SERVICES IN IT INDUSTRY

ASHISH NASHIKKAR
GAURANGI SALVI
PRATHMESH CHAVAN
DIPTESH GOHIL
ABHISHEK
GHADIGAONKAR
SANKET PARAB
SANKET KURRY
VENKATESH MURTY
PRASAD TARKAR

13115B0052
13115B0039
13115B0038
13115B0037
13115B0040

13115B0041
13115B0042
13115B0043
13115B0044

IT AND ITES
Indian IT and Information Technology enabled
Services (ITeS) sectors go hand-in-hand in every
aspect
Has employed almost 10 million Indians
India is also the world's largest sourcing destination,
accounting for approximately 52 per cent of the US$
124-130 billion market
India has the potential to build a US$ 100 billion
software product industry by 2025 , according to
Indian Software Product Industry Roundtable (iSPIRT)
The Indian IT-BPM industry is expected to add
revenues of US$ 13-14 billion to the existing
revenues by FY15, according to National Association
of Software and Services Companies (NASSCOM)

IT AND ITES
Industry grew at a compound annual growth rate (CAGR) of
13.1 per cent during FY08-13
Total exports from the IT-BPM sector (excluding hardware)
were estimated at US$ 76 billion during FY13
Export of IT services has been the major contributor,
accounting for 57.9 per cent of total IT exports (excluding
hardware) in FY13
E-commerce space in India is expected to grow at 20-25
per cent over the next 2-3 years in terms of jobs, salaries
and growth, which in turn could create at least 150,000
jobs
Current estimated size of the industry is about Rs 18,000
crore (US$ 2.91 billion) and is expected to reach Rs 50,000
crore (US$ 8.08 billion) by 2016 and as the industry grows,
the demand for talent would grow proportionally.

(In USD
Bn)

2004

2005

2006

2007

World GDP

58,051.1

61,300.0

64,242.4

67,711.5

4.3%

Worldwide
IT services

418

441

467

467

5.8%

As % of
World GDP

0.72%

0.72%

0.73%

0.73%

(Source: IMF, NASSCOM)

CAGR(20
04-07)

SIZE OF INDIAN IT SERVICES INDUSTRY

(USD in Bn)

Exports

Domestic

Total

CAGR %

FY03

5.5

2.4

7.9

FY07

18.1

5.6

23.7

31.6%

40

10

50

20.5%

FY11E

(Source: NASSCOM, CRIS INFAC)

IMPORTANCE OF IT SERVICES
Product Development - Can speed up the time for the
new products to reach the market
Stakeholder Integration - Interconnectivity and also use
of public investor relations website to communicate with
shareholders, research analysts and other market
participants
Process Improvement - ERP allows to review sales, cost
and other operating metrics
Cost Efficiencies - Initial cost of the setup might be high,
but it results in long term cost saving. Use of word, mail
rather than post which proves to be cheaper and faster
Competitive Advantage - Cost savings, rapid product
development and process improvements help companies
gain and maintain a competitive advantage in the
marketplace
Globalization - Companies that survive in a competitive
environment usually have the operational and financial

FDI POLICY IN IT SECTOR

Increase of 700% in three years Rs.543.66 crore
in 2003 to Rs.4206.68 crore in 2005
Software exports have also increased
FDI upto 100% is allowed under the automatic
route in the IT sector and IT-enabled services
All IT products are freely importable and exportable
IT-ITeS sector has aggregated revenues of USD 88.1
billion in FY2011 while generating direct
employment for over 2.5 million people
Computer software and hardware sector attracted
foreign direct investment (FDI) worth US$
13,238.58 million between April 2000 and
September 2014

COGNIZANT

CHARACTERISTICS OF IT AND ITES

VARIABILITY - Inconsistency in
terms of development of client
software efficiency and testing
efficiency in a project team
Establish clear terms of governance for the application of
project management in the organization
Develop clear Project Management Methodologies or
Frameworks

Provide project teams with easy-to-use project

management tools and templates that will ensure
consistency of project management.
Train employees in project management so they know
how to apply the project management methodology,
project management tools and templates.
Oversee all projects to make sure the organizations

CHARACTERISTICS OF IT AND ITES

INTANGIBILITY services are
difficult to patent since they are
ideas, concept and performance and
cannot be sensed
Good visual look, better design with user
friendly functions (physical evidence)

CHARACTERISTICS OF IT AND ITES

INSEPARABILITY - Client provides
the application development
requirements for which they seek
solution
Probe the client on regular basis in order
to make the application according to the
needs and want of the clients

CHARACTERISTICS OF IT AND ITES

Perishability unutilized
employees due to losing projects to
the competitor (employees on desk)
Straight forward interaction with the
client
Reminder on constant basis

MARKETING MIX OF SERVICES

PRODUCT

IT Strategy and Governance

Architecture and Technology
IT Process and Service Management
Master Data Management
Infrastructure Services
Quality Assurance and Testing
Performance Engineering Solutions
Information Risk Management

PRICE
Pricing can be done according to the
Onshore or Offshore or both
proposals, the consulting firms may
get.

PLACE
Considering the location from where
service is provided, the market can
be classified into Onshore services
and Off-shore services.
Off-shore services are those
services which are outsourced
outside the home country.
Offshore locations leverage their
strength in availability of skilled
talent at relatively lower cost to
provide cost effective services.

PROMOTION
Companies
continue to
explore ways in
which the
Internet can
help improve
the efficiencies
and
effectiveness of
their service

PEOPLE
Strategic IT Effectiveness
(SITE) experts.
Experienced professionals with
bold, value-creating
approaches to IT.
User Groups
Discussion Forums
Company Blogs
Research Labs
Customer Advocate Programm

PROCESS
IT Services market can be
segmented based on execution
responsibility into Outsourced
services and Captive Units (inhouse).
Independent service providers
provide Outsourced services,
undertaking delivery responsibility
for a price.

PHYSICAL EVIDENCE
Helps in fulfilling the need of the technical
architecture for the organizations system
strategy.
With a software development specialist
advice can be a real benefit for the activities
of your company and a business model that
can help in improving the system.
In the past few years, Indian IT consulting
companies have equipped themselves to
provide high quality services for a variety of
clients settled all over the world.