Software Industry Project Pdf

A
Management Research Project –I
On
“STRATEGIC ANALYSIS OF INDIAN SOFTWARE INDUSTRY”
Submitted
In the partial fulfillment of the
Requirement of the award for the Degree of
Master of Business Administration
Semester-III
Submitted By
Name Roll No.
KAMAL PRAJAPTI 23
RAVI RAVAL 26
Under the Guidance of:
Dr. N. H. Bhatt
Prof. & Head,
S. K. School of Business Management.
Submitted To:
S. K. School of Business Management,
Hemchandracharya North Gujarat University,
Patan.
(December-2017)

CERTIFICATE BY THE GUIDE
This is to certify that the contents of this report entitled “Strategic Analysis Of
Indian Software Industry” by Kamal Prajapati (23) And Ravi Raval (26)
submitted to S. K. School of Business Management for the Award of Master of
Business Administration (MBA Semester -III) who carried out the research
under my supervision. I also certify further, that to the best of my knowledge
the work reported herein does not form part of any other project report or
dissertation on the basis of which a degree or award was conferred on an earlier
occasion on this or any other candidate.
Dr. N. H. Bhatt
Prof. & Head,
S. K. School of Business Management.
Hemchandracharya North Gujarat University,
Patan.
Date : 10/01/2018
Place : PATAN

CANDIDATE’S STATEMENT
We hereby declare that the work incorporated in this report entitled “Strategic
Analysis Of Indian Software Industry” in partial fulfillment of the
requirements for the award of Master of Business Administration (Semester -
III) is the outcome of original study undertaken by us and it has not been
submitted earlier to any other University or Institution for the award of any
Degree or Diploma.
Name Roll No
KAMAL PRAJAPATI 23
RAVI RAVAL 26
Date: 10/01/2018
Place: PATAN

Preface
We hereby declare that the Market Research project – I report on the topic “An Analysis of Indian
Software Industry” completed and submitted under the guidelines and supervision of Prof. Nishith
Bhatt, is our original work. The preparation of the project report is based on our personal findings,
several visits to the certified websites, interaction with few chemists and druggists and consultation
with the eminent scholars and secondary sources.
Kamal Prajapati (Exam no. 22)
Ravi Raval (Exam no. 25)

ACKNOWLEDGEMENT
 This project bears imprint of all those who have directly or indirectly helped and
extended their kind support in completing this project.
 First of all we are extremely thankful to my college Seventilal Kantilal School of
Business Management for providing me with this opportunity and for all its
cooperation and contribution.
 We are highly thankful to our respected project guide for giving us the
encouragement and freedom to conduct ours project. We owe a great many thanks to
a great many people who helped and supported us during the writing of this project.
We also express thanks to the H.N.G.U. for the constant encouragement and
stimulating atmosphere provided to students.
 We would also thank our Institution and our faculty members without whom this
project would have been a distant reality. We also extend our heartfelt thanks to our
family and well-wishers.
 I am extremely thankful and obliged to Prof. DR. NISHITH BHATT for providing
streamed guidelines since inception, till the completion of the project.
 This project report is a collective effort of all and I sincerely remember and
acknowledge all of them for
 Their excellent help throughout the project.

EXECUTIVE SUMMARY
Architecturally, software types can generally be described as belonging to one
of three basic categories: i) applications, ii) operating systems, or iii)
middleware. Applications are software programs providing functionality
focused on a particular task for end users, and as noted above, may reside
locally on a machine or be delivered remotely. Examples of common software
applications for individual household and office users include text processing
programs, electronic spreadsheets, desktop publishing programs or various
email and web browsing applications. Operating systems reside locally, and
serve as the platform interface between the hardware system and other types of
user software programs while also providing services (e.g. file print).
Middleware is a broad category of software ranging from task-specific
functionality to platform-type functionality that permits applications to operate
across operating systems and interoperate despite being written in different
computer languages. Most software products have a fairly limited product life
cycle; it is not uncommon for new versions of many software applications and
operating systems to be released every few years. This is in marked contrast to
other traditionally manufactured goods, such as furniture, major appliances and
automobiles, which often can be expected to last for a decade or more. A
particular category of software is embedded software, which denotes a type of
software permanently embedded in a given hardware unit. This software is
integral to the product, where it resides on a long-term basis, and by necessity it
must be extremely reliable. Unlike other types of software, embedded software
is sold as part of the hardware product on which it resides. Embedded software
becomes ubiquitous in modern economies, as it is used in a very broad range of
electronic products and systems. Medical device manufacturers, the consumer
electronics industry, the automobile industry, the mobile phone industry,
robotics makers and the telecommunications industry all make heavy use of

embedded software applications. The market for embedded software is growing
at a rapid pace and a large part of it is considered to be outside the traditional
software-producing sector. Increasingly high-speed digital networks are
transforming software delivery from a physical carrying device used to install
the software on a machine to remote software delivery via the Internet. Out of
this a concept called software-as-a-service (SaaS) is evolving, which while in
an early stage of market adoption, shows many signs of gaining market share in
the coming years. SaaS has the advantage of being able to deliver software
applications without customers needing to incur some of the traditional
overhead expenses involved with application licenses, servers, and other on-site
resources. There are several differences between traditional software-as-an-
application and SaaS. In the case of the former, users usually pay upfront for
the license, a dedicated instance of software is installed on their hardware and
they are responsible for deployment, operation maintenance and upgrades of the
application. SaaS is in most cases a “pay as you go” system; software is
managed and maintained by the SaaS provider, who is responsible for the
infrastructure and upgrades.
SaaS is part of a larger general concept called cloud computing that refers to the
application, platform, or utility services accessed by users over the Internet (a
cloud depicts the Internet on computer network diagrams). Cloud-based
services are still developing but many anticipate that they will ultimately enable
flexible, cost-effective, massively scalable, readily accessible, and highly
reliable functionalities that offer users a way to add computing capacity or
capabilities without a considerable investment in new computer infrastructure.
Business models are developing rapidly and one can expect users to get
software-generated functionality from a combination of locally resident
software and functionality provided over the web.

TABLE OF CONTENT
Chap.No
.
Sr.No. Particular Page.No.
DECLARATION I
PREFACE II
ACKNOLEDGEMENT III
EXECUTIVE SUMMARY IV
1 Introduction 1
1.1 History 1
1.2 Overview of Industry 3
1.3 Major Players of Industry 4
1.4 Structure of Industry 7
2 International Scenario 13
2.1 International Level of Industry 13
2.2 Demand & Supply Scenario 15
2.3 Major Players 17
3 Indian Scenario 19
3.1 Market Dynamic 19
3.2 Investment related Aspect 20
3.3 Growth of Indian Software Industry 22
3.4 Key Drivers of Software Industry: 24
3.5 Key Performance Indicators 26
4 Strategic Analysis of Industry 29
4.1 Porter’s Five Forces Analysis 29
4.2 PEST Analysis of Industry 33
4.3 SWOT Analysis 36
4.4 8’p’Analysis in case of services 43
4.5 Product Life Cycle Analysis 45
4.6 Value Chain Analysis 62
4.7 Financial Analysis of Industry 63
5 Conclusion 67
6 Appendix 68
6.1 Balance Sheet 68
6.2 Profit & Loss Account 69
6.3 Ratio 70
7 Bibliography 72

Chapter-1
Introduction:
Computer hardware and computer software are like Siamese twins. They are so
interconnected that if either were to disappear, the other could not survive. While hardware
provides the physical capability, software provides the brains that carry out useful work.
Hardware is what we see, but it is the intangible 0s and 1s that represent the billions of lines
of software instructions that make the hardware valuable. Software comes in two principal
flavors: custom programs for a specific customer’s use; and software products for use by
multiple customers.
1.1 History of Software Industry:
The software industry, today one of the leading engines of economic growth. It is only
natural that this growth accompanied the rise in importance of the computer itself. When
only expensive mainframe computers were sold, the nascent industry took its first steps, and
as computers shrank in size and cost, the sales of software increased in line with the ubiquity
of computers.
The software industry expanded in the early 1960s, almost immediately after computers were
first sold in mass-produced quantities. Universities, government, and business customers
created a demand for software. Many of these programs were written in-house by full-time
staff programmers. Some were distributed freely between users of a particular machine for
no charge.
The two key technologies in computing, hardware and software, exist side by side.
Improvements in one drive improvements in the other.
But there are key differences between the hardware and the software industries. Hardware
design and manufacture is a comparatively costly exercise, with a consequently high cost of
entry. Nowadays only large, or largish, companies can do hardware. But many of the major
software advances have been the results of individual effort. Anybody can start a software
company, and many of the largest and most successful of them have come from nowhere, the
result of one or a few individual’s genius and determination.
9S.K. School of Business Management

The first computer, in the modern sense of the term, is generally agreed to be the ENIAC,
developed in the USA in the final years of World War II. But the concept of software was
developed well over 100 years earlier, in 19th century England.
Charles Babbage (1791-1871) was the son of a wealthy London banker. He was a brilliant
mathematician and one of the most original thinkers of his day. His privileged background
gave him the means to pursue his obsession, mechanical devices to take the drudgery out of
mathematical computation. His last and most magnificent obsession, the Analytical Engine,
can lay claim to being the world’s first computer, if only in concept. By the time of
Babbage’s birth, mechanical calculators were in common use throughout the world, but they
were calculators, not computers – they could not be programmed. Nor could Babbage’s first
conception, which he called the Difference Engine. This remarkable device was designed to
produce mathematical tables. It was based on the principle that any differential equation can
be reduced to a set of differences between certain numbers, which could in turn be
reproduced by mechanical means.
What is software? And Software Industry?
Ans. The programs and other operating information used by a computer.
The software industry includes businesses for development, maintenance and publication of
software that are using different business models, mainly either "license/maintenance based"
(on-premises) or "Cloud based" (such as SaaS, PaaS, IaaS, MaaS, AaaS, etc.). The industry
also includes software services, such as training, documentation,consulting and data
recovery.

