Industrial

Immersion
Project
On
IT Industry
 Submitted by
Kevin Poly

PGDM 2020- 22

In partial fulfilment of the requirements for

Post Graduate Diploma in Management
Kohinoor Business School,
Kurla, Mumbai
400070

Academic Year 2020- 22

Project Co-ordinator: Dr Sandeep Sawant

 Declaration
I, Kevin Poly of Kohinoor Business School, Kurla West,
Mumbai of PGDM (2020-22), hereby declare that, I have
completed my project, titled as “A study on IT Industry in
India” in the Academic year 2020-22

I hereby declare that the Industrial Immersion Project report

carried out on “A study on IT Industry in India” is my work
submitted on partial fulfilment of the requirement for Post-
Graduation Diploma in Management, from Kohinoor
Business School, Kurla Mumbai for 1st year 2020-21.
 Acknowledgment
I would like to express my sincere appreciation to those who
inspired me to complete this project successfully. Initially, I
would like to state my sincere thankfulness to Dr Sandeep
Sawant, PGDM head of Kohinoor Business School, Kurla
for addressing me this opportunity.

I am especially grateful to my college professors guide Dr

Sandeep Sawant for providing me with endless support and
advice in my endeavour.

I am also thankful to all the faculty members who imparted

their knowledgeable insights in the class which assisted to
make my basics strong with clear conceptual knowledge.

Lastly but not least I would like to appreciate everyone who

helped me to compile my project during the entire period.
Executive Summary

The Industry Immersion Project is based on the IT Industry.

As being interested in the IT Industry myself, I have tried to

cover all the aspects and nature of it.

I have covered different types, components, AI structure,

Management System, Machine Learning, Cloud Service and
so on.

I have mentioned some of the Companies, Websites,

Magazine, etc from where I conducted my research or from
where the data was collected.

I have done a small research study on how the growth of this

Industry has impacted the corporate world especially in India.
1. Introduction:
- 1.1 Segments for IT organizations
- 1.2 Tree Structure for the segments
- 1.3 IT industry fields and domains in organization
2. Present Scenario and Growth in India:
- 2.1 IT industry market in India
- 2.2 Current scenario of IT in India
- 2.3 Growth chart from FY 2010 onwards
- 2.3.1 FY 2010 to 2015
- 2.3.2 FY 2016 – 2017
- 2.3.3 FY 2018
- 2.3.4 FY 2019
- 2.3.5 FY 2020
3. Market Structure:
- 3.1 Market Size
- 3.2 Investment and Developments
- 3.3 Future road ahead
4. Union Budget updates:
5. IT’s impact in other businesses:
- 5.1 Benefits of IT industry in other fields
- 5.2 Success with the help of IT
- 5.3 Key role of information system in business
6. History of IT industry in India
7. SWOT analysis:
8. Government and Market towards IT:
- 8.1 Information Technology Amendment act 2008
- 8.2 Challenge from change
- 8.3 Six major trends in business because of IT industry
- 8.4 Major initiative in IT industry
9. IT hubs / cities in India:
10. Reports for IT industry in India:
11. Challenges and Solutions:
12. Top IT Companies in India
13. Hypotheses
14. Conclusion
15. Webliography
 1. INTRODUCTION
The IT industry is a broad, sweeping term that covers many
information technology-oriented organizations. If you think about it,
no organization (whether corporate or government or non-profit) can
survive without IT.

Therefore, when we speak about the IT industry, we include all

organizations or departments within organizations which develop,
maintain or operate the Information Technology systems.

Information technology, and the hardware and software

associated with the IT industry, are an integral part of nearly
every major global industry.

The information technology (IT) industry has become of the most

robust industries in the world. IT, more than any other industry or
economic facet, has an increased productivity, particularly in the
developed world, and therefore is a key driver of global economic
growth. Economies of scale and insatiable demand from both
consumers and enterprises characterize this rapidly growing sector.

Both software development and the hardware involved in the IT

industry include everything from computer systems, to the design,
implementation, study and development of IT and management
systems. Owing to its easy accessibility and the wide range of IT
products available, the demand for IT services has increased
substantially over the years. The IT sector has emerged as a major
global source of both growth and employment.
1.1 The following segments for IT organizations (shorter
perspective) that have a presence in multiple areas are:

1. Product Companies: These are companies that work on products

meant to serve a specific use for a customer. There could be
pure software product companies (e.g., Adobe Systems or
Computer Associates) or hybrid product companies which have
both software and hardware – often bundled together but
sometimes sold independently too (e.g., Google, Microsoft,
Apple, etc.). Also included in this classification are the hundreds
of thousands of small start-up companies looking to make their
idea the next big idea.

2. Services Organizations: These organizations provide IT services

to their customers. They are some which specialize in providing
services only to the product companies whereas others provide a
wide range of services ranging from network maintenance,
business process outsourcing, system support, and bespoke
application development.

3. In-house IT Departments: The IT function of some of the largest

organizations may be bigger than many standalone IT
companies. This function typically functions like a cost centre
that provides IT services for the core business. For example, the
IRCTC which serves the Indian railways builds and supports
some of the most complex systems in the world.
 1.2 A tree structures

The following is the small tree structure of what the different

segments works for and what are the actual task of segments and
their specialization.

Product companies – Makes IT related product which could include

software’s and hardware’s.

Service Companies – Provides services through IT which may include

E-commerce, Antivirus / Firewall management, Website / Portal
handlings, Internet services, Cyber Cell.

In-house IT departments – These departments handle IT related work

in corporates or offices which is their own inhouse department. These
departments have work of managing financial accounts,
organizational goals, Employee’s attendance, Organizational
structure, etc.
1.3 Some IT Industry technical fields or domain used in
current times in Organizations.

1. Management System - A management system is a set of

policies, processes and procedures used by an organization to
ensure that it can fulfil the tasks required to achieve its
objectives. These objectives cover many aspects of the
organization's operations (including financial success, safe
operation, product quality, client relationships, legislative and
regulatory conformance and worker management).

Some common types of management system are:

Process control systems, human resource management systems,
sales and marketing systems, inventory control systems, office
automation systems, enterprise resource planning systems,
accounting and finance systems and management reporting
systems.

