8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 1/19

 

 Introduction:

Poised to become a US$ 225 billion industry by 2020, the Indian information technology (IT) industryhas played a key role in putting India on the global map. The IT-BPO sector has become one of the mostsignificant growth catalysts for the Indian economy. In addition to fuelling India’s economy, this industryis also positively influencing the lives of its people through an active direct and indirect contribution tovarious socio-economic parameters such as employment, standard of living and diversity. The industryhas played a significant role in transforming India’s image from a slow moving bureaucratic economy to aland of innovative entrepreneurs and a global player in providing world class technology solutions andbusiness services, according to National Association of Software and Service Companies (NASSCOM).

The sector is estimated to have grown by 19 per cent in the FY2011, clocking revenue of almost US$ 76billion. India’s outsourcing industry has witnessed a rebound and registered better than expected growth

according to NASSCOM.

The export revenues are estimated to have aggregated to US$ 59 billion in FY2011 and contributed 26 percent as its share in total Indian exports (merchandise plus services), according to a research report ‘IT-BPO Sector in India: Strategic Review 2011’, published by NASSCOM. The workforce in Indian ITindustry will touch 30 million by 2020 and this sunrise industry is expected to continue its mammothgrowth, expect various industry experts.

Furthermore, NASSCOM said that the domestic IT-BPO revenues excluding hardware are expected tohave grown at almost 16 per cent to reach US$ 17.35 billion in FY2011. Strong economic growth, rapidadvancement in technology infrastructure, increasingly competitive Indian organizations, enhanced focusby the government and emergence of business models that help provide IT to new customer segments arethe key drivers for increased technology adoption in India.

The data centre services market in the country is forecast to grow at a compound annual growth rate(CAGR) of 22.7 per cent between 2009 and 2011, to touch close to US$ 2.2 billion by the end of 2011,according to research firm IDC India's report. The IDC India report stated that the overall India datacentre services market in 2009 was estimated at US$ 1.39 billion.

India will see its number of internet users triple to 237 million by 2015, from 81 million registered inSeptember 2010, according to a report titled 'Internet's New bin', by the Boston Consulting Group (BCG).BCG said Internet penetration rate in India is expected to reach 19 per cent by 2015, up from the currentseven per cent.

Telecom Regulatory Authority of India (TRAI) is targeting a 10-fold increase in broadband subscribers to100 million by 2014. The country has 10.29 million subscribers now. "We will have 100 millionbroadband subscribers by 2014," J.S. Sharma, Chairman, TRAI said at the fifth India Digital Summit2010 organized by the Internet and Mobile Association of India.

The penetration of the internet in rural areas will see an all time high in 2011. In a survey conducted byIMRB for the Internet and Mobile Association of India (IAMAI), the total number of active internet usersin rural area will rise by 98 per cent to touch 24 million by the end of 2011 from 12.1 million in

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 2/19

December 2010. The survey said that the claimed internet user category is also set to grow by 96 per centto reach 29.9 million by December 2011 from 15.2 million in December 2010. (Active users are those,who have used the internet at least once in the past one month. Claimed internet users are those, who haveused the internet sometime but not necessarily in the past one month.)

The Growth Story

India is a preferred destination for companies looking to offshore their IT and back-office functions. Italso retains its low-cost advantage and is a financially attractive location when viewed in combinationwith the business environment it offers and the availability of skilled people.

The country’s domestic market for business process outsourcing (BPO) is projected to grow over 23 per cent to touch US$ 1.4 billion in 2011, says global research group Gartner. In 2010, the domestic BPOmarket was worth US$ 1.1 billion. The firm predicts that the domestic BPO market would reach US$ 1.69billion in 2012 and increase to US$ 2.47 billion by 2014.