1.2. OVERVIEW:
Computer Software & Services Industry includes a broad range of companies, offering a
wide range of products and services, spanning personal computer operating systems and
office productivity suites to network security applications to payroll processing services to
information technology consulting and outsourcing services. The group's end markets are
also wide ranging, with nearly every facet of the global economy being targeted.
The software industry has emerged as one of the fastest growing industries in India, the
software industry revenue has grown from 1.2 percent in 1998 to an estimated 5.5 percent in
2008. India's domestic market is estimated to grow by 20 percent growth in 2008-09
There are many different types of software.
There is applications software, such as financial programs, word processors and
spreadsheets, that let us do the sort of work we buy computers. There is systems software,
such as operating systems and utilities that sit behind the scenes and make computers work.
There are applications development tools, such as programming languages and, that help as
develop applications.
Some types of software are mixtures of these – database management systems (DBMSs), for
example, a combination of applications, systems, and applications development software.
The objectives of this study are to understand how the software industry has been able to
catch up successfully access, learn and development to the technological standards of global
leaders while others in the developing market. The objective of this study is on explaining
factors that contributed to the growth of software exports from India, including the role of
government policy.
The Indian Software industry can provide the necessary impetus for the Indian Economy in
the direction of growth. The software services industry in India has created a vital platform
for the Software products Industry to flourish and capitalize upon.

1.3. Major Players:
 TATA Consultancy Service ( TCS )
 Infosys Ltd.
 Wipro System Ltd.
 Silver Line System Ltd.
 HCL Hewlett Packard Ltd.
 Digital Equipment (India) Ltd.
Tata Consultancy Services Limited (TCS):-
It is an Indian multinational information technology (IT) service, consulting and business
solutions company Headquartered in Mumbai, Maharashtra. It is a subsidiary of the Tata
Group and operates in 46 countries.
TCS is one of the largest Indian companies by market capitalization ($80 billion).TCS is now
placed among the most valuable IT services brands worldwide. TCS alone generates 70%
dividends of its parent company, Tata Sons. In 2015, TCS is ranked 64th overall in the
Forbes World's Most Innovative Companies ranking, making it both the highest-ranked IT
services company and the top Indian company. It is the world's 9th largest IT services
provider by revenue. As of December 2015, it is ranked 10th on the Fortune India 500 list.
Infosys Limited:-
Infosys Technologies Limited is an Indian multinational corporation that provides business
consulting, information technology and outsourcing services. It has its headquarters in
Bengaluru, Karnataka, India.
Infosys is the second-largest Indian IT company by 2017 revenues and 596th largest public
company in world in terms of revenue. On June 30, 2017, its market capitalization was
$34.33 billion. The credit rating of the company.

Wipro Limited:-
Western India Products Limited is an Indian Information Technology Services corporation
headquartered in Bengaluru, India.
In 2013, Wipro demerged its non-IT businesses into separate companies to bring in more
focus on independent businesses.
Digital Equipment Corporation:-
It is also known as DEC and using the trademark Digital, was a major American company in
the computer industry from the 1950s to the 1990s.
DEC was a leading vendor of computer systems, including computers, software, and
peripherals. Their products were the most successful of all minicomputers in terms of sales.
DEC was acquired in June 1998 by Compaq, in what was at that time the largest merger in
the history of the computer industry. The merger did not work well and Compaq soon found
itself in financial difficulty of its own. Compaq subsequently merged with Hewlett-Packard
(HP) in May 2002. As of 2007 some of DEC's product lines were still produced under the HP
name.
HCL Technologies Limited:-
(Hindustan Computers Limited) is an Indian multinational IT services company,
headquartered in Noida, Uttar Pradesh, India. It is a subsidiary of HCL Enterprise. Originally
a research and development division of HCL, it emerged as an independent company in 1991
when HCL ventured into the software services business. HCL Technologies (the abbreviation
of Hindustan Computers Limited) offers services including IT consulting, enterprise
transformation, remote infrastructure management, engineering and R&D, and business
process outsourcing (BPO). HCL also provides services such as Cybersecurity and Digital &
Analytics.

The company has offices in 34 countries including the United States, France and
Germany, and the United Kingdom. It operates across sectors including aerospace and
defense, automotive, consumer electronics, energy and utilities, financial services,
government, industrial manufacturing, life sciences and healthcare, media and entertainment,
mining and natural resources, public services, retail and consumer, semiconductor, server and
storage, telecom, and travel, transportation, logistics, and hospitality.

1.4. Structure of Software Industry
The Infrastructure software connects the people and systems across an organization. It helps
in efficiently executing the business processes, share information and the manage the various
touch points with the customers and the suppliers. It can be of the following types:
 Application development
 Business intelligence tools
 Database management systems
 Data integration tools
 IT operations
 Security software
 Operating-system software Enterprise Application Software
 Customer relationship management
 Enterprise resource planning
 Supply chain management
 Project portfolio management
 Content, communication and collaboration
 E-learning

Product application of the Software Industry
Software Products Industry- A Classification
Software Product
Segment
Application System Infrastructure
Software
Application Development
Software
 Vertical Industry
Software
 Cross Industry
Software
 Consumer Software
 System Level
Software
 Systems
Management
Software
 Security Software
 Middleware
 Server ware
 Network
Management
Software
 Database
Management
Systems
 Information Access
Tools
 Internet Tools
 Programming
Languages
 Lifecycle
Development Tools
Products Focus Areas
 System Software Products
o Middleware / APIs
o Device Drivers
o System Utilities
 Application Software Products
o Hospitality
o eLearning
o Healthcare
o Payment & Cash Management
o Plant & Industry Design Software
 Tools & Internet based businesses
o Case Tools
o Workflow Management Tools

o BI & Reporting Tools
Product Services:-
 Product Conceptualization & Management
 Product Portfolio Rationalization
 Platform Consolidation – including Migration & Porting Strategy
 Techno-management, Architecture and Design
 Tools & Technology Selection and Trade-off Analysis
 User-centric Design and UX
 Core Product Development
 Maintenance and Sustaining Engineering
 QA and Testing Services
 Test Automation
 Certification (Industry Standards, Statutory, Logo, Third Party Products &
Components)
 Database Optimization and Modeling
 Performance Engineering (Product / Application level)
 E-to-E Implementation
 SaaS and Cloud Enablement
 Enterprise Mobile Enablement
 Social Software Integration

Role of Information Technology in Software Industry
Even a single day without computers leaves us feeling paralytic. Information Technology
(IT) has made us completely dependent for even the simplest day to day task. The recent
incident of system failure at key Swiss government ministries has brought Geneva to a
standstill. This proves how information Technology has drastically transformed the way we
carry out day to day activities. It is dynamic and vast and its absence for a day leaves a
severe effect on us. Internet being the simplest form of IT has a major role to play in our
daily lives. It has become the backbone of every organization as well as house hold. Abhinav
International Monthly Refereed Journal of Research In Management & Technology
1. It has entered almost all industry verticals for instance, railways, airways and sea networks
are connected with the help of IT, as information plays a vital role in the smooth functioning
in those sectors and lack of even for a second can create havoc.
2. Banking is another sector that depend a lot on IT. From carrying out important transaction
to storage of confidential data, IT has made several complicated and time consuming work a
lot simpler and faster with considerable amount of safety. In fact e-commerce has made on
line banking as well as online purchasing and selling of commodities and services much
easier and faster adding to the convince of the common man. By simply searching on the
internet one case orders anything with just a click of the mouse button.
3. Similarly, the travel and tourism sector all over the world has benefited a lot from the
development of IT industry. One can avoid the crowd and lengthy procedures of booking air
or railway or bus tickets. One can choose from the best deals and book tickets online from
the comfort of their living room.
4. IT plays a major role in simplifying various organizational processes. Most business
enterprises rely on the power of information technology for carrying out their daily tasks
conveniently and faster. IT makes complex procedures easier, faster and also helps a lot in
avoiding redundancy. It lets individuals’ access necessary data ensuring the safety of
confidential ones.
5. The field of education has also been blessed with the benefits of IT. Online application to
universities, checking results study materials and much more has made the reach of
education broad and easier.

Chapter-2
International Scenario:
2.1. International Level of Software Industry:
China:
The Software Development industry is expected to generate $797.5 billion in 2017, up 6.5%
from 2016. The industry has grown strongly at an average annual rate of 13.9% over the past
five years due to strong demand from downstream software users and the government, as
well as solid pricing levels. This industry's development has also been supported and
encouraged by the Chinese government. In 2011
Japan:
While it is not our intent to provide a comprehensive overview of the large and highly varied
Japanese software industry, some background on its structure and practices is necessary to
appreciate the findings and conclusion of this study. Based on published data, there are
nearly 4,000 software firms in Japan and 86.7% of them have fewer than 300 total employees
the size (software employees).
The Japanese software industry has a unique structure that is quite different from that in the
U.S. This stems both from the nature of the software business in Japan and from cultural and
historical traditions that continue to shape this industry. For various reasons, Japanese firms
do not widely use pre-developed software products but rely almost entirely on custom
software products. By comparison, 60% of U.S. software and 40% of European software
revenue comes from standard products; but in Japan, only 10% is derived from this source.
United States:
From 1997 to 2012, software industry production grew from $149 billion to $425 billion;
and since this growth outpaced the rest of the economy, the software industry’s direct
share of U.S. GDP increased from 1.7 percent to 2.6 percent, or more than 50 percent.

