The Indian IT and ITES industry generated approximately $146 billion in revenue in FY15, reflecting a 23.72% growth and contributing about 9.5% to India's GDP. Strengths include a large, skilled workforce and supportive government policies, while challenges involve infrastructure issues and labor laws. Opportunities exist in sectors like medical and space technology, but threats from countries like China and the Philippines pose significant competition.

1. Indian IT & ITES Industry
Select Market and Thrust Product
MBA (IB)- 3rd Semester
By Dr. Nishant Joshi,PIMR, Indore

2. Snapshot Introduction of the Industry
By Dr. Nishant Joshi,PIMR, Indore

3. Snapshot Introduction of the Industry
By Dr. Nishant Joshi,PIMR, Indore
 India’s technology and BPM sector (including hardware)
is estimated to have generated US$ 146 billion in revenue
during FY15 compared to US$ 118 billion in FY14, implying a
growth rate of 23.72 per cent
 The contribution of the IT sector to India’s GDP rose
to approximately 9.5 per cent in FY15 from 1.2 per cent in
FY98
 The top six firms contribute around 36 per cent to the
total industry revenue, indicating the market is fairly
competitive, with TCS being the leader accounting for about
10.1 per cent

4. The Evident Value Chain of the
Industry
Final Product (i.e. Software or and Integrated
Product having both Software and Hardware)
Research and Development (In both spheres of
software and hardware including integrated
development )
ITES (IT Enabled Services like BPO, KBO, LPO and
Transcription Services )
Body Shopping both Onshore and Off Shore
Training ( i.e. Formatted Education Providers and
Certification agencies )
By Dr. Nishant Joshi,PIMR, Indore

5. SWOT Analysis of the Industry
STRENGTH
 Large, Trained and Young Population. During FY08-15 number of
graduates addition to talent pool in India grew at a CAGR of 9.4 per
cent. India added around 5.8 million graduates to the talent pool
during FY15
 Availability of skilled English speaking workforce.
 Growing talent pool of India has the ability to drive the R&D
and innovation business in the IT-BPM space
 Separate Ministry and EPC
 Tax Holiday and Freedom to raise global capital.
By Dr. Nishant Joshi,PIMR, Indore

6. SWOT Analysis of the Industry
STRENGTH
 Easy processing of SEZ applications for IT Industry
 Specific amendments in FEMA for supporting the transactions of
FEMA
 Labour Law amendments for IT and ITES Sector
 Infrastructure Priority
 Impetus and focus on Hardware manufacturing Industry
By Dr. Nishant Joshi,PIMR, Indore

7. SWOT Analysis of the Industry
WEAKNESS
 Infrastructure
 Even though availability of trained English speaking population exists
but the quality of manpower is still an issue.
 Labour Laws still are more designed for manufacturing setup.
 Safety and security.
 Indian Visa Norms
By Dr. Nishant Joshi,PIMR, Indore

8. SWOT Analysis of the Industry
Opportunity
 Africa, South America
 Frontier applications in the field of Medical Sciences, Neuclear and
Space Technology
 With Opening up of Defence Sector in India and even in some
curtained countries this is an area with immense opportunities.
 Digital Governance
By Dr. Nishant Joshi,PIMR, Indore

9. SWOT Analysis of the Industry
Threat
 Slowing Chinese Economy shall try to move and establish itself in the
services sector. IT being an area closely understood by them shall be
the first choice owing to the proven technological development they
have achieved over the years.
 Pakistan even though has a naughty reputation in terms of the
support to cross border terrorism and previously a lead professor of
Muslim Bomb has recently seen the populations diversion towards IT
and ITES industry further to their serious geo-political relations in
MENA and low cost labour and infrastructure along with dwindling
currency shall soon post a major threat to Indian IT and ITES
Industry.
By Dr. Nishant Joshi,PIMR, Indore

10. SWOT Analysis of the Industry
Threat
 Philippines is a natural substitute to India for services. Currency is
around the same and influence and penetration of English is even
better. Being a South East Asian country which already has a giant
footprint in the global workforce shall soon be knocking doors.
 Thiland another south Asian country and home of more than 10
Million Tourist every year provides a very conducive environment.
Thailand is already a major hub for consumer electronics
manufacturing which can easily be supplemented with development
of IT and ITES sector the only issue pushing them backwards in their
proficiency with English language.
By Dr. Nishant Joshi,PIMR, Indore