With the first quarter of the new fiscal 2011-12 offering positive business outlook, hiring sentiments forsectors like IT, ITeS and telecom have risen by over 20 per cent, says a study by Team Lease ServicesPvt. Ltd. As per the Employment Outlook Report for the period April-June 2011, released by Team LeaseServices Pvt. Ltd., hiring intent from IT and ITeS was the highest in cities like New Delhi, Mumbai,Hyderabad and Pune.

India's top technology firms like TCS, Infosys, Wipro and HCL are readying plans to gain a bigger shareof their largest market, US, by aggressively chasing contracts being served by multinational rivals.Analysts expect the top IT firms to grow between 23-27 per cent in the FY2012 on the back of morenumber of discretionary projects, improved pricing, and robust business volumes.

Investments 

Between April 2000 and February 2011, the computer software and hardware sector received cumulative

foreign direct investment (FDI) of US$ 10,705 million, according to the Department of Industrial Policyand Promotion.

The total investments of EMC Corporation, a leading global player of information infrastructure solutionsin India, will touch US$ 2 billion (over US$ 2.01 billion) by 2014.

Russian IT security software provider, Kaspersky Lab, will be investing US$ 2 million in its Indiaoperations at Hyderabad during 2011.

On the back of 40 per cent revenue growth, Cognizant will invest more than US$ 500 million till 2014 toexpand its campuses to add over 8 million square feet to house over 55,000 employees. It will createadditional software development and training facilities in regions designated as special economic zones inChennai, Pune, Coimbatore

Chennai-based Polaris Software Lab has announced that it is buying an 85 per cent stake in SanFrancisco-based digital identity authentication services provider Iden-Trust for US$ 20 million. Theacquisition will mark Polaris' entry into the cloud computing space for financial technology solutions, thecompany said in a filing to the Bombay Stock Exchange.

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 3/19

Government Initiatives 

Government sector is a key catalyst for increased IT adoption- through sectors reforms that encourage ITacceptance, National eGovernanceProgrammes (NeGP) , and the Unique Identification DevelopmentAuthority of India (UIDAI) programme that creates large scale IT infrastructure and promotes corporateparticipation.

Certain crucial steps taken by the Indian government to propel the sector growth are:

  Constitution of the Technical Advisory Group for Unique Projects (TAGUP) under thechairmanship of Nandan Nilekani. The Group would develop IT infrastructure in five key areas,which includes the New Pension System (NPS) and the Goods and Services Tax (GST)

  Setting up the National Taskforce on Information Technology and Software Development withthe objective of framing a long term National IT Policy for the country.

  Enactment of the Information Technology Act, which provides a legal framework to facilitateelectronic commerce and electronic transactions.

  Setting up of Software Technology Parks of India (STPIs) in 1991 for the promotion of softwareexports from the country. There are currently 51 STPI centers where apart from exemption fromcustoms duty available for capital goods, there are also exemptions from service tax, excise duty,and rebate for payment of Central Sales Tax.

  Plans to formulate Information Technology Investment Regions (ITIRs). These regions would beendowed with excellent infrastructure and would reap the benefits of co-sitting, networking andgreater efficiency through use of common infrastructure and support services.

Road Ahead 

The Indian information technology sector continues to be one of the sunshine sectors of the Indianeconomy showing rapid growth and promise.

According to a report prepared by McKinsey for NASSCOM called 'Perspective 2020: TransformBusiness, Transform India', the exports component of the Indian industry is expected to reach US$ 175billion in revenue by 2020. The domestic component will contribute US$ 50 billion in revenue by 2020.Together, the export and domestic markets are likely to bring in US$ 225 billion in revenue, as newopportunities emerge in areas such as public sector and healthcare and as geographies including Brazil,Russia, China and Japan opt for greater outsourcing.