Software contributed more than $1.14 trillion to the total US value-added GDP in 2016 – a $70
billion increase in the past two years.
Russia:
The volume of the market for information technologies at the end of 2013, compared in constant
terms with 2012, is projected to have increased by 6.9 percent to 762.3 billion rubles ($21.38 billion)
according to an updated development forecast for 2014-2016 prepared by the Ministry of Economic
Development. The government forecast predicts growth to fall slightly in 2014 to 5 percent before
climbing slightly from there to 5.3 percent in 2015 and 5.5 percent in 2016.
Germany:
Although the German big data market still appears to be at an early stage, the Experton Group
expects the German big data market to grow from EUR 1.4 billion in 2015 to almost EUR 3.8 billion
in 2020. Correspondingly, annual growth rates during this period are predicted at 23 percent on
average.

2.2. Demand & Supply Scenario:
Law of Supply and Demand Applies to Software
The Law of Supply and Demand is backbone for all free market economies today. Simply
put, Demand is what’s needed by customers and Supply is what market has to offer. This
fundamental law of economics applies to software as well, every day.
In a free market economy, users will buy software if and only if they think it will satisfy some
of their demand. Most software fail because it (the supply) is not what’s desired (the demand)
by the market.
Supply:
India's export of software services rose by 10.3 per cent on an annual basis to USD 97.1 billion in
2016-17, the Reserve Bank (RBI) said today.
The export of software services -- excluding the one through commercial presence -- was USD 88
billion in 2015-16.
"The USA and Canada remained the top destinations of India's export of software services, followed
by Europe in which the UK accounted for nearly half," said RBI's 'Survey on Computer Software &
Information Technology Enabled Services Exports: 2016-17'.
Export of computer services ruled, with private and public limited companies accounting for equal
shares during the year.
The US dollar was the principal invoicing currency, making up 73 per cent of software exports,
followed by the pound sterling and the euro.
For the 2016-17 round of the survey, the RBI said, 7,506 IT companies were approached, of which
1,362 -- including most large companies -- responded.
The responding companies accounted for 81.2 per cent of the total software exports during the year.
Exports of the remaining companies were estimated using the distribution pattern after classifying
them in four groups -- IT services, BPO services, engineering services and software product
development.

2.3. Major Players:
• Microsoft (MSFT): The world leader in software companies, Microsoft continues to
maintain its dominance with total revenues of $77.85 billion in 2013. Of this, $65.7 billion,
or 84 percent, was from its software stream. Microsoft’s software revenues exceed those of
its next two competitors combined.
• Oracle (ORCL): Oracle surpassed IBM in 2013 to gain the number two spot in software
revenues. Its software revenues were $29.7 billion in 2013, out of a total revenue of $34.74
billion.
• International Business Machines (IBM): The large conglomerate offers a wide range of
products and services, including both hardware and software. It consistently derives 25 to 30
percent of revenue from software. Of the total revenue of $99.75 billion for 2013, software
contributed $29.1 billion.
• SAP (SAP): The Germany-based multinational software giant generated $18.9 billion in
revenue from its software stream, out of the total revenue of $22.87 billion. Software
represents 83 percent of its business. (SAP’s official report gives revenues in euros. For this
article, we converted euros to U.S. dollars using the December 31, 2013 exchange rate of
1.36.)
• Symantec (SYMC): Nasdaq-listed Symantec, the global leader in software security
solutions, generated $6.4 billion in software revenue from total revenues of $6.9 billion.
• EMC (EMC): NYSE-listed EMC takes the number six spot with $5.6 billion of software
revenues out of total revenues of $23.2 billion. (EMC also owns the software company
VMWare which is number eight on this list. The companies are listed as separate entities on
the New York Stock Exchange. For that reason, this list treats EMC and VMWare as two
separate entities.)
• Hewlett-Packard (HPQ): The global giant is mainly known for printing products and
solutions. From its total revenue of $112.298 billion, it derived just $4.9 billion from
software. Although this is a small percentage of Hewlett Packard’s total revenues, it still
makes the company the seventh largest software company.

• VMWare (VMW): VMWare, owned by EMC, remains separately listed on the New York
Stock Exchange. Its software stream revenues for 2013 were $4.8 billion, out of total
revenues of $ 5.2 million. If the software revenues of EMC and VMWare considered
together, the company would be the fifth largest software company in the world.
• CA Technologies (CA): Nasdaq-listed CA Technologies has $4.2 billion from its software
stream, out of total revenues of $4.643 billion.
• Salesforce.com (CRM): Ironically, the NYSE-listed salesforce.com promotes itself with
the motto, “No Software.” The company sells software through the software-as-a-service
model. In 2013, it saw $3.8 billion in revenues from software, out of total revenues of $4.07
billion

Chapter-3
Indian Scenario:
3.1. Market Dynamics:
Opportunities in the software space have been explosive over the last few years, but funding
numbers moving forward may be uncertain. Overall, the period from 2010 to 2014 saw more
than 500% growth in investment dollars, while 2016 is expected to represent a decline of
more than 50% from 2015 highs of $3 billion+. This is largely due to the volume of
investments in the space over the last few years. As investors have yet to realize returns, new
money is hesitant to enter the market. There have also been numerous acquisitions in the
space, but relatively few IPOs. The future landscape of technology depends on the ability of
existing investments to prove that their business models can not only lead to exits, but lead to
sizable IPOs that will attract investment in the next round of early stage companies. Despite
this, a few submarkets that have been gaining traction include the specific learning space
(tech learning, language learning), enterprise learning space, and the learning management
systems space. All things considered, movements in this market will be extremely interesting
to watch over the next few years as the first batch of investments mature and determine the
verity of investor assumptions. With a 5.5% of reveneue average spend on IT, educational
institutions seem to be signaling that they are ready for the next wave innovation.
Make sure to check out the 2016 edition of Opportunities In Vertical Software for the full
report and we will be back tomorrow with some more information on the Education industry
and the software that powers it.

3.2. Investments related Aspect:
Investment:
The software industry is continuously expanding in India. It is a leading destination for the
IT and IT-enabled services worldwide. Per NASSCOM, the leading body for the software
industry in India, the gross revenue has grown from 1.2% from 1997–1998 to 5.8% from
2008–2009.
India is the preferred destination for companies and their business needs. The factors that
attract potential investors are the huge talent pool offered by India, good infrastructure, and
low costs. What's driving the software industry in India is the quality of services being
offered. Most of Indian companies are CMM level 5 certified
The software solutions industry is a major revenue earner. The BPO (Business Process
Outsourcing) and KPO (Knowledge Process Outsourcing) industry is surging with more
companies looking to offshore their customer service departments. Besides, there are newer
areas that are emerging that are making India a potential winner for investors.
The BPO industry is continuously growing. Per the NASSCOM study, the BPO sector is set
to reach US$ 30 billion in exports by 2012 and has been growing at a rate of 35% for the past
3 years. The verticals, such as banking, retail, and telecom, offer more possibilities for the
future.
The KPO industry that is currently estimated at US$ 4 billion is set to grow to US$ 10 billion
by 2012. Internet publishing is gaining popularity with more offshore deals being made.
Software giants, such as Infosys, Wipro, and TCS, are providing software solutions to clients
overseas. IT parks have been developed in all major Indian cities. Bengaluru in particular is
referred to as the silicon valley of India. Many MNCs, such as Capgemini and Yahoo, have
forayed into the Indian market and are tapping the huge talent base in India. The software
solutions industry is thus expanding continuously.
The web development and design industry is also a prominent area. It is the web site of the
company that a potential customer first views and rates. And with the growth of the Internet
as a medium for all forms of business, this sector offers immense growth potential.

The animation industry is growing fast in India and is attracting investors. This sector is
showing signs of achieving a growth rate of about 30%. Another area is the gaming industry.
This industry also shows a lot of promise.
According to a study by CRISIL, engineering services outsourcing (ESO) is likely to be the
next big thing in the outsourcing industry. This sector is projected to increase to US$ 7.5
billion by 2012.
Realizing the potential of the IT industry, the government has created Special Economic
Zones and is contemplating to create Investment regions to further boost this industry.
Future Scope:
The BPO sector will amount to 10% of the global market share by 2010. If India just sustains
its share in the global market, its exports will surpass US$ 330 billion by 2020. Thus, the
scenario for the Indian software industry looks good and potential investors can look towards
India's software industry as a good bet.

3.3. Growth of Indian Software Industry:
The Indian companies in the top 100 emerging markets list bring combined revenue of 797
million USD. India ranks fifth among the emerging markets based on revenues. The findings
are part of PwC’s Global 100 Software Leaders report, a revenue based study on the world’s
top 100 software vendors.
The report also contains indices of the top 100 software vendors in North America, Europe
Middle East and Africa (EMEA) and the emerging markets.
Commenting on the findings of the survey, Sanjay Dhawan, Leader, Technology, PwC India
said, “The Indian IT industry has been primarily identified with software services and this
focus has relegated the software products segment to the background. However, off late, we
are seeing a change in the fortunes of this segment due to significant growth. Emerging
technologies such as Social media, Mobility, Analytics and Cloud (SMAC) are driving the
growth in this segment and helping it move to the next level.”
The report is a clear indicator that the emerging markets are poised to play an increasingly
pivotal role in the global software industry. Focus on innovation, growing talent pool and
government support are just some of the advantages of this market segment.
A number of software product firms have grown over the last decade from a little over 100 in
2000 to nearly 2400 in 2013. According to the industry body NASSCOM, the revenue from
the software product segment currently stands at 2.2 billion USD and is expected to reach 10
billion USD by 2020.
The findings from the research show that some key forces are causing deep structural
changes in the industry, fundamentally reshaping how software companies do business:
Software-as-a-Service is gaining traction: Although SaaS represented only 4.9% of the total
software revenues in 2011; there is a consistent and significant shift towards SaaS. Perpetual
licence revenue has been shrinking since 2004 while subscription revenue (including SaaS)
is forecast to grow at a 17.5% compounded annual rate, amounting to 24% of total software
revenue by 2016.
Customer is king: With the adoption of intuitive cloud services, mobile devices and low-cost
apps, Chief Information Officers (CIOs) are no longer the sole decision makers in the

