Contents 1. Introduction 2. Market Size 3. Investments 4. Government Initiatives 5. Manufacturing facilities 6. Role of IT Industry in India GDP-Facts 7. SWOT Analysis 8. Technical Analysis 9. Conclusion 10. Bibliography
INTRODUCTION The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM industry. India is theleading sourcing destination across the world, accounting for approximately 55 per cent market share of the US$ 185-190 billion global services sourcing business in 2017-18. Indian IT & ITeS companies have set up over 1,000 global delivery centres in about 80 countries across the world. More importantly, the industry has led the economic transformation of the country and altered the perception of India in the global economy. India's cost competitiveness in providing IT services, cost savings of 60 70 per cent over source countries, continues to be the mainstay of its Unique Selling Proposition (USP) in the global sourcing market. However, India is also gaining prominence in terms of intellectual capital with several global IT firms setting up their innovation centres in India. India has become the digital capabilities hub of the world with around 75 per cent of global digital talent present in the country.today, Indian IT companies such as Tata Consultancy Services (TCS), Wipro, Infosys, HCL etc arerenowned in the global market for their IT prowess.some of the major factors which played a key role in India's emergence as key global IT player are: Indian Education System High Quality Human Resource Competitive Costs Infrastructure Scenario
Tata Consultancy Services is an IT services, business solutions and outsourcing organization that deliversreal results to global businesses, ensuring a level of certainty that no other firm can match.tcs offers aconsulting-led integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Model (GNDM ), recognized as the benchmark of excellence in softwaredevelopment.tcs ispart of the Tata group, one of India s largest industrial conglomerates and mostrespected brands. TCS has over 238,583 of the world s best -trained IT consultants in 42 countries. Revenue of $10.17 billion (fiscal year ending March 31, 2012). Established in 1968, Tata Consultancy Services has grown to its current position as thelargest IT services firm in Asia on the basis of outstanding service record, collaborative partnerships, innovation and corporate responsibility.
MARKET SIZE The internet industry in India is likely to double to reach US$ 250 billion by 2020, growing to 7.5 per cent of gross domestic product (GDP). The number of internet users in India is expected to reach 730 million by 2020, supported by fast adoption of digital technology, according to a report by National Association of Software and Services Companies (NASSCOM). Indian IT exports increased to US$ 126 billion in FY18 while domestic revenues (including hardware) advanced to US$ 41 billion. Indian IT and BPM industry is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50-55 billion out of the total revenue. Total spending on IT by banking and security firms in India is expected to grow 8.6 per cent year-on-year to US$ 7.8 billion by 2017!!. India s Personal Computer (PC) shipment advanced 11.4 per cent year-on-year to 9.56 million units in 2017 on the back of rise in the quantum of large projects. Revenue from digital segment is expected to comprise 38 per cent of the forecasted US$ 350 billion industry revenue by 2025.
INVESTMENT/MAJOR DEVELOPMENT Indian IT's core competencies and strengths have attracted significant investments from major countries. The computer software and hardware sector in India attracted cumulative Foreign Direct Investment (FDI) inflows US$ 29.825 billion from April 2000 to December 2017, according to data released by the Department of Industrial Policy and Promotion (DIPP). Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra, are diversifying their offerings and showcasing leading ideas in blockchain, artificial intelligence to clients using innovation hubs, research and development centres, in order to create differentiated offerings. Some of the major developments in the Indian IT and ITeS sector are as follows: Nasscom has launched an online platform which is aimed at upskilling over 2 million technology professionals and skilling another 2 million potential employees and students. Revenue growth in the BFSI vertical reached nearly 9 per cent y-oy in the fourth quarter of 2017-18. As of March 2018, there were over 1,140 GICs operating out of India. Private Equity (PE)/Venture Capital (VC) investments in India's IT & ITeS sector reached US$ 7.6 billion during April-December 2017.
