MBA

Management Enquiry and Research

Methods

MY DISSERTATION PROPOSAL

Student Name : Tirupathi rao.M

 INDEX

1. Introduction.

2. My Aim and Objectives.

3. Hypotheses.

4. Literature Review.

5. Methodology.

6. Phases of Research and

Schedule.

7. Conclusion.

8. Bibliography.

INTRODUCTION

Starting from the planning period in the 1950s till today, India’s
economic
regime has experienced two transformations both of which were
radical. First, with the establishment of the Planning Commission in
1950, India launched upon a unique experiment in growth with
social justice within the
constitutional framework of parliamentary democracy. However this
came
Under significant pressure in the 1980s, culminating in the
unprecedented
balance of payments crisis in the year 1990-91. The Indian
Government
responded to this crisis with an equally forthright policy regime
grounded in a
3reform popularly referred to as ‘Liberalization, Privatization and
Globalization’. These three economic concepts have necessitated a
series of
ongoing policy reforms by the Union and State Governments.

Information technology industry is fast growing industry in all parts of the

world.Globalisation has played a vital role, the impact of globalization in the
developing countries. How far is the effect of globalization in the
Sectors like information technology

I am pursuing my MBA with specialization in business finance. Due to effect of

globalization on IT segment, there are tremendous changes in finance
segment frequently. I intend to establish my own company in this segment in
future and so, I have chosen this topic for my dissertation.

MY AIM and OBJECTIVES

To find how much is the impact on information technology sector
due to Globalization in India
How far the IT companies have been benefited from the Indian
Globalization?
Is the long run of globalization useful to IT companies or not?

MY RESEARCH QUESTION

Is the IT industry in India being benefited with effect of globalization?

LITERATURE REVIEW
1, In a July 20 Times of India report titled 'IT expert warns against digital
divide in country' the author wrote: A leading information technology (IT)
expert has cautioned against a "digital divide" in the country and creation of
disparities between the IT haves and have-nots. The report quoted M.
Anandakrishnan (vice-chairman of the information technology task force of the
Tamil Nadu government and the vice-chairman of the Tamil Nadu state
council for higher education) as saying: "You cannot have a high-tech facility
and have 50,000 people within a few kilometers who don't have any access to
computers. Availability of computers in every village did not mean accessibility
and accessibility does not mean assimilation. Unless there is 'localisation of
content' this technology could not be used by 97 per cent of the population."
The article goes on to question the euphoria surrounding the growth of the IT
sector.

The times has mentioned that all the people are not benefited with the
IT sector.

2, MNCs and 'transparency' and 'ethical practices'

Arguments favoring globalization have often centered on how multinationals

practice 'transparency' in their business dealings and are more 'ethical' than
their Indian counterparts. Although rarely substantiated with any thing other
than anecdotal testimonies, such praise for the MNCs is common in the Indian
media. Yet, there are numerous instances where multinationals have not only
displayed a lack of ethics and 'transparency' but have actually broken the law.
Consider an October 2, 1998 report in the Hindu titled: Large-scale tax
evasion by MNCs unearthed. The author of that report, Sujay Mehdudia
wrote: "Income-Tax officials have alleged that these companies evade taxes
with impunity as the tax laws of the country are 'inadequate and ineffective' to
deal with such cases." He wrote of multinational giants flouting tax laws
knowing very well that they could not be arrested or criminally prosecuted
against under the Indian legal system and could get away by paying the tax
dues when caught.

Due to law system in India the foreign companies have taken an advantage to
Escape the taxes.

3,
'Efficiency' in whose interest - the MNC or the Indian consumer?

Another oft-repeated argument in favor of globalization is that multinational

companies are more "efficient". Of course efficiency is never clearly defined.
For instance, let us assume that efficiency equals profitability. Suppose a
multinational invests 1000 crores and makes 200 crores in profit. On the other
hand, assume that a domestic company invests 1000 crores and makes 100
crores in profit. It would thus seem that the MNC was more "efficient" - twice
as much as the Indian company. But if half or more of the MNC's profits were
repatriated to their foreign parent or to foreign shareholders, the relative
benefit to India would be nil! And if the 100 crore in extra profit accrued only
due to special tax breaks and other special favors granted to the multinational,
the increase in 'efficiency' would be entirely fictitious.
Take another example. Let us suppose that the MNC is actually very
"efficient" and is able to drive it's more "inefficient" Indian competitors out of
business. With it's Indian competitors out of business, it could then raise
prices over and beyond what the "inefficient" Indian companies charged their
consumers. Here is another example of where "efficiency" from the point of
view of the business does not translate into benefits for the Indian consumer.
This has occurred not only in the soft-drinks sector, it has also occurred in the
pharmaceutical sector.
The foreign which is established in India have much tax rebates and the
Profits for the foreign is higher then the domestic company,