General Trends and Characteristics:

The global IT spending increased exponentially for years before the onset of global recession in 2008-09. Riding the wave, Indian Information Technology (IT) industry grew at impressive rates of above30% during that time to the tune of over US$ 60. The global meltdown dented the scene, withbusinesses across the globe, cutting on discretionary IT budgets. However, it created a huge pent-updemand in the software sector. With the economic recovery, the sector witnessed a surge in thedemand across markets, both traditional and emerging. As a result, Indian IT industry performed wellon back of superior quality and execution efficiency.

India’s IT industry can be divided into five main components, viz. software products, IT services,

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 4/19

engineering and R&D services, ITES (IT-enabled services) and hardware. Export revenues primarilyon project based services continue to drive growth. Multi-year annuity based outsourcing agreementsare expected to increase going forward. However, the majority share of the project based revenues isgoing to continue on the back of custom application development and application management.

Cost leadership has been the competitive edge of the Indian software sector over the last few years.

However, this seems to be threatened now by MNCs who are replicating the Indian outsourcing modeland setting up bases in the country. Going forward, the advantage of low employee costs could peterout and the sector could get commoditized.

Increasing competition, pressure on billing rates and increasing commoditization of lower-endapplication development and maintenance (ADM) services are among the key reasons forcing theIndian software industry to make a fast move up the software value chain. IT companies have to moveup the value chain to provide higher value-added services as consulting, product development, andR&D and end-to-end turnkey solutions. Therefore, companies have started shifting their focus towardshigh end as well as value added services to keep their competitive advantage intact. Now they are alsolooking at emerging business themes like analytics, mobility, cloud computing.

The software services segment of the industry continues to grow by leaps and bounds. With thegovernment emphasizing on better technology enabled delivery mechanisms for multitude of government projects such as e-passport, Unique Identification Scheme, eLearning, virtual classrooms,telemedicine, remote consultation, and mobile clinics, the domestic market looks equally morepromising.

Key Points 

Supply  Abundant supply across segments, mainly lower-end, such as ADM. Lower in higher-end areas like IT/business consulting, integration, transformation, packageimplementation but competition is very tough.

Demand  Despite rising uncertainties in the global economic environment, the global IT spendingis expected to increase. However, demand environment would remain volatile. At thesame time, a good growth is expected in fast-growing economies such as India andChina.

Barriers to

entry Low, particularly in the ADM segment this is prone to relatively easy commoditization.High in high-end services like IT/business consulting where-in domain expertisecreates a barrier. The size of a particular company/scalability and brand-image alsocreates barriers to entry, as these firms have built up long-term relationships with majorclients.

Bargaining

power of suppliers 

Low, due to intense competition (oversupply), particularly in the lower-end ADM

space. Low differentiating power is also another reason. Bargaining power is high, atthe higher end of the value chain.

Bargaining

power of 

customers 

High, mainly due to intense competition among suppliers/vendors. However, it is lowerin higher-end services like consulting and package implementation.

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 5/19

Competition  Competition is global in nature and stretches across boundaries and geographies. It isexpected to intensify due to the attempted replication of the Indian off shoring modelby MNC IT majors and as well as small startups.

Financial Year '11 

As per NASSCOM’s ‘Strategic Review 2011’ report, the global IT products and services relatedspending reached US$ 1.6 trillion in 2010. This was a growth of 4.0% over 2009. This came on theback of 6.4% increase in worldwide hardware spend which witnessed a pent-up demand duringeconomic recovery. Please note that the global hardware market was badly hit during 2008 meltdown,with almost 8% decline during the year. During 2010, IT services spend grew by 1.4%, within whichIT outsourcing grew by 2.4%. Within IT outsourcing, global sourcing grew by 10.4% in 2010.

The Indian IT/ITES industry earned revenues of around US$ 88.1 bn during FY11. The IT softwareand services industry (excluding hardware) accounted for US$ 76.1 bn.

At the end of FY11, the Indian IT/ITES directly employed around 2.5 m people (an addition of 

240,000 employees), while indirect job creation was estimated at 8.3 m. As a proportion of India’sGDP, the sector revenues have grown from 1.2% in FY98 to 6.4% in FY11. The industry’s share of total Indian exports (merchandise plus services) increased from less than 4% in FY98 to 26% inFY11.