Role of Information Technology Iindustry in India GDP Facts:- The IT industry in India is a key part of the country s economy. In 2013, information technology and its various subsectors represented 8 percent of the nation s overall GDP, making it the fifth largest industry in India. In the 2014/15 financial year alone, the IT industry in India generated an annual revenue of around 120 billion U.S. dollars, a significant increase from around 60 billion U.S. dollars in 2008/09. Of this revenue in 2015, the majority, 98.1 billion U.S. dollars, was generated in exports while domestic revenue totaled more than 20 billion U.S. dollars. As the IT industry in India continues to increase, end-user spending on the market is also forecast to rise, albeit slowly. IT end-user spending in the country stood at 67.4 billion U.S. dollars in 2013 and this figure is projected to hit 79 billion U.S. dollars by the end of 2016. About a third of this spending in 2016 will be in the devices market, with telecommunications services accounting for another third - approximately 29 billion U.S. dollars. Some of the biggest IT service providers in India include IBM and HP, as well as Indian-based companies, Wipro and Tata Consultancy Services (TCS). Overall, in 2013, the IT industry in India provided direct employment to 3 million people and indirect employment to almost 10 million. Of these employees, over 275,000 worked for TCS and a further 156,700 worked at Infosys, based in Bangalore. TCS is the largest Indiabased IT services company with its revenue reaching 979 billion Indian
rupees in 2015 (roughly 14.5 billion U.S. dollars). This ranks it as one of the world s largest IT services providers, by revenue. Latest update: August, 2018 India s services sector GVA grew at a CAGR of 6.93 per cent to US$ 1,266.1 billion in FY18E from US$ 846.8 billion in FY12. In terms of overall GDP India ranks 5th in 2017 and in terms of services GVA India ranked 13th as of 2015. Growth rate of financial, real estate and professional services is expected to reach 11.07 per cent in FY18. Trade, hotels, transport, communication and services related to broadcasting are expected to grow at 11.88 per cent in FY18.
SWOT ANALYSIS:- A strengths, weaknesses, opportunities, and threats (SWOT) analysis revealed the following observations. Strengths Highly skilled human resource. Cheap workforce than their Western counterparts. According to NASSCOM, the wages difference is as high as 70-80 percent when compared to other Western counterparts. Quality of work. Lower attrition rates than on the West. Initiatives taken by the Government (setting up Hi-Tech Parks and implementation of e-governance projects). Many global players have set-up operations in India like Microsoft, Oracle, Adobe, etc. Following Quality Standards such as ISO 9000, SEI CMM etc. English-speaking professionals. Cost competitiveness. Quality telecommunications infrastructure. Indian time zone (24 x 7 services to the global customers). Time difference between India and America is approximately 12 hours, which is beneficial for outsourcing of work.
Weaknesses Absence of practical knowledge. Dearth of suitable candidates. Less Research and Development. Contribution of IT sector to India s GDP is still rather small. Employee salaries in IT sector are increasing tremendously. Low wages benefit will soon come to an end. Recent months have seen a rise in the level of attrition rates among IT workers who are quitting their jobs to pursue higher studies. Of late workers have shown a tendency not to pursue IT as a full-time career. The cost of telecom and network infrastructure is much higher in India than in the US. Opportunities High quality IT education market. Increasing number of working age people. India s well developed soft infrastructure. Upcoming International Players in the market. To capitalise and encash on the already established image of India being portrayed as the most favoured IT destination in the world. Opportunities for Indian companies to work closely with western Governments and assure their concerns and issues. India can be branded as a quality IT destination rather than a lowcost destination.
Threats Lack of data security systems Countries like China and Philippines with qualified workforce making efforts to overcome the English language barrier. Countries like China and Philippines with qualified workforce making efforts to overcome the English language barrier. IT development concentrated in a few cities only. The anti-outsourcing legislation in the US state of New Jersey. Three more states in the US are planning legislation against outsourcing. Workers in British Telecom have protested against outsourcing of work to Indian BPO companies. Other IT destinations such as China, Philippines and South Africa could have an edge on the cost factor.