2. Machine Learning - Machine learning is the study of computer

algorithms that improve automatically through experience and
by the use of data. It is seen as a part of artificial intelligence. It
is also a method of data analysis that automates analytical model
building. It is a branch of artificial intelligence based on the idea
that systems can learn from data, identify patterns and make
decisions with minimal human intervention.

The main 2 types of Machine learning process are:

Supervised learning and Unsupervised learning

3. Data Mining - Data mining is a process used by companies to

turn raw data into useful information. By using software to look
for patterns in large batches of data, businesses can learn more
 about their customers to develop more effective marketing
strategies, increase sales and decrease costs. It is also a process
of extracting and discovering patterns in large data sets
involving methods at the intersection of machine learning,
statistics, and database systems.

Data mining’s important interactions are for:

Customers / Consumers/ Clients, Market behaviours, Payment
and Purchasing pattern/ structure, Interests, Forecasting

4. Artificial Intelligence (AI): Artificial intelligence (AI) refers to

the simulation of human intelligence in machines that are
programmed to think like humans and mimic their actions. The
term may also be applied to any machine that exhibits traits
associated with a human mind such as learning and problem-
solving. AI also helps in creating a visual environment where
the people can have a beforehand experience before entering
into the actual fields.

Examples or Uses of AI:

Optical character recognition, Handwriting recognition, Speech
recognition, Face recognition, Virtual reality, Image processing,
Voice assistant, etc are the prime examples of AI.
 2. PRESENT SCENARIO & GROWTH IN INDIA

Throughout the world the IT industry is booming, with the current

generation and current globalization IT is a necessary industry which
can also be called as one of the important supportive factors for rest
all industries in the world. As current times is changing more towards
the technical field it is important for every organization to cope up
with the changes which would help them to sustain in the
competition. Having enough knowledge and skill to interact with the
IT field and components is one of the needed jobs in current times.

With this competitive world, even India is becoming one of the tech
giants with many upcoming start-ups and international market
captures. The IT industry is used in almost many fields in India, and
which has also helped in growth and stability compared to many other
developed countries.

2.1 IT industry market in India

Currently TCS is known as one of the renowned IT company in India
with some other companies like Wipro, Infosys, etc. TCS that is Tata
Consulting Services which comes under TATA group of companies is
one of the companies with richest moral values and strong ethics. Not
only TCS made a big impact in India but also, they made a big impact
in international market. Currently they are one of the market leaders
of IT industry all over the world.
There are many cities in India which is known as IT hub places which
includes Hyderabad, Bangalore, Chennai, Kolkata, Pune, Delhi NCR
and Bhubaneshwar.
These places have highest start-ups in IT industry and have a huge
impact in the growth structure of in the industry as well.
2.2 The current scenario of IT industry in India
Information Technology in India is an industry consisting of two
major components: IT services and business process outsourcing
(BPO). The sector has increased its contribution to India's GDP from
1.2% in 1998 to 7.7% in 2017.
India's IT industries estimated growth was at a rate of 12 - 14% during
2016 - 2017 as per a report by India's software industry body National
Association of Software and Services Companies (NASSCOM.) This
clearly shows that information technology is a sector which will likely
be one of the emerging markets in the days to come as India's
economy requires more hardware, software and other IT services. In a
NASSCOM-McKinsey report, India's position in the global offshore
IT industry is based on five factors - abundant talent, creation of
urban infrastructure, operational excellence, conducive business
environment and finally, continued growth in the domestic IT sector.

2.3 Growth chart / brief from the Financial year 2010 to now.
The details of the following growth and market structure is shown
below breaking down in format of Domestic growth, International
exports, Total revenue, and so on.

2.3.1 Market size and growth of Industry from Financial year

2010 to 2015
2.3.2 IT industry in the Financial Year 2016 – 2017
- IT BPM industry revenues (excluding hardware) for the Financial
Year 2016-17 are estimated to be at US$ 154 billion.
- IT sector contributed to India's GDP by 7.7% in the year 2016.
- In the Financial Year 2016, TCS stood as the market leader with
about10.4% contribution to India's IT sector revenue.
- The IT market is quite competitive with the top 5 IT firms
contributing over 25% to the total IT revenue.
- For the Financial Year 2017, the domestic revenue is estimated to be
at US$ 38 billion while the export revenue is estimated to be at US$
117 billion.

From the year 2018 onwards, it was a boom for India as many foreign
companies started investing in India for IT structures and
development.

2.3.3 The Indian growth for the year 2018 by NASSCOM.

The below data shows the total GDP growth among 71% belongs to
the IT and BPM industry.
2.3.4 The IT industry for the Financial year 2019 by NASSCOM.
The following table is comparison between the Financial year of 2018
and 2019 growth which is estimated

2.3.5 The IT Industry for the Financial year 2020

- IT-BPM industry’s revenue was estimated at around US$ 191 billion
in FY20, growing at 7.7% y-o-y.
- The domestic revenue of the IT industry was estimated at US$ 44
billion and export revenue was estimated at US$ 147 billion in FY20.

Future prediction till 2025 for IT industry was made with the
data collected till FY 2020.
It is estimated to reach US$ 350 billion by 2025. Moreover, revenue
from the digital segment is expected to form 38% of the total industry
revenue by 2025. Digital economy is estimated to reach Rs. 69,89,000
crores (US$ 1 trillion) by 2025.
 3. MARKET STRUCTURE

Here market structure can be stated as the current market size, Future
plans for IT industry, Investment and Development plans, Growth,
Government Plans or Initiatives.
It is a branched detail about all that is lined up for the industry in the
coming times ahead.

3.1 Market Size

Market size is allocation of different sectors inside the IT industry.