4.Skewed development: by-product of indiscriminate liberalization and

globalization?
Critics of indiscriminate liberalization had warned that one of the biggest
dangers of a totally liberalized economy would be the anarchic development
of select geographical areas and the neglect of industrially unpopular areas.
This has been reinforced in a report by Tushar Mohanti for the Economic
Times Research Bureau. The report pointed out that of all the industrial
entrepreneurs memorandum (IEM) filed since the new economic policy came
into being in June 1991, only 10% have been implemented so far. In the case
of implemented projects, only 10 per cent of the employment commitments
were actually realized. He goes on to say that apart from poor implementation
rate, what must be disturbing for both the planners and the government is the
strong regional bias of the investment proposals. Proving the critics right,
(who at the beginning of the reforms had doubted the chances of industrially
backward states to derive benefits from the reforms), more and more IEMs
have gone to industrially developed states. Other studies have also shown
that prosperous states like Maharashtra, Gujarat, and Tamil Nadu and the
National Capital region around Delhi have attracted most of the new
investment proposals - especially those from the multinationals. In contrast,
Mohanti reported that West Bengal, Orissa, Bihar and Assam — all from the
east — had failed to take the benefits of deregulation. Bihar, Orissa and
Assam each had less than one per cent share of the total IEMs filed during
the period. Their shares in actual investment were even lower.
Another aspect of non-selective globalization is that a few select sectors -
namely consumer goods, automobiles, and software have attracted almost
90% of all foreign investment. There has been very little investment in the
production of advanced electronics, computer or telecom hardware, aircrafts,
advanced industrial materials, capital goods and modern tools and equipment,
or robotics. These are the areas where India is completely dependent on
imports and is likely to fall further behind. Rather than steer production in
areas of cutting-edge technology, state governments have been falling over
each other in giving MNCs more concessions to produce more of what India is
already producing!
Some areas of the country is developed and some sectors have been
benefited

5. The IT companies have the project contracts with the international

Companies with agreed deals made in dollars.
But when the Indian economy is booming the value of the dollar is
Getting down compare to rupee and the IT companies have to suffer
A lot with fewer profits, when the dollar weakens compare to Indian rupee.

METHODOLOGY

As an initial step, it is proposed to conduct 3-5 case-studies of firms either

already active or proposing to get active in India for relocating parts of their
innovation (especially R&D) activities. For this purpose, following means are
proposed to be applied:

• Identification of suitable candidates (via: literature review,

industry contacts)
• Preliminary information (desk research)
• Interviews at the headquarters to ascertain motivation factors /
induce cooperation
• On-site interviews in India
• Interviews at the headquarters to validate the data, if thought
appropriate

Results of the case-studies shall be utilized to deduce hypotheses on India’s

‘’globalisation ‘’ and the possibilities of its integration in a global IT sector
network. These hypotheses shall be put to test in an (industry-specific)
empirical survey. The hypotheses on India’s innovation system are to be
ascertained via large-scale expert interviews in India and abroad. The
involved experts would cover a wide range of fields so as to cover all
aspects of an “innovation system” . This study would help to:

• Comprehend inherent strengths and weaknesses of India’s

globalisation in IT sector system
• Work out a resource upgrade plan, if desirable/feasible from the
firm’s point of view while offshoring .

These steps are crucial to fully exploit the chances presented by India by
integrating her in the firm’s innovation process. This project seeks to do so
by applying a conceptual framework introduced by Ernst [2005]. Hereby it
proposes to identify the “Pull”, “Policy” and “Push” factors in an India-
specific context for selected industries. In a third step, it might be useful to
integrate the “Technological Units” model proposed by Reddy [2000], if
found appropriate. This could help in identifying and assigning suitable roles
(regional, global or corporate level technological units) to Indian subsidiaries
within the global innovation network

In recent years the IT companies have the tremendous growth and

development in India and searching the websites of the IT companies can
get the information the growth through collaboration with the foreign
companies

and there are five major IT companies that has a share of nearly 50%
of the India’s IT sector.

