PROJECT REPORT ON

INDUSTRY PROFILING

SUBMITTED BY
Ashish ranjan PGFB2117

Jyoti pandey PGFB2128

Sanya nagpal PGFB2143

Shubhi rawal PGFB2150

Snigdha sahay PGFB2151

UNDER GUIDANCE OF
Mr.

JAIPURIA INSTITUTE OF MANAGEMENT

NOIDA, UTTAR PRADESH

1
 INDUSTRY INTRODUCTION
The industry we are talking about is IT Industry.

Information Technology in India is an industry that consists of two major components: IT

services and business process outsourcing. As of now India’s IT workforce accounts for 4.36
million employees. Also, the United States accounts for 2/3 rd of India’s IT services exports.
IT industry has certain Key Characteristics

 Economic Activity
 Production
 Utility
 Wide Scope
 Component of business

IT services offers services like:

 Internal & Management Audits

 Corporate Advisory
 Information system audits
 Tax and regulatory services
 Enterprise risk management

There are many technologies that the IT industry use to produce its products/services:

 Cloud computing
 Robotic Automation
 Artificial Intelligence
 Machine Learning
 The internet of things

IT Industry has many key suppliers that are:

 Manufacturers- They sell their own products and generally offer a basic level of
service.
 Resellers- act as agents for hardware manufacturers. Some also offer software and a
wide range of IT services and supports.
 IT Consultants- Usually provide consultancy tailored to your needs.
 Specialist suppliers- they have expertise in one specific area, such as customer
relationship management systems.
There are many of the key human resource needs that the IT industry needs , mainly
the HR needs could be Staffing, Recruiting, from the internal as well as external
means.

2
 CONSUMER PROFILING
The major consumers/customer to this industry would be many other type of businesses or
companies like ALSCO, Barton Protective Services, Bottomline Technologies, IBM global
services, Process Technology, Special data processing, HP services and many more. The
buying process of every industry mainly IT Industry also follow the same steps:

 Recognition of need of Industrial Buyer

 Determination of Characteristics and quantity of needed product
 Development of specification of needed product.
 Search the qualified Potential Supplier
 Proposal Solicitation
 Supplier selection
 Order routine specification
 Performance review
The end consumers of IT Industry refer to the consumers of a good or service, often who
has some innate know-how that is unique to consumers. End user experience and support
are crucial for the success of user-oriented products and services. The supply chain is a
network between a company and its suppliers to produce and also to distribute a product
to the final buyer.

There are many types of needs and wants of customers in IT Industry, Functionality, Price,
Convenience, Experience, Efficiency, compatibility and if we see in terms of services the
needs and wants are different which includes Empathy, transparency, information and
accessibility. The product attributes which mainly matters to them the most are quality,
market claims, Innovative Attributes, also Product attributes are mainly differs between
Tangible and Intangible attributes, color, size, price, safety, packaging, taste, feel etc.

Market Segmentation is a scheme for categorizing industrial business customers to guide for
the strategic and tactics of decision making. Basically, market is segmented into three broader
parts, Measurability, Sustainability, operational relevance to marketing strategy.

3
 COMPETETIVE LANDSCAPE
In the last few years the IT industry in India has grown tremendously. Big companies like
TCS, Infosys, Wipro, HCL, Tech Mahindra etc have emerged as successful global players in
the IT sector. The Indian IT industry is one of the biggest and it has some big companies
competing with each other in the market. Despite being one of the biggest sector, the Indian
IT sector is getting stiff competition from the outsourcing companies of China, Eastern
Europe, Latin America and Philippines.

MAJOR COMPETITORS OF IT INDUSTRY

Over the last few years India has become a key player in the IT sector. Some major players of
the Indian IT sector are as follows :-

1. Tata Consultancy Services (TCS) – Headquartered in Mumbai, it is world largest IT

service provider and the largest IT company in India in terms of revenue. It has over
4,20,000 employees and from past 50 years it is providing business solutions,
consulting and IT services to the world top businesses.

