CHAPTER - 1

INTRODUCTION
Today business sees a drastic change in their marketing practices. New inventions and
philosophies are cropping up in market to attract the customers and retain them. Sales and
marketing concepts are presented into different forms of segmentation. The overall business
world recognizes customer as king. Perception can be defined as the process by which people
translate sensory impressions into a coherent and unified view of the world around them.
Though necessarily based on incomplete and verified information, perception is evaluated
with reality for most practical purposes and guides human behavior in general. When an
individual looks at a target and attempts to interpret what he or she sees, that interpretation is
heavily influenced by the personal characteristics of the individual perceiver. Personal
characteristics that affect perception included a persons attitudes, personality motives
interest, past experiences, and expectations.
Theoretical background:
Customer perception is a marketing concept that encompasses a customer impression
awareness and/or consciousness and its products. Perception is the process whereby sensory
stimulated into organized experience. That experience is the joint product of stimulation and
of the process itself. Relation found between various types of stimulation and their associated
percepts suggests inferences that can be made about the properties of the perceptual process;
theories of perceiving then can be developed on the basis of these inferences. Be cause the
perceptual process is not itself public or directly observable, the validity of perceptual
theories can be checked only indirectly.
Perception is a process by which organism interpret and organize sensation to produce a
meaningful experience of the world. Sensation usually refer to immediate, relatively
unprocessed result of stimulation of sensory receptor . Perception on the other hand better
describes ones ultimate experience of the world and typically involves further processing of
sensory input.
Perception is the process by which organisms interpret and organize sensation to produce a
meaningful experience of the environment they live in. It is a complex cognitive process and

differs from one individual to another depending on the needs, values and expectations of the
individual consumers. They could differ from products to products.
Definition:
In psychology and the cognitive science, perception is the process of acquiring, interpreting,
selecting and organizing sensory information. The word perception comes from the Latin
word meaning receiving, collecting, and action of taking possession, apprehension with the
mind or senses. Method of studying perception range from essentially biological or
physiological approaches, through the philosophy of mind and in empiricist epistemology.
History:
Perception is one of the oldest fields within scientific psychology, and there are
correspondingly many theories about its underlying processes. The oldest quantitative law in
psychology is weber-fechner law, which quantifies the relationship between the intensity of
physical stimuli and their perceptual effects.
1.3 REVIEW OF LITERATURE

Hon Tshin, Emily Yapp, Tanakinjal, Geoffrey Harvey, Sondoh Jr., Stephen Laison May2014,
(1)

The Key Dimensions of Online Service Quality: A Study of Consumer Perceptions. Vol.

13 Issue 2, p7-18. 12p. Service quality is one of the major aspects of success of any business,
including online retailing. This study attempts to identify the key dimensions of online
service quality as perceived by the online air ticket buyers. The six key dimensions identified
are promptness/reliability, personalization, website content, flexibility, trustworthiness and
ease of navigation. The results further reveal that all these six dimensions have a positive
influence on online buyers' evaluation of overall service quality. Out of these six key
dimensions, personalization followed by trustworthiness are identified as the most influential
service quality dimensions in achieving a higher level of overall service quality as perceived
by online buyers.
Menon and Kahn, (2002)

(2)

in their study on online shopping: consumer perception of

functional and utilitarian dimension (Vol 9pp 14-23) concluded that online shopping features
can be either functional and utilities dimensions aspects from the information systems or
technology literature, as well as the consumer behavior literature are integrated in our
framework.

Benedict et al (2001)

(3)

in his study on an investigation :customer perceptions towards online

shopping .(Vol- 8 pp 1-30) reveals that perception towards online shopping and intention to
shop online are not only affected by ease of use, usefulness and enjoyment, but also by
exogenous factors

Joe Morris (2011)

(4)

conducted on consumer perception and purchase behavior the study

concerned with the software industry has become a major issue of public concern, encouraging
the UK Government & the software industry to take steps to rebuild consumer confidence.
This paper attempts to identify & review the factors influencing consumer perception of
software industry on purchasing behavior.

Consumer Perception of Value: Literature Review and a New Conceptual Framework(5):

Consumer value begins to emerge in the 1990s as an issue of growing interest to business
and, in particular, to marketing, at both the academic and practitioner levels. This concept is
considered to be one of the most significant factors in the success of an organization and it
has been pointed to as an important source of competitive advantage for the firm. Consumer
value has been recognized as the fundamental basis in every marketing activity and it has
been envisioned as a critical strategic weapon in attracting and retaining customers.
Customer Perception: Mizik and Jacobson 2003; Spiteri and Dion 2004; Woodruff 1997.