software purchase process. The end users must be satisfied in order to retain and grow
enterprise sales.
Emerging hybrid models bring new challenges: There will be a range of business models
from traditional licensed software to pure SaaS and hybrid approaches, which will pose
challenges for the vendors in the future. Vendors will need to identify and adopt new
business models while trying to maintain revenues and profits during times, when the overall
industry pricing is under pressure.
Priority on pricing: Pricing is paramount to the entire sector. With the rise in IT consumers
via low and no cost online platforms, the software companies are already struggling to
explain the difference in value between a low-cost mobile app and a full-strength, licensed
enterprise software package.
While expressing his views on the impact of disruptive technology, Mark McCaffrey, PwC's
Global Software Leader said, “Cloud computing has enabled SaaS to grow as a new business
model. We expect the business models to continue to range from traditional licensing to SaaS
subscriptions only for a short-term. Over time, we will see that a growing range of services
and functions such as Platform-as-a-Service, Infrastructure-as-a-Service and Anything-as-a-
Service (SaaS) will begin to emerge.”
According to PwC’s recent Future of Software Pricing Excellence report series, the top four
companies surveyed earned less than 2% of the revenue generated from SaaS in 2011 while
data from the top 100 companies indicates considerable movement. The SaaS revenue
accounted for at least 40% of the software revenue for 10 companies on the Global 100 list.
Industry consolidation and increasing globalisation are also transforming the software sector.
Acquisitions are viewed as R&D strategy and key to acquiring talent and building effective
and efficient SaaS capabilities.

3.4. Key Drivers of Software Industry:
The rise in adoption of cloud and emerging technologies has resulted in increased demand
for software. The India software market is expected to reach $5.3 billion in 2016, a 12.8
percent increase from 2015, according to Gartner.
“The enterprise software marketplace is dynamic and ever-changing. Its growth and structure
are being shaped by factors and forces of decentralized purchasing, consumerization,
mobility, influence of other emerging markets, cloud-based implementations, and new
consumption models,” said Bhavish Sood, research director at Gartner.
Several leading factors driving the India software market. These include:
• Software as a service (SaaS) adoption and development: As per Gartner’s earlier report
public cloud services revenue in India will reach $731 million by the end of 2015, an
increase of $176 million over 2014 revenue of $555 million. In 2015, public cloud services
revenue is driven by high growth rates in key market segments, such as cloud infrastructure
as a service (IaaS), cloud management and security services, and software as a service
(SaaS).
Sid Nag, research director at Gartner had said: “The explosive growth of IaaS and SaaS in
the India market is an indication that enterprises in India are moving away from building
their own on premises infrastructure, as well as migrating from the traditional software
licensing model, to a SaaS model served up by cloud providers.”
• Open source software (OSS) adoption: It’s said that by 2017, about 90 per cent of Indian
IT organizations will have open source software (OSS) embedded in their mission critical
platforms. According to IDC, there is an increased adoption of open source software among
the SMB segment which are looking at customized solutions based on open source platform
for greater flexibility and cost reduction.
• Digital India initiative of Indian government: “It is also evident that the Indian
government is serious about leveraging information technology for effective governance,”
Sood said. “The Digital India initiative, MyGov citizen portal, the Self-Employment and
Talent Utilization (SETU) program for startups, and smart cities initiatives are some
examples. The Digital India initiative is centered around three areas: digital infrastructure as
a utility to every citizen, governance and services on demand, and digital empowerment of

citizens. These are further categorized into nine pillars, and clearly highlight ongoing
activities in those three areas and timelines of completion for each of these initiatives.”
• Demand for specialized software vendors:
“In 2015, the Indian economy has shown signs of resurgence, with increased efforts by the
government toward ease of doing business, which has triggered a significant increase in
foreign direct investment (FDI) inflows,” Sood said. “FDI inflows in 2015 have grown to
$30.9 billion, a 27 percent increase year over year. It is also evident that the Indian
government is serious about leveraging information technology for effective governance.”
Corporations also want to know how to use digital technologies, services and disciplines to
create new growth opportunities. Businesses are getting ready to digitally transform, creating
new organizations, and leadership roles. This transformation is generating varying degrees of
adoption, experimentation and spending in the newest technologies. Branded companies that
sell to consumer markets are more rapidly purchasing and adopting digital applications to
expand their digital footprint and strengthen their competitive positioning. Increasingly,
Indian enterprises will be evaluating emerging technology solutions on innovation and
business impact rather than cost and ease of deployment.
3.5. Key Performance Indicators:

Measuring the effectiveness of your software developer(s) can be tricky even if you have a
perfect set of Key Performance Indicators or KPI for software development. It’s a little like
dealing with a serviceman where you put your trust in their abilities and knowledge, hoping
that unnecessary replacement parts and labor time are not tacked on. So trust is an important
factor, but not the only factor in this equation.
KPI for Software Development – Performance Indicators
If you have already arrived at that point where you are beginning to question effectiveness …
chances are it’s a sign something is wrong. The challenge is that the performance risk
indicators that caught your attention may not necessarily be the direct fault of your software
developer(s). There are many potential sources from which issues can appear in the
development process … and all need to be understood and evaluated.
From my personal experience, I would have to say the single most problematic issue is the
requirements not being clearly understood and communicated from the beginning. In years
past as an independent contractor, I used to joke that a job posting would say one thing, the
recruiter would explain it as another, the client would explain it as still another and (as
you’ve probably already guessed) when I actually went to do the job … it turned out to be
something different than any of the initial descriptions. Suffice it to say, in such cases
productivity is sidelined while defining the work becomes the priority.
Software Development Qualifications:

In a nutshell, effectiveness is a function of the software developer’s technical knowledge,
practical experience, application exposure, and communication abilities. Within any
particular venue, one software developer may be able to complete a task in one tenth the time
of another. Yet in a different venue the positions of those same two technicians may be
reversed. It is for this reason that I firmly believe a software development company is
preferable to hiring individual software developer(to augment your staff). A good quality
software development company should be experts at completing projects in the most
effective way possible through clear communication and proper assignment of tasks based on
skill.
Key Performance Indicator Evaluations:
Evaluation of a software development program can also be tricky because so much is based
on the knowledge of the individual doing those evaluations. For example, a code review is a
perfectly acceptable way to determine if new code is documented and written in the same
fashion as previous code. However, as obvious as this might sound, this evaluation method
cannot be used by someone who isn’t familiar with coding.
The challenge in nailing the right performance indicators:
 One common challenge is that even though you can identify the issues in
performance and the troublesome or risky performance indicators, they might not be
directly associated with the software developer/team. It might not be the sole fault of
the developer/team for the troubling performance indicator. For example, from my
experience, the trouble mainly lies in the requirement gathering phase, and when the
requirements communication has issues, the performance issues will reflect on every
activity that follows.
 Another is determining a software developer’s/team’s qualification in the related are
of development. A good or effective software developer/team will have the right set
of technical knowledge, domain expertise, functional knowledge and the practical
experience. But then again, this may be true of the developer/team in one
area/domain, but not work out completely in another area/domain. So this could
again, end up being a rather tricky situation to assess.

 The set of processes for review (in order to assess the performance indicators) may
not work with all developers/teams as a whole. For example, while we can review the
coding phase for adherence to best coding practices, for a certain developer, the best
coding practices could vary, since he/she might have been following a different
coding practice (best coding practices also not being a 100% standard through the
industry!)
Chapter-4
Strategic Analysis of Industry

4.1. Porter’s Five forces Analysis:
Porter’s Five Forces analysis, following directly from the positioning of strategy is clearly
one of the most popular and powerful tool for anyone to understand the factors affecting
profitability in any industry and how then should an organization position itself to attempt to
maximise profitability. Building on the framework, we add variables that affect the IT
Industry landscape and headwinds that shape the future of the industry.
Existing competition:
The IT Industry landscape is characterized by intense completion for conventional IT
services: Application Development & Maintenance, IT Infrastructure Management Services,
Network Management Services, Data-center Services etc. leading therefore
to commoditization. There are several firms in the market offering similar services and it
is difficult to differentiate based on these service offerings. The existing competition comes
from both domestic players (Infosys, TCS, Wipro, HCL technologies, Tech Mahindra, Mind

tree and so forth) and international ones (IBM, Accenture, Capgemini, Cognizant and so
forth).
It is in the context of non-conventional services, i.e. the ones focused (Digitization) on
emerging technologies and trends such as Analytics, Cloud computing, Social Media,
Enterprise Mobility, Internet of Things etc. where the opportunity for differentiation
through niche-specialization occurs. Another argument might be for industry-vertical
specialization but the major buyers (in terms of Industries) for instance Banking & Financial
Services (BFSI), Manufacturing, Energy & Utilities etc. are well catered to and it would be
easier to think of IT companies as portfolios of verticals (across clients) especially when
considering growth potential (with the growth in an industry benefiting the IT service
provider that draws most revenues from the industry in question). Vertical specialization
therefore will only be beneficial for industries going through rapid change (Telecom for
instance) or through rapid growth caused by external factors like government regulation. The
healthcare industry is a major example and thing bode well for it both in developing markets
(due to non-linear permeation to affect broader access) as well as developed ones (based on
the ageing demographics).
Bargaining power of customers:
for conventional IT services, bargaining power of the buyer is large and the possibility of
pressure on rates exists. The buyer, having worked with both with international IT providers
as well as Indian ones is largely the price setter and has negated (to a large extent) the
offshore advantages through mature procurement and global delivery. The international IT
firms too have negated the advantage enjoyed by Indian IT companies through captive
centres in India and globally. In this industry, in case of conventional IT services, the buyer is
king!
In case of non-conventional services, i.e. those that cater to emergent technologies and
technology trends (in Data Analytics or Enterprise Mobility for instance) there is potential
for differentiation and higher margins. Also this is the case for non-conventional,
partnership-style engagements where both risk and rewards are higher.