These are the sectors under IT industry and the segmentation are as
follows and the values indicates US billion dollars.
- IT services 99 US Billion dollars.
- BPM (business process management) – 38 US Billion Dollars.
- Engineering R&D (ER&D) – 31 US Billion Dollars.
- Software Products – 9.2 US Billion Dollars.
- E-Commerce – 57 US Billion Dollars.
3.2 Investments and Developments in IT industry
In 2020, the government released “Simplified Other Service Provider”
(OSP) guidelines to improve the ease of doing business in the IT
Industry, Business Process Outsourcing (BPO) and IT-enabled
Services.
The Government has identified Information Technology as one of 12
champion service sectors for which an action plan is being developed.
Also, the Government has set up a Rs. 5,000 crore (US$ 745.82
million) fund for realising the potential of these champion service
sectors.
As part of Union Budget 2018-19, NITI Aayog was to set up a
national level programme to enable efforts in AI and leverage AI
technology for developing the country.
In the Interim Budget 2019-20, the Government announced plans to
launch a national programme on AI* and setting up of a National AI*
portal. National Policy on Software Products-2019 was passed by the
Union Cabinet to develop India as a software product nation.

3.3 Future road ahead

India is the topmost offshoring destination for IT companies across
the world. Having proven its capabilities in delivering both on-shore
and off-shore services to global clients, emerging technologies now
offer an entire new gamut of opportunities for top IT firms in India.
The industry is expected to grow to US$ 350 billion by 2025 and
BPM is expected to account for US$ 50 55 billion of the total
revenue.
As the world is generally moving towards technology the IT industry
is an area where there is a lot of potential to grow and help to increase
the GDP as well. As India has showed up a lot of potential, many
international companies have taken interest to invest and establish
their offices and factories in India, that can help in generating
employees on a large scale and benefit the growth of employment in
the country.
 4. UNION BUDGET UPDATES (IT INDUSTRY)

This is a small detail on the Union Budget presented in association

with the IT Industry.
Union Budget for the year 2021- 2022
Presented on – 1st February 2021
Submitted to Parliament of India
Parliament – 17th Lok Sabha
Party – BJP
Announced by Nirmala Sitharaman (Finance Minister)

IT Industry updates for year 2021- 2022:

1. Government to launch data analytics, artificial intelligence,
machine learning driven MCA21 Version 3.0 during fiscal
2021-2022.
2. Allocation of Rs 37.68bn for forthcoming Census (first digital
census in the history of India) in the year 2021-22
Impact – Marginally positive for IT companies.

To give boost to Digital Transactions in the Country

3. Earmarked Rs. 15 bn for a proposed scheme that will provide
financial incentives to promote digital modes of payment.
4. Tax audit for persons who are undertaking 95% of their
transactions digitally to Rs. 100 Mn
Impact – Marginally positive for CPaaS (communication platform as
a service) companies.
Basically, it is a good Budget for IT industry for the year 2021-22
 5. IT’S IMPACT IN OTHER BUSINESSES

5.1 Benefits of IT industry in other industries or fields.

1. IT Streamlines Communication: Efficient communication is

critical to company success. In an increasingly connected and
dispersed business landscape, recruiting, retaining, and
leveraging employees requires ongoing communication and
collaboration. A key advantage of information technology lies in
its ability to streamline communication both internally and
externally.
For example, online meeting and video conferencing platforms
such as Skype, Zoom and GoToMeeting provide businesses the
opportunity to collaborate virtually in real-time, significantly
reducing costs associated with bringing clients on-site or
communicating with staff who work remotely. In addition, IT
allows organizations to connect almost effortlessly with
international suppliers and consumers.

2. IT Facilitates Strategic Thinking: One of the fundamental

advantages of IT is its ability to enhance a company's
competitive advantage in the marketplace, by facilitating
strategic thinking and knowledge transfer. Accessing and
leveraging social networks and subscription databases, for
instance, has enabled companies the ability to assemble,
interpret and transfer information like never before. This has
given businesses unparalleled access to customers and
consumers, enabling organizations to deliver new and enhanced
products.
Therefore, when used as a strategic investment rather than as a
means to an end, IT provides organizations with the tools they
 need to properly evaluate the market and to implement strategies
needed for a competitive edge.

3. IT Stores and Safeguards Valuable Information : The storage,

preservation, and maintenance of information, known as
information management, is another domain in which IT shines.
Information management is essential to any business that must
store and safeguard sensitive information (such as financial
data) for long periods of time. IT affords companies the ability
to store, share, and backup files for later use, as well as
protecting information from unauthorized individuals. As a
result, IT gives businesses the peace of mind that the
information they collect and analyse can be properly stored and
safeguarded for future use.

4. IT Cuts Costs and Eliminates Waste: Although IT may seem

expensive when first implemented, in the long run, however, it
becomes incredibly cost-effective by streamlining a company's
operational and managerial processes. The implementation of
online training programs is a classic example of IT improving an
organization's internal processes by reducing costs and
employee time spent outside of work. In effect, IT enables
companies to do more with less, without sacrificing quality or
value.

5.2 Success with the help of IT

1. Significance: Information technology has grown to permeate the

business world, affecting how companies make and market their
products, as well as how people communicate and accomplish
their jobs in modern organizations. Specialized software shapes
best-practices and industry standards, continually changing the
face of business in almost every way.
2. Areas: IT can help companies cut costs, improve communication,
build recognition and release more innovative and attractive
products.

3. Production Technology: Production technology has allowed

modern companies to make great strides in operational efficiency
and the effectiveness of human resources. Automation
technology, such as assembly lines and computer-controlled
machinery, can allow companies to produce unprecedented
volumes of goods, and advances in transportation technology
allow businesses to ship their products anywhere in the world.
Information technology has also changed the way that companies
operate internally. Personal computers have become a necessity
for a large majority of corporate jobs, and many manual labour
jobs require the use of a handheld computer or other electronic
device as well.

4. Communications Technology: Leveraging advances in

communications technology is imperative to surviving in the
modern business world. Advances in cellular phone technology
have revolutionized the way businesspeople communicate with
clients, employees, suppliers and strategic partners. The Internet
has revolutionized the marketing function in addition to opening
up a wide range of communication options. Modern smartphones
are changing the game yet again with the introduction of new and
innovative applications. A small business owner can now access a
web-based customer relationship management service on a
smartphone from anywhere in the world, for example, allowing
him to obtain vital data about contacts before making calls.

