I.T Sector Presentation final(2)

8/7/2019 I.T Sector Presentation final(2)

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INFORMATIONINFORMATIONTECHNOLOGY SECTORTECHNOLOGY SECTOR

PRESENTED BY:-RAVDEEP BANSAL (A1802009036)POOJA NANDA(A1802009189)ROHIT SINGH(A1802009266)



OVERVIEWOVERVIEW



Information Technology has made possible information

access at gigabit speeds.

Indian IT firms and IT professionals have won world-widerecognition in terms of their technical competence, domain

knowledge, experience and expertise for offering quality IT

services, and their exposure to working on various

platforms and systems.

The Indian Information Technology- Information Technology-Enabled Services (IT-ITES) industry has continued to

perform its role as the most consistent growth driver for

the economy.

The revenue amassed by Indian information technologysector is estimated to have grown by over 5% to reach

$73.1 billion in 2009-10 as compared to IT/ITES exports of

US$ 46.3 billion in 2008-09



y Information Technology Industry in India 2010, provides acomprehensive understanding of the entire market dynamics of the Information technology sector to assist players interested in

assessing the market opportunities in this robust and dynamicmarket

y There are immense opportunities in the Indian hardware sectoras the IT sector continues to be as dynamic as ever. Withincreasing PC penetration in both corporate and home segments,

the opportunities for IT manufacturing companies are immense.

y The competitive edge of India·s IT capabilities is well recognizedglobally. Both hardware and software sectors have madeimportant strides in the past one decade. It is evident that themovement up the value chain in product design, involvingintegration of both hardware and software, commonly known as´embedded technologyµ, will truly be to the advantage of Indiaand the global IT industry.



y There is now a big opportunity to step up the productionto gain higher global share besides meeting the domesticdemands. The Government has identified growth of Electronics Hardware Manufacturing Sector as a thrustarea.

y National Manufacturing Competitiveness Council(NMCC) has been set up to provide a continuing forum

for policy dialogue to energise and sustain the growth of manufacturing industries in India and this includes ITHardware.

y Besides, a slew of measures like liberalization of foreigntrade policy for Electronics and IT products, simplified

customs and excise procedures, customs duty on specifiedcapital goods and raw materials for electronics hardwarebrought down to 0%., setting up of Electronics HardwareTechnology Parks (EHTP) and Special Economic Zones(SEZ) are set to boost manufacturing in the country



GLOBAL TECHGLOBAL TECHINDUSTRY WHEELINDUSTRY WHEELTOTAL: US $ 1690TOTAL: US $ 1690BILLIONBILLIONAll values in us $ bn



y Computer Equipment: 362bn US$o servers

o Pcs

o Storage

o peripherals

y IT Sourcing: 262bn US$o Application

o Mainf rame

o

Network o Computer h/ w suppor t



y IT Services: 309 bnUS$o Consulting

o System integration

y

Software :430 bnUS$o Application

o Os

o Custom by consulting

y Communication equipment: 335 bnUS$o Telcos

o enterprise



PRODUCTION CENTERSPRODUCTION CENTERS



Hyderabad

Pune

Banglore

Chennai

Delhi

Upcoming city

will beChandigarh

HYDERABAD

PUNE

BANGLORE

CHENNAI

CHANDIGARHDELHI







y The IT services exports is US $ 27.3 billion

in 2009-10.

y The total IT Software and Services

employment is expected to reach 2.29

million in 2009-10 (excluding employmentin Hardware sector).

y The IT-ITeS industry·s contribution to the

national GDP is estimated to increase from6.0 per cent in 2008-09 to 6.1 per cent in

2009-10.

Nasscom:-www.nasscom.org/htmlsite/aboutus.aspx?id=34



y BPO expor t segment grew by 14 per cent to

reach USD 14.1 billion in FY2011.

y Engineering design and pr oducts development segments generated revenues

of USD 11.3 billion in FY2011.

y With growth in domestic IT

market expected to outpace India·s GDPgrowth, the industry had a strong focus in this

segment. The domestic market grew by 16

percent to aggregate revenues of Rs 787 billion

y Direct employment within the IT-BPO sector to

grow by 10.4 per cent reaching 2.54 million,

with over 240,000 jobs being added in FY 2011



y In percentage share terms, production of Electronics

Hardware accounts for a share of 24.93 percent and

Software / Services accounts for 75.07 percent.

y Production of Electronics and Computer Software /

Services sector during the year 2008-09 registered a

growth of 23.93 percent (8.49 percent in US$ terms)over the year 2007-08.

y The annual average growth during the past five years in

the production of Electronics Hardware has been 16.67percent.