Bargaining Power of Suppliers:
The bargaining power for suppliers is very low and since high-standardization exists, there is
little scope of suppliers having any clout. The suppliers consists of IT Infrastructure
providers (Servers, computers etc.), Recruitment firms, Office Space Suppliers etc.
Threat of New Entrants:
In context of the highly commoditized IT services, there is little threat of new entrants. That
said, the Industry is also characterised by high people dependence and therefore can see
veterans detach from existing companies to invest in new ventures. An example of this is
Happiest Minds, which was started by a co-founder of an existing IT provider.
The newer technologies allow the possibility of new niche players that are not dependant on
size or experience constraints.
Availability of Substitutes:
There are no substantial substitutes to IT services apart from Internal IT departments, which
have lost clout over the years and are ever thinner in numbers and significance. One
argument for internal IT is retaining control over pertinent aspects of business but the
argument against would be since the main business of the company is not IT services, it
should outsource as much as possible and focus on future growth in core areas. Over time
there has been a steady decrease in in-house IT development and maintenance with more and
more being outsourced and the internal IT staff has settled into a supervisory (program
management) role.
This has been a mixed bag for newer services as well since internal specialization is very
low, most of the work is outsourced. For critical areas, governance has been retained in-
house and this trend seems to have found favour with most large enterprises worldwide.
Broadly speaking the market for conventional services is highly commoditised with potential
for differentiation concentrated around niche expertise in new technologies and trends
(SMAC + Internet of Things) and around non-conventional engagements (revenue/profit
share, risk-reward models). It is unlikely that the market for conventional services will
vanish overnight but the future promises to hold a highly modified view. Application
development is fast morphing into app-development and a large part of revenues continue to
be drawn from conventional services as the need to adapt and incorporate new technologies

and engagement models looms over an IT industry that needs to reform and re-invent itself
rapidly.
4.2. PESTLE ANALYSIS :
There are many factors in the macro-environment that will effect the decisions of the
managers of any organization. Tax changes, new laws, trade barriers, demographic change
and government policy changes are all examples of macro change. To help analyze these
factors, managers can categorize them using the PESTLE model.
PESTLE stands for Political, Economical, Social, Technical, Legislative and Environmental.
It is a strategic planning technique that provides a useful framework for analyzing the
environmental pressures on a team or an organization. It describes a framework of macro
environmental factors used in the environmental scanning component of strategic
management. It is a part of the external analysis when conducting a strategic analysis or
doing market research and gives a certain overview of the different macro environmental
factors that the company has to take into consideration. It is a useful strategic tool for
understanding market growth or decline, business position, potential and direction for
operations. PESTLE factors play an important role in the value creation opportunities of a

strategy. However they are usually outside the control of the corporation and must normally
be considered as either threats or opportunities.
Kotler (1998) claimed that PESTLE analysis is a useful strategic tool for understanding
market growth or decline, business position, potential and direction for operations. The
headings of PESTLE are a framework for reviewing a situation, and can in addition to
SWOT and Porter's Five Forces models, be applied by companies to review strategic
directions, including marketing proposition.
Political factors:
These refer to government policies such as the degree of intervention in the economy. What
goods and services does a government want to provide? To what extent does it believe in
subsidizing firms? What are its priorities in terms of business support? Political decisions can
impact on many vital areas for business such as the education of the workforce, the health of
the nation and the quality of the infrastructure of the economy such as the road and rail
system, Government rules and regulations can also affect a business heavily. Rules and
regulations such as environmental regulations, industry specific regulations, competitive
regulations, consumer protection and various kinds of employment laws.
Economical factors:
These include interest rates, taxation changes, economic growth, inflation and exchange
rates, governments spending levels, unemployment, job growth, tariffs, consumer confidence
index and import or export rations. Economic changes can have a major impact on a firm's
behavior.
Higher interest rates may deter investment because it costs more to borrow.
A strong currency may make exporting more difficult because it may raise the price in terms
of foreign currency
Inflation may provoke higher wage demands from employees and raise costs

Higher national income growth may boost demand for a firm's products
Social factors:
These often look at the cultural aspects and include health consciousness, population growth
rate, demographics (age, gender ,race, distribution), career attitudes and emphasis on safety ,
lifestyle changes, population shifts, education trends, fads, diversity, immigration/emigration,
housing trends, fashion, attitudes to work, leisure activities, occupations and earning
capacity.
Changes in social trends can impact on the demand for a firm's products and the availability
and willingness of individuals to work. Today the aging of population has become a huge
problem. This has increased the costs for firms who are committed to pension payments for
their employees because their staff is living longer. It also means some firms have started to
recruit older employees to tap into this growing labour pool. The ageing population also has
impact on demand: for example, demand for sheltered accommodation and medicines have
increased whereas demand for toys is falling.
Technological factors:
Technological factors include ecological and environmental aspects and can determine
barriers to entry, minimum efficient production level and influence outsourcing decisions.
Technological factors look at elements such as R&D activity, automation, technology
incentives and the rate of technological change. New technologies create new products and
new processes. MP3 players, computer games, online gambling and high definition TVs are
all new markets created by technological advances. Online shopping, bar coding and
computer aided designing are all improvements to the way we do business as a result of
better technology. Technology can reduce costs, improve quality and lead to innovation.
These developments can benefit consumers as well as the organizations providing the
products.
Legal factors
These are related to the legal environment in which firms operate. In recent years in UK
there have been many significant legal changes that have affected organizations behavior.
The introduction of age discrimination and disability discrimination legislation, an increase

in the minimum wage and greater requirements for firms to recycle are examples of
relatively recent laws that affect an organization's actions. Legal changes can affect a firm's
costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law
affects the likelihood of customers buying the good or using the service).
Environmental factors:
Environmental factors include the weather and climate change. Changes in temperature can
impact on many industries including farming, tourism and insurance. With major climate
changes occurring due to global warming and with greater environmental awareness this
external factor is becoming a significant issue for firms to consider. The growing desire to
protect the environment is having an impact on many industries such as the travel and
transportation industries (for example, more taxes being placed on air travel and the success
of hybrid cars) and the general move towards more environmentally friendly products and
processes is affecting demand patterns and creating business opportunities.
4.3. SWOT ANALYSIS:
STRENGTHS:
Large Pool of Knowledge Workers: The basic raw material for any software development
activity or a dotcom start up is the availability of quality knowledge workers. India's main
competitive advantage is its abundant, high-quality and cost effective human resources.
Currently, India trains more than 20 million professionals a year and has around 40% of them
working in the software and services sector. This is the second largest I.T. work force in the
world. NASSCOM says that Indian IT workforce will touch 30 million by 2020, becoming
the highest sector employer
State-of-the-art Technologies: A majority of Indian software companies use state-of-the-art

technologies, including the latest in client-networking, E-commerce, Internet, ASP, CASE
tools, communication software, ATM, protocols, GUI etc.
Flexibility and Adaptability: Indian software professionals easily adapt themselves to new
technologies. In the software industry, where technological obsolescence is the order of the
day, flexibility to adapt to new technologies a major strength
Reliability: Software programmers from India are able to provide expertise for all or large
projects with dollar savings. The motto is ultimate adherence delivery schedules and
customer satisfaction
Off-shore Development through Datacom links: Off-shore software development in India
especially through high-speed datacom (satellite links), provides immense cost and time
saving.
Large Projects: Indian companies increasingly large numbers are demonstrating their ability
to handle large projects (more than 500-700 man- ears), including turnkey projects.
High Growth: Software exports as well as the domestic demand in the last few years have
been consistently growing at annual growth rate of about 50 per cent.
High Quality & Price Performance: Quality is the hallmark of Indian I.T. software and,
services. ISO 9000 certification and SEI Level 5 are the order of the day. High quality
knowledge workers and attractive price performance have been and will continue to be a key
component of India's value proposition.
Engineering Base: A strong base of national institutes, engineering college and universities
has laid a strong foundation of education in engineering skills amongst Indian software
professionals. The IIT’s (Indian Institute of Information Technology) in various cities are the
new institutions to join the bandwagon.

Mathematical and Logic Expertise: India’s success in providing efficient software solutions
can be also attributed to the mathematical and logical ability Indian’s.
High Aspirations: The Indian IT software and services industry has set itself higher
aspirations and goals. The recent aspiration is to reach annual revenues of U.S.$ 7.50billion
by 2020 (from a level of U.S.$3.9 billion ), achieve 100 per cent literacy, more, employment
and entrepreneurship opportunities.
Indians in Silicon Valley: As per a recent survey, 23 of the Fortune 500 company CEOs are
of Indian origin. It has been reported that a business plan of a dotcom company in Silicon
valley, U.S.A. receives higher priority if an Indian name associated with it. The successful
India in Silicon Valley has organise themselves under the Indus Entrepreneurs Group (TiE).
Government Encouragement: Since 1999 the Government of India has accorded thrust
area
status to the software sector. The Government has amended the Copyright Law to make it
one
of the toughest in the world; eliminated import duty on computer software; exempted profits
derived from software exports from Income Tax etc. The Government of India has also set up
innovative scheme like Software Technology Parks, etc., for promoting software exports.
Infrastructure: A growing number of State Governments and cities are building hi-tech
buildings and habitats to accommodate the ever increasing numbers of software companies
and enterprises. These are in the form of intelligent habitats and buildings and include
infrastructural support like high- class value-added data communication services, captive
power, recreational facilities, etc. They incorporate state-of- art facilities viz. plug-and-play

features. This is assisting companies to quickly set up their software operations in India.
Global Research & Development: More and more multinationals are setting up their global
R&D units in India, recognising the immense power of local talent.
WEAKNESSES:
Lack of Package Orientation: Although, a few companies have started making
shrinkwrapped
software packages, the industry as a whole is still not oriented towards development
of world class 'shrink-wrapped' software packages. Thus, the industry is not able to take
advantage of a multiplier effect for growth in revenues.
Lack of Domestic Computerisation: Lack of adequate computerisation has led to a
relatively weak domestic software market. Even, the PC penetration rate is very low.
Lack of Internet Penetration: With low penetration of PC’s, it is obvious that Internet
penetration is also poor. At the end of the year 2014, India could only boast of Internet
connections with about 243 million users. The penetration by 2014 is only 19.19%, while
US,
Japan and UK have more than 85% internet penetration
Original Technology: The Indian software industry possesses the expertise to absorb and
use
the latest technology. However, barring a few exceptions, it has still not produced enough
original technology breakthroughs. Succinctly put, the industry has not created original
operating systems or new computer languages and technologies, which could be used
globally.
Mission Critical Real Time Operations: Some of the leading companies in India have
handled software development for mission critical real time operations. However, the
industry as a whole does not have much experience in this field.