Indian IT firms (especially the top notch Indian firms like TCS, Infosys and Wipro) are increasinglycompeting against top global players such as IBM, Accenture and EDS for large deals. The top IndianIT companies are more frequently being invited to bid on large deals that were earlier closed to them.India's top outsourcers are competing effectively with the top three global service providers on largedeals. Moreover, global IT biggies like Accenture who used to deal mostly in premium-priced high-end IT services have entered the space of low-end IT services at a competitive price. This has added tothe competition.

Prospects 

The global IT services market is expected to grow by 3.5% in 2011, and 4.5% in 2012 as companiesare focusing not only on controlling costs but also increasing efficiency and productivity using moreand more information technology to improve their competitive advantage.

Developed markets constitute the largest share of IT spend. However, emerging markets are alsocontributing to the growth of the sector as a large consumer base is increasingly becoming tech-savvy.At the same time, many companies have started adopting IT solution to improve their globalcompetitiveness. These emerging opportunities both in the global and domestic markets are expectedto propel revenues from Indian IT sector to US$ 130 bn by FY15.

The integration of  IT-BPO contracts is expected to become more common, as clients look out for end-to-end service providers. Companies like Infosys, TCS, Wipro, Mahindra Satyam, HCL Technologies and Mphasis, all of which are also into BPO, will benefit from this trend.

Billing rates will remain stable with negative bias in short term. These would not lead to thespectacular growth rates that most companies have been used to seeing in the past. Companies areexpected to preserve their margins through effective cost containment, higher employee utilization,

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 6/19

offshoring and shifting their focus towards high end as well as value added services. Lessons learntduring the crisis can benefit in the long run.

Attrition and Rupee’s volatility against the US dollar and other major currencies is expected to remaina major concern for Indian IT companies.

Top 10 software companies in India:

1. Tata Consultancy

Services July 17, 2008

The Indian software industry is setto keep up its growth rate despitethe slowdown in the economy. TheNational Association of Softwareand Services Companies(Nasscom) has forecast a strongoutlook for FY08-09 strong withsoftware and services revenue seengrowing by 21-24 per cent. Thesoftware and services exports areset to hit the $50 billion-mark.

The software and services exports segment grew by 29 per cent (in USD) to register revenues of $40.4billion in FY07-08, up from $31.4 billion in FY06-07. The domestic segment grew by 26 per cent (inINR) to register revenues of $ 11.6 billion in FY07-08. According to the latest Nasscom rankings, TataConsultancy Services Ltd., Infosys Technologies Ltd. and Wipro Technologies Ltd are the top 3 revenuegenerators in India.

TCS 

Founded in 1968, TCS is one of India's largest corporate houses. It is also India's largest IT employer withstaff strength of 111,000 employees.

The company began as a division of the Tata Group, called the Tata Computer Centre. Its main businesswas to offer computer services to other group companies. Soon the company was spun off as TataConsultancy Services after it realized the huge potential of the booming IT services.

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 7/19

The company posted a consolidated net profit of Rs 1,290.61 crore (Rs 12.90 billion) for the first quarterended June 30, 2008, an increase of 7.3 per cent compared to the year-ago period.

Its annual sales worldwide stands at $5.7 billion for the fiscal year ending March 2008. During the year2007-08,

TCS' consolidated revenues grew by 22 per cent to Rs 22,863 crore ($5.7 billion). S. Ramadorai, is thechief executive officer and managing director of TCS.

TCS is IDC-Dataquest IT best employer in IT services in 2007. TCS also topped Dataquest DQT op 20list of IT service providers in 2007.