Systematic review on B2B branding:

The purpose of this study is to review the current body of the B2B branding literature, and
identify research issues that hamper current B2B branding research. The study identifies five
possible issues hampering current B2B branding research: the lack of systematic theory
development, the transference of consumer concepts, the dominance of quantitative research,
the lack of longitudinal research, and the focus on single industries. his study provides the
first systematic review to identify and evaluate the current B2B branding literature. The
review identifies the key literature related to B2B branding, provides an overview of past
research and identifies emerging research issues to be addressed in future research.
Problems with B2B Branding:

Despite the number of benefits a strong brand can convey to both the seller and the buyer it is
surprising that more industrial companies are not utilizing it. There are a number of factors
which
May be contributing to B2B Companys reluctance to brand.
Lack of Academic Research - Whilst there has been a vast amount of research into branding
in a business-to-consumer context.

There has been little research into branding in the

business-to-business context.

Systematic Review

(6)

Joona Kernen, (Lappeenranta University of Technology,

Lappeenranta, Finland), Kalle A. Piirainen, (Ramboll Consulting, Helsinki, Finland), Risto T.

Salminen, (Lappeenranta University of Technology, Lappeenranta, Finland
Lack of Academic research: Lynch et al 2004, Ohnemus 2009
Building Brand Equity: Balmer 2001 and Gronroos 1997.
B2B Branding: Nilson, 1998 in Blombck, 2005.
Importance of B2B Branding: Bendixen, et al., 2004; Michell et al., 2001
Jha, Shalini Bharti Singh,K P, Suresh Consumer Perception scale in Store Environment for
measuring Buying Behaviour (7)

IUP Journal of Marketing Management. Aug2014, Vol. 13 Issue 3, p48-70. 23p.Developing

a scale which would capture all the data required by a study is a time consuming and difficult
process. The present paper reviews the process of developing a scale for measuring consumer
buying behavior in a store environment in three stages, namely, item generation, scale
development and scale evaluation. To measure the effect of store environment cues,
specifically background music and behavior of salesperson on consumer buying behavior, a
scale was developed using six factors, namely, perception of merchandise quality, perception
of overall environment, perception of ambient music, perception of affability of salesperson,
emotion (pleasure/arousal), and behavior (approach/avoidance). Validation measures such as
face validity, content validity and construct validity were employed to standardize the
questionnaire with 43 statements. Factor analysis was used to check the unidimensionality of
the scale to assess the consumer behavior.

Lowe, BenBarnes, Bradley(8) Consumer perceptions of monetary and non-monetary

introductory promotions for new products R Journal of Marketing Management. May2012,
Vol. 28 Issue 5/6, p629-651. 23p. Little research has examined how consumers respond to
sales promotions in new product categories. This article fills this gap by integrating research
on reference prices with literature on sales promotions for new product categories. Existing
research suggests that consumers respond more favourably to non-monetary promotions (e.g.
extra free promotions) than monetary promotions (e.g. price discounts) because nonmonetary promotions are framed as segregated gains rather than reduced losses. However,
both kinds of promotions are widely used in practice, suggesting the importance of other
contributory factors. With a consumer experiment on a national panel of consumers, this
research demonstrates that extra free product promotions are most preferred for existing
products, and introductory low-price promotions are preferred for innovative products. The
moderating effect of a product's innovativeness is explained via a new relationship in the
marketing literature, whereby perceived risk mediates the relationship between perceived
innovativeness and a consumer's tendency to stockpile.
Nol, Noel Mark

(9)

A benchmark process for measuring consumer perceptions of total

quality International Journal of Market Research. 2014, Vol. 56 Issue 2, p149-166. 18p. 1
Diagram, 3 Charts, 4 Graph Researchers and business practitioners have made much progress
in the last several decades towards both the measurement and management of the many
aspects of quality. However, a standardised and comprehensive methodology for the
measurement of consumer perceptions of total quality has remained elusive for a variety of
reasons. This article proposes an illustrative pilot study that applies magnitude estimation
(psychophysics) as a valid and convenient method to benchmark consumer perceptions of the
various marketing dimensions that come to define total quality. The magnitude estimation
approach allows specific quality-related information to be generalised and extended to other
similar studies using small-size samples of targeted respondents. The ability to validate and
generalise these findings across studies allows researchers and managers to observe
functional relationships between existing and new marketing stimuli for related patterns and
potential innovations. The observation and analysis of treatment effects over time allows
management to implement a consumer-driven quality improvement programme. An empirical
pilot study is presented for illustration of the methodology.

