ACKNOWLEDGEMENT

It is a matter of great privilege & immense pleasure to be sited by an esteemed organization INDIA INFOLINE LTD. For the development of project database I feel a deep sense of gratitude.

- To Mr. Anuj Bhargava (Sales Manager, IIL)that in spite of his busy schedule he gave me personalattention & guidance at every stage without which theproject could not have taken concrete shape.

- I am also thankful to Colonel Sudhir Mehta (Dean, ISBM), Ms. Ankita Jain (Coordinator B.B.A.) and Ms. Ritu Dixit for proper guidance and assistance for undertaking the project in INDIA INFOLINE LTD.

(ANIRUDDH MATHUR) Dated:

1 | P a g e

PREFACE

The report is an outcome of training undertaken at theINDIA INFOLINE LTD., JAIPUR.Training aims at imparting practical exposure of the working environment of an organization and theoretical aspect of IT Sector.

Summer training is a part of curriculum of theBachelor of Business Administration under the aegis ofUniversity Of Rajasthan. In compliance with that Gyan ViharUniverse as made it compulsory for all of its management students to undergo such training.

The project assigned to me by the INDIA INFOLINELTD., JAIPUR was an Overview of IT Sector. More specifically it is about research on finding out strengths, weaknesses, opportunity and threats to the IT Sector.

The project is an upshot of my sincere efforts and I affirm that the findings in the report are independent & correct to the best of my knowledge & belief. I sincerely hope that this report would prove to be useful to the organization & to all students of management.

2 | P a g e

TABLE OF CONTENTS

Page number

1. Acknowledgement ………………………………………….1

2. Preface ……………………………………………………....2

3. Executive Summary …………………………………………4

4. Objectives Of The Report……………………………………6

5. Introduction to India Infoline………………………………..8

6. About India Infoline Ltd……………………………………..9

7. India Infoline Business model………………………………11

8. India Infoline Corporate structure………………………......12

9. Management hierarchy at India Infoline Ltd………………..14

10. Types of Depository Participant…………………………...16

11. Diagrammatic Representation of Online Trading

Network…………………………………………………….18

12. IT Companies – a Brief with e.g.…………………………...20

13. SWOT Analysis of Indian IT Sector……………………….33

14. Findings & Conclusion..........................................................44

15. Recommendations.................................................................46

16. Appendix – Bibliography......................................................47

3 | P a g e

EXECUTIVESUMMARY

4 | P a g e

EXECUTIVE SUMMARY

The objective of the project was to find out the Strengths, Weaknesses, Opportunities and Threats. To execute the study I preferred to understand the same through internet.

After undergoing the training about the “know-how” of the products and the company features, I started collecting data majorly through internet & reading tabloids. This doesn’t required preparing any questionnaire. My primary aim was to find out the reasons that made IT sector so popular.

The study recognizes that emergence of a strong IT industry happened due to concerted efforts on the part of Government, particularly since 1980s, and host of other factors like Government- Diaspora relationships, private initiatives, emergence of software technology parks, clustering and public private partnerships. In this study we further look at major parameters of the Indian IT industry and give justification for including the main factors responsible for the IT boom in India. The study has looked into the past and present trends of the Indian IT industry that acted as catalyst for Indian IT sector growth.

5 | P a g e

OBJECTIVES OF

THE PROJECT

6 | P a g e

OBJECTIVES

To understand & analyze IT Sector’s growth formula

To clearly point out and justify IT Sector’s

- Strengths - Weakness - Opportunities - Threats

To make an attempt to peep into IT/ITES (BPO) sector’s history right from its origin in Indian Economy.

To understand factor that stimulate IT/ITES sector growth.

To analyze underlying growth catalysts of Indian IT/ITES sector.

7 | P a g e

INTRODUCTION TO INDIA INFOLINE LTD.