1. Tata consultancy services (TCS)

2. Infosys

3. Wipro technologies

4. Satyam computer services ltd

5. H C L Technologies.

In the present scenario most of the countries over the world have relied upon
India software consulting company and firms or Software Companies for the
software development activities, as the country possesses a global
competency

The Software development company India comprises of businesses related

to the production and maintenance of computer software. The roots of the
Software Industry India lies in the IT phenomenon. Services regarding
software such as training, consulting and maintenance are a part of this ever-
growing industry. The Software Consulting Company is witnessing a rapid
growth and offers lucrative job opportunities making IT a premium career
option for the youth. Infact it is one of the fastest growing sector of Indian
industry

The India Software Industry has brought about a tremendous success for the
emerging economy. The software industry is the main component of the
Information technology in India. India's pool of young aged manpower is the
key behind this success story. Presently there are more than 500 software
firms in the country which shows the monumental advancement that the India
Software Industry has experienced.

The Indian Software Industry has grown from a mere US $ 150 million in
1991-92 to a staggering US $ 5.7 billion in 1999-2000. No other Indian
industry has performed so well against the global competition. According to
statistics, India's software exports reached total revenues of Rs. 46100 crores.
The total share of India's exports in the global market rose form 4.9 per cent in
1997 to 20.4 percent in 2002-03.
Through the company websites, I can able to analyse their growth, and
collaboration with the foreign companies in the IT sector.

PHASES OF RESEARCH and SCHEDULE

Phase1: After my proposal is passed and ethical approval is obtained from the
university I shall start with my research process. I will start with by reading
literature and draft an interview schedule. Then I shall meet the concerned
authority of the IT companies to give information regarding their progress
through globalization of the India.
Phase2: All information pertaining to the performance of the concerned to IT
companies will be under consideration and important points noted. This phase
shall run almost parallel to phase1.

SUMMARY
After completion of my dissertation, I shall be using this information for my
future establishment of a IT company or, I shall handover this report to some
of my friends who are having the plans to establish the IT company in
Hyderabad. This can be a very good piece of work as this research data can
be used as a tool for the concerned IT sector. As I would be using Action
Research Method this would be helpful for them to make corrective changes
in their strategies or policies.
Also using the data collected and applying Action research and Ground theory
method, I get an excellent opportunity to gain all the current happenings in the
IT industry in India. I will be able to get the maximum honest data from each
of them to reach towards a perfect summary. This piece of work should prove
to be useful to all others later who would be researching on the related topics.
 BIBLIOGRAPHY

1. Anuradha sen (2006) Impact of Globalization upon the

Performance of Major Industries in India

2. Ravishankar Kumar Singh (2005) Globalisation and Contemporary

Economic Scenario

3. Chandrasekaran Balakrishanan (2004) Impact of Globalisation on

Developing Countries and India

4. www.Nascom.org.

5. Sunil Mani International Journal of Technology and

Globalisation (IJTG), Vol. 2, No. 1/2, 2006

6. www.times.com/india

7. www.softwarecompanies.com/india.

8. Globalisation: rural transformation/V.R. Panchamukhi

9.Advent International Corporation. 1986. “Advent International

Corporation.” 45 Milk Street,
Boston, MA 02109.

10..Allen, F. and W. Song. 2005. “Venture Capital and Corporate

Governance.” Wharton Financial
Center Working Paper #03-05

11.Asian Venture Capital Journal. 2001. The 2000 Guide to Venture

Capital in Asia, Volume 1
(Hong Kong: Asian Venture Capital Journal).

12.Avnimelech, G., M. Kenney and M. Teubal. 2004. “Building Venture

Capital Industries:

13.Aylward, A., 1998. Trends in Venture Capital Finance in Developing

Countries. International

14.Finance Corporation Discussion Paper Number 36, The World Bank,

Washington, D. C
15.Coopey, R.
Provision to India.” World Development.