IT Overview (1)

8/6/2019 IT Overview (1)

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Presented By

Chandana G

Saravana Kumar M


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Classification of IT IndustryClassification of IT Industry

y IT services : Information services outsourcing, packaged softwaresupport and installation, systems integration, processing services,

IT training and education.

y Engineering Services : Mechanical design, Electronic system

design, Design validation testing.

y ITES services : Use telecom networks or internet. Remote

maintenance, back office operations, Data processing, call centers,

BPOs

y E-business : Business on internet

Source:http://www.naukrihub.com/india/informationtechnology/overview/ 2


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Evolution of Indian IT sectorEvolution of Indian IT sectory Tatas were the pioneers TCS in 1968.

y National Informatics Centre was established in 1975 and

CMC was started in 1976.

y IBM quit India in 1977 in protest against Foreign Exchange

Regulation Act.y First two multinationals to enter the industry are Citibank

Overseas Software Limited(COSL) in 1984 and TI in 1985.

y Liberalization of Indian economy in 1991 - new era of

globalization and international economic integration.

y Y2K problem India was looked as destination given low cost

operations and talent pool.

y Evolved from testing and maintenance to full service players

providing testing services, infrastructure services, consulting

and system integration. 3


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Facts and FiguresFacts and Figures

y India's software and services exports were $17.2 billion in the fiscal

year 2009-2010. ITs share of Indian Exports increased from 4%

(1998) to 26%(2010)

y As a proportion of national GDP, IT-BPO sector revenues increased

from 1.2%(1998) to an estimated 6.1%(2010)

y Indian IT-BPO grew by 12 per cent in FY 2009 to reach US$ 71.7billion in aggregate revenues

Source : http://www.nasscom.in/upload/SR10/ExecutiveSummary.pdf

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Contd..Contd..

y In IT BPO sector, direct employment is estimated

to be over 2.2 million and indirect jobs 8.2 million

y Software and services employ over 1.7 millionprofessionals.

y Total PC sales with desktop computer and

notebooks taken together, were 14 lakhs units.

Source : http://www.nasscom.in/upload/SR10/ExecutiveSummary.pdf

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Key locationsKey locations

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Prominent PlayersProminent Players

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Growth drivers for the industry..Growth drivers for the industry..

y Availability of quality talent at cost effective rates

y Enhanced connectivity

y Developing Infrastructure

y Increased spend by the government in e-Governance

initiatives

y Supportive regulatory policies by Indian government

y Extremely quality focused Indian based centres accounting

for the largest number of quality certifications.

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Regulatory FrameworkRegulatory Framework

y IT Act 2000 An act to provide legal recognition totransactions carried out by means of electronic data,interchange and other means of electronic commerce,commonly referred to as e-commerce.

y 100% customs duty exemption on imports for

y Set up of STPIs and creation of SEZs.

y Tax holidays and competitive incentives.

y Monitored by Department of Information Technology (DIT)

y NASSCOM and MAIT to promote growth of IT industry.

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Challenging factorsChallenging factors

y Retention and Motivation of workforce

y Currency fluctuation and volatility for most major

currencies

y Weak R&D capability

y Shortage of skilled manpower(poor quality of

technical graduates)

y Growing competition (China, Eastern Europe[BPO])

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Adverse effectsAdverse effects

y Diversion of a large tract of highly trained

professionals.

y Science/Engineering/Technology graduates moving

away from core areas to ITy Creation of a large quantity of un-employable

scientists and engineers by emphasising quantity

over quality

y

Lack of students pursuing higher education inIndian institutes

y Rising social inequality in the IT hubs

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Recent TrendsRecent Trends

y Cloudcomputing, Saas, Virtualization

y E-Governance

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Documents

IT Overview (1)