The document provides an overview of the information technology industry. It discusses the history and development of IT, focusing on the creation and storage of information using various technologies over time. It also outlines key aspects of the modern IT industry including major players, products/services, financial data, and government regulations. SWOT and PEST analyses are presented to evaluate strengths/weaknesses and opportunities/threats. The document uses Infosys as a case study to illustrate aspects of a major Indian IT company.

1. C.Z. PATEL COLLEGE OF BUSINESS AND
MANAGEMENT
“Macro Analysis In Respect To Information Technology Industry”
Submitted by:-
Group:- F
Class:- Fo. Yr. B.com Hons. (I/A)
Batch:- 2013-14
Name Of The Students:- Roll No.
Arpit Dalwadi 04
Yash Joshi 55
Vrunda Patel 54
Dipesh Kalal 13
Dilip Gajera 11

2. CONTENT-
Industry: A bird eye view
Major players And Market share
Products And Services
Financial Overview
Government Regulation
SWOT Analysis
PEST Analysis

3. Information Technology Industry : bird’s eye view:-
History of Information Technology:-
 Information technology (IT) is the application of computers and telecommunications equipment to
store, retrieve, transmit and manipulate data often in the context of a business or other enterprise. The
term is commonly used as a synonym for computers and computer networks, but it also encompasses
other information distribution technologies such as television and telephones. Several industries are
associated with information technology, including computer hardware, software, electronics,
semiconductors, internet, telecom equipment, e-commerce and computer services.
 Based on the storage and processing technologies employed, it is possible to distinguish four distinct
phases of IT development: pre-mechanical (3000 BC – 1450 AD), mechanical (1450–1840),
electromechanical (1840–1940) and electronic (1940–present).

4. INFORMATION Technology Industry Mainly
Focuses On:-
 Create awareness among the youth and policy makers of the region about the potential of Information Technology.
 Offer comprehensive and challenging advanced course in Information Technology which is able to attract most
brilliant and talented young students.
 Promote creativity, capability and competence among students to make them first-rate professionals in Information
Technology.
 Provide sample opportunity both to students and faculty to meet outside the institute to update their knowledge.
 Develop and promote national and international, linkages by way of partnership in teaching and research.
 Provide a stimulating intellectual environment by holding seminars, peer lectures and national and international
conferences/workshops round the year.
 Develop and promote national and international, linkages by way of partnership in teaching and research.
 Provide a stimulating intellectual environment by holding seminars, peer lectures and national and international
conferences.

5.  Now a days the business value of information technology lies in the automation of
business processes, provision of information for decision making, connecting
businesses with their customers, and the provision of productivity tools to increase
efficiency.
Worldwide IT spending (billions of U.S. dollars)
Category 2012 spending 2013 spending
Devices 627 666
Data center systems 141 147
Enterprise software 278 296
IT services 881 927
Telecom services 1,661 1,701
Total 3,588 3,737

6. Major Players of Information Technology:-
Competitors at global level:-
 Microsoft
 Oracle
 SAP (System Application Product)
 Symantec
 CA Technology
 Intuit
 Amadeus IT Holdings
 Adobe System
 VM Ware (Virtual Machine File
System)
 Check Point Software
Competitors in INDIA:-
 TCS (Tata consultancy Services)
 Infosys
 Wipro
 HCL Technologies
 Mahindra Satyam
 Tech Mahindra
 MPHASIS
 Oracle Financial Services
 Mind Tree
 Polaris Tech

7. Market Shares:-
 According to the information given by IT market analysis firm Gartner, worldwide IT spending is projected to
total US$3.7 trillion in 2013, a 4.2% increase from 2012 spending of US$3.6 trillion. The 2013 outlook for IT
spending growth in US dollars has been revised upward from 3.8% in the Q3 2012 forecast. Gartner said much of
this spending increase is the result of projected gains in the value of foreign currencies versus the dollar. When
measured in constant dollars, 2013 spending growth is forecast to be 3.9%.
 Market Segment:-
Export of IT services has been the major contributor, accounting for 57.9 per cent of total IT exports (excluding
hardware)

8. Market Size:-
 The contribution of the IT sector to India’s GDP rose to approximately 8 per cent in FY
Sources: - www.IBEF.org

9. Products and Services of Information
Technology:-
Products:-
 Adobe Acrobat Professional
 Microsoft Windows
 Office Suite Windows
 Network Services Request
 McAfee Virus Scan Enterprise
Services:-
 Application Services
 Enterprise Content Management
Services
 Information Protection Services
 Resources Management Services
 Virtual Data Center Services

10. Financial Overview of Information
technology:-
The era of information-driven technology constantly changes the way mankind approaches the
corporate world, particularly in doing business transactions, the continuous advancement of
other information technology sub-fields such as multimedia and programming, are considered
to be the ones responsible for the success of big companies like Microsoft, Apple and Intel.
Nowadays, social media networking sites like Facebook has opened new doors for the
innovation of Information Technology. Aside from this, a number of sites all over the world
promote businesses by offering web-related services such as Web Developing and Search
Engine Optimization.