Thakur, Rakhi Srivastava, Mala

(10)

A study on the impact of consumer risk perception and

innovativeness on online shopping in India. International Journal of Retail & Distribution

Management. 2015, Vol. 43 Issue 2, p148-166. 19p. The purpose of this paper is to develop
and empirically test a conceptual model to establish how consumer innovativeness can be
used as a variable to positively influence online retailing adoption intention both directly and
reducing consumer perceived risk (PR). Design/methodology/approach -- The literature
concerning personal innovativeness toward information technology and major components of
PR have been systematically reviewed to develop a conceptual model. The impact of
innovativeness and PR on online shopping adoption intention has been empirically validated
by structural equation modeling using a sample of 433 internet users in India. Findings -Results reveals consumer innovativeness as a key construct to improve online retail adoption
intention both directly and by its effective role in reducing consumer risk perception of using
internet channel for making purchase of physical goods. Originality/value -- There is a lack of
studies which connect consumer innovativeness and PR in the online retailing context
especially in Indian scenario. The results expand one's knowledge on this relationship,
propounding interesting empirical evidence of the model among current and potential online
shoppers.

1.4 STATEMENT OF THE PROBLEM

Micro Genesis is one of the growing software development comapny. It is found that
document management system is growing nowadays. Communication for organizations
fosters brand awareness and often, improved customer service. Completion is very high so
its too difficult to manage it technology up gradation this study on Business client perception
will provide better understanding which will help in enhancing the business.
1.5 OBJECTIVES OF THE STUDY
The following are the objectives of the study
To find the perception of D-store among the IT products.
To knew the expectation of the customers of D-store.
To Identify the Market potential.
1.6 SCOPE OF THE STUDY

The study intends to know about the customer perception towards the software products. The
study is conducted to the customers of the company.
1.7 METHODOLOGY
1.7.1 Type of Research
This study is based on Descriptive research. Descriptive research means Investigation into
a problem or situation which provides insights to the researcher. The research is meant to
provide details where a small amount of information exists. The study area refers to various
features to know about D-store in Micro Genesis through survey by Questionnaire.
1.7.2 Tools for Data Collection
The study depends only on Primary data. Primary data is collected using a structured
questioner.

1.7.3 Tools for Analysis

The tools used for data analysis is Descriptive Analysis. The descriptive analysis is
mainly performed to assess the distribution and percentage of respondents under each
category. This analysis is carried out for all the features taken for the study. All the tests are
carried at 5% level of significance and also the analyses are performed using SPSS, chisquire, percentage analysis, cross tabs.
1.8 LIMITATIONS

The study is restricted to the customers in Bangalore.

The study is limited to the period of Three month.

The study is restricted to the clients of the company.

CHAPTER SCHEME
Chapter 1: INTRODUCTION
This chapter gives an introduction about the research conducted. It deals with the background
study, theoretical background of the study, review of literature, statement of the problem,
objectives of the study, scope of the study, research methodology adopted and the limitations
of the study.

Chapter 2: ORGANIZATIONAL PROFILE

The chapter organization profile deals with the history of the organization, the management,
organization structure, product profile and the market potential, competitive strengths of the
company, future plans and the description about various functional areas.
Chapter 3: MACRO-MICRO ECONOMIC ANALYSIS
The chapter micro-macro analysis gives an insight about the industry in the Global scenario
as well as the Indian scenario.
Chapter 4: DATA ANALYSIS AND INTERPRETATION
Analysis and interpretation deals with the analysis of the data collected for the study and the
interpretation of the results obtained.
Chapter 5: CONCLUSION
This chapter deals with the discussions on the findings and the suggested recommendations
based on the find.

CHAPTER 2
ORGANIZATIONPROFILE

2.1 HISTORYOFTHEORGANIZATION
Micro Genesis Tech Soft was set up in 2000 as part of Micro Genesis expansion strategy to
address the burgeoning needs of software development in the IT Industry.

Micro Genesis Tech Soft in its quest constantly looks for niche technology solutions which
can possibly address different business needs of customers in IT with advent of time.
2.2 MANAGEMENT
Director Mr. Manoj Tharian
CEO Mr R L Luthra
Vice President, Technical Services Mr Dhananjaya K
Business Head, Corporate Mr. Santy Nelson
Business Head, Defence Mr. Naveen M S
2.3 ORGANIZATION STRUCTURE

2.4 PRODUCT PROFILE AND MARKET POTENTIAL

Rational Software
Rational Software enables flexible software development through enhanced team
collaboration and better control of risk and change. This modular, solution-focused set
of products and services helps increase efficiencies by aligning key capabilities
including DevOps, continuous engineering and enterprise modernization with your

business strategy.
IBM ECM
Enterprise Content Management (ECM) solutions from IBM help companies realize
the strategic value of content for better business insight and outcomes. IBM ECM
delivers high value solutions that can help companies transform the way they do

business by enabling them to put content in motion: capturing, activating, socializing,

analyzing and governing it throughout the entire lifecycle.

DStore
DSTORE offers an easier, faster, affordable electronic document management solution
to efficiently capture, distribute, store, and manage any type of documents. DStore is
suitable for every organization or department, regardless of size or industry.