Services:

BI & Performance Management Business Process Outsourcing 

Connected Marketing Solutions 

Consulting 

Engineering & Industrial Services 

Enterprise Solutions 

iON - Small & Medium Business 

IT Infrastructure Services 

IT Services 

Mobility Solutions and Services

Platform BPO Solutions 

Software:

TCS BaNCS 

TCS Technology Products 

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 8/19

2. Wipro 

July 17, 2008

What started off as a hydrogenated

cooking fat company, Wipro istoday is a $5 billion revenuegenerating IT, BPO and R&Dservices organization withpresence in over 50 countries.

Premji started Wipro with the 'ideaof building an organization whichwas deeply committed to values, inthe firm belief that success inbusiness would be its inevitable,eventual outcome'. The company

has over 72,000 employees.

Wipro's revenues grew by 33 per cent to Rs 19,957 crore (Rs 200 billion) for the year ended March 31,2008. The net profit grew by 12 per cent to Rs. 3,283 crore (Rs. 32.83 billion). The revenues of thecombined IT businesses were $4.3 billion with 43 per cent YoY growth.

Wipro was the only Indian company to be ranked among the top 10 global outsourcing providers inIAOP's 2006 Global Outsourcing 100 listing. Wipro has also won the International Institute for SoftwareTesting's Best Practice Award.

Products:

Wipro Products showcases the best in sophistication and styling across India and the Middle East, withprimary focus on blending green computing and your sense of style and comfort. With high-endperformance being the cornerstone of our product development process, we bring you a wide array of Green technology products that help you choose what's best for your day-to-day operations as well as theworld around you.

Wipro Systems & Technology Infrastructure Technology Solutions

Talk about features, styling and performance and

you will find that all and more in Wipro's range of Computing products. These products are developedto operate in a green environment and bear thestamp of Wipro's commitment to excellence andquality.Read more 

Wipro provides you comprehensive solutions

packaged to meet your business requirements.When it comes to reliability and superiorperformance, Wipro Enterprise Products are secondto none. So go ahead... and know more on whatWipro can offer you for your strategic businessinitiatives.Read more 

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 9/19

 

Wipro Systems & Technology:

 Desktops 

  Notebooks 

  Datacenter Systems 

  E Mobility 

Wipro Desktops are built on industry standard architecture and open technologies offeringbusiness agility and flexibility to our customers. We take pride in our leading edgetechnology through our alliance with global tech leaders and strong product engineeringexcellence.Our breadth of services range from Technology Commissioning, and Technology

Availability to Technology Enhancement. Supported by more than 2,500 technology professionals, wehave over 125 spares locations, 164 service centers and a 24/7 call center. Yet another milestone inmaking Wipro a 'Green Brand' is our range of eco-friendly Greenware Desktops, which are manufacturedwith materials free of carcinogenic toxins such as PVC and Brominated Flame Retardants (BFR).

Read more 

The core agenda of the Wipro Systems & Technology (WS&T) Division is based on "Open Computing".We believe that Open Computing breaks walls between technologies, people and processes to enablecollaboration and innovation. Our ability in innovating and marketing products, infrastructure softwareand related services is built on a foundation of industry standard architecture and open technologies,thereby accelerating productivity for our customers' businesses.Wipro Products are designed with technology expertise gained globally and crafted using world classengineering infrastructure. With products that are a hallmark of quality, we take pride in helping youbuild a responsible computing environment. Count on us to be there with you as a partner all through thelifecycle, with our wide services network. You don't buy just our products; you invest in a value that isperennial: Trust.

