8/25/2010 Service Sector Management 1

Group members:
Yohann Allen - 02
Neil D’souza - 15
Gaurav - 20
Prasoon Jadhav - 24
Jagtap Vijendra - 25
Spurgeon Rajakumar - 54
Mahesh Patil - 61

8/25/2010 Service Sector Management 2

Table of Contents:
1. Definition.
2. Characteristics of IT Sector.
3. Different Products of IT Sector.
4. Top 7 IT hubs in India.
5. Top IT companies in India.
6. Classification of IT Sectors.
7. Future of IT Sector.

8/25/2010 Service Sector Management 3

Table of Contents:
8. Development of IT Sector.
9. Role of IT Sector.
10. Challenges of IT Sector.
11. Market segmentation.
12. SWOT Analysis.
13. PEST Analysis.
14. Marketing Mix.

8/25/2010 Service Sector Management 4

 Definition

Information technology (IT), as defined by

the Information Technology Association of
America (ITAA), is “the study, design,
development, implementation, support
or management of computer-based
information systems, particularly
software applications and computer
hardware.”

8/25/2010 Service Sector Management 5

Characteristics of IT Sector
Intangibility

Inconsistency

Inseparability

Inventory

8/25/2010 Service Sector Management 6

Different products in IT Sector
Users PC’s and software.

Telephone, radio equipment and

switches used for invoice
communication.

Traditional computer applications

that include data storage and
programmes to input, process and
output the data
8/25/2010 Service Sector Management 7
 Different products in IT Sector
Software and support for office automation
system such as word processing and
spreadsheets as well as computers to run
them.

Video conferencing equipment.

The state radio communications network.

8/25/2010 Service Sector Management 8

Top Seven IT Hubs in India
Ranking City/ Region Description
1. Bangalore Popularly known as the capital of
the Silicon Valley of India is currently
leading in Information
Technology Industries in India.

2. Chennai It is also called as India's second

silicon valley. With better
infrastructure and manpower Chennai
is likely to beat Bangalore out of its
title in the coming years.

3. Hyderabad Hyderabad which has good

infrastructure and good government
support is also a good technology base
in India.

8/25/2010 Service Sector Management 9

 Top Seven IT Hubs in India
Ranking City/ Region Description
4. Pune Pune, a major industrial town, hosts
numerous multinational and national
software giants along with BPO firms.

5. Kolkata Kolkata which is slowly becoming a

major IT hub in near future. Some of the
well known technological corporations
are situated here.

6. NCR The National Capital Region of

India comprising Delhi, Gurgaon,
Faridabad , Noida, Greater Noida
and Ghaziabad.
7. Mumbai This is one city that has seen
tremendous growth in IT and BPO
industry.

8/25/2010 Service Sector Management 10

 Top Companies In The IT Sector in India:

1. Tata Consultancy Agency

2. Infosys
3. Wipro
4. IBM Wipro
5. HCL Technologies,
6. Tech Mahindra,
7. Patni Computer Systems
8. Satyam Computer Services
9. I-flex systems Infosys
10. Subex Azure
8/25/2010 Service Sector Management 11
 The IT sector can be classified into 4
broad categories :

•IT Services

•Engineering Services,

•ITES-BPO Services,

•E Business
8/25/2010 Service Sector Management 12
 Future of IT sector
Major areas of benefit that the future growth
in the IT industry can generate for the
Indian economy are –

Exports
Employement
FDI

8/25/2010 Service Sector Management 13

Development of IT sector:
The IT-BPO industry is expected to garner a
revenue aggregate of US$ 73.1 billion in 2009-
10 as compared to US$ 69.4 billion in 2008-09

The Indian software and services exports is

expected to reach US$ 49.7 billion in 2009-10
as compared to US$ 47.1 billion in 2008-09

The Indian information technology (IT)

market is expected to grow at around 15.5 per
cent in 2010

8/25/2010 Service Sector Management 14

 Role of IT in different Service Sectors

Application of IT in Hospitals

Application of IT in Pharmaceutical Shops

Application of IT in Educational
Institutions

Application of IT in Share Trading

Application of IT in Banking
8/25/2010 Service Sector Management 15
 Role of IT in different Service Sectors

Application of IT in Advertising Agencies

Application of IT in Marketing Research Agencies

Application of IT in Indian Railways

Application of IT in other services sector

8/25/2010 Service Sector Management 16

Challenges faced by the IT Sector
Maintaining its excellent performance
standards. 

Create an environment for innovation

Improvement in the skill level.

8/25/2010 Service Sector Management 17

Challenges faced by the IT Sector

The ministry of information technology has

identified four categories of issues.

1. Infrastructure and services.

2. Electronic governance.
3. Education.
4. Mass campaign for IT Awareness.
8/25/2010 Service Sector Management 18
Market Segmentation of IT Sector
Segmentation identifies groups of
customers with different service
requirements.

Two common schemes are demographics

and usage.