8 | P a g e

Incorporated on October 18, 1995 as Probity Research & Services by a group of professionals

Launched Internet portal www.indiainfoline.com in May 1999 – Rated as “Best of the Web” by Forbes

Promoted by Mr. Nirmal Jain and Mr. R. Venkataraman

Launched 5paisa.com – revolutionized brokerage rate

Largest distributor of ICICI Prudential Life Insurance

Our Rs. 900 million public issue was oversubscribed 7.22 times

Listed on NSE and BSE on May 17, 2005

Today, we are one of the fastest growing company in the financial services space

A LEADING FINANCIAL SERVICES INTERMEDIARY

9 | P a g e

Our businesses

Equities and commodities broking

Portfolio and Wealth Management services

Investment banking

Distribution of Life Insurance products

Distribution of Mutual funds, Fixed Deposits, RBI Bonds and Small Savings among others

Distribution of Mortgages and other Loan products

10 | P a g e

Business model

11 | P a g e

DIAGRAMMATIC REPRESENTATION Of

CORPORATE STRUCTURE Of

INDIA INFOLINE LTD.

12 | P a g e

13 | P a g e

MANAGEMENT HIERARCHY AT

INDIA INFOLINE LTD.

14 | P a g e

Management Hierarchy at IndiaInfoline Ltd.

15 | P a g e

TYPES OF DEPOSITORY PARTICIPANT

16 | P a g e

TYPES OE DEPOSITORY PARTICIPANT

17 | P a g e

DIAGRAMATIC REPRESENTATION Of ON-LINE TRADING NETWORK

18 | P a g e

ONLINE TRADING NETWORK

19 | P a g e

NSE's Mainframe

Hub antenna

Satelite

Broker's Premise

(Information Technology)IT Companies - A Brief

Information Technology

20 | P a g e

The organizations which manufactures such software’s that help each & every company to use raw data with its full meaning at the right time in order to grab the opportunities for its growth & development.

All the listed IT Companies at BSE are well-known as Blue Chip companies. There are many such examples like Tata Consultancy Services (TCS), Wipro, Infosys, etc.

21 | P a g e

Ranked 2 in 2005by NASCOMM

Incorporated – 1991 Revenues – USD 2.04Bn 52,700 employees.

IT MAJOR’S PROFILE-BRIEF

22 | P a g e

TATA CONSULTANCY SERVES (TCS)

ProfileTata Consultancy Services is an IT services, business solutions and outsourcing organization. The company offers consultancy in IT and IT-enabled services delivered through its unique Global Network Delivery Model TM

Established in 1968 in Mumbai, TCS now has over 111,000 IT consultants in over 50 countries. The company is listed on the National Stock Exchange and Bombay Stock Exchange in India.

Areas of businessTCS has experience and expertise across industries — banking and financial services, life sciences and healthcare, insurance, government, travel, transport and hospitality retail, high technology, telecommunications, energy and utilities.

IT services: Providing system integration solutions, application development, management services and testing solutions.

Business solutions: Comprehensive strategies and solutions that enable customers to overcome their business challenges.

Outsourcing: Scalable services and program me’s that help to optimize discrete functions and manage entire business solutions and service areas at reduced costs and risks.

Consulting: Defining business goals, devising strategies, implementing solutions and verifying the effectiveness of these solutions.

Business process outsourcing: Adding value through industry specific offerings, cross industry shared services and platform-based solutions to bring in process improvements and process automation.

Engineering and industrial services: Profit impacting innovative solutions for the manufacturing sector — aerospace, automotive, hi-tech, industrial machinery, utilities, pharmaceuticals, etc — to enable companies to achieve engineering excellence and operational efficiency.

Business intelligence and performance management: Business activity monitoring, business process and performance management, and knowledge discovery and management.

Enterprise solutions: Managing supply chains, devising CRM strategies, deploying ERP solutions, integrating enterprise-wide functions, etc. TCS expertise spans enterprise product platforms, supply chain management, master data management, customer relationship management, RFID, call management and e-learning.

