IT INDUSTRY

Keerthi (305) Nithilesh (310) Debashree (312) Shane(314) Giridhar (315) Hareesh reddy (319) Ekambar(320) Surya Theja (331)

INTRODUCTION

Today the software industry has become the backbone of companies around the world. IT industry not only providing employment, but it is well as creating an opportunity for innovation. India is now the leading country in providing IT Enabled Services in the world. 65% of the global market in offshore IT and 46% of the ITES market. Information technology is the use of computers and software to manage information.

In some companies, this is referred to as Management Information Services (or MIS) or simply as Information Services (or IS).

CORE BUSINESS ACTIVITIES

IT services Enterprise solutions Consulting

Business process outsourcing

Business intelligence and performance management Engineering and industrial services IT and business solutions for SMEs

IT INDUSTRY IN INDIA

The industry was begun by Bombay-based conglomerates which entered the business by supplying global IT firms located overseas with programmers. India's IT Services industry was born in Mumbai in 1967 with the establishment of Tata Group in partnership with Burroughs. The Indian Information Technology industry accounts for a 5.19% 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 2.5 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

India's outsourcing industry is expected to increase to US$225 billion by 2020. The most prominent IT hub is Bangalore. The other emerging destinations are Chennai, Hyderabad, Coimbatore, Kolkata, Kochi, Pu.ne, Mumbai, Ahmadabad. NCR India's growing stature in the Information Age enabled it to form close ties with both the United States of America and the European Union. Today, Bangalore is known as the Silicon Valley of India and contributes 33% of Indian IT Exports.

CURRENT POSITION OF IT SECTOR IN INDIA

TECHNOLOGY USED

Programming Languages : JAVA , C++ Data base management : DBMS , RDBMS , ORACLE , SAP

Operating systems : Windows, Linux, Solaris

India's IT industry (USD bn)[16] Particulars IT Services Exports - Domestic ITES-BPO - Exports - Domestic 7.3 3.1 3.4 3.1 0.3 FY 2004 10.4 FY 2005 13.5 10.0 3.5 5.2 4.6 0.6 FY 2006 17.8 13.13 4.5 7.2 6.3 0.9 FY 2007 23.5 18.0 5.5 9.5 8.4 1.1 FY 2008 31.0 23.1 7.9 12.5 10.9 1.6

Engineering services, R&D 2.9 and Software products - Exports - Domestic Hardware - Exports - Domestic Total IT industry (including hardware) 2.5 0.4 5.0 0.5 4.4

3.9

5.3

6.5

8.6

3.1 0.7 5.9 0.5 5.1

4.0 1.3 7.0 0.6 6.5

4.9 1.6 8.5 0.5 8.0

6.4 2.4 12.0 0.5 11.5

21.6

28.4

37.4

48.0

64.

TOP 5 COMPANIES
IBM ACCENTURE ORACLE POLARIS

IBM

International Business Machines nicknamed Big Blue Founder - Thomas J. Watson Headquarters in Armonk, New York, United States IBM manufactures and sells computer hardware and software, and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. CEO - Samuel J Palmisano Has 388,000 employees Holds more patents than any other U.S. based technology company Has eight research laboratories worldwide

Revenue - US$ 99.870 billion Operating income - US$ 19.273 billion Net income - US$ 14.833 billion IBM was among the first corporations to provide group life insurance (1934), survivor benefits (1935) and paid vacations (1937). In 1932 IBM created an Education Department to oversee training for employees, which oversaw the completion of the IBM Schoolhouse at Endicott in 1933.

SWOT ANALYSIS
Strengths

The Advanced business action management and innovative culture of IBM is one of its strengths. The successful strategic outsourcing, mergers and acquisitions of IBM are its strengths. High economical consummation centre and flexible marketing management of the company is the reason for its success. The creative service that International Business Machines provides is its strength. It is handling almost 95% of business tasks of top 1000 companies all over the world. The company have some of the worlds fastest important frame and many subverted technologies like: speech recognition software, chromatic gene, supercomputers etc. Through such extraordinary and innovative technologies IBM is able to wage some of the prizewinning back hand facilities. The most recent merge of IBM is with the Lenovo; Lenovo is providing the outer element profession and IBM providing all of its latest chip technology can result in greater success of the company. Today, IBM has entered a wide range of fields including Business continuity, snap services, End user services, integrated subject services, IT strategy and architecture services etc. The good will of the company along with its huge base of loyal customers is one of its greatest strengths.