5. Considerations: While information technology solutions can

contribute to the success of your organization, there are a number
 of unique costs to consider. In addition to the cost of
implementing an IT solution, you must employ highly educated
and specialized workers to maintain, monitor, expand and repair
your IT infrastructure.

6. The Future: Modern information technology has gained popularity

rapidly since the mid-twentieth century, and the trend is likely to
continue into the future. As IT solutions continue to increase the
efficiency and effectiveness of business operations and
communications, businesses will continue to rely on IT for
success.

5.3 Three key roles of Information Systems in business.

1. Information Storage and Analysis: At the date of publication,

many companies no longer manage their data and information
manually with registers and hard-copy formats. Through the
adoption of information systems, companies can make use of
sophisticated and comprehensive databases that can contain all
imaginable pieces of data about the company. Information
systems store, update and even analyse the information, which
the company can then use to pinpoint solutions to current or
future problems. Furthermore, these systems can integrate data
from various sources, inside and outside the company, keeping
the company up to date with internal performance and external
opportunities and threats.

2. Assist with Making Decisions: The long-term success of a

company depends upon the adequacy of its strategic plans. An
organization’s management team uses information systems to
formulate strategic plans and make decisions for the
organization's longevity and prosperity. The business uses
 information systems to evaluate information from all sources,
including information from external references such as Reuters
or Bloomberg, which provide information on the general
economy. This analysis of and comparison to market trends
helps organizations analyse the adequacy and quality of their
strategic decisions.

3. Assist with Business Processes: Information systems aid

businesses in developing a larger number of values added-
systems in the company. For example, a company can integrate
information systems with the manufacturing cycle to ensure that
the output it produces complies with the requirements of the
various quality management standards. Adoption of information
systems simplifies business processes and removes unnecessary
activities. Information systems add controls to employee
processes, ensuring that only users with the applicable rights can
perform certain tasks. Further, information systems eliminate
repetitive tasks and increase accuracy, allowing employees to
concentrate on more high-level functions. Information systems
can also lead to better project planning and implementation
through effective monitoring and comparison against established
criteria.

4. Considerations when Implementing Information Systems:

Implementing information systems within an organization can
prove to be costly. Implementation costs include not only
installation of the systems but also employee training sessions.
In addition, employees may see the adoption of information
systems as an unwarranted change and, thus, may resist this
change. Resistance to change can hinder business operations and
can cause employee turnover. Companies should have
leadership in place to assess the adequacy of the decision to
have an information system and to guide the company through
the transition phase and weigh information systems cost against
the potential benefits.
 6. HISTORY OF IT INDUSTRY IN INDIA

India's IT Services industry was born in Mumbai in 1967 with the

creation of Tata Consultancy Services who in 1977 partnered with
Burroughs which began India's export of IT services. The first
software export zone, SEEPZ – the precursor to the modern-day IT
park was established in Mumbai in 1973. More than 80 percent of the
country's software exports were from SEEPZ in the 1980s.

Within 90 days of its establishment, the Task Force produced an

extensive background report on the state of technology in India and an
IT Action Plan with 108 recommendations. The Task Force could act
quickly because it built upon the experience and frustrations of state
governments, central government agencies, universities, and the
software industry. Much of what it proposed was also consistent with
the thinking and recommendations of international bodies like the
World Trade Organization (WTO), International Telecommunications
Union (ITU), and World Bank. In addition, the Task Force
incorporated the experiences of Singapore and other nations, which
implemented similar programs. It was less a task of invention than of
sparking action on a consensus that had already evolved within the
networking community and government.

Regulated VSAT links became visible in 1994.[10] Desai (2006)

describes the steps taken to relax regulations on linking in 1991:
In 1991 the Department of Electronics broke this impasse, creating a
corporation called Software Technology Parks of India (STPI) that,
being owned by the government, could provide VSAT
communications without breaching its monopoly. STPI set up
software technology parks in different cities, each of which provided
satellite links to be used by firms; the local link was a wireless radio
link. In 1993 the government began to allow individual companies
their own dedicated links, which allowed work done in India to be
transmitted abroad directly. Indian firms soon convinced their
American customers that a satellite link was as reliable as a team of
programmers working in the clients’ office.

A joint EU-India group of scholars was formed on 23 November 2001

to further promote joint research and development. On 25 June 2002,
India and the European Union agreed to bilateral cooperation in the
field of science and technology. From 2017, India holds an Associate
Member State status at CERN, while a joint India-EU Software
Education and Development Centre will be located in Bangalore.

Current situation:
In the contemporary world economy, India is the largest exporter of
IT. Exports dominate the Indian IT industry and constitute about 79%
of the industry's total revenue. However, the domestic market is also
significant, with robust revenue growth. The industry's share of total
Indian exports (merchandise plus services) increased from less than
4% in FY1998 to about 25% in FY2012. The technologically-inclined
services sector in India accounts for 40% of the country's GDP and
30% of export earnings as of 2006, while employing only 25% of its
workforce, according to Sharma (2006). According to Gartner, the
"Top Five Indian IT Services Providers" are Tata Consultancy
Services, Infosys, Wipro, Tech Mahindra, and HCL Technologies.
 7. SWOT ANALYSIS OF IT INDUSTRY

1. Strengths:

- Highly skilled, English speaking manpower.

- Cheap workforce than their Western counterparts. According to
NASSCOM, the wages difference is as high as 70-80 percent
when compared to other Western counterparts.
- Lower attrition rates than on the West.
- Dedicated workforce aiming at making a long-term career in the
area.
- Round-the clock benefit for Western companies due to the huge
time difference.
- Lower response time with efficient and effective service.

2. Weakness:

- Recent months have seen a rise in the level of attrition rates

among IT workers who are quitting their jobs to pursue higher
studies of late workers have shown a tendency not to
pursue IT as a full-time career.
- The cost of telecom and network infrastructure is much higher
in India than in the US.