IT infrastructure services: IT service desk, data centre management, end user computing services, application management services, command centre services and managed security services.

Full service offerings: Integrated services across consulting, IT services, BPO, engineering services, business and enterprise solutions, etc.

23 | P a g e

Innovation catalyst: TCS has set up innovation labs that work in new technology areas and attempt to achieve breakthroughs in new products and standards. Areas include next generation software processes, human-computer interface, bioinformatics, nanotechnologies, embedded solutions, grid computing, utility computing and other technologies. TCS has also set up the Co-Innovation Network – an IT innovation ecosystem that includes representation from strategic corporate alliances, start-up companies, academic institutions, venture funds and multi-lateral organizations. The aim is to develop solutions for collaborative innovation and management of intellectual property.

Share market Position

Tata Consultancy Services (TCS) on March 16, 08 displaced IT major, Infosys Technologies in market cap ladder to clinch the fourth position with market cap of Rs 87,760 crore. TCS share price has risen by 9.48 per cent to Rs 1,830 on BSE between January 10, 2006 and till March 13, 2006. TCS on March 16 was 1.5 times more than the average volume during the last 2 months.

Tata Sons Ltd, the holding company that runs Ratan Tata's industrial empire, is planning to raise $2 billion (Rs 9000 crore) by offering a part of its holding in information technology leader Tata Consultancy Services (TCS) through a  listing in the US market. TCS is planning to do a sponsored ADS issue on the US bourses in the near future, where Tata Sons, as a promoter, will offer part of its own holding of domestic shares for conversion to American shares.

This would be the first sponsored issue by TCS, India's largest software exporter, outside India. 

TCS has a current market capitalization of around Rs 1, 25,000 crore ($28 billion).  The company had its market debut in August 2004 when it made an initial public offering at Rs 850 per share. Even after a bonus issue in a one-for-one ratio, the share is currently trading at around Rs 1,263.

The promoters' holding in TCS is at 83.65 per cent, of which Tata Sons alone controls 79.5 per cent.

24 | P a g e

WIPRO- Applying Thoughts

Coming off its strongest year since 2000, Wipro grew at 43% in 2004. The company has branched out from offerings such as software development, R&D, and applications maintenance to providing remote infrastructure management, financial services, and applications and product testing. All that while maintaining its position as the world’s largest third-party R&D provider. Wipro, which gets the majority of its revenue from the U.S., is pushing further in Europe and expects to make some acquisitions there this year. At home, the company’s back-office operation, Wipro BPO, got a jolt when Chief Executive Raman Roy quit in early June to start another business. The $150 million operation, mostly call-center work, will move into higher-end back-office jobs such as insurance processes in order to achieve greater profitability and to stem the high employee attrition to new foreign players. Wipro Limited was founded in 1945.The company is headquartered in Bangalore, India.

Company Info

STOCK INFO $ 11.64(NYSE)

REVENUES* $1.9 BILLION

Revenue Growth 39.2%

RETURN ON EQUITY 27.9%

Total Return 41.4%

PROFITS* $363 MILLION

Industry SERVICES

The company is also listed in New York Stock Exchange (NYSE), Munich Stock Exchange, Berlin Stock Exchange and many more. On 6 July, 08 it was priced at $ 11.64.

25 | P a g e

INFOSYS TECHNOLOGIES

Infosys, India's No. 2 software services exporter, grew nearly 50% in 2004, to $1.59 billion in revenues. And it's well on its way to cross $2 billion this year. Progeon, the unit that manages business processes, is doubling every year and expects to reach $80 million in sales this year. Thrilled investors in India value it more than rival Tata Consultancy Services, which is two-fifths bigger in revenues. Infosys customers are happy too: 19 out of 20 come back to the Bangalore company with repeat orders. Now, Infosys has its eye on China. Of the 12,600 people it will hire this year, nearly 1,000 will be at its Shanghai offices.