Infrastructure Technology Solutions :

Expanding businesses are on the constant search for the latest IT products that can help them come upwith a comprehensive solution to drive home the competitive advantage. Asset productivity throughimplementation of integrated technology solutions help suit your domain specific needs. In the businessof addressing enterprises for over 20 years, Wipro InfoTech partners with best of breed alliances to

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 10/19

refurbish your IT infrastructure and extends a unique opportunity to leverage the latest technologyproducts and services at competitive costs.Wipro InfoTech delivers customized enterprise products that are geared to address your technologyinfrastructure requirements. From a technology and business perspective, we study your IT environmentto get a clear understanding of your requirements. Aligning your IT project with cost efficient resourcesand delivery timelines, we deliver enterprise products that include the following:

  Networking Solutions

  Enterprise Information Security

  Emerging Technologies

  Enterprise Management

  Contact Centre Infrastructure

  Platforms & Storage 

Services :

Building on its varied expertise and domain knowledge, Wipro offers clients a wide range IT, BPO andR&D services. These services enable business to "Do Business Better" through optimum use of technology and process excellence and help you to perform in this dynamic market environment

  Analytics & Information Management

  Business Process Outsourcing

  Consulting Services

 Product Engineering Services

  Mobility

  Business Application Services

  Cloud Services

  Eco Energy

  Infrastructure Management Services

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 11/19

3. Infosys

July 17, 2008

Infosys Technologies Ltd was

started in 1981 by seven peoplewith $250. Today, the companyboasts of revenues of over $ 4billion and 94,379 employees.

Under the leadership of N RNarayana Murthy, the company

has become a global brand. The company is now headed by Kris Gopalakrishnan. The income for thequarter ended June 30 2008 was Rs 4,854 crore (Rs 48.54 billion). The net profit stood at Rs 1,302 crore(Rs 13.02 billion).

Forbes magazine named Infosys in its list of Global High Performers. Waters magazine rated Infosys asthe Best Outsourcing Partner. The Banker magazine conferred two Banker Technology Awards onInfosys to acclaim its work in wholesale and capital markets in two categories - Payments and TreasuryServices, and Offshoring and Outsourcing.

The International Association of Outsourcing Professionals (IAOP) ranked Infosys at No. 3 in its '2008Global Outsourcing 100'.

Products and Platforms:

Our products and platforms provide complete and comprehensive services such as TransformationSolutions and Banking Solutions which adopt a holistic and integrated transformation approach complete

with services and solutions.

  Finacle

  Flypp

  Infosys Edge

1.  Infosys CommerceEdge

2.  Infosys SocialEdge

3.  Infosys TalentEdge

  Infosys HIMI

  Infosys MaskIT

  Health Benefit Exchange

  Infosys mConnect

  Infosys Research On Demand

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 12/19

  Infosys Unified Communications and Collaboration (UC)

  iTransform

  Supply Chain Visibility

Services:

 Leverage our domain and business expertise to achieve rapid time-to-value while making your 

organization stronger and more competitive in the global business landscape.

Consulting and Systems Integration

Our consulting services ensure that you become stronger, more competitive and capable of managing

global business.

  Consulting Services

  Systems Integration Services

  Architecture Services

  Packaged Application Services

  SOA Services

  Information Management Services

  Knowledge Services

  Learning Services

Business IT Services

We create IT-enabled business solutions for our clients by leveraging our domain and business expertise

along with a complete range of services.

  Application Services

  Independent Validation and Testing Services

  Infrastructure Management Services

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 13/19

 

Engineering Services

We provide concept-to-market R&D and engineering services to improve your product operations. Our

services address the complete engineering value chain spanning various industry verticals.

  Overview

  Service Offerings

BPO Services

Infosys BPO combines domain expertise, process skills and technology to deliver world-class process

outsourcing.

Offerings by Industry 

  Communication Service Providers

  Energy and Utilities

  Financial Services

  Healthcare

  Insurance

  Manufacturing

  Media and Entertainment

  Retail, CPG and Logistics

  Services

Offerings by Function 

  Business Platforms

  Customer Service Outsourcing

  Finance and Accounting

  Human Resources Outsourcing

  Knowledge Services

  Legal Services

  Sales and Fulfillment  Sourcing and Procurement Outsourcing

CloudAs a Cloud ecosystem integrator, we offer enterprises single point accountability, rapid time-to-value and

improved customer experience. Infosys Cloud+Services helps you orchestrate and integrate Cloud

services with your existing enterprise investments.

