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The IT industry in India has several strengths including a highly skilled workforce, low wages, quality work, and government initiatives to support the industry. Major players like Microsoft, Oracle, and Adobe have set up operations in India. The IT industry also follows quality standards. However, there are also weaknesses such as a lack of practical knowledge and limited research and development. Infosys is a large, profitable company in the IT industry with no debt, high quality receivables, and dividends up to 30% of annual profits. However, it faces short term challenges like economic uncertainty and tax increases, and long term challenges including wage inflation, resource availability, and currency fluctuations.

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madhura1986
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35 views

Infy

The IT industry in India has several strengths including a highly skilled workforce, low wages, quality work, and government initiatives to support the industry. Major players like Microsoft, Oracle, and Adobe have set up operations in India. The IT industry also follows quality standards. However, there are also weaknesses such as a lack of practical knowledge and limited research and development. Infosys is a large, profitable company in the IT industry with no debt, high quality receivables, and dividends up to 30% of annual profits. However, it faces short term challenges like economic uncertainty and tax increases, and long term challenges including wage inflation, resource availability, and currency fluctuations.

Uploaded by

madhura1986
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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IT Industry in India

(Company : Infosys)
- NAMES
Domain of the IT Industry

A wide variety of services come under the domain of the information


technology industry

• Systems architecture
• Database design and development
• Networking
• Application development
• Testing
• Documentation
• Maintenance and hosting
• Operational support
• Security services
Strengths
 Highly skilled human resource;
 Low wage structure
 Quality of work;
 Initiatives taken by the Government (setting up Hi- Tech Parks and
implementation of e-governance projects)
 Many global players have set-up operations in India like Microsoft,
Oracle, Adobe, etc. Following Quality Standards such as ISO 9000, SEI
CMM etc.
 Cost competitiveness
 Quality telecommunications infrastructure.
Weaknesses

 Absence of practical knowledge

 Dearth of suitable candidates


 Less Research and Development
 Contribution of IT sector to India’s GDP is still rather small

 IT development concentrated in a few cities only.


Company : Infosys
Strong points

 Highly liquid(Cash & investments stand at $ 3.45


bn).
 Zero debt.
 High quality receivables (88.5% aging less than 60
days).
 Dividends upto 30% of annual after tax profits.
 ROCE of 35% as on June 30 2010.
Short term & Long term challenges

• Short Term
– Uncertain economic environment
– Cross currency fluctuation.
– Increase in tax rate.
• Long Term
– Wage inflation
– Resource availability
– Stronger rupee
– Ability to expand addressable market

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