Project Management Skills: As the Indian software industry has been growing at a fast rate,
most of the project managers are becoming entrepreneurs, thus creating a gap in demand and
supply of project management skills.
Venture Capital: In building a robust venture creation process, India still faces few
constraints. To build a prolific venture community, India needs to focus on boosting all
stages
of venture creation process and have simplified procedures so that the domestic Venture
Capital movement can flourish and overseas Venture Capital funds can be attracted.
Internet Service Provider (ISP) Policy: Localisation: With the exception of isolated cases,
not much exists in providing software applications in innumerable local languages. Thus,
computer penetration in India is restricted to merely the English speaking population.
OPPORTUNITIES:
Global Market: The market is large and rapidly changing-from a mix of legacy client server
to web / package-based services. Market openings are emerging across I.T. services, software
products, I.T. enabled services and E-businesses, and creating a number of new opportunities
for Indian companies.

Domestic Demand: According to the NASSCOM estimates, analytics will present a $7.5bn
opportunity – including domestic demands and exports by 2020 for Indian IT companies
Outsourcing: The global outsourcing business was worth U.S.$ 170 billion in 2008 and has
been growing at the rate of 15-18 percent per annum. A recent survey indicates that by 2020,
more than 75 percent of the Fortune 1000 companies and other multinationals will outsource
some part of their application development and maintenance activities. India can gain and
corner a greater marketplace.
E-Commerce/E-Business: India not only has a huge opportunity to service this market but
also has a unique opportunity to address the needs of the NRI community around the world.
Overseas Listings: India today commands a very high respect among investors in India and
overseas. Almost all major overseas stock exchanges -are keen for Indian software
companies
to list themselves on their respective exchanges. This is a major opportunity for the Indian
software industry to attract the requisite investments.
The permission to allow private ISP's operate in India and set up their own gateways will
unprecedented Internet proliferation throughout India. Moreover, the internet penetration
grew by 14% in 2014 compared to 2013
THREATS:
Government Interference: In the past decade, the Government and industry have worked very
well together in India for the success of the I.T. software and services industry. Now the
Government's role needs to be increasingly directed towards providing suitable infrastructure

and continuing its role in the simplification of policies. Any further plans for Government
control, restrictions or undue interference could well pose a threat to the industry.
Telecom Infrastructure: The immediate need of the hour in India is to have a world class
telecom infrastructure at globally competitive tariffs. The Department of
Telecommunications has taken a number of initiatives including the National
Telecommunication Backbone, National Internet Backbone, and plans for providing high
bandwidth Internet connectivity to remote corners of India. However, Government
monopoly, lack of speed and adherence to archaic telecommunication rules and regulations
can prove to be a threat to the industry.
Lack of Speed: The world is moving at the speed of Internet. The decision- making and time
taken for implementation in India needs to be at a much faster pace so that the Indian I.T.
software and services industry does not lose any opportunities.
Infrastructure: Although, the software industry is growing at a phenomenal rate, many
other
sectors in India have not yet been able to keep pace with it. Lately, almost all major cities are
building hi-tech buildings to house the software industry. These buildings have state-of-art
infrastructure, data communication facilities, captive power etc. But, lack of power,
highways, housing and international airports is some cities has become a major constraint.
Cost: Rising cost of infrastructure, basic amenities and salaries can pose a threat if not
adequately balanced with value addition.

Protectionism by Export Destinations: Many countries in North America and Western
Europe are creating protective and non-tariff trade barriers, especially with regard to the
movement of skilled manpower. Visa issues and non-tariff trade barrier may prove to be a
threat. India should insist for removal of non-trade tariff barriers at WTO.
8P’s of IT Industry:

1. Product: The product aspects of marketing deal with the specifications of the services,
and how it relates to the end-user's needs and wants. The scope of a product generally
includes supporting elements such as warranties, guarantees, and support
2. People: To deliver the satisfactory services, the employees of a company have to play an
important role. Employees must possess personal qualities, ability to understand and satisfy
customer needs, flexibility, skills and knowledge. Friendly and warm employees increase
customer loyalty
3. Place: In service place refers to location and use of distribution channels. It is referring to
the channel by which a service is sold (e.g. online vs. retail), which geographic region or
industry, to which segment (young adults, families, business people), etc. also referring to
how the environment in which the product is sold and can affect sales.
4. Process: IT relies on processes to consistently deliver high quality solutions while
executing a growing number of engagements from multiple locations. Value, vision and
policies from the first level of our three-tiered process architecture.
5. Physical Evidence: The environment in which service is delivered and where the firm and
customers interact. Physical evidence enhances consumers’ perception about quality.
Example: Exterior design, parking, Interior Design, Surrounding environment Equipment
etc.
6. Productivity: Productivity refers to the success or failure of any business, so the quality
of the product should be very good for his companies have different quality standards which
are certified by the quality department and are approved all over the world. If one does not
have approved quality standards then he develops its own to meet the quality that are
demanded by the customers
7. Pricing: the pricing decision is one of the most critical decisions. Software pricing has
been concentrated the internal business objectives of vendors such as costs, specified
margins, and the competition
8. Promotion: Over here, services and project consulting is through contract or agreement
between the parties and promotions are carried out only for the particular client selected as

upgrading and extended service for a particular period, etc. This includes advertising, sales
promotion, publicity, and personal selling. Branding refers to the various methods of
promoting the product, brand, or company
4.5. Product Life Cycle Analysis:
The product life cycle consists of three phases:

1. Develop the product
2. Operate the product
3. Decommission the product
1. Product Initiation Phase:

• Submits a request for anew service or modification to an existing service.
• Received and prioritized by the Program Management Office (PMO).
• Requests are reviewed by various management
• If approved, the request is given necessary funding and resources
2.Feasibility Phase:
• Idea is explored in more depth
• Evaluate:
– Evaluated at the engineering and product management level.
– Evaluated for technical feasibility.
• Outlines the general architecture
of the proposed service.
• The Feasibility Analysis and stable Business Case are also developed during this phase.
• These documents summarize time and cost estimates and other investment information

3.Design and Plan Phase:
• The cross-functional team documents all detail pertaining to the development of the
service.
• Core documents:
– Marketing Service Description, Technical Service Description, and Design Specifications,
are stabilized.
– Operations, QA, and Customer requirements
• Approved:
– Initial Level: signed off by the project team
– Final Approval: The Design & Plan Checklist is presented to the Governing Committee.
4.Development Phase:
Parameters to pass through decision gate:
• Actual engineering of the service is completed

• Code Complete
• Documentation Complete
• Ready for Testing Phase from a System Integration Test perspective
• Test Environment Complete
• Vendor Requirements met
• Integration Testing & Results Complete
• Approval by Project Team & the Governing Committee
5.Testing Phase:

6.Product Launch Phase:
• Flash demo and deploying it on the company website

• Deployment of the new or modified service at customer end.
• Initiation of support processes to maintain the service.
• A predetermined un launch process will be executed,
If the service is found to be unsuccessful

7.Operation Phase:
• Longest Phase
• Manage the product
• Track problems and bugs, and respond to customer issues
• RASM (Reliability, Availability, Security and Manageability)

8.Decommissioning Phase:
• End of the product life cycle
• Decommissioning can be ignored
• May lead to larger problems
• Product is phased out from the Market
• Example Windows 98
• Example AVG 7 is being decommissioned on1 April 2009
• Extending the life cycle of Product

Product Life Cycle Stages:
The product life cycle has 4 very clearly defined stages, each with its own characteristics that
mean different things for business that are trying to manage the life cycle of their particular
products.
Introduction Stage – This stage of the cycle could be the most expensive for a company
launching a new product. The size of the market for the product is small, which means sales
are low, although they will be increasing. On the other hand, the cost of things like research
and development, consumer testing, and the marketing needed to launch the product can be
very high, especially if it’s a competitive sector.
Growth Stage – The growth stage is typically characterized by a strong growth in sales and
profits, and because the company can start to benefit from economies of scale in production,
the profit margins, as well as the overall amount of profit, will increase. This makes it
possible for businesses to invest more money in the promotional activity to maximize the
potential of this growth stage.
Maturity Stage – During the maturity stage, the product is established and the aim for the
manufacturer is now to maintain the market share they have built up. This is probably the
most competitive time for most products and businesses need to invest wisely in any
marketing they undertake. They also need to consider any product modifications or
improvements to the production process which might give them a competitive advantage.
Decline Stage – Eventually, the market for a product will start to shrink, and this is what’s
known as the decline stage. This shrinkage could be due to the market becoming saturated
(i.e. all the customers who will buy the product have already purchased it), or because the
consumers are switching to a different type of product. While this decline may be inevitable,
it may still be possible for companies to make some profit by switching to less-expensive
production methods and cheaper markets.
Introduction Stage Software Industry:

