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Project Report ‘An analysis of the top Three India-based
Information Technology (IT) services providers’
Presented By:- Prashant Dixit Roll No.12D255 M.B.A.-I
Guided By:Mrs.Yogita NarangMentor,DEI Agra city,Agra
2.0 Objectives of the Study
3.0 Literature Review
4.0 Research Methodology
5.0 Scope of Study
6.0 Findings
7.0 Conclusion
8.0 References
9.0 Bibliography
CONTENT
1. Introduction
1.10 Information Technology
1.11 The Information Technology Industry:
An Indian Scenario
1.20 Overview of the top three India-based
IT services providers:
1.21 TCS
1.22 Infosys
1.23 Cognizant
INTRODUCTION
Information Technology - Two words that describe a revolution in not just the global economies of today, but a generational shift in human perception of and correlation to technology.
According to V.Rajaraman Information technology (IT) may be defined as the technology which is used to acquire, store, organize and process data to a form which can be used in specified applications and disseminate the processed data.
Information Technology Association of America (ITAA) defines Information technology (IT) as "the study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware.”
1.11 The Information Technology Industry: An Indian Scenario
The Information technology industry in India has gained a brand identity as a knowledge economy due to its IT and ITES sector. The IT & ITES industry has two major components: IT Services and business process outsourcing (BPO). The growth in the service sector in India has been led by the IT–ITES sector,
Contribution to GDP: The sector has increased its contribution to India's GDP from 1.2% in FY1998 to 7.5% in FY2012.
Revenue:-According to NASSCOM, IT sector in India aggregated revenues of US$100 billion in FY2012.
Major cities of Trading-Indian IT industry
Bangalore Chennai Delhi Mumbai Hyderabad Pune Kolkata
Industry’s share of total Indian exports:• Increased less than 4% in FY1998 to about 25% in FY2012.
Employment Generation:• Expected to add 230,000 jobs in FY2012, thus providing direct
employment to about 2.8 million, and indirectly employing 8.9 million people.
Establishment:• India's IT Services industry was born in Mumbai in 1967 with the
establishment of Tata Group.
1.20 OVERVIEW OF THE TOP THREE INDIA-BASED IT SERVICES PROVIDERS
1.21 Tata Consultancy Services (TCS):Establishment- Tata Consultancy Services (TCS) is a part of
India’s largest and oldest conglomerate, The Tata Group. Established in the year 1968, TCS pioneered the Indian IT industry.
Services Offered- TCS offers a full menu of technology and business services, including business process outsourcing (BPO),
enterprise systems installation, network management, and systems integrationthe company specializes in developing and maintaining customized software for business.
TCS at Glance
Top management:
R N Tata (Chairman)
S Ramadorai (Vice Chairman)
N Chandrasekaran (CEO & Managing Director)
Number of employees 2,38,583(Mar2012)
Revenue 48,894crore(Mar2012)Operating Profit 13,517crore(Mar2012)Net Profit 10,413crore(Mar2012)
Source: TCS Annual Report 2012
1.22 Infosys Limited
Establishment- Infosys Limited formerly Infosys Technologies Limited is a second largest Indian provider of business consulting, technology, engineering and outsourcing services established in the year 1981.
Services Offered- The various services provided by Infosys are Managemnet Consulting Services, Business Application Services, Business IT Services, BPO Services, Cloud and Mobility Services.
Infosys at Glance
Top management:
K V Karnath(Chairman of the board)
S Gopalakrishnan (Executive co-chairman of the board)
S D Shibulal (CEO & Managing Director)
Number of employees 1,51,151(Mar2012)
Revenue 35,638crore(Mar2012)
Operating Profit 10,061crore(Mar2012)
Net Profit 11,096crore(Mar2012)
Source: Infosys Annual Report 2012
1.23 Cognizant Technology Corporation
Establishment- Cognizant Technology Corporation was founded in 1994 with the main objective of offering competitive solutions to complex software development and maintenance issues.
