Information Technology

Over the past decade, the Information Technology (IT) industry has become one of the fastest growing industries in India because of which it has caught world attention. Indian IT-ITES industry grew at a rate of 33 % in FY2008. India is now being identified as spowerhouse for incremental development of computer software. It has grown from USD 4 billion industry to USD 58.8 billion industry in FY2008-09 employing over 2 million people. IT-BPO Industry has become growth engine for the economy contributing substantially to increases in GDP, urban employment and exports to achieve vision of 'young and resilient India'.

Although domestic market is growing in India but still the major propellers of growth are exports. The key segments that have contributed significantly to industry's exports include-Software and services (IT services) and IT enabled services. In the face of current recession though the mood is that of "cautious optimism" but Industry is expected to witness sustainable growth over period of two years. But at the same time while industry has significant headroom for growth ,as the competition is increasing with China emerging as major threat ,all the stakeholders of Indian IT industry must give concentrated efforts to ensure that India realizes its potential and maintains its leadership position in future also.

Demand of IT industry:

There has been spur in the demand of IT in India because of Breadth of service offerings- Indian players have focused their energy on building domain competencies and expertise in order to ensure superior value addition to clients projects and processes. Service offerings have evolved from low-end application development to high end integrated IT solutions. Worldwide interest in business process re-engineering, the economic imperatives in developed countries of outsourcing, cost efficient maintenance of existing mainframe systems and continuous development of new software for PCs have played significant roles.

Cost advantage: Improved cost of operations is the key factor for growth in outsourcing. It is estimated that cost savings for the MNC's are around 20-40%of company's original costs. Apart from lower administration and labour costs , central & state governments offer fiscal and non-fiscal benefits to companies adding to further cost advantage.

Quality of processes-India is host to more than 55% of global SEI CMM Level 5firms and is expected to host highest number of ISO certified companies. Abundance of qualified software engineers- Indian software engineers have carved out a name in world market for providing unbeatable competition of quality software at low cost. With more than half the million population below 25 yrs India is positioned to meet the swelling demand for IT-ITES professionals. Leading firms add more than 10000 new employees per annum. Government's timely national action plan for rapidly improving communication software. Business infrastructure-Sectors like real estate, transportation (air and road connectivity) and hospitality are actively supporting the burgeoning demand generated by IT-ITES sector.

Supply of IT industry

The key player of Industries

Tata Consultancy Services

TCS is the leader in IT services with workforce of 143,761 professionals across 50 delivery centers as on june30, 2009. The key highlights are:
Acquired FNS bringing core banking solutions expertise Comicon acquisition brought in BPO expertise in South America Pearl Group JV made in the life insurance and pensions industry in the UK Tata Technologies acquisition of UK-based INCAT Technologies for US$ 98 million complemented its engineering and design services expertise. TCS generated revenues of US$6 billion in FY 2008-09. Major verticals contributing to revenue growth are BFSI verticals (approx. 44%) with telecom and manufacturing following it. After these retail sector is main contributor. The others include Life science, transportation, utilities.

Infosys Technologies Limited

Infosys is India's second largest software and Services Company with approximately 103905employees on board as on june30, 2009. The key highlights are:
One of the pioneers in the development and adoption of the now famous 'Global Delivery Model'. Focus on continuous employee training & progression on IT value chain. "One Infy" service, an initiative to combine different service offerings and go to market strategy for its top 30 clients, helped bring in five large banking orders.
Projects like Instep, Catch Them Young to attract talent globally and at the schooling level. The company's training centre in Mysore, Karnataka is acclaimed as the world's largest corporate university Infosys revenues reach US$4.66 billion in FY 2008-09.
The BFSI is the major contributor to revenue with 34% contribution followed by manufacturing (20%), retail (13%), telecom (18%) and others (15%).

Wipro Technologies Limited

Wipro is third key player in IT industry with a workforce of 98,521 professionals as on june30, 2009.The key highlights are:
Leading IT solutions and services provider in application development, system integration, product implementation & consulting services. Business include software development, hardware, consumer care & lighting & health science Acquisitions plus big 'total outsourcing' wins in the domestic market against global competition
Wipro Technologies Limited clocked revenues of about $5billion in FY08-09. The major revenues come from products and services (28%), closely followed by financial services (23%). Technology, media, transportation services contribute about a quarter of sum of revenues of products and financial services. Other contributors to revenue are retail, energy and utilities, manufacturing and telecommunication verticals.

HPe (www.hpe.com)

HPe simplifies technology experiences for all its customers—from individual consumers to the largest businesses. Our portfolio spans printing, personal computing, software, services and IT infrastructure. Our corporate headquarters are in Palo Alto, California, but with 321,000 employees as of October 31, 2008 doing business in more than 170 countries around the world, we are truly global. We are guided by our long-established shared, which include a commitment to global citizenship. We have expertise across the range of IT devices, infrastructure, software and services. It deals in various products:-

Laptops

All in One Desktop

Printers

Ink & Toner

Monitors

Electronics

Scanners

Workstations

Fax

Servers

Companies, governments and consumers are placing greater emphasis on global citizenship when selecting information technology products, solutions and services. This is the most powerful incentive we have to keep improving our global citizenship performance.

Many enterprise and public sector customers seek suppliers that demonstrate strong performance and can help them improve their own global citizenship performance.

Chawla Digital Systems Private Limited.