Weaknesses

At International Business Machines there are high costs involved in the value chain and also the company is dealing with some acquisition issues. Since, IBM spends quite a lot on its research and development where as the implementation of new processes is a little difficult. This is also because there are very few suppliers in the value chain o IBM and it can act as a loophole. IBM has a good position in the market but needs to change its strategies with the change in market. This also causes the cost to the company to be greater as compared to other software and hardware dealers. The rising demand for wireless and internet services provides the company new opportunities to explore. There are many possible acquisitions and merger opportunities that the company can seize and increase its market share greatly. By making its distribution channels stronger and increasing its retail outlets and suppliers canresult in more profits for the company. The rising energy prices and cost makes running and operations of the business difficult. IBM has addressed by making its strategy related to environment. With its green strategy it is able to save up to forty percent of energy costs.

Opportunities

THREATS

There are many competitors like HP, Dell, Accenture and Microsoft etc that have captured large segments of the market. The market has perfect competition state and switching cost is low for the customers. At IBM, there is a constant high threat of new substitutes as well as service switching. The technology market is very flexible, entry is easy and even small companies like Compaq can reduce the market share of IBM greatly. The global recession is a large threat for IBM. The company prices are higher as compared to other service providers in the same industry therefore; the IBM needs to take effective cost reduction strategies to deal with the unstable market conditions.

MISSION At IBM, we strive to lead in the invention, development and manufacture of the industry's most advanced information technologies, including computer systems, software, storage systems and microelectronics. We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide.

TOP 5 COMPANIES IN INDIA

Tcs Wipro Infosys HCL Tech Mahindra

TCS
Established in 1968

Headquarters - Mumbai, India.

First IT Company to cross US$ 3 Billion mark in revenues Over 83,500 employees from 60 nationalities

Major Business areas: BFSI, Insurance, Telecom, Transportation,

Healthcare etc.

It first started as the Tata Computer Center

SERVICES OFFERED BY TCS

IT services IT infrastructure services Enterprise solutions Consulting Business process outsourcing Business intelligence and performance management Engineering and industrial services IT and business solutions for SMEs

MARKET PENETRATION STRATEGY:

Current Markets: USA and Europe Current Products: BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products). Recommendations: As most large clients in US and Europe are cutting costs, TCS needs to be more aggressive on cost and quality front.

MARKET DEVELOPMENT STRATEGY:

New/Emerging Markets: India, Middle-east and Australia Current Products: BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products). Recommendation: Since these are fast developing IT market, TCS needs a paradigm shift in focus from US and EU markets to these markets.

PRODUCT DEVELOPMENT STRATEGY

Current Market: USA and Europe New Product: Consultancy and package implementation services in relatively growing sectors esp. life sciences & healthcare, aviation sector, and KPO services. Recommendation: Concentrate on building expertise in these domains by strategic acquisitions.

BCG MATRIX

Strength Extensive global reach Strong financial performance Employee management

Weaknesses Significant exposure to financial services market Lack of scale in consulting operations
Threats Increasing employee costs Intense competition from foreign firms like Accenture, IBM etc. Consolidation in the end markets Rupee appreciation Increased competition from low-wage countries like China, Indonesia etc.

Opportunities Focus on SMB segment Growth in worldwide IT services Focus on high end business and IT consulting Expanding operations in countries like China

FINANCIAL PERFORMANCE

SUGGESTIONS

Expect to see the landscape continue to consolidate. Clients will seek to cut costs and focus on fewer provider relationships as the economy worsens. TCS should take this opportunity to improve your market positioning. Ensure marketing articulates your value proposition to all stakeholders concerned. In a recession, marketing can work as a differentiator. TCS need to create specific value propositions aimed directly at the relevant stakeholders and in the new tech ecosystem, these relevant stakeholders must include business executives, not just IT personnel Dont be influenced solely by short-term shareholder pressure. changes in industry dynamics that will emerge

TCS must provide diverse services to refrain from being overdependent Provide more high-end services in value chain There is a move required from ADM (Application Development and maintenance) to value added services, BPO to Consulting and Package Implementation, etc. TCS should shift focus from Low cost advantage to high quality services commanding a premium being the pioneer in the industry