3. Opportunity:
- To capitalise and encash on the already established image of
India being portrayed as the most favoured IT destination in the
world.
- Opportunities for Indian companies to work closely with
western Governments and assure their concerns and issues.
- India can be branded as a quality IT destination rather than a
low-cost destination.
4. Threats:
- The anti-outsourcing legislation in the US state of New Jersey.
Three more states in the US are planning legislation against
outsourcing.
- Workers in British Telecom have protested against outsourcing
of work to Indian BPO companies.
- Other IT destinations such as China, Philippines and South
Africa could have an edge on
the cost factor.
 8. GOVERNMENT & MARKET TOWARDS ‘IT’

8.1 Information Technology Amendment Act 2008

The Information Technology (Amendment) Act, 2008 has been
enforced and rules of important sections have been notified in
October,2009 which addresses the needs of National Cyber Security.
The Act upgrades the existing legal framework to install confidence
of the users and investors in the area of Information Technology in
the country. The following rules under Information Technology Act,
2000 were notified on 11.04.2011:

- Information Technology (Electronic Service Delivery)

Rules,2011under section 6 A
- Information Technology (Reasonable Security Practice and
Procedures and Sensitive Personal Information) Rules,2011
under section 43 A
- Information Technology (Intermediaries guidelines) Rules,2011
under section 79
- Information Technology (Guidelines for Cyber Café)
Rules,2011 under section 79.

8.2 Challenge from the Change

A major feature of Information Technology is the changes that IT
brings. Those who speak of a revolution from technology are really
talking about change. Business and economic conditions change all
the time; a revolution is a discontinuity, an abrupt and dramatic series
of changes in the natural evolution of economies. In the early days of
technology, change was gradual and often not particularly significant.
The advent of personal computers accelerated the pace of change, and
when the Internet became available for profit-making activities
around 1992, change became exponential and revolutionary. To a
great extent, the study of information technology is a study of change.

8.3 Six Major trends in business because of IT industry

In the past few years, six major trends have drastically altered the way
organisations use technology. The trends are:
1. The use of technology to transform the organisation.
2. The use of information processing technology as a part of corporate
strategy.
3. Technology as a pervasive part of the work environment.
4. The use of technology to support knowledge workers.
5. The evolution of the computer from a computational device to a
medium for communications.
6. The growth of the Internet and World Wide Web (WWW).

8.4 Major Initiatives in IT Industry:

- National e-Governance Plan (NeGP)
- State Wide Area Networks (SWANs)
- Common Service Centres (CSCs)
- Mobile Governance
- Social Media
- National Knowledge Network
- Cyber Security
- International e-Sports tournaments.
 9. IT HUBS / CITIES IN INDIA

In India there are many big cities which are called as the IT hubs of
India and those are the places where the most of the MNC’s and
international firms set up their offices. It all began with Mumbai
being the prime hub but later many cities joined in.

1. Bengaluru:
Bengaluru is known as the “Silicon Valley of India”. Notable
tech parks are Electronics City Phase I & II, ITPL, Bagman
Tech Park, Embassy Golf Links, Manyata Tech Park, Global
Village Tech Park, Embassy Tech Village. Apart from these IT
companies are also located in several other parts of the city.
Notable IT companies of the area include Infosys, Wipro, HCL
Technologies, SAP Labs, Accenture, TCS, Oracle, IBM India,
Fusion Charts, Sonata Software, Strand Life Sciences, Mindtree,
and Intuit India.

2. Chennai:
As of 2012, Chennai is India’s Largest exporter of information
technology (IT) and business process outsourcing (BPO)
services. Tidel Park in Chennai was billed as Asia’s largest IT
park when it was built. Notable tech parks are International
Tech Park, DLF Cybercity SEZ, Mahindra World City, SIPCOT
IT Park, Olympia Tech Park, One India bulls Park, L&T
Estancia IT SEZ and Ramanujan IT City. City has an
expressway called as IT expressways and a preferred location
for IT industries. Major software companies such as Tata
Consultancy Services, Infosys, Zoho, Capgemini, Cognizant
Technology Solutions, Accenture, UST Global, Birla Soft, HCL
Technologies have their offices set up here, with some of them
making Chennai their largest base.
3. Hyderabad:
Hyderabad known for the HITEC City or Cyberabad is a major
global IT hub, and the largest bio-informatics hub in India.
Hyderabad has emerged as the second largest city in the country
for software exports pipping competitors Chennai and Pune. As
of 2020, the IT exports from Hyderabad was ₹128,807 crore
(US$15 billion), the city houses 1500 IT and ITES companies
that provide 582,126 employment. Notable tech and pharma
parks are HITEC City, Genome Valley, and Hyderabad Pharma
City.

4. Kolkata:
Kolkata is the financial and business hub of Eastern India. The
metro city has seen a significant rise in IT services. In August
2018, the West Bengal Government has announced that 200
acres of land in Rajarhat Newtown will be used for the
development of Bengal Silicon Valley, similar to the California
Silicon Valley in San Francisco, USA. The main intention of
this project is to create a business-friendly environment for IT
companies to set up their business in the city. Major IT Parks
include Sector V, DLF 1,2, Gitanjali Park SEZ, Eco space.

5. Pune:
The Rajiv Gandhi Infotech Park in Hinjwadi is a ₹600-billion
(US$8.9 billion) project by the Maharashtra Industrial
Development Corporation (MIDC). The IT Park encompasses
an area of about 2,800 acres (11 km2) and is home to over 800
IT companies of all sizes.[33] Besides Hinjwadi, IT companies
are also located at Magarpatta, Kharadi, Yerawada, Aundh and
several other parts of the city. As of 2017, the IT sector employs
more than 300,000 people.
6. Delhi NCR:
Delhi NCR is one of the major IT hubs in India. Cities like
Gurugram and Noida have several companies that serves the
local and global markets.

7. Bhubaneswar:
Bhubaneswar in Odisha is one of the fastest growing IT hubs in
India and is also known as “IT hub and Start-up hub of Eastern
India”. According to a 2012 survey, Bhubaneswar has been
chosen as the best for conducting IT/ITES business among the
tier-2 cities in India.
There are several IT Parks located in Bhubaneswar such as
Infocity-1, Infocity-2, STPI-Bhubaneswar, JSS-STP and Info
valley. Several IT Companies like Infosys, Tech Mahindra,
TCS, Wipro, IBM, Genpact, first source, Mindtree, Mphasis,
Ericsson, Semtech, Reliance Communications and some 300
Small and Mid-Size IT companies and Business Start-ups are
present in Bhubaneswar.