Source:-www.escindia.com/htmlsite/aboutus.aspx?id=34



y Electronics and Computer Software / Services sector

can be broadly segmented as below:

Computer Software and related services

ITeS / BPO

Computer Hardware

Electronics Components

Electronic instruments which includes

x Industrial equipments,

x Medical equipments,

x Office equipments

Consumer Electronics Telecommunication Hardware and related service



The sectoral contribution of the above segments inThe sectoral contribution of the above segments in

the Electronics and Computer Software / Servicesthe Electronics and Computer Software / Services

export during the year 2008export during the year 2008--09 is as shown.09 is as shown.



Production ProfileProduction Profile

Source: Ministry of Communication and Information Technology,Department of Information & Technology, Annual Report, 2008-09

16.19 22.1529.06

38.69

55.1461.98

9.52

10.97

12.3

14.34

18.35

20.58

0

10

20

30

40

50

60

70

80

90

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Electr onic and I.T Pr oduction Pr of ile (US$ Bln)

Computer Software Electronic Hardware



TRENDS IN EXPORTTRENDS IN EXPORT



India·s Electronics and ComputerIndia·s Electronics and Computer Software / ServicesSoftware / Services

export registered a growth of 38 percent (21 percent inexport registered a growth of 38 percent (21 percent in

US$ terms) during 2008US$ terms) during 2008--09 over the year 200709 over the year 2007--08.08.

Source:-www.escindia.com/htmlsite/aboutus.aspx?id=34



MAJOR EXPORT DESTINTIONSMAJOR EXPORT DESTINTIONS



MAJOR EXPORT DESTINATIONS FORMAJOR EXPORT DESTINATIONS FOR

COMPUTER SOFTWARE/SERVICESCOMPUTER SOFTWARE/SERVICES

(2008(2008--09)09)

58.42%30.50%

3.00%2.85%

1.70%1.20%

1.10%1.00% 0.15%

0.08%

North America(58.42)Europe(EUcountries)(30.5%)

Middle East (3.00%)

SG, HK, And SACountries(2.85%)Austrailia and OCEANC(1.7%) Japan Korea(1.20%)

Europe (Non-EUcountires) (1.1%)AfricanCountries(1.00%)

Source: www.escindia.com



MAJOR EXPORT DESTINATIONSMAJOR EXPORT DESTINATIONS

FOR ELECTRONIC HARDWAREFOR ELECTRONIC HARDWARE

(2008(2008--09)09)y Singapore, Hong Kong And South East

Asian countries has emerged to be thetop destinations for India's Electronic

Hardware exports in the year 2008-09with a growth percentage of 141% overthe year 2007-08

y

In Value terms the share of electronicexports in 08-09 is 1619 US$ mln ascompared to US$ 701 mln in the year2007-08.



EXPORT OF ELECTRONICS & COMPUTEREXPORT OF ELECTRONICS & COMPUTER

SOFTWARE /SERVICESSOFTWARE /SERVICES DURING THE YEAR 2008DURING THE YEAR 2008--0909

ESTIMATED CONTRIBUTION OF STATES / UNIONESTIMATED CONTRIBUTION OF STATES / UNION

TERRITORIESTERRITORIESS.No STATES/UNIONTERRITORIES 2008-2009

US $ MLN.