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 14/19

  Industry-leading Services in the Cloud

  Professional services for the Cloud

MobilityOur Mobility services help companies enhance their customer relationships, increase organizational

efficiency, and enable business transformations while rolling out innovative and user-friendly

technologies.

  Overview

  Service Offerings

4. Satyam Computer Services 

July 17, 2008

Now as Mahindra Satyam .Established in 1987 byRamalinga Raju, Satyam has staff strength of 51,000employees. In 2008, the company's revenues crossed the$ 2-billion mark.

'A simple, yet extensive management model to createvalue, which promotes entrepreneurship, a focus on the

customer, and the constant pursuit of excellence,' is thecompany's mantra for success. In FY2008, its revenuessaw a growth of 30.7 per cent to Rs 8,473.49 crore (Rs84.73 billion) compared to fiscal 2007.

The net profit stood at Rs 1,687.89 crore (Rs 16.87billion), a growth of 20.2 per cent over fiscal 2007.Satyam is among the youngest IT service companies toreach $1 billion in annual revenues. It is ranked No. 1 inthe ASTD (American Society for Training andDevelopment) BEST Award, 2007.

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 15/19

5. HCL Technologies 

July 17, 2008

HCL is a leading global

technology player with annualrevenues of $4.9 billion. The HCLEnterprise comprises twocompanies listed in India, HCLTechnologies and HCL Infosystems. Founded in 1976, HCL isone of 'India's original IT garagestart ups'.

The HCL team comprises 53,000professionals of diversenationalities, operating across 18

countries. At a time when India had a total of 250 computers, Shiv Nadar led a young team whichpassionately believed in the growth of the IT industry.

Three decades later, he succeeded in creating a $ 4.9 billion global enterprise. The company has reportedconsolidated revenue of Rs 3017.5 crore (Rs 30.17 billion) during the quarter ended March 31, 2008. Theprofit after tax stood at Rs. 81.5 crore (Rs 815 million).

6. Tech Mahindra 

July 17, 2008

Tech Mahindra was incorporated as a joint venturebetween Mahindra & Mahindra and BT plc in1986 under the name of 'Mahindra-BritishTelecom'.

Later, the name was changed to 'Tech Mahindra',in order to reflect the diversification and growth of the client base and service offerings. The companywas incorporated in 1986. Tech Mahindra is aglobal systems integrator and business

transformation consulting firm focused on thecommunications industry. At the helm of the fastexpanding organization is Vineet Nayyar.

In a career spanning over 40 years, he has workedwith the government, international multilateralagencies and the corporate sector. Tech Mahindra'snet profit rose 8.57 per cent to Rs 196.4 crore (Rs1.96 billion) on 6.09 per cent growth in net sale to

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 16/19

Rs 911.6 crore (Rs 9.11 billion) in Q3 December 2007 over Q2 September 2007.

Services :

BI & PM  

Business Value Enhancement 

B2B/ EDI

  Content, Process, UX Management  

Cloud Computing

  Digital Convergence

Infrastructure Management Services  

Integrated Engineering Solutions  

Microsoft Solutions

  Operations Management  

Oracle Solutions

  Platform Solutions

  Product and Application Testing

  Product Lifecycle Management (PLM)  

SAP Solutions

  Spend Management Solutions  

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 17/19

7. Patni Computer Systems 

July 17, 2008

Now as iGate Patni .Patni Computer Systems

Ltd one of the leading global providers of information technology services and businesssolutions. The company has clients across theAmericas, Europe and Asia-Pacific locations.

The company has serviced more than 400Fortune 1000 companies, for over two decades.Patni Computer Systems Limited wasincorporated on 10 February 1978 under theCompanies Act, 1956. On 18 September 2003,the Company converted itself from a privatelimited company into a public limited company.