8. Mumbai:
Mumbai is the Financial Capital of India and, it is the
headquarters of India’s biggest IT Company Tata Consultancy
Services (TC’s). Mumbai has a greater number of IT industries
like 3i Infotech, Oracle FinServ.

9. Ahmedabad (GIFT):
GIFT is an underdevelopment project located between
Ahmedabad and Gandhinagar. The city will have techno park,
convention centre, special economic zone and Software
Technology Parks for Top IT Industries.
 10. REPORTS FOR IT INDUSTRY IN INDIA
India is the world's largest sourcing destination with largest qualified
talent pool of technical graduates in the world. The country has the
low-cost advantage, being 5-6 times inexpensive than the US. India is
the second-fastest digitising economy among 17 leading economies in
the world.

According to Cloud Next Wave of Growth in India report, India’s

cloud market is expected to grow three-fold to Rs. 49,621 crores (US$
7.1 billion) by 2022, driven by the demand for Big Data, Data
Analytics, Artificial Intelligence (AI) and Internet of Things (IoT).

India’s IT industry contributed around 7.7% to country’s GDP (Gross

Domestic Product) and is expected to contribute 10% to India’s GDP
by 2025. As of FY20, the IT industry employed 4.3 million people. In
FY20, the sector added 205,000 jobs, up from 185,000 jobs added in
FY19. Total number of employees grew to 1.02 million cumulatively
for four Indian IT majors (including TCS, Infosys, Wipro, HCL Tech)
as on December 31, 2019. Indian IT industry employed 205,000 new
hires and had 884,000 digitally skilled talent in 2019.

IT & BPM industry revenue was estimated at around US$ 191 billion
in FY20 at 7.7% growth y-o-y and is estimated that it will grow to
US$ 350 billion by 2025. Moreover, revenue from the digital segment
is expected to form 38% of the total industry revenue by 2025. Digital
economy is estimated to reach Rs. 69,89,000 crores (US$ 1 trillion)
by 2025. The domestic revenue of the IT industry was estimated at
US$ 44 billion and export revenue was estimated at US$ 147 billion
in FY20.
Artificial Intelligence (AI) is expected to boost India's annual growth
rate by 1.3% by 2035, as per NITI Aayog. A substantial increase in
AI by Indian firms can result in a 2.5% increase in India’s Gross
Domestic Product (GDP) in the immediate term.

The computer software and hardware sector in India attracted

cumulative foreign direct investment (FDI) inflow worth US$ 45.97
billion between April 2000 and June 2020. The sector ranked 2nd in
FDI inflows as per the data released by Department for Promotion of
Industry and Internal Trade (DPIIT).

PE (Private Equity) investment in the sector stood at US$ 11.8 billion

across 493 deals in 2019. Venture Capital (VC) investment in the IT
& BPM sector stood at US$ 67.0 million during Q3FY19.

The Government of India has extended tax holidays to the IT sector

for Software Technology Parks of India (STPI) and Special Economic
Zones (SEZs). As of February 2020, there were 421 approved SEZs
across the country, with 276 of them from IT & BPM and 145 as
exporting SEZs.

Further, the country is providing procedural ease and single window

clearance for setting up facilities. On May 2019, the Ministry of
Electronics and Information Technology (MeitY) launched the MeitY
Start-up Hub (MSH) portal.

Also, the Government has identified IT as one of the 12 champion

service sectors for which an action plan is being developed. It is
setting up a Rs. 5,000 crore (US$ 745.82 million) fund for realising
the potential of these champion service sectors.
The IT industry is heavily influenced by factors like the global market
and sustenance of its rate of growth. The recession in the United
States also impacted the IT community in India negatively. This
segment is promising and has vast potential, but there are concerns
regarding the demand-supply gap, which is widening. Some
challenges which the industry is facing are inadequate infrastructure,
tax issues and limited preferential access for local firms. China and
Taiwan are examples of low-cost destinations, and India needs to
change its current tax structure so that it can outdo competition from
other countries.

One of the biggest benefits that the computer and IT industry provides
in India is the employment it can generate. Other benefits are export
and Foreign Direct Investments (FDI). New markets have opened up
in the Middle East, Africa, Eastern Europe, and South and South East
Asia. India is now a major destination for IT outsourcing. There is no
dearth of IT job opportunities in India. In fact, India is expected to
overtake the US to have the greatest number of software developers in
2018 (52 lakh developers in India against America’s 42 lakhs).

The top IT companies in India that offer job opportunities in this field
are Tata Consultancy Services (TCS), Wipro Technologies,
Cognizant, Yahoo!, Google, Tech Mahindra, Infosys Technologies,
HP, Capgemini, iGATE Patni, Accenture, L&T, EY, Convergys,
Mphasis, Genpact, HCL Technologies and Godrej Infotech. Cities
like Bengaluru, Delhi, Noida, Gurgaon, Hyderabad, Chennai, Bombay
and Cochin are some of the places which have developed into
potential IT hubs of the country, thanks to the presence of these top IT
companies. These are now key players which contribute to the growth
of the Indian economy through telecommunication, software
development, design, mobile commerce, e-commerce, BPO and
knowledge process outsourcing (KPO).
The IT industry is one which is not limited to software development
alone. Technology can be applied in libraries, hospitals, banks, shops,
prisons, hotels, airports, train stations and many other places through
database management systems, or through custom-made software as
seen fit.

Among other sectors, the IT sector in India has been driving growth
for the last decade and more, and has the potential to continue doing
so for the next couple of years if shortcomings are met and challenges
are faced.
 11. CHALLENGES AND SOLUTIONS

Challenges:
1. Global Competition: IT products and services are able to
overcome geographical limitations easily with the pervasive
connectivity across the globe, which keeps getting faster and
more reliable.

2. Rate of Obsolescence: It is fair to say that the IT industry re-

invents its own technical infrastructure every few years.
Moore’s law and Nielsen’s law have proven themselves to be
exceptionally resilient. Modern systems (both hardware and
software) look nothing like they did just a few years ago. This
means the rate of adaptation to new technology has to be very
high.