11. Export Revenue:-
Total exports from the IT services at a compound annual growth rate (CAGR) of 13.1 per cent during
FY08-13.
Export Segments
BFSI is a key business vertical for the IT-BPM industry. It generated export revenue of around US$ 31 billion
during FY13, accounting for 41 per cent of total IT-BPM exports from India.

12. Government Regulations:-
Industrial Approval Policy:-
The major highlights of Industrial Approval Policy include the following:
 Industrial Licensing has been virtually abolished in the Electronics and Information Technology
sector except for manufacturing electronic aerospace and defence equipment.
 There is no reservation for public sector enterprises in the Electronics and Information Technology
industry and private sector investment is welcome in every area.
Foreign Trade Policy:-
 In general, all Electronics and IT products are freely importable, with the exception of some
defence related items. All Electronics and IT products, in general, are freely exportable, with the
exception of a small negative list which includes items such as high power microwave tubes,
high end super computer and data processing security equipment.
 Second hand capital goods are freely importable.
Foreign Investment Policy:-
 India welcomes investors in Electronics and IT sector. Government of India is striving to bring
greater transparency in policies and procedures to provide an investor friendly platform.
Fiscal Policy:-
The salient features of the Fiscal Policy as applicable to the Electronics Hardware Sector are as
follows:
 Customs duty on specified raw materials / inputs used for manufacture of electronic
components and optical fibers and cables is 0%.
 Customs duty on specified capital goods used for manufacture of electronic goods is 0%

13. SWOT Analysis Of Information
Technology
Strength:-
 Ability To Innovate
 Highly Skilled Human Resource
 Following Quality Standards Such
As ISO 9000,
 Flexibility And Adaptability
 Mathematical And Logic
Expertise
 Indian In Silicon Valley
Weaknesses:-
 Lack of Domestic
Computerizations
 Lack Of Internet Penetration
 Contribution Of IT Sector To India’s
GDP Is Still Rather Small
 Employee Salaries in IT Sector are
increasing tremendously. Low
wages benefit will soon come to
an end.

14. Opportunity:-
 High Quality IT Education Market
 Increasing number of working age
people
 India’s well developed soft
infrastructure
 Upcoming international players in the
market
 Numbers of computer sold around
world is increasing
Threats:-
 Lack of data security systems
 Countries like china and Philippines
with qualified workforce making
efforts to overcome the English
language barriers
 IT development concentrated in a few
cities only
 Government Regulation

15. PEST Analysis:-
Political Factors:-
 Government rules and regulation
toward a particular business
environment.
 Other factors:-Customer protection
law, competitive regulation and
terrorist attacks.
 Indian government has decided to
contract IT job to IT Indian
companies creating more
opportunities for the company and
the industry at large.
 Indian government has
strengthened the IT act, 2000to
provide a sound legal environment.
Economical Factors:-
 Rising working pay, global
recession,competitioncontract
available and free.
 Domestic IT spending grew by20%
and reached $20 billion in 2009.
 Currency fluctuation caused by the
devaluation of the dollar has
affected the industry during the last
recession.
 Recession cause low attribute rate
due to job layouts and job cuts.

16. Micro Analysis on Infosys co.ltd.

17. The Infosys Story:-
 In 1981, seven engineers started Infosys Limited with just US$250. From the beginning, the company was
founded on the principle of building and implementing great ideas that drive progress for clients and
enhance lives through enterprise solutions. For over three decades, Infosys have been a company
focused on bringing to life great ideas and enterprise solutions that drive progress for our clients.
 Infosys recognize the importance of nurturing relationships that reflect our culture of unwavering ethics
and mutual respect. It’ll come as no surprise, then, that 97 percent (as of December 31, 2013) of our
revenues come from existing clients.
 Vision:-
‘Infosys will be a globally respected corporation.
 Mission:-
‘Strategic partnerships for building tomorrow’s enterprise.