1 KARNATAKA 17253.75

2 MAHARASHTRA 11002.39

3 TAMIL NADU 10002.17

4 ANDHRA PRADESH 7090.67

5 HARYANA 3212.65

6 UTTAR PRADESH 3370.30

7 DELHI 1250.27

8 WEST BENGAL 1241.57

9 KERALA 666.45

10 PONDICHERRY 17.61



EXPORT FROM INDIA FOR LASTEXPORT FROM INDIA FOR LAST

FIVE YEARSFIVE YEARS



Segment wise export Revenue from IndiaSegment wise export Revenue from India

USD Billion FY2005 FY2006 FY2007 FY2008 FY2009

IT Services 13.5 17.8 23.3 31 35.2

Exports 10 13.3 17.8 23.1 26.9

Domestic 3.5 4.5 5.5 7.9 8.3

BPO 5.2 7.2 9.5 12.5 14.8

Exports 4.6 6.3 8.4 10.9 12.8

Domestic 0.6 0.9 1.1 1.6 1.9

Engineering Services

and R&D, software

Products 3.8 5.3 6.5 8.6 9.5

Exports 3.1 4 4.9 6.4 7.3

Domestic 0.7 1.3 1.6 2.2 2.3

Total Software and

Services Revenue 22.5 30.3 39.3 52 59.6

Of which, exports are 17.7 23.6 31.1 40.4 47

Hardware 5.6 7.1 8.5 12 12.1

Exports 0.5 0.6 0.5 0.5 0.3

Domestic 5.1 6.5 8 11.5 11.8

Total IT Industry(including Hardware) 28.1 37.4 47.8 64 71.7

S

ou

rc

e:

N

a

ss

c

o

m



Software And Hardware ExportsSoftware And Hardware Exports

Source:Nasscom

17.723.6

31.1

40.447

0.5

0.6

0.5

0.5

0.3

0

5

10

15

20

25

30

35

40

45

50

2004-05 2005-06 2006-07 2007-08 2008-09

Hardware

I.T Software and Services



Electronic ExportsElectronic Exports

1.73 2.092.71 2.86

6.78

0

1

2

3

4

5

6

7

8

2004-05 2005-06 2006-07 2007-08 2008-09

Electr onic Expor ts (USD Bln $)

Electronic Exports (USD Bln $)

Source: Electronic And Computer Software EPC (www.escindia.com)



MAJOR COMPETITORSMAJOR COMPETITORS







DEPB RatesDEPB Rates

y Duty Entitlement Pass Book Scheme is anexport incentive scheme.

y DEPB Scheme consisted of (a) Post-exportDEPB and (b) Pre-export DEPB.

y The benefit of DEPB schemes is available onthe expor t pr oducts having extraneous

material up to 5% by weight.





ASIDE(ASIDE( Assistance to States for Developing Assistance to States for Developing

Export Infrastructure and Allied ActivitiesExport Infrastructure and Allied Activities ))

y The objective of scheme is to establish a

mechanism for involving the State Governments to

participate in funding of infrastructure critical for

growth of exports by providing export

performance linked financial assistance to them.

Creation of new Export Promotion Industrial Parks/

Zones (SEZs/Agri Business Zones) and augmenting

facilities in the existing ones.

Setting up of electronics and other related infrastructurein export conclave.

Equity participation in infrastructure projects including the

setting up of SEZs.

Meeting requirements of capital outlay of EPIPs/

EPZs/SEZs.



MARKET ACCESS INITIATIVEMARKET ACCESS INITIATIVE

y Under MAI scheme, Financial assistance is provided (MAI) for

export promotion activities on focus country, focus productbasis.

y A whole range of activities can be funded under MAI scheme.

These include, amongst others,

i. Market studies/surveys,

ii. Setting up of showroom / warehouse,

iii. Participation in international trade fairs,

iv. Displays in International departmental stores,

v. Publicity campaigns,

vi. Brand promotion,

Under MAI, Each of these export promotion activities can receive financial

assistance from Government ranging `from 25% to 1 00% of total cost

depending upon activity and implementing agency.



MARKET DEVELOPMENTMARKET DEVELOPMENT

ASSISTANCEASSISTANCE

y Under MDA Scheme, financial assistance is provided

Assistance (MDA) for a range of export promotion

activities implemented by EPCs and Trade

Promotion Organizations on the basis of approved

annual action plans.

y Assistance includes, amongst others, Participation

in:

i. Trade Fairs and Buyer Seller meets abroad or in

India, and

ii. Export promotions seminars.

iii. Financial assistance with travel grant is available to

exporters



Expor t Pr omotion SchemesExpor t Pr omotion Schemes

The Foreign Trade Policy 2009- 20014 permits import of all kindsof computers (except second hand computers) in India without

any licenses.

Various schemes which include:y Expor t Oriented Units (EOUs) Scheme: The purpose of the scheme

was basically to boost exports by creating additional production capacity.

y Electr onics Har dwareTechnology Parks (EHTPs): Electronics

Hardware Technology Park (EHTP) complexes can be set up by the CentralGovernment, State Government, Public or Private Sector Undertakings or

any combination thereof, duly approved by the Inter- Ministerial Standing

Committee (IMSC) in the Ministry of Communication and Information

Technology (Department of Information Technology).



