IT industry analysis of India, information of industry , global scenario, contribution to India's GDP, PESTEL analysis etc.

1. INFORMATION TECHNOLOGY
INDUSTRY ANALYSIS
Presented By-
Pritika Nuwal

2. OVERVIEW OF THE INDUSTRY
 The computer or Information Technology, or IT
industry is the range of Businesses involved in
designing computer hardware and computer
networking infrastructures, developing computer
software manufacturing computer components,
and providing IT services.

3. HISTORY OF IT INDUSTRY
 The Indian Government acquired the EVS EM
computers from the Soviet Union, which were used in
large companies and research laboratories.
 In 1968 Tata Consultancy Services—established in
SEEPZ, Mumbai by the Tata Group—were the
country's largest software producers during the
1960s.
 Relaxed immigration laws in the United States of
America (1965) attracted a number of skilled Indian
professionals aiming for research.

4.  By 1960 as many as 10,000 Indians were estimated
to have settled in the US.
 By the 1980s a number of engineers from India were
seeking employment in other countries.
 In response, the Indian companies realigned wages
to retain their experienced staff.
 Between 1977-1980 the country's Information
Technology companies Tata InfoTech, Patni Computer
Systems and Wipro had become visible.

5.  Between 1986-1987, the Indian government
embarked upon the creation of three wide-area
computer networking schemes:
– INDONET (intended to serve the IBM mainframes in
India),
– NICNET (the network for India's National Informatics
Centre),
– The academic research oriented Education and
Research Network (ERNET).

6. TYPE OF INDUSTRY
• Information Technology industry is a
Quaternary industry

7. NATURE OF INDUSTRY
 The industry has increased its contribution to India’s
GDP from 1.2% in FY98 to 9.5% in FY15.
 According to NASSCOM, the sector aggregated
revenues of US$147 billion in 2015, where export
revenue stood at US$99 billion and Domestic at
US$48 billion, growing by over 13%.
 India’s Prime Minister Narendra Modi has started
Digital India project to give IT a secured position
inside and outside INDIA.

8. Sub- Industries of IT Industry

9. INFORMATION TECHNOLOGY
INDUSTRY IN INDIA
 India is now one of the biggest IT capitals in the modern
world.
 India’s IT industry amounts to 12.3% of the Global Market,
largely due to exports.
 In 2010-11, annual revenues from IT -BPO sector is
estimated to have grown over $54.33 billion compared
to China with $35.76 billion and Philippines with $8.85
billion.
 The most prominent IT hub are Bangalore & Hyderabad.
 The other emerging destinations are Chennai, Coimbatore,
Kolkata, Pune, Mumbai, Ahmedabad.

10. GLOBAL SCENARIO
 The global revenue generated by IT industry is
estimated more than US$ 1628.4 billion.
 Global sourcing of technology related services is
estimated to have grown.

11. SWOT Analysis
STRENGTHS
 Highly skilled Human Resource
 Low wage structure
 Initiative taken by the Government
 English speaking professionals
 Many global players have set-up their operations in India
WEAKNESSES
 Absence of practical knowledge
 Dearth of suitable candidates
 Less Research & Development
 Contribution of IT industry to India’s GDP is still rather small

12. OPPORTUNITIES
 High quality IT Education market
 Increasing number of working age people
 India’s well developed soft infrastructure
 Upcoming International Players in market
THREATS
 Lack of Data Security system
 Countries like China & Philippines with qualified workforce
making efforts to overcome English language barrier
 IT Development concentrated in few cities only

13. GROWTH OF INDUSTRY IN NEXT 5 YEARS
 India’s internet economy is expected to touch Rs. 10
trillion (US$ 146.72 billion) by 2018, accounting for 5% of
the country’s GDP.
 According to NASSCOM report, by 2020 the IT industry is
expected to account for 10% of India’s GDP
 Revenues are expected to touch at US$225 billion by
2020.
 Social Media is most lucrative segment for IT firms,
offering a US$ 250 Billion market opportunity by 2020.
 ‘Digital India Initiative’ could help boost India’s GDP by
US$ 550 billion to US$ 1 trillion by 2025.

14. FACTORS CONTRIBUTING TO IT
GROWTH IN INDIA
 Abundance of resources
 Investor friendly government policies
 Development of Telecommunication facilities
 Relatively affordable infrastructure facilities
 Relatively affordable labour force
 Experienced and matured IT industry
 Investment in technical education

15. CONTRIBUTION OF INDUSTRY
IN INDIA’S GDP
Information Technology industry contributes
approximately 9.5% in FY15

16. FACTORS AFFECTING GROWTH OF
INDUSTRY
POLITICAL FACTORS
 Very little influence of political situations, Boosting the
image of India in global market.
ECONOMIC
 Stage of business cycle, Exchange rate
SOCIO CULTURAL FACTOR
 The social factors affecting IT industries ranges from
employee right, language barriers, race nationality of the
company or other issues

17. TECHNOLOGICAL FACTORS
 Government research spending
 New inventions and development
 (changes in) internet
FACTORS AFFECTING GROWTH OF
INDUSTRY

18. LEARNINGS/CONCLUSIONS
 In-depth knowledge of the industry
 Continuous growth year by year
 IT is ongoing requirement of every nation
 Opportunities for investors, entrepreneur, youth and
countries.

19. THANK YOU