18. Stakeholder of Infosys:-
 Recent global events have shown that sincere two-way dialog is vital for
any business organization to win and keep the trust of its stakeholders.
Infosys have always ensured that Infosys communication channels with
customers, employees, investors, vendors and society are open and
collaborative. Their valuable feedback influences the business decisions we
take and the sustainability strategies that we implement. Infosys engaged
with key stakeholders through various programs and communication
initiatives.

19. Products and services of Infosys co.ltd.
 Products of Infosys:-
 • Customer Service
 • Digital Commerce
 • Digital Marketing
 • Distribution
 • Sourcing & Procurement
 • Talent Management
 Services of Infosys:-
 • Business Applications
 • Management Consulting
 • Oracle
 • SAP
 • Sustainability Services

20. Human Resources:-
 The Infosys BPO Human Resources Outsourcing (HRO) practice combines
global sourcing and delivery capabilities to offer flexible and cost-efficient
solutions for acquiring, administering and developing talent.
 Infosys componentized HRO offerings enable customers to embark on the
HRO journey easily and realize benefits promptly. Through Infosys
transformational expertise, our customers save up to 40% on operational
costs and enhance productivity by up to 30%. Our suite of innovative tools
measure and improve HR/ business metrics.
 Infosys serve clients from co’s global delivery centers in India, China,
Philippines, Mexico, Brazil, Poland, and the Czech Republic.

21. 4 p’s of marketing:-
 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.
 Price:-
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.
 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.
 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.

22. Financial analysis of Infosys:-
Net Profit Ratio:-
Year Net Profit(%)
2009 27.52
2010 26.36
2011 24.28
2012 25.60
2013 23.38
Current Ratio:-
Year Current Ratio
2009 4.71
2010 4.28
2011 5.34
2012 4.91
2013 4.75

23. Liquid ratio:- Earning Per Ratio:-
Year Liquid Ratio
2009 4.67
2010 4.20
2011 5.28
2012 4.88
2013 4.69
year Earning Per
ratio
2009 101.58
2010 101.13
2011 112.22
2012 147.50
2013 158.75

24. SWOT Analysis of Infosys:-
 Strengths:-
Infosys has strong brand recognition in the IT industry in India and abroad. It was the first Indian company to
list on a US Stock Exchange. It is ranked among the 50 most respected countries in the world by Reputation
Institute’s Global Pulse 2009. It has also been voted most admired Indian company in the Wall Street Journal
Asia since 2000.
 Weaknesses:-
Although Infosys attracts some of the best talent, it has a problem retaining the talent due to the low
compensation structures. Infosys faces the highest attrition rate of 16% in the Indian software industry. These
attrition numbers are thrice as much as the general industry rate. With an increasing number of international
firms such as IBM, Microsoft, Accenture, and Deloitte competing with Infosys for hiring from the same pool of
software engineering professionals, the gap between the demand and availability of skilled manpower in
India and abroad is likely to increase further.
 Opportunities:-
Infosys has traditionally been averse to acquisitions, held its premium pricing strategy and focused on its core
IT enabled services business. However, the recent changes in the corporate leadership in 2011 and slowdown
in growth have prompted a strategic shift towards global expansion and moving up the value chain with
consulting and technology partnership.
 Threats:-
Infosys is competing globally with other Indian offshore technology services firms such as TCS, Wipro, HCL
Technologies, and Cognizant as well as international consulting firms such as Accenture, Atos Origin, Cap
Gemini and Deloitte for clients as well as human resources.

25. Michael Porter’s of Infosys:-
1.Bargaining Power Of Suppliers:-
 Due to slow down the jobs-cut, the layoffs and bleak IT outlook.
 Demand And Supply of Infosys professionals are no longer that favorable to employees.
 Avability of vast talent pool-fresher’s and experienced.
 Switching Costs
2.Bargaining Power of Buyers:-
 Infosys resulting in high competition
 Size of Buyers
 Volume Purchased
 Threats of backward integration

26. 3. Threats of new entrants:-
 Barriers to entry
 Economies of scale
 Capital requirement(finance required for business operations, cost of entry)
 MNCs are ramping up capacity and employee strength
4. Threats of substitute:-
 Levels of brand loyalty
 Buyers propensity to substitute(based on comparison of benefits ,features, price & availability of information)
 The quality of a product being same
5. Rivalry among existing competitors:-
 Number of competitors
 Infosys growth rate
 Fixed costs (e.g. investment in salaries, rent etc)
 Product differentiation