The first of the four product life cycle stages is the Introduction Stage. Any business that is
launching a new product needs to appreciate that this initial stage could require significant
investment. This isn’t to say that spending a lot of money at this stage will guarantee the
product’s success. Any investment in research and new product development has to be
weighed up against the likely return from the new product, and an effective marketing plan
will need to be developed, in order to give the new product the best chance of achieving this
return.
Benefits of the Introduction Stage
Limited competition: If the product is truly original and a business is the first to
manufacture and market it, the lack of direct competition would be a distinct advantage.
Being first could help an organisation to capture a large market share before other companies
start launching competing products, and in some instances can enable a business’s brand
name to become synonymous with the whole range of products, like Walkman, Biro, Tannoy
and Hoover.
High Price: Manufacturers that are launching a new product are often able to charge prices
that are significantly above what will eventually become the average market price. This is
because early adopters are prepared to pay this higher price to get their hands on the latest
products, and it allows the company to recoup some of the costs of developing and launching
the product. In some situations however, manufacturers might do the exact opposite and offer
relatively low prices, in order to stimulate the demand.
The global sourcing market in India continues to grow at a higher pace compared to the IT-
BPM industry. The global IT & ITeS market (excluding hardware) reached US$ 1.2 trillion
in 2016-17, while the global sourcing market increased by 1.7 times to reach US$ 173-178
billion. India remained the world’s top sourcing destination in 2016-17 with a share of 55 per
cent. Indian IT & ITeS companies have set up over 1,000 global delivery centres in over 200
cities around the world.
the industry has led the economic transformation of the country and altered the perception of
India in the global economy. India's cost competitiveness in providing IT services, which is
approximately 3-4 times cheaper than the US, continues to be the mainstay of its Unique
Selling Proposition (USP) in the global sourcing market. However, India is also gaining

prominence in terms of intellectual capital with several global IT firms setting up their
innovation centres in India.
Growth Stage
The Growth stage is the second of stages in the product life cycle, and for many
manufacturers this is the key stage for establishing a product’s position in a market,
increasing sales, and improving profit margins. This is achieved by the continued
development of consumer demand through the use of marketing and promotional activity,
combined with the reduction of manufacturing costs. How soon a product moves from the
Introduction stage to the Growth stage, and how rapidly sales increase, can vary quite a lot
from one market to another
Benefits of the Growth Stage
The internet industry in India is likely to double to reach US$ 250 billion by 2020, growing
to 7.5 per cent of gross domestic product (GDP). The number of internet users in India is
expected to reach 730 million by 2020, supported by fast adoption of digital technology,
according to a report by National Association of Software and Services Companies
(NASSCOM)
 Costs are Reduced:
With new product development and marketing, the Introduction
stage is usually the most costly phase of a product’s life cycle. In
contrast, the Growth stage can be the most profitable part of the
whole cycle for a manufacturer. As production increases to meet
demand, manufacturers are able to reduce their costs through
economies of scale, and established routes to market will also
become a lot more efficient.

 Greater Consumer Awareness: During the Growth phase more
and more consumers will become aware of the new product. This
means that the size of the market will start to increase and there
will be a greater demand for the product; all of which leads to the
relatively sharp increase in sales that is characteristic of the Growth
stage.
 Increase in Profits: With lower costs and a significant increase
in sales, most manufacturers will see an increase in profits during
the Growth stage, both in terms of the overall amount of profit they
make and the profit margin on each product they sell.
Indian IT exports are projected to grow at 7-8 per cent in 2017-18, in addition to adding
130,000-150,000 new jobs during the same period.
Indian technology companies expect India's digital economy to have the potential to reach
US$ 4 trillion by 2022, as against the Government of India's estimate of US$ 1 trillion.
Digital payments in India rose 55 per cent in volume and 24.2 per cent in value year-on-year
in FY 2016-17, stated Mr Ratan Watal, Principal Advisor, Niti Aayog.
Employees from 12 Indian start-ups, such as Flipkart, Snapdeal, Makemytrip, Naukri, Ola,
and others, have gone on to form 700 start-ups on their own, thus expanding the Indian start-
up ecosystem.! India ranks third among global start-up ecosystems with more than 4,200
start-ups.
Total spending on IT by banking and security firms in India is expected to grow 8.6 per cent
year-on-year to US$ 7.8 billion by 2017!!
Maturity Stage:
the Introduction and Growth stages, a product passes into the Maturity stage.
The third of the product life cycle stages can be quite a challenging time for
manufacturers. In the first two stages companies try to establish a market and

then grow sales of their product to achieve as large a share of that market as
possible. However, during the Maturity stage, the primary focus for most
companies will be maintaining their market share in the face of a number of
different challenges.
Benefits of the Maturity Stage:
 Continued Reduction in Costs:
Just as economies of scale in the Growth stage helped to reduce costs,
developments in production can lead to more efficient ways to manufacture high
volumes of a particular product, helping to lower costs even further.
 Increased Market Share Through Differentiation:
While the market may reach saturation during the Maturity stage, manufacturers
might be able to grow their market share and increase profits in other ways.
Through the use of innovative marketing campaigns and by offering more diverse
product features, companies can actually improve their market share through
differentiation and there are plenty of product life cycle examples of businesses
being able to achieve this.
Decline:
The last of the product life cycle stages is the Decline stage, which as you might expect is
often the beginning of the end for a product. When you look at the classic product life
cycle curve, the Decline stage is very clearly demonstrated by the fall in both sales and
profits. Despite the obvious challenges of this decline, there may still be opportunities
for manufacturers to continue making a profit from their product.
Benefits of the Decline Stage:

 Cheaper Production: Even during the Decline stage, there may be
opportunities for some companies to continue selling their products at a
profit, if they are able to reduce their costs. By looking at alternative
manufacturing options, using different techniques, or moving production to
another location, a business may be able to extend the profitable life of a
product.
 Cheaper Markets: For some manufacturers, another way to continue
making a profit from a product during the Decline stage may be to look to
new, cheaper markets for sales. In the past, the profit potential from these
markets may not have justified the investment need to enter them, but
companies often see things differently when the only other alternative might
be to withdraw a product altogether.
The Indian IT services industry has been a bright spot in the lives of a lot of
people - the lakhs of people who got jobs in IT companies, suppliers of
products and services to these companies (everything from real estate to taxis to
canteen contractors), the businesses where employees spent their earnings and
certainly equity investors. A few hiccups aside, IT services companies have
generated enormous wealth for everyone. From where we were in 1990, it's a
great miracle that such a huge, people-intensive industry has come up in an area
where India was an utter no-hoper till then.
Examples of Product Life cycle:-

 3D Televisions: 3D may have been around for a few decades, but only
after considerable investment from broadcasters and technology companies
are 3D TVs available for the home, providing a good example of a product
that is in the Introduction Stage
 Blue Ray Players: With advanced technology delivering the very best
viewing experience, Blue Ray equipment is currently enjoying the steady
increase in sales that’s typical of the Growth Stage.
 DVD Players: Introduced a number of years ago, manufacturers that
make DVDs, and the equipment needed to play them, have established a
strong market share. However, they still have to deal with the challenges
from other technologies that are characteristic of the Maturity Stage.
 Video Recorders: While it is still possible to purchase VCRs this is a
product that is definitely in the Decline Stage, as it’s become easier and
cheaper for consumers to switch to the other, more modern formats.
Another example within the consumer electronics sector also shows the
emergence and growth of new technologies, and what could be the beginning of
the end for those that have been around for some time..
 Tablet PCs: There are a growing number of tablet PCs for consumers to
choose from, as this product passes through the Growth stage of the cycle
and more competitors start to come into a market that really developed after
the launch of Apple’s iPad.
 Laptops: Laptop computers have been around for a number of years, but
more advanced components, as well as diverse features that appeal to
different segments of the market, will help to sustain this product as it
passes through the Maturity stage.

4.6. Value Chain Analysis:
The Indian software success story began with the demand for existing software to be made
Y2K compatible. The job on hand was to modify codes for existing software. Though it was
not very intellectually demanding task, nevertheless Indian companies took up the race
against time and did a very good job. Not only was the job well done, it was done at a very
low price. Consequently, clients began to explore these companies for more and more work.
Thus, began the Indian software sectors dream run. As time went by, the Indian software
companies began to move up the value chain. Moving up the value chain is to take on tasks
that have a higher element of ambiguity and are more complex in nature. For example, the
software companies in the past were given specification on which they had to write the codes
for software and now the more mature software companies have migrated to writing

specifications themselves. The clients already having worked with these companies began
explore the possibility of giving projects that were more complex in nature.
4.8. Industry Financial Analysis:
1. Current Ratio:
Year 2017 2016 2015 2014 2013
TCS 2.8 2.6 2.54 2.59 2.11
Infosys 3.55 3.45 3.26 3.91 4.5
Wipro 1.53 1.82 1.89 1.58 1.51
Microsoft 2.48 2.35 2.47 2.5 2.61
Adobe
Systems
2.08 2.18 1.85 2.65 2.6
SAP 1.2 1.24 1.05 1.16 2.21
TOTAL 13.64 13.64 13.06 14.39 15.54

Interpretation:
 Current Ratio shows the measure of company’s liquidity i.e. how quickly company
can convert assets into cash.
 Current Ratio of the Company was highest in 2013 by 15.54% And after that it starts
Declining up to 2017.
 It decreased in 2017 as compared to 2013.
 In current year it is 1.33% which is less as compared to industrial standers, which
company shows that company was having more liabilities and less cash on hand.
Company cannot pay its debts and liabilities on instant.

