IT Sector

Presented by :

(Group 4)Shiva GaneshAnshul KothariSoumya SharmaChandra Nath PaulSameeksha VermaAmit BinwaniYogesh Agarwal

INTRODUCTION OF IT

Information technology is playing an important role in India today & has transformed India's image from a slow moving bureaucratic economy to a land of innovative entrepreneurs.

The IT sector in India is generating 2.5 million direct employment.

India is now one of the biggest IT capitals of the modern world.

According to DeitY

The major developed markets are sourcing IT/ITES from India to gain bottom-line benefits, improving their competitive edge.

Indian IT companies have set up over 600 delivery centres

The sector revenues have grown from 1.2 per cent in FY1997-98 to nearly 8.1 per cent in FY2013-14

Department of Electronics and Information Technology is coordinating strategic activities, promoting skill development programmes, enhancing infrastructure capabilities and supporting R&D for India’s leadership position in IT and IT-Enabled services.

KEY PLAYERS A key player or stakeholders is someone who has a 'stake' or

vested interest in an industry. Key players in the IT sector are those that have influence and interest in the direction and use of Information and Communications Technology. These include bodies such as:

Vendors of IT products and services

IT consultancy organisations

Government departments

Professional bodies

Research organisations and publisher

KEY PLAYERS (Companies)

TCS

WIPRO

HCL

INFOSYS

TECHMAHINDRA

Regulator of the Sector

INFORMATION TECHNOLOGY ACT,2000 (ITA-2000)

An Act to provide legal recognition for transactions carried out by means of electronic data interchange and other means of electronic communication, commonly referred to as "electronic commerce", which involve the use of alternatives to paper-based methods of communication and storage of information, to facilitate electronic filing of documents with the Government agencies and further to amend the Indian Penal Code, the Indian Evidence Act, 1872, the Bankers' Books Evidence Act, 1891 and the Reserve Bank of India Act, 1934 and for matters connected therewith or incidental thereto.

TRAI (TELECOM REGULATORY AUTHORITY OF INDIA)

After the economic reforms of 1991-92, liberalization of external trade, elimination of duties on imports of information technology products, relaxation of controls on both inward and outward investments and foreign exchange and the fiscal measures taken by the Government of India and the individual State Governments specifically for IT and ITES have been major contributory factors for the sector to flourish in India and for the country to be able to acquire a dominant position in offshore services in the world.

Market Size

30 per cent and the overall sales are projected to touch US$ 17 billion in FY-15 .

Comprising server, storage and networking equipment - is expected to grow by four per cent in 2014 to touch US$ 1.9 billion

The IT services market in India is expected to grow at the rate of 8.4 per cent in 2014 to Rs 476,356 million (US$ 7.88 billion), according to International Data Corporation (IDC).

INVESTMENT

Indian IT's core competencies and strengths have placed it on the international canvas, attracting investments from major countries

TCS - US$ 200 million

WIPRO - US$ 1.2 billion

L&T Technology Services has bought 74 per cent equity stake in Thales Software India Pvt Ltd

CURRENT TRENDS As per Nasscom, the Indian IT market is expected to show 16% – 18%

export revenue growth by the financial year 2012. It is expected to bring in revenue to the tune of 68 – 70 billion. This is significant at present, a turbulent period with ongoing debt crisis in European countries like Portugal, Spain, and Greece and with the signs of slowing down of US economy.

The Indian hardware market projects to have a large growth capacity by the end of 2011. The PC market alone is expected to account for US $ 7.3 billion in 2011 as per Nasscom.

The software market is expected to grow up to 21% by 2015. This year profit forecasts for the IT software services industry proclaim revenues of US $ 7.3 billion.

Heavy inflow of FDI in the IT sector is expected to continue for coming years. In recent years, the inflow of large volumes of FDI in to the Indian IT markets has not only boosted the industry but also the entire Indian economy. India’s large market continues to attract big MNC’s for large FDI’s

What are trends in information technology development?

Integrating smartphones into the daily lives of consumers.

Continuity across several platforms and devices.

Television transformation.

Outsourcing

Private investment

FDI

Merger and acquisition

Budgetary provision

Comparative Analysis

(All Figures in Rs. Cr.)

SALES

Comparative Analysis

(All Figures in Rs. Cr.)

NET PROFIT

Company Name

% change in profit

NIIT TECH 5.75

MINDTREE 2.91

HEXAWARE 1.61

POLARIS -0.19

ZENSAR 5.87

PERSISTENT 1.31

CYIENT -0.50

Comparative Analysis

(All Figures in Rs. Cr.)

ASSETS

Comparative Analysis

(All Figures in Rs. Cr.)

Market Capital

Comparative Analysis

Company Name Share Price (Sept’2013)

Market Price (Sept’2014)

% change

NIIT TECH 279.00 425.75 50.68

MINDTREE 549.95 1216.55 113.28

HEXAWARE TECH 123.7 195.5 57.66

POLARIS TECH 122.8 263.8 118.47

ZENSAR TECH 224.65 655.55 186.45

PERSISTENT 580.2 1425.55 144.5

CYIENT 181.05 474.6 159.84

Stock Performance (2013-14)

(data’s taken on 19 Sept’2014)

FUTURE TRENDS Social Platform

Infrastructure Platform

Cloud computing

Data Security

Data Privacy

Analytic

Architecture

User Experience

Future Prospectus

Globalization has had a profound impact in shaping the Indian Information Technology industry. Over the years, verticals like manufacturing, telecom, insurance, banking, finance and lately the retail, have been the growth drivers for this sector.

But it is very fast getting clear that the future growth of IT and IT enabled services will be fuelled by the verticals of climate change, mobile applications, healthcare, energy efficiency and sustainable energy.

The near future of Indian IT industry sees a significant rise in share of technology spend as more and more service providers both Indian and global target new segments and provide low cost, flexible solutions to customers.

By 2015, IT sector is expected to generate revenues of USD 130 billion (NASSCOM) which will create a transformational impact on the overall economy.

Conclusion

IT has potential of not only accelerating the growth of the Indian economy but also promoting the broad-based economic development.

To realize the same , besides standard policy initiatives such as improving infrastructure, strengthening training and education system, and introducing flexible labour laws that affect every sector of the economy including the IT sector.

The government needs to take specific measures to promote IT use and to make it accessible to every section of the society. The IT should be promoted to be used as a tool for raising the living standards of the common people and enriching their lives.

IT literacy needs to be enhanced manifold among the population at large through conventional and non-conventional means, so that ordinary people can begin to use it to derive benefits, both economically and socially.

India will not reap the full benefits of its success in IT unless its broader institutional and incentive regime creates opportunities for local communities and villages to realize the benefits from the same.

Thank You