MARKETING TRENDS:
1. Computing everywhere - As mobile devices continue to proliferate, Gartner predicts an
increased emphasis on serving the needs of the mobile user in diverse contexts and
environments, as opposed to focusing on devices alone. According to David Cearley of
Gartner, as phones and wearable devices become part of an expanded computing
environment, it's the overall environment that will need to adapt to the requirements of the
mobile user. This will create significant management challenges for IT organizations as they
lose control of user endpoint devices. It will also require increased attention to user
experience design.
2. The internet of things - The combination of data streams and services created by
digitizing everything creates four basic usage models? Manage, monetize, operate and
extend. These four basic models can be applied to any of the four "internets." Enterprises
should not limit themselves to thinking that only the Internet of Things (IoT) (assets and
machines) has the potential to leverage these four models. For example, the pay-per-use
model can be applied to assets (such as industrial equipment), services (such as pay-as-youdrive insurance), people (such as movers), places (such as parking spots) and systems (such
as cloud services). Enterprises from all industries can leverage these four models.
3. 3D printing - Worldwide shipments of 3D printers are expected to grow 98% in 2015,
followed by a doubling of unit shipments in 2016. New industrial, biomedical and consumer
applications will continue to demonstrate that 3D printing is a real, viable and cost-effective
means to reduce costs through improved designs, streamlined prototyping and short-run
manufacturing.

4. Advanced, pervasive and invisible analytics - Analytics will take center stage as the
volume of data generated by embedded systems increases and vast pools of structured and
unstructured data inside and outside the enterprise are analyzed. Organizations will have to
find ways to manage how best to filter the huge amounts of data coming from the IoT, social
media and wearable devices, and then deliver this information to the right person, at the right
time. Big data remains an important enabler for this trend.
5. Context-rich systems - Ubiquitous embedded intelligence combined with pervasive
analytics will drive the development of systems that are alert to their surroundings. Contextaware security is an early application of this new capability, but others will emerge. By
understanding the context of a user request, applications can not only adjust their security
response but also adjust how information is delivered to the user.
6. Smart machines - Deep analytics applied to an understanding of context provide the
preconditions for a world of smart machines. This foundation combines with advanced
algorithms that allow systems to understand their environment, learn for themselves, and act
autonomously. Prototype autonomous vehicles, advanced robots, virtual personal assistants
and smart advisors already exist and will evolve rapidly, ushering in a new age of machine
helpers. The smart machine era will be the most disruptive in the history of IT.
7. Cloud computing - The convergence of cloud and mobile computing will continue to
promote the growth of centrally coordinated applications that can be delivered to any device.
In the near term, the focus for cloud/client will be on synchronizing content and application
state across multiple devices and addressing application portability across devices. In the
future, games and enterprise applications alike will use multiple screens and exploit
wearables and other devices to deliver an enhanced experience.
8. Software-defined applications and infrastructure - Software-defined networking,
storage, data centers and security are maturing. Cloud services are software-configurable
through API calls, and applications, too, increasingly have rich APIs to access their function
and content programmatically. To deal with the rapidly changing demands of digital business
and scale systems up? Or down? Rapidly, computing has to move away from static to
dynamic models.

9. Web-scale IT - Web-scale IT is a pattern of global-class computing that delivers the

capabilities of large cloud service providers within an enterprise IT setting. The first step
toward the Web-scale IT future for many organizations should be DevOps? Bringing
development and operations together in a coordinated way to drive rapid, continuous
incremental development of applications and services.
10. Risk-based security and self-protection -Organizations will increasingly recognize that
it is not possible to provide a 100% secured environment. Security-aware application design,
dynamic and static application security testing, and runtime application self-protection
combined with active context-aware and adaptive access controls are all needed in today's
dangerous digital world. This will lead to new models of building security directly into
applications. Perimeters and firewalls are no longer enough; every app needs to be self-aware
and self-protecting.
3

Competitive strength of the company

Over 14 Years IT Solutions and Services Business.
Consultative sales approach and comprehensive support plan.
Dedicated, total solutions provider for all of your IBM software related requirements.
Focused in software development tools and processes.
Garnered several top awards and recognitions from IBM.
Identity in the market as a recognized/trusted partner in ALM Business.
Implementation and Solution Integration Experience.
Solutions for Cross Industry and Applications.
Premier IBM Business Partner and Service Provider.
Reputation in Support and Customer references.
Specialized Testing in Medical devices/Healthcare (QE).

FUTURE PLANS
Target Broader Customer Segments, Geographies and Verticals.
Asset Management IT and Non IT Assets.
Big Data Analytics, Digitization, Storage.
Enterprise Content Management.
Cloud, Storage and Security.
Services/Innovation Division.