2. Infosys – Headquartered in Bengaluru, it has over 2,50,00 employees and it is the first
Indian Company to be listed in NASDAQ. It is working on research on NextGen
Technology, Artificial Intelligence, Machine Language and it provides software
services to various business.

3. HCL Technologies – Headquartered in Noida, it has around 1,20,000 employees

across 30 countries. It is known for supplying computer equipment and servers and
also provides IT consulting services in different sectors like banking, consumer good,
healthcare and automotive.

These are the top 3 successful IT companies of India which are contributing tremendously to
the growth of Indian economy. Being 5-6 times inexpensive than the US, India has the
advantage of expanding its IT sector globally. India continues to be the leader in the global
sourcing industry with around 52% market share in service exports. It is one of the most
preferred nation for IT and BPM industries.

4
 INDUSTRY INDICATORS
Every IT business should have a correct IT structure for proper functioning of the business,
reducing risks and identifying competitors in their areas.

 IT structure of small businesses:

CEO/PRESIDENT

Sales/ Marketing Office manager Feild supporter

 IT structure of medium business:

CEO/PRESIDENT

Operation Finance Sales/Marketing Human resource

 IT structure of large business:

CPA/Accounting CEO/President CISO MSSP

Purchase Risk HR Admin Operation Sales Marketing IT

5
MARKET EXPANSION

IT sector is a very diverse market in itself which allows its customers to choose from the
endless options available such as API, Data processing, software, mobile services and others.
IT sector is one of the largest market place since it is used by various sectors around the
world.

MARKET SIZE

The Indian IT industry is divided into four segments:

SECTORS MARKET SIZE

IT-Services 97 billion US$

Business Process Management 38 billion US$

Software Products and engineering services 34.39 billion US$

Hardware 14.48 billion US$

The Indian IT-BMP industry by 2025 is expected to grow to 350 billion dollar. This rise is
seen due to the increasing number of internet users in India. This sector has the largest
number of employees within the private sector. It has added 1.38 lakh new employees in the
year 2020.

6
MARKET SHARE

India’s IT industry has grown to 181 billion USD$ in 2018-2019. There has also been a 137
billion US$ increase from exports in the year FY19. IT services accounts for about 56.4% of
the total IT exports. Whereas engineering and software services occupy 21.3% of the total
share of IT exports.

PATNERSHIP/JOINT VENTURES

 Recently on July 2021, TCS partnered with Royal London which is the largest
pensions, insurances and investment company based in USA.

 HCL recently announced a multi-year agreement with Fiskars Group which included
Waterford, Gerber and Wedgewood for digital transformation.

 Wipro and Tech Mahindra have also joined for offering skilling courses to the
healthcare technicians and student.

FDI POLICY

The IT industry of India is one of the fastest growing industries. Therefore it is not at all
surprising that the government has eased its foreign investment policies for encouraging more
FDI from the IT sector in India. IT’s core competencies have attracted many investments
from the foreign companies, the computer and hardware sector also attracted 39.47 billion U$
FDI inflows. Hence 100% FDI is permitted to the IT sector under automatic route. However,
FDI in IT sector will have to adhere all the rules and regulations made by the government.

7
GDP GROWTH

The IT industry of India mainly comprises of two major sectors Business process outsourcing
(BPO) and IT services. The GDP of India has increased from 1.2% in 1998 to 7.7% in 2020.

OVERALL COMPANY TURNOVER

India in 2019-2020 had an aggregate of 200-250$ billion which is 5% of global services

sourcing business which makes it the largest destination in the world for sourcing in the IT
industry.