Services Offered-Portals and Content Management Solutions, SAP, ERP Implementation and support, Clinical application support, Implementation and support of enterprise data warehouse, business intelligence and corporate performance-management solutions.
Cognizant at glance
Top management:
John E. Klein(Chairman of the board) Lakshmi Narayanan (Vice-chairman of the
board ) Francisco D’souza(CEO & Managing
Director)Number of employees 1,37,700(Dec2011)Revenue $6,121,156(Dec2011) = Rs. 31,654 crore
Operating Profit $2,191,880(Dec2011) = Rs. 11,334 crore
Net Profit $1,136,468(Dec2011) = Rs. 5,877 crore
Source: Cognizant Annual Report 2011.
Series10
50000
100000
150000
200000
250000
300000
TCS, 238583
Infosys 151151 Cognizant 137700
No. of employees of selected IT companies(2012)
A B C
A B C
2- Objectives of the Study
1. To provide an overview of IT industry as
a whole.
2. To provide an overview of selected top three
India-based IT services providers.
3. To apply Porter’s Five Forces of Competition framework on selected company.
3- Literature Review:
The top three India-based IT services providers are TCS,
Infosys, and Cognizant.
The annual reports and other secondary data of companies
illustrate useful literature for reviewing.
The five-force model of competition was first introduced by
Porter in 1980 in his book on Competitive Strategy
Source: Gartner, Inc. ( the world's leading information technology research and advisory company) (April 2012).http://static.globaltrade.net/files/pdf/20100403004552.pdf
4- Research Methodology
Data-collection:- is mainly based on secondary sources like – Internet, Magazines, Journals, and Books.
Sample Size:-The study covers the top three India-based IT services providers.
Porter’s Five Forces Analysis:- Besides this, Porter’s Five Forces of Competition framework is adopted for analysis of the top three India-based IT services providers, keeping in mind the basic purpose of study.
4.1 Research Objectives:
1. To gather relevant information on IT Industry from secondary data sources.
2. To gather information on selected top three India-based IT services providers from secondary data sources.
3. To collect relevant information from secondary data sources like Internet, Magazines, Journals, and Books.
4. Application of Porter’s five forces model on selected top three India-based IT services providers
5- Scope of Study
This report covers overview of IT industry as a whole.
This study focuses; particularly on India-based top three players TCS, Infosys and Cognizant in the IT industry.
This study also attempts to present an analysis of top three India-based IT services providers TCS, Infosys and Cognizant based on Porter’s Five Forces Model.
PORTER’S FIVE FORCES MODEL (INDIAN IT INDUSTRY)
1. Supplier Power Shift from high to low
2. Buyer Power Very High
3. Competitive Rivalry High
4. Threat of Substitutes Medium
5. Threat of New Entry Low
PORTER’S FIVE FORCES MODEL (TCS)
• Supplier Power: Moderate
• Buyer Power: Very High
• Competitive Rivalry: High
• Threat of Substitutes: Low
• Threat of New Entry Low
PORTER’S FIVE FORCES MODEL (INFOSYS)
•Supplier Power High
•Buyer Power Very High
•Competitive Rivalry High
•Threat of Substitutes Moderate
•Threat of New Entry Low
PORTER’S FIVE FORCES MODEL (COGNIZANT)
•Supplier Power High
•Buyer Power Very High
•Competitive Rivalry High
•Threat of Substitutes Moderate
•Threat of New Entry Low
6.0 FINDINGS (INDIAN IT INDUSTRY )1. This study reveals that IT industry continues to be a net employment
generator - expected to add 230,000 jobs in FY2012, thus providing
direct employment to about 2.8 million, and indirectly employing
8.9 million people.
2. IT sector has increased its contribution to India's GDP from 1.2%
in FY1998 to 7.5% in FY2012.
3. IT Exports accounted for 35% of the total exports with potential for 5 million jobs in IT by 2012.
6.0 FINDINGS (INDIAN IT INDUSTRY)
4. The industry’s share of total Indian exports (merchandise plus services) increased from less than 4% in FY1998 to about 25% in FY2012.