DESCRIPTION OF VARIOUS FUNCTIONAL AREAS

Sales

Effective Sales is the main mantra of this department. The basic objective is obviously the
achievement of profit through service. Result of the sales effort would naturally depend also
on the effort of the other operations and departments such as research, marketing and finance.
Marketing
Promotes the business and drives sales of its products or services. It provides the necessary
research to identify the target customers and other audiences.
Administration
Administration department is the link between various departments of an organization and
ensures the smooth flow of information from one part to the other. Thus without an effective
administration, an organization would not run professionally and smoothly.
Accounts
Accounting department keeps a business operation without hitches and delays. Departments
exclusive functions include Payroll, Cash collection & disbursement, property accounting,
etc.
Technical
Technical support department workflow begins with receiving customer request and task
assignment and finishes when customer request is satisfied and all technical issues with
product are resolved. When the user contacts the support team for help, one of the technical
engineers logs the call or the e-mail request in an issue-tracking system and creates a
reference number. Main functions includes: (1) Providing technical support service and
consultation; (2) Processing and transferring product enhancement requests; and (3) Product
pre-sales and demonstration.

CHAPTER 3
MACRO-MICRO ECONOMIC ANALYSIS
Introduction
Information Technology (IT) has made possible information access at gigabit speeds. It has
created a level playing field among nations and has a positive impact on the lives of millions.
Today, a country's IT potential is paramount for its march towards global competitiveness,
healthy gross domestic product (GDP) and meeting up energy and environmental challenges.
The Indian IT and Information Technology enabled Services (ITeS) sectors go hand-in-hand
in every aspect. The industry has not only transformed India's image on the global platform,
but also fuelled economic growth by energizing the higher education sector (especially in
engineering and computer science). The industry has employed almost 10 million Indians
and, hence, has contributed significantly to social transformation in the country.

India is one of the fastest-growing IT services markets in the world. It is also the world's
largest sourcing destination, accounting for approximately 52 per cent of the US$ 124-130
billion market. The country's cost competitiveness in providing IT services continues to be its
USP in the global sourcing market.
India has the potential to build a US$ 100 billion software product industry by 2025,
according to Indian Software Product Industry Roundtable (iSPIRT). The software products
market in India, which includes accounting software and cloud computing-based telephony
services, is expected to grow at 14 per cent in 2014.
Market Size
The Indian IT-BPM industry is expected to add revenues of US$ 13-14 billion to the existing
revenues by FY15, according to National Association of Software and Services Companies
(NASSCOM).
The industry grew at a compound annual growth rate (CAGR) of 13.1 per cent during FY0813.Total exports from the IT-BPM sector (excluding hardware) were estimated at US$ 76
billion during FY13. Export of IT services has been the major contributor, accounting for
57.9 per cent of total IT exports (excluding hardware) in FY13. BPM accounted for 23.5 per
cent of total IT exports during the same fiscal. The IT outsourcing sector is expected to see
exports growing by 13-15 per cent during FY15.
The data centre infrastructure market of India is estimated to reach US$ 2.03 billion in 2015,
a 5.4 per cent increase from US$ 1.92 billion in 2014.
The sale of personal computers (PC) in India has registered significant growth as 2.55 million
units were sold in January-June, 2014 compared to 2.03 million units in the corresponding
period of 2013.
E-commerce space in India is expected to grow at 20-25 per cent over the next 2-3 years in
terms of jobs, salaries and growth, which in turn could create at least 150,000 jobs. The
current estimated size of the industry is about Rs 18,000 Crore (US$ 2.91 billion) and is
expected to reach Rs 50,000 Crore (US$ 8.08 billion) by 2016 and as the industry grows, the
demand for talent would grow proportionally.

Employment:
The IT and ITeS sector has generated massive employment in the past and continues the trend
of providing jobs. With online shopping, social media and cloud computing flourishing more

than ever before, there is great demand for IT professionals in e-commerce and business to
consumer firms.TCS recently hired 20,000 fresh graduates from all over India in 2013 and
other organizations like Wipro, Infosys, IBM and Dell among others also add highly to the
employment rate. After Bangalore the silicon city of the country, Pune is also a hiring
sphere. The IT and ITeS sector are likely to grow 12-15% in the year 2014 and Pune is
amongst the top 3 preferred cities for these tech jobs.

