTS
Government IT spend estimated at INR 150 billion in 2009; expected to reach INR 250
billion by 2011.
US $ 9 billion business opportunity in e-Governance.
APAC is the fastest growing geography with an estimated growth of 10%.
Indian IT-BPO industry continues to dominate the global market place with 51 percent
market share.
Growth in emerging verticals such as retail and healthcare 3x faster than core verticals.
Infrastructure services to be a key growth driver for the industry with an estimated
growth of 10.5%.
Indian IT Industry Sector Growth
SBMJCE - 9 -
Break up of Total Global IT Spending
The Global IT spending is expected to decline steeply below the expected levels of $869 billion by 2010.
SBMJCE - 10 -
Revenue by Geography
Key highlights of the Indian IT industry performance in FY 2009-10
SBMJCE - 11 -
ESTABLISHED IT/ITES HUBS IN INDIA
SBMJCE - 12 -
PORTER‟S FIVE FORCES MODEL FOR INDIAN IT INDUSTRY
Threat of Substitutes: Medium
1. Other offshore locations such as
Eastern Europe, the Philippines and
China, are emerging and are posing
threat to Indian IT industry because
of their cost-advantage. However,
this should have an impact only in
the medium to long term.
2. Price quoted for projects is a major
differentiator, the quality of products
being same.
Barriers to Entry: Low
1. Low capital requirements.
2. Large value chain, space for small
enterprises.
3. MNCs are ramping up capacity
and employee strength.
Bargaining Power of Customers:
Very High
1. Large number of IT companies
vying for IT projects – resulting in
high competition for projects.
2. Huge decline in IT expenditure:
Indian IT sector is dependent on USA
and BFIS in particular for majority of
its revenues, and with the recent
financial crisis, the new spending
from these has reduced
tremendously.
3. However, for the existing
products and services, the clients
continue the old companies.
Bargaining power of supplier: Shift
from high to low
1. Due to slowdown, the job-cuts,
the layoffs and bleak IT outlook.
2. Demand and supply of IT
professionals is no longer that
favorable to employees.
3. Availability of vast talent pool –
freshers and experienced.
RIVALRY AMONG FIRMS: High
1. Commoditized offerings
2. 'Low-cost, little-differentiation'
positioning.
3. High industry growth
4. Strong competitors – few
numbers of large companies.
SBMJCE - 13 -
COMPANY PROFILE
Background and Inception of the company.
Globals Inc is a multinational company founded in the year 2000 by Mr. Suhas Gopinath at the
age of 14 years at California, USA.
Suhas Gopinath is a resident of Bangalore and wanted to launch his company in India. However,
his attempt to launch a private limited company ran into difficulty, as the laws in India did not
allow a kid of 14 to start a company. Therefore, Suhas decided to turn to US where such a law
did not exist. Thus, Globals Inc was set up in California and registered online in San Jose.
Globals has drastically grown from a small home office to a recognized multinational company
with presence in 11 countries with headquarters in India.
Globals offers cost effective world-class quality solutions in Web, e-Commerce, Software, and
Mobile. Till date Globals has served more than 200 clients worldwide. Globals helps customer to
reduce their operational costs significantly, helps them cut down carbon emissions and increase
revenues.
Nature of the business
Globals is serving the global clientele base in 11 countries in the ITeS spectrum. It offers wide
range of products and services including world-class quality solutions in Web, e-Commerce, and
Mobile. Today Globals develops mission critical applications on the web for various industries
including Education, Finance, and Governments.
Vision
―To be a world class IT solution provider and to become one of the most preferred IT partner in
the world.‖
SBMJCE - 14 -
Mission
―At Globals, we aim to offer cost effective world class quality IT solutions to every customer
and to translate our solutions into value for our customers. We are also committed to conduct our
business in a fair, ethical, and legal manner at every level of our organization.‖
Business Philosophy
At Globals, we have always placed quality over quantity, mind over machine and unity over
uni-opinion. Our work culture and philosophy has helped us to establish employee friendly
workplace where team spirit and leadership is well nurtured. There is a lot of enthusiasm among
our people to perform and this enables our work more streamlined and solutions meet the
prescribed time boundary.
We believe in doing things through proper channels for optimum results. Nothing else would
explain serving more than 200 clients worldwide. We at Globals understand we have miles
to go before even looking back. Hence, we do not rest on our prior laurels. Laurels come and
go, progress is the only thing on our minds, and will be the same for the time to come.
Total Quality Process
At Globals, we employ a total quality process that begins on day one and carries through to the
successful launch and long-term maintenance of a project. With the help of our highly trained
quality assurance personnel, we check our work, test our products, and anticipate errors, working
to maximize quality for the total solution we develop.
By providing high quality IT services, on time and at lower than market prices, we help our
clients get to market faster and with more stability than other providers. Globals shall relentlessly
strive to create a unique software development environment where every employee is aware of
quality and its economics.
To ensure quality from the ground up we are using accredited techniques for planning, testing,
project management, requirements and configurations. To complement this, we also apply
SBMJCE - 15 -
techniques to control and measure our performance and process quality to scope out
opportunities for further improvement and improved technology.