List of a few companies and their turnover in June 2021 are:

NAME OF COMPANY REVENUE IN CRORE

TCS Rs.45,411

Infosys Rs.27,896

Wipro Rs.18,254

HCL Technologies Rs.20,068

TECHNOLOGICAL INTERVENTIONS
8
Technology is evolving at a rapid pace, making IT companies realize that they have to stay
and perform with the new trends. IT sector is continually expected to perform more every
year. Below are some of the upcoming technologies which may impact IT sector, generating
new opportunities and new roles-

 ARTIFICIAL INTELLIGENCE: It allows analysing data more efficiently, making

better decisions, helping detect changing pattern of consumer behaviour, it would help
taking better decision regarding resource utilization, driving revenues and improving
personalized experiences.

 AUTOMATION: It would lead to automation of few processes like transaction

processing, data dealing, interpretation of applications, automating repetitive tasks,
and replying e-mails. It is estimated around half of the work would be automated in
coming years. For example writing code is expected to be taken over by AI.

 VIRTUAL REALITY: The global market for this sector is expected to grow by
2022, which requires a forward thinking mindset and basic programming skills. It is
basically a virtual environment generated with the help of machine .It helps tech
companies with reduction in error rate, saving time, more productivity.

 QUANTUM COMPUTING: It involves the use quantum physics to create new

computing techniques, which are more power efficient .It helps to tackle problems
more efficiently using quantum algorithms. This can greatly contribute in the fields
like military affairs, intelligence, machine learning, digital manufacturing .Its
potential have engaged prominent tech companies.

 INTERNET OF THINGS: As per forecasts, by 2030 nearly 50 billion IoT devices

would be used in the world. Tech companies need to expertise their hands in the field
of networking ,information security ,hardware interfacing to deal with a complex web
of interconnected devices from smart phones to kitchen appliances

 CYBER SECURITY: With new threats evolving, it requires prominent cyber

security management. IT companies are expected to develop an understanding to
overcome cyber threats which might possess a danger to their system, data and
capabilities for example risk management ,which guides the companies in identifying,
evaluating ,addressing their organization`s cyber threats .

GOVERNMENT AND LEGAL INTERVENTIONS

9
The IT sector comes under the Ministry of Electronic and Information Technology and
government of India has framed many laws to regulate the IT sector in the country. Some of
the important laws and regulations are discussed as follows:-

1. Foreign Direct Investment (FDI) Policy – The government has allowed 100% FDI
for the IT sector under the automatic route (i.e. without prior government
approval).
2. Indian BPO Promotion Scheme (IBPS) – Under this the BPO/ITES are
incentivized. The main aim of this scheme is to generate employment for the
youth by expanding the IT industry and securing regional growth.
3. Software Technology Parks of India – It is an autonomous society setup in the
Ministry of Electronics and Information Technology with the aim to encourage,
boost and promote Software exports from India.
4. National Policy on Information Technology 2012 – It aims to make at least one
individual in every house to be e-literate.
5. National Cyber Security Policy – It aims to protect information like personal data,
banking information, sovereign data etc. The policy has set up different bodies
such as the National Nodal Agency to deal with various levels of threat and all
matters related to cybersecurity.
In 2015, the Government of India launched Digital India campaign as a part of its e-
governance scheme to improve the digital infrastructure by increasing internet connectivity
and connecting the rural areas with high speed internet. The digital India campaign aims to
deliver government services digitally to the citizens, and increase digital literacy. The
campaign has given opportunity to various new startups and small companies to carry out
research in IT field.

RECENT DEVELOPMENTS

1. The government allocated Rs 53,108 crore for the IT and telecom sector in the Union
Budget 2021. This allocation of funds will promote the growth of IT sector in the
country
2. The Ministry of Heavy Industries and Public Enterprises approved six technological
innovation platforms so that India could develop technologies for global competitive
manufacturing in the country.
3. The Information Technology (intermediary guidelines and digital media ethics code)
2021 aims to empower ordinary social media and OTT users to redress their grievance
to a locally appointed Grievance Redressal Officer. Special provisions are made for
the safety of women and children on social media. This has created a challenge for the
IT industry to adapt new ways to comply with the new security setup of the
government.