The 2014 Scenario of the IT- ITES sector in India

The information technology in India is looking towards a bleak future in general in the
current year. However, small sparks of encouragement are there. As per the statement of BVR
Mohan Reddy, chairman and managing director, InfoTech Enterprises Limited, a global
technology solution provider, Such periods of uncertainty in the past have provided a great
platform for organizations to refine strategy and execute initiates that increase competitive
advantage and accelerate growth. The Indian IT sector will witness a predictable slump of
growth from that of 16% last year to a discouraging 11% this year. However, growth in the
allied sectors like health care and insurance is a small ray of hope. Andhra Pradesh, ranking
as the fourth largest IT exporter of the country is being severely affected by power supply
shortage which is naturally slowing down the development of the states IT sector. It is to be
mentioned here that Andhra Pradesh accounts for 12% of the total IT export of India and the
turnover for 2012 was RS53, 246 crore. Hyderabad is in a little better position as it has been
proactive in changing its infrastructure to keep pace with the changing face of the global IT
export scenario.
The Recession period, the free fall of rupees against dollar compounded with other factors
has resulted in a severe decline in the hiring process of the IT sector. The employment
generation capacity of this sector has shrunk considerably. IT professionals including ex- IT
sector employees are now seeking employment in financial services, telecommunications and
manufacturing industries which have recently witnessed a phenomenal growth.

Indias Services
The share of services in Indias GDP at factor cost (at current prices) increased from 33.5

per cent in 1950-51 to 55.7 per cent in 2011-12 and to 56.9 per cent in 2012-13. If
construction is also included, the service sectors share increases to 65.0 per cent in 201213.The ratcheting up of the overall growth rate (CAGR) of the Indian economy from 5.7
percent in the 1990s to 8.8 percent during 2004-05 to 2010-11 was mainly due to an
acceleration in growth of the services sector from 7.5 per cent in the 1990s to 10.2 per
cent during 2004-05 to 2010-11. Since 2011-12, in line with the general growth trend, the
growth rate of services sector also decelerated. However the growth deceleration of the
services sector was lower than that of the overall growth. Services sector growth rates were
8.2 per cent in 2011-12 and 7.1 per cent in 2012-13. In the first two quarters of 2013-14,
growth of services sector was 6.6 per cent and 5.9 per cent respectively.

FDI in Services
The services sector remains the most attractive sector for foreign direct investment (FDI)
inflows in India. As per the latest data on FDI released by Department of Industrial
Promotion and Policy (DIPP), the combined FDI share of financial and non-financial

services, construction development, telecommunications, computer hardware & software,

and hotel & tourism is 46.0 per cent of the cumulative FDI equity inflows during the
period April 2000-August 2013. (Table 1) These five sectors are also among the sectors
attracting the highest cumulative FDI inflows to the economy with financial and nonfinancial services topping the list during the period April 2000 to August 2013.
India has also been moving towards a service led export growth. While the CAGR of
merchandise export growth during 2004-05 to 2008-09 was at 22.2 percent, services export
growth was at 25.3 percent. As a result of the slowdown in world economy, services sectors
exports growth has slowed down in 2009-10 and was at (-) 9.4 percent. In 2010-11 it
jumped to 30.2 per cent which is also partly due to the base effect. However after that
services export growth started decelerating to 13.1 per cent in 2011-12 and 3.4 per cent in
2012-13. Services import growth which was at 35.3 per cent in 2010-11 became negative
at -4.5 per cent in 2011-12, but grew by 5 per cent in 2012-13. Net services which grew
by 21.8 per cent in 2010-11, grew sharply by 45.3 per cent in 2011-12, as import growth
was negative. However in 2012-13, with sharp deceleration in services export growth, net
services growth was a tepid 1.4 per cent resulting in a lower cushion provided by services
trade to finance the current account deficit (CAD).In 2013-14 (April-Sept), there is again a
pickup in services export growth to 3.4 per cent, while import growth was negative at (-)
3.9 per cent. As a result net services grew by 12.6 per cent. In 2012-13, among the major
services exports, there is negative growth in transport services (a reflection of the external
trade situation); travel services (a reflection of international trade situation and despite the
depreciation of the rupee) and financial services;
Low growth for software.

Government Initiative
Cloud computing is one of the thrust areas in the national IT and ITeS policy.
In order to benefit from cloud, the Department of Electronics and IT (DeitY) has taken an
ambitious project known as GI Cloud. The GI Cloud is the Indian governments initiative
to enable the government (both Centre and States) to leverage cloud computing for effective
delivery of eServices.
In the twelfth Five Year Plan (2012-17), the Department of Information Technology proposes
to strengthen and extend the existing core infrastructure projects to provide more horizontal
connectivity, build redundancy connectivity, undertake energy audits of State Data Centers
(SDCs) etc. The core infrastructure including fibre optic based connectivity will be
leveraged and additional 150,000 Common Service Centres (CSCs) will be setup to create
the right Governance and service delivery ecosystem at the Panchayat.

GLOBAL LEVEL:
Information technology, and the hardware and software associated with the IT industry, are an
integral part of nearly every major global industry.
The information technology (IT) industry has become of the most robust industries in the
world. It, more than any other industry or economic facet, has an increased productivity,
particularly in the developed world, and therefore is a key driver of global economic growth.