Company Info

STOCK INFO $42.60(NASDAQ)

REVENUES* $1.6 BILLION

Revenue Growth

49.8%

RETURN ON EQUITY

33.4%

Total Return 75.2%

PROFITS* $419 MILLION

Industry SERVICES

Company Snapshot Infosys Technologies Limited provides consulting and information technology services primarily in North America, Europe, and the Asia-Pacific region. Its solutions include custom application development, maintenance and production support, software re-engineering, package evaluation and implementation, and information technology consulting. The company also provides testing services, operations and business process consulting, engineering services, business process management, systems integration, and infrastructure management services. In addition, Infosys Technologies provides software products to the banking industry and business process management services. It also provides business process management services, such as offsite customer relationship management, finance and accounting, and administration, and sales order processing. The company is headquartered in Bangalore, India. The company is also listed in NASDAQ, Berlin Stock Exchange, Munich stock Exchange and many more.

26 | P a g e

SATYAM COMPUTER SERVICES LIMITED

After years of status as the far-behind No. 4 to the Big Three Indian software companies, Satyam is finally catching up. It will hit $1 billion in revenues this year, thanks to expansion into new areas such as infrastructure-management and software for engineering processes in the auto and defense industries. That's in addition to the application-maintenance work the company ran on for years.

Satyam's deals are getting bigger, too. The company boasts more $1 million contracts from clients these days than it did two years ago. Satyam already has a large U.S. presence and is wooing clients in non-English-speaking countries in Europe, Latin America, and northern Asia.

Company Info

STOCK INFO $24.60(NYSE)

REVENUES* $793.6 MILLION

Revenue Growth 40.1%

RETURN ON EQUITY

20.0%

Total Return 27.7%

PROFITS* $153.8 MILLION

Industry SERVICES

Company Snapshot Satyam Computer Services Limited offers consulting and information technology (IT) services worldwide. The company operates in three segments: IT services, Business Process Outsourcing (BPO), and Software Products. The IT Services segment provides a range of services, including software development, packaged software integration, system maintenance, and engineering design services. Its BPO segment provides services covering human resource, finance and accounting, customer contact, and transaction processing. Its Software Products segment engages in the product development and creation of propriety software. The company offers services to customers in a range of industries, including insurance, banking and financial services, manufacturing, telecommunications, transportation, and engineering services. The company markets its services primarily to companies in the United States, Europe, the Middle East, and the Asia-Pacific region. The company has a strategic alliance with Mind Flow Technologies Inc. Satyam was organized in 1987 and is headquartered in Hyderabad, India. The company is also listed in NYSE (New York Stock Exchange) with $24.60 on 6July, 08.

27 | P a g e

GROWTH OF INDIAN IT SECTOR

28 | P a g e

Growth of Indian IT Sector

The Indian IT / ITES industry has been one of the great success stories of modern India. An industry that did not exist barely 2 decades ago is now the toast of the nation and the envy of the world. It is arguably the most global of any Indian industry and has created international benchmarks for quality, proving to the world and to ourselves that Indian companies can compete globally and win on quality.

BMI (Business Monitor International)

Forecasts IT-market CAGR during the next two years of our forecast period of 13%, compared with expected GDP growth of between 7%-8%. The potential of India's IT market is plain: less than 2% of people in India own a computer, about one-fifth of the level in China, meaning particular potential in the lower-end product range. Significantly, 45% of India's population is under 25, which should boost PC and IT usage. Mindful of increasing global vendor interest, a number of federal and local government initiatives to encourage hardware production have been designed. Despite a number of potential difficulties, including regional imbalances, low incomes and a possible demand slowdown, India should therefore confirm its potential as a key emerging market over the forecast period.

