Service Sector Management Presentation on IT Industry

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NAMES ROLL NO.

SHUBHANGI ADENAKAR 01

ASHA AHUJA 02

SHEEMAN AHMED 03

PAVAN CHAUDHARI 14

DEEP KADU 22

DINESH NEBHANI 42

TYBMS

(2009-10)

IT INDUSTRY IN SERVICESECTOR MANAGEMENT


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INTRODUCTION TO IT INDUSTRY

The information technology (IT) industry has becomeof the most robust industries in the world.

IT, more than any other industry or economic facet,has an increased productivity, particularly in thedeveloped world, and therefore is a key driver of globaleconomic growth.

Economies of scale and insatiable demand from bothconsumers and enterprises characterize this rapidlygrowing sector.


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FEATURES OF THE IT INDUSTRY

AT A GLANCEEconomies of scale for the information technology industry arehigh. The marginal cost of each unit of additional software or hardware is insignificant compared to the value addition thatresults from it.

Unlike other common industries, the IT industry is knowledge-based.

Efficient utilization of skilled labor forces in the IT sector can help

an economy achieve a rapid pace of economic growth.The IT industry helps many other sectors in the growth processof the economy including the services and manufacturingsectors.


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DOMAIN OF THE IT INDUSTRY

Systems architectureNetworking

Application developmentTestingDocumentationMaintenance and hostingDatabase design and developmentOperational supportSecurity services


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SUCCESSFUL

INDIAN IT COMPANIES

Infosys Technologies Limited

Wipro Technologies

Tata Consultancy Services (TCS)

Satyam Computer Services LimitedHCL Technologies Limited


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CHARACTERISTICS OF

IT INDUSTRYIntangibilityPerishability

InseparabilityHeterogeneityOwnership

SimultaneityQuality MeasurementNature of Demand


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ROLE OF IT IN SERVICES

Call Centers/Customer Interaction Services :These services rely heavily on state- of the communications andinformation technologies. The centre is used for a number of functionslike marketing, selling, information dispensing, advice, technical support

and e-commerce.

Business Process Outsourcing (BPO)/BackOffice Operations :

Banks and airlines require large-scale data processing for their management and decision-making. Such organizations, send raw dataover high speed communication links to remote locations for data entry,processing and necessary reconciliation etc.,


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Insurance Claims Processing:Large insurance companies can get the claims of their clients processedanywhere. The guidelines to the process are well established and hencecan be easily performed at remote locations.

Medical Transcription:Doctors simply record their findings on a Dictaphones. The recordingsare then sent through datacom lines to overseas companies, whichtranscribe these recordings into reports and send them backelectronically.

Legal Databases:Lawyers can then simply use their computers to draw up a history of similar cases and draw a clear plan of action.

ROLE OF IT IN SERVICEScont..


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Online Education:The online education market is booming the world over. ManyUniversities offer some classes online primarily through the Web, viavideoconferencing, CD-ROMs and other technologies.

Data Digitisation/GIS:Digitisation is a labour-intensive process by which physical or manualrecords such as text, images, video and audio are converted into digitalforms.

Payroll / HR Services:HR service components include recruitment screening, administrationand relocation services, payroll processing, compensation administration,benefit planning, and administration.



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Web Services:Some of the Web services include e-mail management, Internet security,web page designing and updating, managing of Internet commerce,exchange of data, payment and clearance, electronic data interchange,supply chain management and Internet data centres etc.



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MARKETING MIX OF IT SERVICES

MARKETINGMIX OF ITSERVICES

PRODUCT

PRICE

PROMO

TION

PLACEPEOPLE

PROCESS

PHYSICALEVIDENCE


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Product

There are various product and services which is offered bythe IT companies. Some of are mentioned below:

Computers and software like Java, C++, Oracle, ERPmodels, SAP etcMobile services.Electronics equipments and appliances.

Network systemOperating systems


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Product

1

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1.CORE IDEA

2.BASIC PRODUCT

3.EXPECTED PRODUCT

4.AUGMENTNED PRODUCT

5.POTENTAIL PRODUCT


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Products Offered By INFOSYS

1) INDUSTRIESDefence, automotive, Banking & capital market, communication,Consumer Packaged Goods, Discrete Manufacturing, Education, Energy,Healthcare,

High Technology, Hospitality and Leisure, Insurance, Life Sciences, Media andEntertainment, Resources, Retail, Transportation Services.2 ) IT SERVICES

Application Services, Architecture Services.Information Management Services, Infrastructure Services, Packaged

Application,Services, Systems Integration Services3) ENGINEERING SERVICES

Product Engineering, Process Engineering and Plant Operations, LifecycleManagement

4) BPO SERVICES


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Price

The softwares are costly and not affordable by the Indiancustomer.Price varies according to the brand name, Corporate

Image, also at the after sale service provided by ITCompanies.

Price offered by INFOSYSPrice of the softwares or the services that INFOSYS offersvaries from customer to customer.It depends upon the nature of project, man hours required,complexities involved in project.


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Promotion

A lot of money is spent on the promotional activities. Manyadvertisement are appear I newspaper, magazine, Internet, radioand television. The IT companies also sponsored a T.V. shows,Sports, events etc.

Promotion By INFOSYSINFOSYS has become brand name over the years. It doesnt employ any promotion strategies for its brand building, since itprovides software solutions to businesses & not to independentcustomer. INFY, stresses on maintaining & developing customer relationship. It has separate IBU named IMS (InfrastructureManagement & Services


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Promotion By Wipro

Trade Promotions ManagementWipro has formed a center of excellence (CoE) on TradePromotions Management [TPM] to deepen our domain

expertise and offer value added solution to consumer goodscustomers. Researches and studies on TPM have estimatedthe trade promotion spending by consumer goodscompanies to be anywhere between 15 to 25% of their grossrevenues.