Our interlaced quality control policy not only helps us to streamline an application‘s
development, but also to:
• Offer high quality projects that exceed expectations and come in on time and on budget;
• Reduce client risk by providing a predictable and controlled development process;
• Focus on dynamic solutions by concentrating on the tasks at hand in the most efficient way
possible.
The three most important factors that we consider and emphasize to maintain our quality
standards are Process, Technology and Personnel quality that enables to Globals to offer cost
effective world-class quality solution.
PRODUCTS/SERVICES PORTFOLIO
The portfolio of products and services comprises the following:
1. IT strategy.
2. Procurement and partnership
3. Business Process Improvement
4. Information Management
5. Contract Development
6. Web Designing
7. Web Development
8. Content Management System
9. Internet Marketing
10. Media Streaming
11. Custom Application Development/
12. Custom Software Development
13. Industry Solutions
14. WAP
15. Education Management
SBMJCE - 16 -
Products and Services Profile
2. Solutions offered
2.1. Web Solutions
Globals offer a spectrum of web solutions that includes high quality Web Designing,
Integration and Implementation Content Management Systems, E-Commerce Solutions,
Web 2.0 Solutions, Customized Portals, Hosting & Maintenance, and Development of
customized web applications, including customization of Open Source applications. We have
been successful in making our Business Partner‘s internet presence successful by adopting
the methodology expressed below:
Web solutions development methodology
SBMJCE - 17 -
2.1.1. Web Designing
Globals has the creative skills, advanced experience, and cutting edge resources essential to help
illustrate clients brand and image. Highly professional web development and design staff at
Globals apply a combination of proven experience with innovative design expertise to generate
zeal for clients' products and services. The team of graphic design, web design, and web
development professionals utilize years of fine-tuned skills to assist small to large corporations
in successful online customer communication. Globals can add value to its clients internet
presence at any stage of the lifecycle like revamping an existing website, building from scratch,
maintenance of the website, etc.
A site must precisely convey client‘s business philosophy and approach. Globals offer a
complete package of web design services, from initial planning to final implementation. Our web
design services include the following services:
Graphic designing including 2D & 3D Modeling
Website Content Planning & Drafting
Logo Design & Corporate Identity designing
Website layout design
Designing Flash Intros & Animations
HTML Coding & Java Scripting
Navigation Menu
Sitemap
Newsletter design
Interactive flash web design
By holding to a thorough cycle of divergent and convergent modes, Globals comprehensively
explore possible design realizations and focus on those that most successfully complete clients‘
objective.
Globals design solution follows the following basic steps:
1. Analysis – Understanding your business and its design requirements.
SBMJCE - 18 -
2. Research - Visual research, image collection, competitive analysis
3. Briefing - Summarization of analysis and research with focus on objectives.
4. Conceptualization - generation of many ideas and prototypes
5. Refinement - Analysis of previous phase, extracting positive aspects and discarding others
6. Realization - Finalization of refined prototypes and post-production
Globals expert technology in design solution includes Adobe Photoshop, Adobe Flash, AJAX,
HTML, DHTML, JavaScript, Swish, Dreamweaver, Adobe Illustrator, QuarkXPress, etc.
2.1.2. Web Development
Globals has been developing custom web applications and websites since its inception. We
follow a process oriented development methodology planned to minimize project risks and
development time. We focus on business solutions that fulfill business objectives, instead of
merely providing technical solutions. Our work is diverse and we cater to clients from all over
the world. Our clientele range from Fortune 500 companies to individual entrepreneurs.
A customized web application development derived out of the vision of the client results in
higher productivity, managing information effectively, reducing cost and smooth functioning of
business processes. As the market leader in Web Solutions, Globals has always added value to its
business partner‘s internet presence.
Some of Globals Web Development service includes:
Custom Website
Newsletters
Social Networking & Dating portals
Real Estate portals
Healthcare and Tele-medicine portals
Online Catalogue
User registration and member database websites
Event management portals
RSS feeds
Corporate Websites and more
SBMJCE - 19 -
Advanced database driven websites can be used in a number of areas to boost positive online
experiences. From the security of user password protection to data retrieved from referral
tracking programs, all web sites that strive for better interactivity rely on database programming
at the server.
Few database-driven websites includes:
E-commerce or online ordering systems
News feeds and finance portals
Product search and site search websites
Member database
Restricted access to sites
Event registration and more
Features of our Application Development Process
We dedicate a great deal of our consulting hours in understanding your business, your
core objective & then draft a strategic plan to achieve the end in most cost-effective
manner.
Our professional methodology ensures delivery on time and within the budget.
We give special emphasis on scalable web application development. A scalable web
application development can accommodate the rapid business changes with ease in the
time to come.
Technology
Globals has teamed with the finest programmers and analysts in various web-based technologies
who have great experience in their respective skill sets.
Technologies include:
Internet Programming Languages ASP, ASP.NET, VB.Net, C#, PHP, Ruby, Perl (CGI),
ColdFusion, Python, JavaScript, VBScript, Active Script (Flash)