29 | P a g e

FACTORS RESPONSIBLE FOR

THE GROWTH OF IT SECTOR

Stimuli for IT Sector Growth

The Indian IT sector is expected to continue on an upwards path through 2008 and beyond driven not only by continued growth in off shoring, but also by a growing domestic market for hardware

30 | P a g e

and solutions. The total size of the IT market is forecast by BMI to increase from US$11.8bn in 2007 to around US$21.7bn in 2012, with drivers including new tax incentives for hardware manufacturers, falling computer prices, and the government's ambitions to connect the vast rural areas to the outside world. However, there are a number of risks to our forecast scenario. India's legal regime for patent protection remains flawed, while measures to encourage the domestic hardware sector have had mixed results, and the important BPO sector faces a strong challenge from other market including China.

Key Growth Drivers of Indian IT/ITES

Abundant Talent- India’s young demographic profile is an inherent advantage complemented by an academic infrastructure that generates a large pool of English speaking talent.

Sustained cost competitiveness- India has a strong track record of delivering a significant cost advantage, with clients regularly reporting savings of 25-50 percent over the original cost base.

Continued focus on quality- Over the years, the industry has built robust processes and procedures to offer world class IT software and technology related services.

World class information security environment- Stakeholders of Indian BPO recognizes fool proof security as an indispensable element of global service delivery.

Enabling Business policy and Regulatory environment- The enabling policy environment in India was instrumental in catalyzing the early phases of growth in this sector. The Indian ITES-BPO sector has benefited from this approach, with participating firms enjoying minimal regulatory and policy restrictions along with a broad range of fiscal and procedural incentives.

Increasing value of dollar ($) - Recently increasing trend in Dollar value has also increased income of many IT/ITES.

31 | P a g e

SWOT ANALYSIS OF IT MAJORS

STRENGTHS

Strengths of IT/ ITES like BPO can be counted as Infrastructure Elements, Qualitative factors and Government or Regulatory Environment. All Strengths are well presented in the form of a diagram as below:

32 | P a g e

To become a global leader in the IT industry and retain that position , India needs to constantly keep moving up the value chain, focusing on finished products and solutions, rather purely on skilled sets and resumes. India needs to be able to package their services as products, rather offering them as raw material.

Government Regulations & Policy.

33 | P a g e

The Government of India is providing for more liberal policy framework for the IT Sector. Government & NASSCOM have worked together in close cooperation over a long time for forming and implementing these policies.

WEAKNESSES

Weakness of Indian IT/ITES sector does not count much but yet pose hurdles in achieving 100% growth as year per year targets determined by Indian Ministry of Information Technology. Some of weaknesses are hereunder:

34 | P a g e

Lack of proper telecommunication infrastructure.

Slow speed of new business registration.

Absence of practical knowledge.

Dearth of suitable candidates.

Less Research and Development,

Contribution of IT sector to Indian’s GDP is rather small.

Employee salaries in IT sector are increasing tremendously.

Low wages benefit will soon come to an end.

The IT/ITES industry has made a beginning and with the encouragement and support of NASSCOM and NASSCOM Foundation, it is on track to set an example that would encourage others to emulate and help change the face of India.

OPPORTUNITIES

IT/ITES are on the side to avail many opportunities which can be classified as:

35 | P a g e

Huge Market Potential

Large Talent Pool available

36 | P a g e

Attractive Cost Savings

37 | P a g e

Infrastructure being beefed up.

38 | P a g e

Proactive Regulatory Bodies.

39 | P a g e

These were some opportunities available to IT/ITES which can help it overcome its weaknesses.

THREATS

For Indian IT/ITES threats are posed in the same way as their weaknesses which have to be overcome as soon as possible.Some of the threats are given below:

Lack of proper data security systems.

40 | P a g e

Countries like China and Philippines with qualified workforce making efforts to overcome the English Language barrier.

IT development concentrated in a few cities only.

Still lack of English versed candidates especially in rural areas.

Ever changing IT/ITES policy as of unstable Government.