INTERNATIONAL INSIGHTS

10
From the latest trend in consumer gadgets to the easiest mode of communication, technology
has helped us in more than one way, one of which includes promoting economic growth of
the country. This particular sector is unique in respect to all other sectors in the market
because here the environment is extremely dynamic. As it is said that every hour there is a
new technology coming up these days, therefore the market is volatile. As stated by an
article, India is becoming its own Silicon Valley. Today India’s IT sector account for 15-
billion-dollar industry.

Call Centre has been outsourced from America to India since decades. In the global market,
India is famous for its superior quality IT outsourcing services. It caters to the needs of major
firms in different continents including Europe and North America and is therefore called the
IT Outsourcing hub.

According to an article, the Indian IT sector has doubled its market share in the period 2011
to 2020 in comparison to the international companies. As per an article from TOI, Indian
companies have doubled the market share in the IT industry while the share of foreign players,
including Accenture, IBM shrunk from 86 to 72 percent in the same time.

Some of the reasons for the same would be because Indian has a comparative advantage
along with the absence of state intervention. Instead of using those resources in which India
has a comparative disadvantage (namely physical infrastructure and limited financial
resources), it focuses on the advantage that the country has (which is high skill human
resources at comparatively low cost). Other reasons for the success of IT Industry in India
would be the level of exports, private sector driven growth along with flexible labor market
and minimal state intervention. The Indian companies were flexible and quick enough to
adapt themselves to the changing environment. From mainframes to becoming client servers
to adaptation of mobile applications and cloud computing.

It has also enabled the country to provide millions of jobs to its people. In a nutshell, India
proved itself that they are capable of elevating their services from the low-level
administration IT services.

INDUSTRY FORECASTS

11
Undoubtedly IT being an integral part in almost all leading sectors can be considered as one
of the emerging fields. IT is a developing field which is acting as a pioneer to globalization.
IT and IT enables devices are expected to outgrow other industries with their pace of
expansion. With the emergence of new technologies the future of IT industry appears bright.
Automation is expected to cover a significant area in the upcoming IT sector. Government
schemes like Make in India, Digital India are going to help create a range of opportunities for
these sector .IT industries especially with innovative products like chat bots are flourishing. It
is one of the biggest employers and is expected to create a majority of upcoming jobs .With
the rise in digitisation IT sector is emerging well in other areas such as banking, finance,
manufacturing and sales .In the coming years almost all sectors are expected to make more
use of IT to increase their efficiency and speed up their growth. India has emerged among
one of the largest exporters of IT services .It is expected that IT industry will be greatly
benefitted with the economic transformation, globalisation .Various cities are developing as
IT hubs. Currently the sector accounts for 27% of countries exports and employees nearly 4.4
million people Number of employees in this sector is expected to rise, with better academic
facilities and greater research for IT and its practices .As per a report India`s IT industry can
achieve $300-350 million annual revenue by 2025. In the wake of rapid digitalization
technological industry is expected to accelerate growth by 2-4%. With 600 delivery centres
around the world, Indian IT industry has established its presence over 200 countries .The
requirement for the industry is it should expertise its potential in artificial intelligence, cyber
security and other emerging technologies. With the government playing an important role in
digital services, investment and innovation a massive transformation is expected in the
industry.

ENVIRONMENTAL ANALYSIS

12
In order to survive in the market, every company must understand the dependence that it has
over the environmental factors and how does it affect its business operations. As far as the IT
sector is considered, it also gets affected by various factors including the disposable income
of the country, import duties, unemployment rate, changes in the government policies and
many more. These changes in the macro environment may lead to an opportunity or a
disadvantage for the companies. For example, a company like HCL would prefer to work
where there are low tax rates so that their profitability can be increased and their chances to
export are easier. The GDP growth rate also relates for the companies to understand their
long-term growth strategies. A country with high GDP also implies that the consumers there
have more spending capability, thus the company would alter their policies accordingly or
maybe a country with high unemployment rate would mean more availability of labour at
comparatively low rates. There could be many other factors including the labour market
conditions and the type of economic structure that the country follows.