Economies of scale and insatiable demand from both consumers and enterprises characterize
this rapidly growing sector.
The information technology association of America (ITAA) explains 'information technology'
as encompassing all possible aspects of information systems based on computers.Both
software development and the hardware involved in the IT industry include everything from
computer systems, to the design, implementation, study and development of it and
management systems.Owing to its easy accessibility and the wide range of it products
available, the demand for it services has increased substantially over the years. The it sector
has emerged as a major global source of both growth and employment.

GLOBAL IT SPENDING:Indian enterprises spending on information communications and technology (ICT) in 2005 is
expected to grow at more than twice the rate in the Asia pacific region. Enterprise spending in
the Asia Pacific (APAC) on hardware next year will rise 6.3 per cent to $36.9bn, with
software increasing 12.4 per cent to $5.6bn while telecom will grow 7.5 per cent to $132.5bn
and IT services will gain 8.4 per cent to $33.6bn.in India, of the $22.88bn spend in 2005 on
enterprise ict, $3.34bn is the projected spend on hardware, an increase of 21.1 per cent over
2004; $0.52bn (16.4 per cent increase) on software; $16.7bn (15.5 per cent increase) on
telecom and $2.32bn (18.3 per cent increase) on it services. India will remain the highest
growth market for telecommunications with around 35 million new subscribers in 2005, an
18 per cent increase from 2004, with the growth occurring in selected technologies mainly
mobile. This accounts for almost one fourth of the new subscribers forecasted in Asia pacific.
Consumer segment is rapidly gaining importance, driven by adoption of mobile services. This
is reflected in their increased contribution towards spending for telecommunication services,
from 35 per cent in 2002 to 43 per cent in 2005. By2008 the consumer segment will account

for more than half of telecommunications spending, the report said. Gartner also said that
open source and offshore it services will continue to grow, while it warned global it vendors
to take emerging competition from china seriously with at least three Chinese it companies
becoming significant global competitors by 2010. The growth in offshore bpo services
outpaces the growth in global sourcing of it services. Offshore component of global bop
services spend is expected to grow from $3 billion (2.4 per cent of total markets spend of
$124 billion in 2004) to $24 billion (15 per cent of the total markets spend of $161 billion in
2007).
EXPORT
The current global economic downturn is likely to impact Indias it software and services
export with the industry expected to register single-digit growth in 2009-10."software exports
of Indian it industry are projected to grow single digit this fiscal due to economic slowdown
and lower budgets in major markets like the us and Europe" nasscom president some mittal
told reporters after presenting the nasscom-mckinsey report on perspective 2020."On a wider
basis, export growth, in single digit is not bad. The growth pace may not be as scorching as it
was till last fiscal or in double digits in the last fiscal. We are not talking about de-growth but
lesser growth," he said.
Nasscom is expected to come with an estimate for this fiscal in June, he said. Nasscom
chairman pramod bhasin said 80 per cent of incremental growth would come from outside the
current core sectors, verticals and customer segments. Demographic shifts and change in
social environmental and technology trends would create opportunities for the Indian it
industry.
According to the report, new opportunities are expected to emerge in healthcare services,
productivity solutions and redesign processes to address the talent shortage. Basin said India
should become a hub of innovation in areas like clinical research, climate change, energy
efficiency and climate change. According to department of information technology, the
Indian software and services exports was expected to reach us$ 49.7 billion in 2009-10 as
compared to us$ 47.1 billion in 2008-09, with an increase of 5.5% in dollar terms. Further,
the Indian it industry's services exports is estimated to grow from us$ 25.8 billion in 2008-09
to us$ 27.3 billion in 2009-10, with a growth of 5.8 %.in the year 2008-09, the domestic it
attained revenues worth us$ 24.3 billion as compared to us$ 23.1 billion in fy 2007-08, with a
growth of 5.4%. The tremendous demand for it services and goods by India inc., has majorly

strengthened with the expansion of the domestic market as agreements worth extraordinarily
to us$ 100 million. Till 2012, the domestic sector is estimated to expand to Us$ 1.7 billion
against the existing us$ 1 billion. It exports software and services of India are to nearly 95
countries around the world.

Chapter 4
Data Analysis & Interpretation
This chapter deals with the analysis and interpretation of data as collected through
questionnaire. The data is presented under various headings as below.