3. Disruption of business models: Using IT as an enabling

technology has disrupted traditional businesses in many areas.
Whether it is in bookselling (Amazon), hospitality (Airbnb) or
Ride sharing (Uber), there is no telling when the next wave of
disruption will come in.

4. Quality and Security: As IT becomes more and more embedded

in traditional products and traditional businesses, it is critical to
ensure that quality and security are not compromised. Imagine if
a software bug causes a space shuttle mission to fail or a car to
malfunction. Security is an even bigger concern. Recent
malware and ransomware attacks have shown how heavily
dependent we are on smooth functioning of IT systems. A huge
global company like Maersk shipping was down on its knees for
nearly week, trying to recover from these attacks.
Solutions:
1. Agile product development: Flexibility and rapid deployment
cycles is the need of the hour. Agile methods help in keeping the
development process flexible as well as achieve rapid time-to-
market. PM Soft provides training, certification as well as
coaching on achieving true agility in the development processes.

2. Focus on Realizing Business Benefits: Technology can be

addictive but organizations must adopt the right technology that
solves the most pressing business problems. The product or
system being built must address the business problems that
organizations face. PM Soft helps keep the focus firmly on the
business benefits and realizing them.

3. Stakeholder Engagement: IT is one of the most man-power

intensive industries. The interaction and collaboration between
the business and the development is critical as IT products and
systems are complex and often intangible. Therefore, success of
IT initiatives often hinges upon the effectiveness of stakeholder
engagements.

4. Leadership Development: PM Soft has been working on

Management Development Programs that help organizations
develop the next generation leaders to drive change. For a
people intensive industry, the development of people is probably
the biggest driver for success.
 12. TOP IT COMPANIES IN INDIA

1. Tata Consultancy service – Largest IT company in India. Tata

Consultancy service is the Largest IT company in India in terms
of Revenue. TCS is an IT services, consulting and business
solutions provider that has been partnering with the world’s
largest businesses in their transformation journeys for the last
fifty years. TCS offers a consulting-led, cognitive powered,
integrated portfolio of business, technology and engineering
services and solutions. TCS is the largest company in India in
terms of Market Capitalization. It is the largest in the list of top
10 IT companies in India 2020.

- Revenue: Rs 152,497 Cr
- Market Cap: Rs 845,337 Cr.
- Employees: 420,000
- ROE: 35.98 %
- Sales Growth (3Yrs): 10.47 %
- Promoter holding: 72.05 %

A part of the Tata group, India’s largest multinational business

group, TCS has over 420,000 of the world’s best-trained
consultants in 50 countries.
The company generated consolidated revenues of US $20 billion
for the year ended March 31, 2019, and is listed on the BSE
(formerly Bombay Stock Exchange) and the NSE (National
Stock Exchange) in India. The company has a market
capitalization of Rs 8,10,000 Crores.
2. Infosys - Established in 1981, Infosys is an NYSE listed global
consulting and IT services company with more than 228,000
employees. It is the second largest in the list of top 10 IT
companies in India 2020. From a capital of US$ 250 to become
a US$ 11.8 billion (FY19 revenues) company with a market
capitalization of approximately US$ 47.7 billion. It is one of the
best IT company in India

- Revenue: Rs 87,371 Cr
- Market Cap: Rs 282,028 Cr.
- Employees: 228,000
- ROE: 23.50 %
- Sales Growth (3Yrs): 9.81 %
- Promoter holding: 13.15 %

Over 37 years, the company has catalysed some of the major

changes that have led to India’s emergence as the global
destination for software services talent. The first IT Company
from India to be listed on NASDAQ.
3. HCL Technologies - HCL Technologies is one of the best IT
companies in India. The Company is a leading global IT
services company that helps global enterprises re-imagine and
transform their businesses through Digital technology
transformation. The Company focuses on providing an
integrated portfolio of services underlined by its Mode 1–2–3
growth strategy. It is the third-largest Indian top it companies.

- Revenue: Rs 65,643 Cr
- Market Cap: Rs 153,370 Cr.
- ROE: 25.76 %
- Sales Growth (3Yrs): 24.74 %
- Promoter holding: 60.00 %

The Company leverages its global network of integrated co-

innovation labs and global delivery capabilities to provide
holistic multi-service delivery in key industry verticals including
Financial Services, Manufacturing, Telecommunications,
Media, Publishing, Entertainment, Retail & CPG, Life Sciences
& Healthcare, Oil & Gas, Energy & Utilities, Travel,
Transportation & Logistics and Government.
4. Wipro Limited - Wipro Limited (NYSE: WIT, BSE: 507685,
NSE: WIPRO) is a leading global information technology
[Indian IT companies] consulting and business process services
company. It is on the list of top 5 IT companies in India.
The Company harness the power of cognitive computing, hyper-
automation, robotics, cloud, analytics and emerging
technologies to help clients adapt to the digital world and make
them successful. It is the fourth largest Indian top it companies.

- Revenue: Rs 60,137 Cr
- Market Cap: Rs 153,043 Cr.
- Employees: 160,000
- ROE: 17.26 %
- Sales Growth (3Yrs): 4.82 %
- Promoter holding: 74.04 %

It is one of the Indian IT companies recognized globally for its

comprehensive portfolio of services, a strong commitment to
sustainability and good corporate citizenship, The Company has
over 160,000 dedicated employees serving clients across six
continents. Together, one of the best Indian IT companies to
discover ideas and connect the dots to build a better and a bold
new future.
5. Redington India Ltd - Established in 1993, Redington has
traversed an eventful and exciting journey to one of the best
Indian IT companies. It is on the list of top 5 IT companies in
India. The incredible journey has seen us emerge from one
brand, one product category, and one market into a US $6.7
billion distribution and supply chain solutions provider to over
220 international brands in IT and Mobility spaces, serving 30+
emerging markets.

- Revenue: Rs 47,996 Cr.