RECENT DEVELOPMENTS IN INDIAN IT SECTOR

Growth in Indian IT Sector can well be reflected by their quarterly results as recently shown by

Infosys Q1,2008 net rises 21% to Rs.1,302 crore Wipro Q1,2008 net profit up 25% at Rs.908 crore Satyam Q,2008 net rises 45%

Attrition Rate which reflects the job hobbing tendency among employees is also lowering down due to the introduction of new bond agreement at the time of selection of the candidate.

41 | P a g e

IT companies are devising new strategies to ward off pressure on bottom lines due to recessionary trends in the US. They are now looking at non-linear growth models to shore up revenues. It means that instead of deploying more manpower, the focus will be on raising output by offering high-value services and acquiring expertise in niche areas. The new model could trigger consolidation in the market and ensure better pricing of products and services.

In line with the government's intent to set up 20 additional Indian Institute of Information Technology (IIIT) across the country in the 11 Five Year Plan, NASSCOM, the trade body representing the Indian IT-BPO industry, has recommended locations including Jammu, Dehra Dun, Chandigarh, Delhi, Lucknow, Patna, Shillong and Kolkata, for setting up of the new institutes of excellence.

42 | P a g e

CONCLUSION & SUGGESTIONS

CONLUSIONS

43 | P a g e

The domestic market in India has come of an age now and beyond 2006 it is expected to show faster growth compared to the IT/ITeS export revenue.

The market for domestic ITeS/BPO segment has been estimated at Rs. 3,800 crore in 2005 and is

expected to grow at a 55% CAGR to touch rs.30, 000 crore by 2010.

NASSCOM Mckinsey Reports that the IT industry is likely to create over nine million by 2009.

Lack of information infrastructure is considered to be one of the major impediments in the diffusion of Information and Communication technologies.

In urban areas, tele-density has reached 31%. However, tele-density in the rural areas at 2% remains low.

Government can influence the growth of IT/ITeS by embarking on economic policies aimed at affecting not only supply side but also on demand side factors.

SUGGESTIONS

In order to fully capitalize on the opportunity and sustain a disproportionate lead in the global IT/ITeS space, it needs to focus on five key areas:-

Enhancing the talent pool advantage ---- focus on skill development to better leverage the world’s largest working population.

44 | P a g e

Strengthening urban infrastructure in existing and emerging cities ,

Continued emphasis on proactive regulatory reform to facilitate greater ease of doing business.

Driving a philosophy of excellence amongst industry players to ensure that India based delivery systems sustains world leading benchmarks in performance,

One needs to catalyze domestic market development with particular attention paid to hardware and software product development.

Government can play an important role in building global, national and local information infrastructure.

BIBLIOGRAPHY

45 | P a g e

BIBLIOGRAPHY

www.indiainfoline.com India Information Technology Industry: a study by Somesh K.

Mathur www.ibef.org A NASSCOM – DELOITTE Study 2008. www.google.com Many other websites.

46 | P a g e

Reference Books:

1) Legal issues in information technology industry: country experiences. BY K.bharati Thakar. The ICFAI University Press.

2) Information Technology Industry in India. By tapan choure Yogeshwar Shukla. Kalpaz Publications,India (30 Sep 2004)

3) India in the Global software Industry: Innovation, firm strategies and development. By Anthony P. D'Costa and E. Sridharan. Palgrave Macmillan (18 Dec 2003)

4) Information Technology, Innovation System and Trade Regime in Developing Countries: India and the ASEAN by K.J. Joseph. Palgrave Macmillan (28 Jul 2006)

5) Political Economy and Information Capitalism in India: Digital Divide, Development Divide and Equity (Technology, Globalization and Development) by Govindan Parayil. Palgrave Macmillan (25 Nov 2005)

6) Closing the Technology Gap: Technological Change in India's Computer Industry by Hans-Peter Brunner. Sage Publications Pvt. Ltd (31 Aug 1995)

47 | P a g e