All companies must ensure that they are aware of all the changes in the environment and have
the ability to adapt themselves accordingly.

Sustainable Development Goals is something that is the need for today. Every company, be it
in any sector can directly or indirectly contribute to the SDG’s. IT sector can play an
important role to solve the challenges faced by the companies where there are opportunities
for innovation and creativity both in the developed and emerging markets. Expanding access
to basic technology, say internet is also very important to promote SDG’s opportunity.
Companies can contribute their bit by:

 Ensuring that they pay the taxes. There are lots of companies that somehow tries to
avoid paying taxes to the government. Although SDG’s might be seen as the
government responsibility, the government also has very less to do because their
hands are tied. One should take tax as an investment rather than a wasteful expense.
 Investing in NGO’s is another step that companies irrespective of their sector can
contribute to. It will not only help a company build its image in the market but will
also help the respective NGO and the people in need.
Companies like HCL for instance, have insured that they contribute their bit towards the
sustainable goal. The company believes that education is the single most important tool that
would help the future of the nation and hence they came up with HCL Foundation, which is a
not-for-profit organization that aims to contribute towards national and international
development goals.

Infosys also claims that they have readily accepted and embraced their duties towards the
sustainable growth and contributes their part for the same.

SWOT ANALYSIS

13
To evaluate company’s position and to develop a proper planning, SWOT analysis is a
requisite. It helps to analyse internal and external factors of the industry to evaluate current as
well as future potential. Information technology comprises a abroad term of new
communication and computing technologies.

Some large tech

companies have
Integral part of all
other services been badly Innovation in many
impacted by public fields, improved
Loyal customer base trust, privacy and techniques
and unique data being misused,
technology many analysts Advantages of new
pointed the role of technology in
Wide area of service workplace.
tech companies in Fierce competition
offerings ,global fake news and
delivery, ease of Flexible working ways Cyber criminals
information
access to information ,connecting with best
affecting public`s Increasing
resources regardless
Quicker decisions and trust employee costs
of location
adaptability Though number of
Good market in both Failure of hardware
Widespread adoption people are involved and software, data
domestic and
and constant but finding the right breach
international level
innovation talent is a major
challenge for tech Coming up of new Dynamic changes in
Operational companies, lack of industries, service, technology and
excellence with skills of IT products which are trends, manual jobs
continued growth professionals, technology driven, to be replaced by
cloud computing, automation .
Skilled workforce , Requirement to
artificial intelligence,
abundant prepare employees
telecommunications
manpower ,provides in digital skills
are major areas in
efficient
Smaller size of the coming areas
service ,presence of a
conducive business majority of Indian IT
environment. firms.
CONCLUSION

14
The IT industry plays a key role in the development of a country. In the era of technology,
each country is competing with one another and everyday there is an upgrade in the tech
world and the IT industry plays an important role in the development of new technologies.
During the tough times of Covid-19, when there were global lockdowns and people could not
connect physically, the IT industry has helped people to connect through online mode and
made it more convenient for humans to adapt in the world of new normal. At the same time
the IT industry provided tech solutions to many businesses to carry out their process through
online mode, this has saved many economies from collapsing.

The Indian IT industry which is one of the largest in the world and contributes 8% to the
GDP of the country, has helped India to compete in the global tech market and made India
one of the most important players in the global market. The Indian IT industry has many IT
giants and the six IT Companies which we would like to analyze in the next phase of the
assignment are :-

1. Tata Consultancy Service (TCS)

2. Infosys
3. HCL
4. Wipro
5. Tech Mahindra
6. Larsen and Toubro Infotech

15