2. ROCE:
Year 2017 2016 2015 2014 2013
TCS 41.71 52.25 53.73 60.13 53.73
Infosys 29.31 32.22 37.12 35.63 37.48
Wipro 21.38 24.67 29 30.78 24.98
Microsoft 29 23 15 25 20
Adobe
Systems
16 9 4 4 2
SAP 14 13 17 21 15
TOTAL 151.4 154.14 155.85 176.54 153.19
Interpretation:

 It measures how much profit company get on the investment of 1 rupee of
shareholder. If there is high ratio, we can say that company is making more profit on
investment of shareholders.
 In the year 2013 to 2017. In this case preferred dividends are included in the
calculation of because these profits are available to common shareholders.
 In the year 2014 the companies do have the amount of Maximum profit to provide
dividend to its shareholders. It means that company is getting much profit on the
issue of the share.
 In the year 2017, 2015 & 2014 the company is earning little profit on the issue of 1
share of a common shareholder. It is average for the company.
 The company should have to earn high profit on the issue of 1 share by any
shareholder

CONCLUSION
The research for the analysis of developer’s performance prediction on software model using
back propagation is aimed to observe the developers contribution on different phases and
their performance in the real time development environment.
This research is aimed to develop the scientific factor analysis on selection of Architecture
and Model based dependency of Activities in the phases of different software development
models with the suitability of software architecture.
This chapter provides the overall summary and the discussion findings along with future
work. The first part of the work evaluates the existing models, phase activities and its
internal and external dependency. However, all the models are having the ambition to
produce the quality software with optimized resource and fulfill the expectations of the
clients. The relationship between phases for individual and dependent activities ratio is
calculated for the above four models. The obtained ratio is evaluated as per the dependent
impacts. The level of weight of each phases of the models and the derived ratio are used to
predict the model but the each model phases are not similar for this purpose.
The research is initiated based on the interest created in teaching software engineering
subject. Software development models are found to be inadequate for the domain
applications based on the selection of model’s appropriateness towards the case study of
projects. The research work is defined to identify the dependency and in-dependency of
different phases of the software development models and its sub activities. As per the
existence of the developmental phases and activities the association matrix are formed to
calculate the dependency of the activities and sub activities of different software
developmental models. The developmental models are optimized using the neural network
model to identify the influencing activities of the phases, suitable developers for the future
resource allocation and produce high quality software based on the defined objectives. The
process starts with analyze and identify the phases and sub activities of different software
development models. It is involved in the comparison of developmental models based on
number of development phases and nature of its functional activities. It provides the phase
based relationship approach on its developmental process. The software architecture and
models are selected to develop the application or required driver based software depends on
the requirements. This selection of architecture aimed the richness and its functionality

which includes the developmental cost, maintenance, up gradation and adaptability of new
technical changes. This architecture base determines the development model which includes
the resource determination, utilization and the cost. The architecture selection involves the
relationship of the attributes between the phases and activities in the model. The dependent
and independent activities of the phases create the individuality and sophistication of the
development process.

Chapter-6
Appendix
BALANCE SHEET:
Year Mar 17 Mar 16 Mar 15 Mar 14 Mar 13
SOURCES OF FUNDS :
Share Capital + 197 197 195.87 195.87 295.72
Reserves Total + 77,825.00 64,816.00 45,220.57 43,856.01 32,266.53
Equity Share Warrants 0 0 0 0 0
Equity Application Money 0 0 0 0 0
Secured Loans + 50 177 86.24 88.64 161.6
Unsecured Loans + 200 1 186.61 26.84 10.34
Total Debt 250 178 272.85 115.48 171.94
Other Liabilities+ 677 679 849.06 970.05 521.39
APPLICATION OF FUNDS :
Gross Block + 18,749.00 17,251.00 14,205.25 11,315.73 9,183.36
Less:Accumulated Depreciation + 9,518.00 8,171.00 6,208.96 5,386.54 4,079.08
Less:Impairment of Assets 0 0 0 0 0
Net Block + 9,231.00 9,080.00 7,996.29 5,929.19 5,104.28
Lease Adjustment 0 0 0 0 0
Capital Work in Progress+ 1,477.00 1,640.00 2,706.94 3,047.53 1,763.85
Investments + 42,930.00 24,159.00 3,398.70 5,832.42 6,324.38
Current Assets, Loans & Advances
Inventories + 21 9 12.34 8.57 6.34
Sundry Debtors + 16,649.00 19,058.00 17,036.76 14,471.89 11,202.32
Cash and Bank+ 1,316.00 4,806.00 16,502.50 12,566.26 4,054.16
Loans and Advances + 9,904.00 7,574.00 6,131.07 7,054.22 7,719.07
Total Current Assets 27,890.00 31,447.00 39,682.67 34,100.94 22,981.89
Less : Current Liabilities and Provisions
Current Liabilities + 8,007.00 9,366.00 9,236.14 6,412.08 5,513.83
Provisions + 2,488.00 1,815.00 7,019.35 5,827.83 3,896.14
Total Current Liabilities 10,495.00 11,181.00 16,255.49 12,239.91 9,409.97
Net Current Assets 17,395.00 20,266.00 23,427.18 21,861.03 13,571.92
Miscellaneous Expenses not written
off + 0 0 0 0 0
Deferred Tax Assets 2,800.00 2,566.00 303.47 273.58 148.23
Deferred Tax Liabilities 667 402 271.46 226.87 168.49
Net Deferred Tax 2,133.00 2,164.00 32.01 46.71 -20.26
Other Assets+ 5,783.00 8,561.00 8,977.23 8,420.53 6,511.41
Contingent Liabilities+ 8,730.00 18,246.80 7,314.50 8,066.00 7,303.41

Profit & Loss A/c:
Year
Mar 17
(12)
Mar 16
(12)
Mar 15
(12)
Mar 14
(12)
INCOME :
Operating Income +
46,047.8
0 44,680.80
41,210.0
0 38,765.10
Excise Duty 0 0 0.2 7.9
Net Operating Income
46,047.8
0 44,680.80
41,209.8
0 38,757.20
Other Income + 2,570.00 2,710.60 2,499.00 1,611.20
Stock Adjustments + -164 53.1 254.3 -0.9
Total Income
48,453.8
0 47,444.50
43,963.1
0 40,367.50
EXPENDITURE :
Cost of Traded Software Packages 2,186.90 2,656.20 2,799.80 2,491.10
Operating Expenses + 0 0 5,352.20 4,983.10
Employee Cost +
21,854.4
0 21,267.10
19,726.3
0 18,337.50
Power/Electricity Charges + 0 0 242.6 246.8
Selling and Administration Exp. + 10,311.60 9,609.80 3,229.90 2,731.40
Miscellaneous Expenses + 1,974.00 1,891.90 914 858
Less : Pre-operative Expenses
Capitalised + 0 0 0 0
Total Expenditure
36,326.9
0 35,425.00
32,264.8
0 29,647.90
Operating Profit
12,126.9
0 12,019.50 11,698.30 10,719.60
Interest + 392.1 549.9 362.9 374.7
Gross Profit 11,734.80 11,469.60 11,335.40 10,344.90
Depreciation+ 1,047.70 875.4 778.4 736.7
Profit Before Tax
10,687.1
0 10,594.20
10,557.0
0 9,608.20
Tax+ 2,430.40 2,452.30 2,376.60 2,168.40
Fringe Benefit tax+ 0 0 0 0
Deferred Tax+ 95 -58.6 -12.7 52.4
Reported Net Profit 8,161.70 8,200.50 8,193.10 7,387.40
Extraordinary Items + 266.22 202.43 305.92 118.17
Adjusted Net Profit 7,895.48 7,998.07 7,887.18 7,269.23
Adjustment below Net Profit + -1,034.90 5.9 0 0
P & L Balance brought forward
38,567.2
0 33,928.00
12,176.9
0 7,837.10
Appropriations + 877.6 3,567.20 4,375.30 3,047.60
P & L Balance carried down
44,816.4
0 38,567.20
15,994.7
0 12,176.90
Dividend 877.6 3,567.20 2,963.60 1,973.60
Preference Dividend 0 0 0 0
Equity Dividend % 100 300 600 400
Dividend Per Share(Rs) 2 6 12 8
Earnings Per Share-Unit Curr 33.58 33.19 30.79 28.6
Earnings Per Share(Adj)-Unit Curr 16.79 16.6 15.4 14.3
Book Value-Unit Curr 192.16 166.87 140.25 119.04

Book Value(Adj)-Unit Curr 96.08 83.44 70.13 59.52
KEY RATIO:
Year
Mar
17
Mar
16 Mar 15 Mar 14
Mar
13
Key Ratios
Debt-Equity Ratio 0 0 0 0 0
Long Term Debt-Equity Ratio 0 0 0 0 0
Current Ratio 3.55 3.45 3.26 3.91 4.5
Turnover Ratios
Fixed Assets 3.84 3.91 4.06 4.8 4.83
Inventory 0 0 0 0 0
Debtors 5.71 5.86 5.93 6.47 6.25
Interest Cover Ratio 0 0
2,100.7
5 2,334.67
4,12
0.00
PBIDTM (%)
34.1
9 34.67 37.46 34.07
36.2
2
PBITM (%)
31.9
4 32.6 35.53 31.59
33.6
2
PBDTM (%)
34.1
9 34.67 37.44 34.06
36.2
1
CPM (%)
25.5
5 25.58 27.65 25.47 27.4
APATM (%)
23.3
1 23.51 25.72 22.99 24.8
ROCE (%)
29.3
1 32.22 37.12 35.63
37.4
8
RONW (%)
21.4
1 23.26 26.98 26.09 27.7

Bibliography
http://business.mapsofindia.com/automobile/top-Softwares-companies.html
http://www.encyclopedia.com/social-sciences-and-law/economics-business-
and-labor/businesses-and-occupations/software-industry
http://www.referenceforbusiness.com/management/Or-Pr/Product-Life-Cycle-
and-Industry-Life-Cycle.html
https://books.google.co.in/books/about/A_Profile_of_the_Software_Industr
y.html
A Profile of the Software Industry: Emergence, Ascendance, Risks, and
Rewards, Sandra A. Slaughter

Software Industry Project Pdf

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Software Industry Project Pdf

Similar to Software Industry Project Pdf (20)

Recently uploaded

Recently uploaded (16)

Software Industry Project Pdf