The company headed founded by Narendra KPatni by has a staff strength of over 14,000professionals. The revenues for the quarterended March 2008 stood at $ 176.4 million (Rs.7,061.2 million) up 13.1% YoY from $ 156.0

million (Rs. 6,724.1 million). The net income for the quarter at US$ 18.1 million (Rs. 724.6 million)down 35.0 per cent YoY from $ 27.8 million (Rs. 1,200.3 million).Frost & Sullivan ranked Patni 1stamong 'Top 5 Engineering Service Providers'.

Image: Model of a software park in Chennai. |

8. i-flex Solutions 

July 17, 2008

iflex started as a division of Citicorp (now Citigroup), whollyowned subsidiary called CiticorpOverseas Software Ltd. (COSL) in1991. Later, a separate company

Citicorp Information TechnologiesIndustries Ltd. (CITIL) wasformed and Rajesh Hukku wasappointed as its head.

CITIL started off with theuniversal banking product,MicroBanker which became verysuccessful. In the mid-90s, CITIL

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 18/19

developed Flexcube at its Bangalore development centre. After the launch of Flexcube, all of CITIL'stransactional banking products were brought under a common brand umbrella. CITIL changed its name toi-flex solutions to reflect its growing independence from Citicorp and to strengthen its Flexcube brand.

In 2006, i-flex became a majority-owned subsidiary of Oracle Corporation i-flex posted a top line growthof 8 per cent QoQ with revenue for the quarter ended March 31, 2008 at Rs 672 crore (Rs 6.72 billion) as

compared to Rs 601 crore (Rs 6.01 billion) for the corresponding quarter during the previous yearrepresenting a 12 per cent YoY growth.

The net income for quarter stood at Rs 185 crore (Rs 1.85 billion) representing 73 per cent growth QoQ.The revenue for the full year ended March 31, 2008 stood at Rs 2,380 crore (Rs 23.80 billion), up 15 percent as compared to the previous year.

9. MphasiS 

July 17, 2008

MphasiS Limited was formed in June 2000 after the merger of the US-based IT consulting companyMphasiS Corporation (founded in 1998) and the Indian IT services company BFL Software Limited(founded in 1993).

Jeya Kumar is CEO of MphasiS, which has staff strength of 27,000 people. For the year ended 31 March2008, the MphasiS Group recorded revenues of Rs 2,423 crore (Rs 24.23 billion), a growth of Rs 662crore, which is 38 per cent over the previous year.

The net profit increased by 42 per cent from Rs 180 crore (Rs 1.8 billion) to Rs 255 crore (Rs 2.55billion) during the year ended 31 March 2008. MphasiS was named among amongst the Top 100Companies in Global Outsourcing.

10. L&T Infotech 

July 17, 2008

L&T Infotech is a global ITservices and solutions provider. Itis a subsidiary company of isLarsen & Toubro Ltd. (L&T), anengineering, manufacturing andconstruction conglomerate, withglobal operations.

A M Naik is the chairman of thecompany. Originally founded asL&T Information Technology Ltd

(LTITL), a wholly-owned subsidiary of Larsen & Toubro Ltd (L&T), the company changed its name toL&T Infotech on 1st April, 1997. In 2004, it tied up with Fidelity Information Services, a division of Fidelity National Financial to provide banking solutions for the Indian banking industry. In 2007-08,L&T had recorded revenues of Rs 29,600 crore (Rs 296 billion).

8/3/2019 IT(Software ) Industry

http://slidepdf.com/reader/full/itsoftware-industry 19/19

 

 Bibliography:

1. http://www.rediff.com/money/2008/jul/17sd10.htm 

2. http://www.equitymaster.com/research-it/sector-info/software/  

3. http://www.ibef.org/artdispview.aspx?in=38&art_id=28792&cat_id=121&page=2 

4. Respective Players website for Their Product and Services.