- Market Cap: Rs 4,438 Cr.
- ROE: 15.00 %
- Sales Growth (3Yrs): 9.50 %
- Promoter holding: 0.00 %

Today, new-age technologies like Artificial Intelligence (AI),

Robotics, Big Data and Analytics, Internet of Things (IoT), and
5G communications are opening new possibilities and new
opportunities for tomorrow. Redington India Ltd is the fifth
largest Indian top it companies.
6. Tech Mahindra Ltd - Tech Mahindra represents the connected
world, offering innovative and customer-centric information
technology experiences, enabling Enterprises, Associates and
the Society to Rise. The company is a 9 billion company with
125,700+ professionals across 90 countries, helping 941 global
customers including Fortune 500 companies. It is one of the best
IT company in India. Tech Mahindra is a part of Mahindra
Group.

- Revenue: Rs 35,119 Cr
- Market Cap: 70,141 Cr.
- Employees: 125,700
- ROE: 21.58 %
- Sales Growth (3Yrs): 9.45 %
- Promoter holding: 35.88 %

The Company convergent, digital, design experiences,

innovation platforms, and reusable assets connect across a
number of technologies to deliver tangible business value and
experiences to our stakeholders. Tech Mahindra is the highest
ranked Non-U.S. company in the Forbes Global Digital 100 list
(2018) and in the Forbes Fab 50 companies in Asia (2018).
7. Larsen & Toubro Infotech Ltd - Founded 20 years ago as the
information technology arm of the Larsen & Toubro group. It is
also one of the best IT company in India.

- Revenue: Rs 10,014 Cr
- Market Cap: Rs 29,302 Cr.
- ROE: 34.63 %
- Sales Growth (3Yrs): 17.34 %
- Promoter holding: 74.62 %

LTI is a global technology consulting and digital solutions

company helping more than 360 clients succeed in a converging
world. With operations in 30 countries, accelerate digital
transformation with LTI’s Mosaic platform enabling their
mobile, social, analytics, IoT and cloud journeys.
8. Mphasis Ltd - Incorporated in 1992, Mphasis serves marquee
customers across the globe including six top global banks,
eleven out of fifteen top mortgage lenders, and three top global
insurance companies and has about 22,000 employees across
sixteen countries. It is among the top software companies in
India

- Revenue: Rs 7,973 Cr
- Employees: 22,000
- Market Cap: 17,738 Cr.
- ROE: 19.96 %
- Sales Growth (3Yrs): 8.33 %
- Promoter holding: 52.22 %

Blackstone Private Equity, the world’s largest private equity

firm acquired Hewlett Packard Enterprise’s stake (60.5%) in
Mphasis. This deal represents the largest technology investment
as well as the largest acquisition by Blackstone in India.
Mphasis’ core reference architectures & tools, combined with
strong domain expertise in Banking, Financial Services &
Insurance verticals.
9. Mindtree Ltd - Mindtree is a global technology consulting and
services company, helping enterprises marry scale with agility
to achieve competitive advantage. “Born digital,” in 1999 and
now a Larsen & Toubro Group Company, Mindtree applies its
deep domain knowledge to 350+ enterprise client engagements
to break down silos, make sense of digital complexity and bring
new initiatives to market faster.

- Revenue: Rs 7,375 Cr
- Market Cap: Rs 11,855 Cr.
- Employees: 21000
- ROE: 24.94 %
- Sales Growth (3Yrs): 14.54 %
- Promoter holding: 73.76 %

The Company enables IT to move at the speed of business,

leveraging emerging technologies and the efficiencies of
Continuous Delivery to spur business innovation. Operating in
more than 15 countries across the world made up of 21,000
Employees. It is among the list of top software companies in
India.
10. Hexaware Technologies Ltd - Hexaware is a global
leader and the fastest growing next-generation provider of IT,
BPO and consulting services. It is one among the best IT
company in India.
The Company evolved at the intersection of advanced
technologies – AUTOMATE EVERYTHING TM, CLOUDIFY
EVERYTHING TM, TRANSFORM CUSTOMER
EXPERIENCES TM, that helps in fast-tracking enterprises into
the digital era.

- Revenue: Rs 5,306 Cr
- Market Cap: 10,165 Cr.
- Employees: 18,294
- ROE: 26.53 %
- Sales Growth (3Yrs): 14.17 %
- Promoter holding: 62.45 %

HTL growth strategy is further strengthened by expanding

global delivery capability, with 33 global offices and 18,294+
employees. HTL service customers in over two dozen
languages, from every major time zone and every major
regulatory zone.
 HYPOTHESES

My hypothesis is that the current scenario in India for IT

industry is booming a lot with a good growth in international
market as well,
In India the chance of employment in IT industry is growing and
IT is in used in every other field.
The fact that IT is used in every other industry means that it is
versatile as well as fragile with company secrets.
IT helps to make jobs easier but as well as technical skill of
employee should be increased as well.
Plus, a fact I have seen and researched is that the IT security of
India is very poor in terms of every field. To make it stricter and
more efficient we should have good skilful and technical
employees hired and keen monitoring should be done.
 CONCLUSION

India has a lot of potential in India for IT industry and have even
captured international market as well.
From the year 2010 the growth has rapidly increased in IT
industry. GDP has increased by the help of IT industry in which
TCS was known as market leader in India and as well as one of
the best companies in international market.
There have been many IT hubs in India for employment purpose
& Bangalore is known as the Silicon Valley of India.
IT have many branches or areas which helps other businesses to
establish a proper routine and get their way of success as fast as
possible.
India has been one of the top exporters of IT products and
manpower in the world with Chennai staying at top.
Opportunities for students and employees in IT industry is grown
at very higher levels.
With current growth and data, it shows that India has good
potential to become the market leader in IT industry throughout
the world and boost India’s level in all platforms.
Government has shown a lot of interest and promoted a lot of
schemes of the industry as well.
 WEBILIOGRAPHY

- https://www.economywatch.com/business-and-economy/
information-technology-industry.html

- https://pmsoft.com/the-information-technology-industry/

- https://www.indiaeducation.net/computers-it/the-future-scope-
of-the-it-industry-in-india.html

- https://nasscom.in/sites/default/files/Industry-Performance2018-
19-and-what-lies-ahead_0.pdf

- https://www.ibef.org/industry/information-technology-
india.aspx
-
Thank
You!