TECHNICAL ANALYSIS MINDTREE LIMITED Technical Recommendation: As per technical chart MindTree Limited is showing strong buying has it had formed last three white soldiers and bullish engulfing which is giving buying signal for long traders. And also can see continuous buying in above stock from around last 2-3 months. Good stock for long term buying around 3months rates are expected to reach toward the level of 1190.00. As per super trend also buying is being watched and other indicators like Bollinger band, macd and crossovers are also indicating same. On other hand relative strength index oscillator is also showing huge buying as its laying at the value of near 67range soon it may cross the 70 and can go towards 80 in over buying zone. As per technical view. BUY AROUND MINDTREE 1190.00 TG-1240.00/1340.00 SL-1130.00.
TECH MAHINDRA LIMITED Technical Recommendation: As per technical chart tech mahindra limited is showing strong buying has it had formed last bullish engulfing & three white soldier which is giving buying signal for long traders. And also can see continuous buying in above stock from around last 2-3 months. Good stock for long term buying around 3months rates are expected to reach toward the level of 785. As per super trend also buying is being watched and other indicators like Bollinger band, macd and crossovers are also indicating same. On other hand relative strength index oscillator is also showing huge buying as its laying at the value of near 67range soon it may cross the 70 and can go towards 80 in over buying zone. As per technical view. BUY TECHM AROUND 785.00 TG- 830.00/ 885.00 SL-760.00.
WIPRO LIMITED Technical Recommendation: As per technical chart wipro limited is showing strong buying has it is form candle stick pattern morning doji star bearish & three outside up than reversal from which is giving buying signal for long traders. And also can see continuous buying in above stock from around last 2-3 months. Good stock for long term buying around 3months rates are expected to reach toward the level of 338.00. As per super trend also buying is being watched and other indicators like Bollinger band, macd and crossovers are also indicating same. On other hand relative strength index oscillator is also showing huge buying as its laying at the value of near 67range soon it may cross the 70 and can go towards 80 in over buying zone. As per technical view BUY WIPRO AROUND 338.00 TG-345.00/365.00 SL-325.00
Conclusion: The evolution of information technology reached a turning point with the development of the Internet. Once a government project, the Internet was created for military purposes. Through the course of its development, researchers began finding other uses for the network, and use of the technology spread worldwide. Access to the Internet today by individuals, businesses, and institutions alike has created a global market for Internet service and has spurned an increase in productivity in the technological communication field. Our research compares Internet development, access, and use in the United States and Russia. Our surveys proves our prediction that access to the Internet in Russia is limited compared to the access exercised by American users. A condition resulting from world relations during the early development of the Internet, access in Russia is increasing with 5.4 million people currently able to access the service. However, in the midst of the global rush to embrace the Internet, some concerns have been raised regarding personal, business, and government access, and the nature of information being transmitted across the information superhighway. Unfortunately, in addition to the educational, commercial, personal, and governmental uses of the Internet, global use of the Internet also includes Internet fraud, transmitting of illegal items, and certain forms of harassment. As we venture farther into the Information Age, the nature of life is evidence that future global development will undoubtedly depend on technological advances, particularly in communications. Understanding the underlying reasons certain types of technologies are in use today plays an important part in the overall use of technology. In addition, although the importance of these advances might be obvious, true comprehension of a particular kind of technology lies in the full experience of the machine in question. Advances made in the technology of the Internet have continued to dazzle its spectators, obstructing comprehension of its origin and initial uses. These phenomena might be due to the rapid change of technology, and the pace at which individuals and businesses are becoming dependent on them. At any rate, the technological movement will continue to evolve, and since it is evident that a complete understanding of technology is unnecessary for its utilization, only those who lack access will be left behind.
Bibliography:- Websites: www.google.co.in http://www.slideshare.net https://en.wikipedia.org/wiki www.ibef.org/industry.aspx www.business.mapsofindia.com Thank you!!