IT Industry

Scope

 Provides employment to technical

and non-technical graduates
 Capability to generate huge foreign
exchange inflow for India.
 India exports software's and services
to approximately 95 countries in
the world.
 By outsourcing to India, many
countries get benefits in terms of
labor costs and business
 India is the most favored offshore
location for IT Services
 Dominance of India in offshore
market is because of financial
attractiveness
 (i.e. cost competitiveness) as well as
availability of abundant suitable
talent pool.

Market share
Sources of Revenue
Domain of the IT Industry

 Some of these services are as follows:

 
 Systems architecture
 Database design and development
 Networking
 Application development
 Testing
 Documentation
 Maintenance and hosting
 Operational support
 Security services
 CURRENT POSITION OF IT
INDUSTRY
Current
high

position
Hub of global
IT/Ites Activity

Emergence of R$D,
KPO

BPO, large
contract
projects
offering
Service

Testing services,
entry level
,projects

Off-showring of
low and back
office services
low

 low Sector Competencies high

PESTLE ANALYSIS
POLITICAL

 Political stability
 tax benefit.
 Government owned companies and
PSUs
 Terrorist attack or war.
ECONOMICAL

 Real Estate Prices

 Attrition
 Cost Advantage
 Others
 Global IT spending.
 Domestic IT Spending
 Currency Fluctuation



SOCIAL

 Language Spoken
 Education
 Working age population

TECHNOLOGICAL

 Total subscribers
 second largest telephone network
 Enterprise telephone services
 Internet Backbone
 New IT Technologies
 Telephony
LEGAL

T SEZ requirement

 Contract / Bond requirements


 IT Act 2000

  Software Technology Park (STPI)


ENVIROMENTAL

 Energy
Efficient processes and
equipments

Marketing mix

The 7 P ’ s which is covered under the marketing

mix of IT consulting services are :

 Product
Price
Place
Promotion
Physical Evidence
Process
People
Place

 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. These leverage their
strength in availability of skilled
talent at relatively lower cost to
provide cost effective services.
 On-Shore Services- these are services
which are used in the service
provider’s home country or region
Promotion
 Companies
continue to
explore ways in
which the Internet
can help improve
the efficiencies
and effectiveness
of their service
and product
delivery.
Physical Evidence

Helps in fulfilling the need of the

technical architecture for the
organization’s 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.
Process

 IT Services market can be

segmented based on execution
responsibility into ‘Outsourced
services’ and ‘Captive Units’ (in-
house).
 Independent service providers
provide ‘Outsourced services’,
undertaking delivery responsibility
for a price.
People

 Strategic IT Effectiveness (SITE)

experts.
Experienced Professionals
User Groups
Discussion Forums
Company Blogs
Research Labs
Customer Advocate Program
Distribution

 Achieves distribution excellence for

existing channels while leveraging
the benefits of emerging direct to
consumer model

 Dell-Direct Business Model

 U.S. based organization ESET providing
most effective and most proactive
antivirus and antispyware solution to
eliminate viruses, spyware, adware,
worms, Trojans etc. ESET is also
growing in good pace after
Positioning
Target Market
Approaches
Targeting
 Target Market Approaches
 Differentiated Marketing
 Eg: HP has developed its product range
and marketing strategy to target
different user segments of computing
equipment; home office users, large
businesses, Small and medium
businesses, health education govt.
department
Service Gaps

 Eg: Software development

ØPlanning
ØDesign
ØCoding
ØTesting
ØSupport & Maintenance
Communication

 Wipro’s biggest challenge is

educating the market and its
clients about its capabilities in
BPM(business performance
Management) market.
 Eg: U.S. based firm engaged Wipro
to develop a business
transformation solution
Branding

 Infosys :
 Need not work on brand
 Focus on Differentiation
 “Flat World “ theme
ØThink cost to fuel growth
ØThink faster innovation
ØThink money from information
ØThink winning in the turns

GROUP C
THANK YOU