8/25/2010 Service Sector Management 19

SWOT Analysis on IT Sector
Strengths Weakness
•Cost Competitiveness •Infrastructure
•Skilled labour
•Superior service

Opportunities Threats
•Geographical Diversification
•Manpower shortage
•Moving up the value chain
•Emergence of low cost nations

8/25/2010 Service Sector Management 20

PEST Analysis of IT Sector
Political (incl. Legal):
• Environmental regulations and protection-the country is open to
firms that are set up for the IT industry. It provides protection
from foreign competitors by not allowing a complete 100% stake in
the Indian subsidiary.
• Tax policies-IT firms initially had tax discounts. Even now It
firms enjoy lower tax rates than other service industries.
• International trade regulations and restrictions.
• Contract enforcement law
• Consumer protection
• Employment laws
• Government organization / attitude
• Competition regulation
8/25/2010 Service Sector Management 21
PEST Analysis of IT Sector
Economic:
• Economic growth-India has grown a lot more in the last 20 years than it id in the
previous 20. This it self shows that the growth has been due to newer technologies
coming into the country. Hence IT is the key-driving factor in this.
• Interest rates & monetary policies.
• Government spending.
• Unemployment policy-unemployment in the IT sector is just as high as the
employment rate is. The personnel turnover in It sector is amongst the highest
among all service industries.
• Taxation
• Exchange rates
• Inflation rates
• Stage of the business cycle
• Consumer confidence

8/25/2010 Service Sector Management 22

PEST Analysis of IT Sector
Social:
• Income distribution-The e income distribution in the country is very biased.
By the entry of IT in a major way a lot of people who were struggling to make 2
ends meet were given employment opportunities.
• Demographics, Population growth rates, Age distribution
• Labor / social mobility-Thanks to the It era the mobility of human resources is
massive. People from allover the country work together. Employees are picked
up from all over the globe to work at certain research or management center.
• Lifestyle changes-The entry of IT into the lives has people has bought about
huge changes in their lives. IT firms pay better than the average salary rates in
industries. Due to this employees are buying more, earning more, spending
more. Hence there is an improvement in their lifestyle.
• Work/career and leisure attitudes

8/25/2010 Service Sector Management 23

PEST Analysis of IT Sector
Technological:
• Government research spending-the government itself has set up research
centers and promotes firms that go into research of technology.
• Industry focus on technological effort
• New inventions and development-everyday a new technology or a certain
deviation is being invented. The IT industry is a very fast paced and ever
changing
• Rate of technology transfer-The rate of technology transfer is very fast in
the IT sector. Usually companies import the technology to enhance their
position in the global market.
• Life cycle and speed of technological obsolescence-Technological
obsolescence is very fast in the IT sector. Usually the life cycle of an employee
is just as much as the technology that he specializes in.
• Energy use and costs

8/25/2010 Service Sector Management 24

Marketing Mix of IT Sector
8’Ps of marketing
Product
Price
Place
Promotion
Process
People
Physical Evidence

8/25/2010 Service Sector Management 25

1. PRODUCT

8/25/2010 Service Sector Management 26

 1. PRODUCT

8/25/2010 Service Sector Management 27

2. PRICE
Types of pricing:

1. COST BASED PRICING:

FLAT BASED PRICING

TIERED PRICING
USER BASED PRICING

8/25/2010 Service Sector Management 28

2. PRICE
VALUE BASED PRICING

PENETRATION PRICING STRATEGIES

SKIMMING PRICE STRATEGIES

8/25/2010 Service Sector Management 29

3. PLACE
Types of Channel Intermediaries:

Wholesalers
Agents
Retailers
Internet

8/25/2010 Service Sector Management 30

4. PROMOTION
Tool’s of promotion:
1. Webinars

8/25/2010 Service Sector Management 31

4. PROMOTION
2. Blogs

3. Seminars

4. Mass Media

8/25/2010 Service Sector Management 32

4. PROMOTION
Print ads

8/25/2010 Service Sector Management 33

4. PROMOTION
Television Commercial

8/25/2010 Service Sector Management 34

5. PEOPLE
People in the form of
employees and customers are
the most important resource
for an IT company

8/25/2010 Service Sector Management 35

6. PHYSICAL EVIDENCE
In the IT industry there are 3 aspects to this ‘P’ of
service:

1.Graphical Interface:
2.Companies going to software development:
3. Developers comes to the Customer:

8/25/2010 Service Sector Management 36

7. PRODUCTIVITY AND QUALITY
Quality of service is something that needs
to be constantly kept under a scanner

The best possible solution to this is to train

the employees and thus mould them to
meet the ends of delivering the best
services.

8/25/2010 Service Sector Management 37

8. PROCESS
It is the process which is the most important
differentiating aspect between different companies,
and which also forms the basis of competition.

The company having the easiest and quickest service

delivery survives.

8/25/2010 Service Sector Management 38

8/25/2010 Service Sector Management 39
8/25/2010 Service Sector Management 40
 THANKYOU

8/25/2010 Service Sector Management 41