 Percentage analysis
Cross-Tab
Chi-square
Table 4.1.1Distribution of respondents based on industry segment:
S.NO
1
2
3
4
5
6

PARTICULARS

NO

OF

Manufacturing
Automotive
Banking
Healthcare
Education
Energy
TOTAL

RESPONDENTS
19
3
1
3
3
1
30

PERCENTAGE %
64
10
3
10
10
3
100

Source: Primary data

Industry segment
Manufacturing

Automative

banking

healthcare

education

energey

10% 3%
10%
3%
63%
10%

The above Tables shows that 64% (19) of the respondents are from manufacturing industry ,
10% (3) of the respondents are from automotive industry, 3% (1) of the respondents are from
banking industry, 10% (3) of the respondents are from healthcare industry, 10% (3) of the
respondents from education industry, 3% (1) of the respondents from energy industry.

Table 4.2 Enterprise solutions being used in your organization:

S.NO

PARTICULARS

NO.OF

PERCENTAGE %

1
2

ERP
CRM

RESPONDENTS
23
2

78
6

OTHERS
TOTAL

5
30

16
30

Source: primary data

Enterprise solution being used

ERP

CRM

OTHERS

16%
6%
78%

From the above table it is found 78 %( 23) of the respondents are using ERP solution in their
organization, 16 %( 5) of the respondents are using others solution, 6 %( 2) respondents of
the respondents are using CRM.
Table 4.3: Technological investment?
S.NO

PARTICULARS

NO.OF

PERCENTAGE %

Document

RESPONDENTS
15

50

Management
Enterprise Content

13

3
4
5
6

Management
Business Analytics
Cloud Computing
Enterprise Security
Other,
Please

7
3
1

24
10
3

30

100

Specify.
Total

Source: primary data

From the above table shows 50% (15) of the respondents priority is document management
system , 13% (4) of the respondents priority is enterprise content management system , 24%

(7) of the respondents priority is business analytics , 10% (3) of the respondents priority is
cloud computing , 3 % (1) of the respondents priority is enterprise security.
Table 4.4 Willingness to implement new and upgrade solution:
S.NO

PARTICULARS

NO.OF

PERCENTAGE

A need is recognized and all solution

RESPONDENTS
0

%
0

requirements are defined.

A need is recognized and solution

requirements are yet to be defined.

No identified need at this time.

30
30

100
100

TOTAL
Source: primary data

Your need to implement new or upgrade your current technologies

A need is recognized and
all solution requirements
are defined.
A need is recognized and
solution requirements are
yet to be defined.
No identified need at this
time.
100%

Above table shows that 100 % ( 30) of the respondents said they are not identified their need
at this time.
Table 4.5: Budget approval system & time frame to buy
Yes

No

TOTAL

Immediately

3-6 months

16

16

1 year

14

14

TOTAL

30

30

Source: Primary data

From the table shows 53 % (16) of the respondents are having budget system between 3-6
months, 47 % (14) of the respondents are having 1 year time frame budget approval system in
their organization
Table 4.6: Willingness to here more information:
S.NO
1
2

PARTICULERS

NO.OF

PERCENTAGE %

Yes
No
TOTAL

RESPPONDENTS
0
30
30

0
100
100

Source: primary data

Does your company having budget

YES

NO

100%

From the above table shows 100 %( 30) of the respondents are they dont want any
information and demo of the product (D-store)

CHAPTER 5
CONCLUSION & FINDINGS
This chapter deals with the discussions on the findings and the suggested recommendations
based on the findings.
5.1 RESULTS AND DISCUSSIONS
This section deals with the results and discussions regarding the findings.
5.1.1 Industry segment
64% (19) of the respondents are from manufacturing industry , 10% (3) of the respondents
are from automotive industry, 3% (1) of the respondents are from banking industry, 10% (3)
of the respondents are from healthcare industry, 10% (3) of the respondents from education
industry, 3% (1) of the respondents from energy industry.
5.1.2 Enterprise solutions being used in your organization:
78 % ( 23) of the respondents are using ERP solution in their organization, 16 % ( 5) of the
respondents are using others solution, 6 % ( 2) respondents of the respondents are using
CRM.
5.1.3 Business priority when it comes to technological investments this year:

50% (15) of the respondents priority is document management system , 13% (4) of the
respondents priority is enterprise content management system , 24% (7) of the

respondents priority is business analytics , 10% (3) of the respondents priority is cloud
computing , 3 % (1) of the respondents priority is enterprise security.

5.1.4 Describes your need to implement new or upgrade your current technologies:

100 %( 30) of the respondents said they are not identified their need at this time.
5.1.5 Have you have budget &time frame for installing solution;

53 % (16) of the respondents are having budget system between 3-6 months, 47 %( 14) of the
respondents are having 1 year time frame budget approval system in their organization

5.1.6 Would you like to have more information/ demo on the solutions you are
interested:

100 %( 30) of the respondents are they dont want any information and demo of the product
(D-store).
RECOMMENDATION

Company needs to improve in their marketing part

Company has to concentrate on their promotion part of the product