Software Technology Parks (STPs): The Software Technology Parks

of India (STPI) have been set up by the Ministry of Information

Technology, Government of India and the International Technology Park

in a joint project by the State Government.

Special Economic Zone (SEZ) Scheme: SEZs are being set up to

enable hassle free manufacturing and trading for export purposes. Sales

from Domestic Tariff Area (DTA) to SEZs are being treated as physical

export. This entitles domestic suppliers to Drawback/ DEPBbenefits, CST exemption and Service Tax exemption. Certain

exemptions like Income Tax exemption on export profits is available to

SEZ Units for 5 years, 50% for next 2 years and 50% of ploughed back

profits for 3 years thereafter are available for units in these designated

areas/zones.

Expor t Pr omotion Capital Goods (EPCG) Scheme: The EPCG

Scheme allows import of capital goods for pre-production, production

and postproduction at 5% customs duty subject to export obligations.



Supplies of Information Technology Agreement (ITA-1)

items and notified zero duty telecom/electronic items in the

Domestic Tariff Area (DTA) by EOU/EHTP/STP/SEZ units are

counted for the purpose of fulfillment of positive Net ForeignExchange Earnings (NFE).

IT- task for ce: As an initiating step, a high powered National

Task Force on IT and Software Development was set up by thePrime Minister's Office on May 22, 1998, under the

Chairmanship of the Deputy Chairman of Planning Commission.

This taskforce has mandate to formulate the draft of a National

Informatics Policy.





STQC - Standar dization Testing andQuality Cer tif ication:STQCDirectorate is an attached office of the Department of InformationTechnology(DIT), Government of India, provides quality assurance services inthe area of Electronics and IT through countrywide network of laboratories

and centers.

The services include testing, calibration, training and certification to public andprivate organizations. These laboratories are having national/Internationalaccreditation and recognitions in the area of testing and calibration.

In the area of Information Technology, STQC provides assurance servicesthrough its six IT Centers for Software Quality testing, Information Securityand IT Service Management by conducting testing, training, audit andcertifications.

y Indian software organizations adopted the ISO model soon after it

came

y In the software services industry context, the role of the capability maturitymodel (CMM) has also been examined as a source of process and quality-level capabilities at the firm level







PEOBLEMS/CHALLENGESPEOBLEMS/CHALLENGESFACED BY EXPORTERSFACED BY EXPORTERS



US economy slowing down - particularly the Banking and

Insurance segments

Lack of Incentives from the Government - sunset clause for STPI

units

Failure to attract and retain top talent at all levels -Executive, Middle and Senior Management

Bad media publicity - always showing the ill affects of working

Failure by the Companies to project 'careers' instead of 'jobs'

Poor perception by the job seeker



y Piracy of Software

The Government has set up a Copyright

Enforcement Advisory Council to review theprogress of enforcement of the Copyright Act,

that prohibits the sale of any unauthorized copy

of the computer programme.

In India, the Intellectual Property Rights (IPR) of software is covered under Copyright Law

The Government has also set up a Copyright

Enforcement Advisory Council



y Cyber Crimes

PHYSICAL SECURITY

ACCESS CONTROL

USING INTRUSION ALERT PROGRAMS

USING ENCRYPTION

India has enacted the first I.T.Act, 2000



RELATED NEWS ARTICLESRELATED NEWS ARTICLES



y TCS, Infy, Wipr o, HCL, Tech Mahindra gain the

most f r om global revival

Economic Times http://economictimes.indiatimes.com/articleshow/7

063965.cms

y Indian IT sector now in good shape, set for

good gr owth: TCS

Economic Times

http://economictimes.indiatimes.com/articleshow/7062133.cms



y Attrition rates in Indian IT companies stabilizing

Information Week

http://www.informationweek.in/IT_ITES/10-11-

29/Attrition_rates_in_Indian_IT_companies_stabilizing.aspx

y TCS signs $19 million deal with Indian Bank Economic Times

http://economictimes.indiatimes.com/tech/ites/TCS-signs-

19-million-deal-with-Indian-

Bank/articleshow/7111179.cms





y STQC - Standardization Testing and Quality

Certificationy Dept. of Information Technology, Ministry of

Communications & Information Technology -

http://mit.gov.iny Business maps of India

y www.escindia.in

y

www.ibef.orgy www.nasscom.in



y THANK YOU

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I.T Sector Presentation final(2)