5. IT industry attracted Foreign Direct Investment (FDI) of U.S. $ 4-5 billion.
6. IT–BPO sector in India aggregated revenues of US$100 billion in
FY2012.
6.0 FINDINGS (TCS)Tata Consultancy Services (TCS) is a part of India’s largest and oldest conglomerate, TCS pioneering the Indian IT industry with manpower of 2,38,583 (Mar2012), Revenue of 48,894crore(Mar2012), Operating Profit of 13,517crore(Mar2012) and Net Profit of 10,413crore (Mar2012).
While applying Porter Five Forces Model to TCS it is found that:
Supplier power is Moderate.Buyer power is High. Threat of substitutes is Low.Competitive rivalry is High.Threat of new entry is Low
6.0 FINDINGS (INFOSYS)
Infosys Limited formerly Infosys Technologies Limited is a second largest Indian
provider of business consulting, technology, engineering and outsourcing services
with manpower of 1,51,151(Mar2012),Revenue of 35,638crore(Mar2012), Operating
Profit of 10,061crore (Mar2012) and Net Profit of 11,096crore (Mar2012).
While applying Porter Five Forces Model to Infosys it is found that:
Supplier power is High.
Buyer power is High.
Threat of substitutes is High.
Competitive rivalry is Moderate.
Threat of new entry is Low.
6.0 FINDINGS (COGNIZANT) Cognizant Technology Corporation is a third largest Indian IT service
provider having manpower of 137,700 (Dec2011), Revenue of 31,654crore
(Dec2011), operating profit of 11,334crore (Dec2011) and Net profit of
5,877crore (Dec2011).
While applying Porter Five Forces Model to Cognizant it is
found that:
Supplier power is High. Buyer power is High. Threat of substitutes is High. Competitive rivalry is Moderate. Threat of new entry is Low.
7.0 Conclusion- Information Technology is on going requirement of
every nation. IT sector provides vast opportunities for Investors,
Entrepreneur, Youth and Countries. IT industry has continuous growth year by year. Independent variables of Porter’s five forces (entry
barriers, supplier bargaining power, buyer bargaining power, and substitution/industry competitiveness) have a positive impact on industry attractiveness and varying situational impact on India-based selected IT companies ( TCS, Infosys, and cognizant).
8.0 References: 8.10- Internet
Architectural and Transportation Barriers Compliance Board, Federal Register Vol. 65 No.246-Part II (Dec 21, 2000), “Electronic and Information Technology Accessibility Standards (Section 508)”http://articles.economictimes.indiatimes.com/2010-08-27/news/27608367_1_core-sector-outsourcing-sector-tech-firmshttp://www.gartner.com/it/page.jsp?id=2007116http://www.itida.gov.eg/Documents/Tholons_study.pdfhttp://www.nasscom.in/indian-itbpo-industryhttp://en.wikipedia.org/wiki/Information_technology_in_Indiahttp://en.wikipedia.org/wiki/Information_technology_in_Indiahttp://en.wikipedia.org/wiki/Outline_of_information_technologyhttp://static.globaltrade.net/files/pdf/20100403004552.pdfhttp://www.cognizant.com/aboutus/SiteDocuments/Cognizant_Annual_Report_2011.pdfhttp://www.doccentre.net/Tod/SEZs-Profits-At-Any-Cost.php
http://www.gartner.com/it/page.jsp?id=2007116http://www.infosys.com/about/Pages/index.aspxhttp://www.tcs.com/investors/Documents/Annual%20Reports/TCS_Annual_Report_2011-2012.pdf
8.11- Newspapers 1. Economic Times 2. Business Standard
8.12- Magazines 1. Business Week 2. Outlook Money 3. Business Today 4. Red Herring
9.0 Bibliography: C.R. kotahri. (2004). Reserach methodology methods and techniques. New delhi: new age international (p) limited, publishers.
D.D. sharma. (2001). Fundamentals of marketing research. New delhi: sultan chand and sons,new delhi.
V. Rajaraman (2006). Introduction of Information Technology. PHI Learning Private Limited, New Delhi.