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Place

The distribution of IT services is according to the demandfor the product in different areas. Many companies are nowfranchise and authorize to the local dealers and distributors .

Place of INFOSYSInfosys is a consulting and IT services company with a

global services footprint, Infosys has 48 sales offices aroundthe world of which 4 are in India and 44 are outside India.The picture shows the countries in which infosys has itspresence.


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People

People include the employee and Customers and other customers.

EMPLOYEES: In IT Industry the employees are highly educated & trained.Training & Development programs to develop the skills of employees likecommunication, personality, etc.e.g .:- Bachelor of Engineering Computer Science Graduates are working asfaculty, programmer, system or data administrators.

High Contact Personnel: Customer service, executive staff.Low Contact Personnel: Software Engineers.No Contact Personnel: Owners of the company, softwares creators &cleaning staff.


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People

CUTOMERS:

Customers are productive resources: Feedback - Online feedback & complaints, Toll free numbers, Various outlets.

INFOSYS 32.4% of Infosys employees are women

Acquired global talent from over 70 nationalities9,64,205 person days of technical training for entry level employees


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Process

The service process refers to how a service is provided or delivered toa customer. Delivery system is a creative process. Designing a serviceprocess involves issues such as location facility, design & layout for effective design & layout for effective customer & work flow, procedure &

job definitions for service providers, extent of customer involvement,measures to ensure service quality, equipment selection & adequateservice capacity. There is no specific proper delivery system for delivering the service.

In IT industry, the process varies according to the nature of servicesprovided to the customer.

E.G.:- In case of internet service there are different systems likeWireless Modem & Data Cable.


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Physical Evidence

Physical Facilities: Essential Evidence- Building, Parking Space, Furniture,Interiors.

Peripheral Evidence- Employees certificates.

Physical Environment: Superior Decoration.

Social Setting: Employee uniform, ID cards, appearance.


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Physical Evidence Of INFOSYS

Infosys has got a very huge and state-of-art buildingsspread across lush greenland.Its Mysore campus, which is a training centre for freshrecruits, is awesome. Almost all the Infosys campuses are well-equipped withlatest gym machinery, swimming pool, table tennis table,etc. which acts as a stress buster for its employees.

All this, along with well-maintained gardens around, makeInfosys a very pleasant place to work in. People take pridein explaining their work culture to others when it comes toInfosys.


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Physical Evidence Of INFOSYS


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CHALLENGES IN IT INDUSTRY

INFRASTRUCTURE AND SERVICESCost of access devicesInstallation costProvision in large parts unviableRecognition of non- branded PCs Use of regional languagesIntegration of Services

Availability of Bandwith

Procedural delay Availability of Data Circuits

ELECTRONICS GOVERNANCEEDUCATION


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SERVICE FAILURE AND RECOVERY

SERVICE FAILURE:

In Software: Some times, there are bugs in softwares due to which thesoftwares cannot function properly. Sometimes software companies

fail to provide services as per the customer needs.In electronics: Many times electronics fail to perform its functions.

e.g. Failure of television sets

In mobile services : The network service providers fail to provide their proper network services. The Customer services are slow or unable toprovide as per the need of customer.


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SERVICE FAILURE AND RECOVERY

In SoftwaresWhere a failure occurs a customer complaint are recorded through onlineor Toll free numbers then company checks or verify the license or guarantee period of the software. After that complaint is registered the

company checks the problems occurs in the softwares and replyaccordingly. Then the complaint is taken into action accordingly. Thecompany tries to satisfy the expectation of consumer who havecomplaint.


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CUSTOMER EXPECTATIONS

Expectations are formed from a variety of influencing factors,including past experience, current needs, feedback from friends,colleagues and relatives, customers previous experience of acompany and that of his competitors.

The meaning of expectations, is different in the service context,and the consumer behavior context.

In consumer behaviour, expectations are predictions made by a

consumer about what is likely to happen during transaction.In services marketing expectations are viewed as desires public\ wants. that what one feels that service provider should offer.


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CUSTOMER PERCEPTIONS

Perceptions are always considered related expectations.

Service encounter The customer gets a clear impression of the service, duringhis service encounter. i.e., when the customer interact withthe service and starts using the service.Each service encounter represents both an opportunity toenhance the customer satisfaction in dealing with thecompany and a threat to service delivery

1. Remote encounters2. Phone encounters

3. Face-to-face encounters


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RECENT TRENDS IN IT

Introduction of digital telephone exchange.

Common business documents are being replaced bypaperless Electronic data Interchange.

Conventional data entry giving a way to scannersdigitized Image processors.

Hardware prices are declining and micros arebecoming as powerful as minis resulting in anincreases of mini/micro users, compare to mainframe.


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Although artificial intelligence is being experimented with,knowledge bases expert systems are slowly being madeavailable. Decision support system is gaining importance

Increased capability of computer systems and the growthon use of internet.

The need for data communication and networking is

increasing. Even heterogeneous computers are gettinglinked.

Greater acceptance of the use of IT.

RECENT TRENDS IN IT


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ESSENCE AND FUTURE OFINFORMATION TECHNOLOGY

Fourth factor of production

Generate foreign exchange earnings

In USA, Internet Economy accounts for US $270 billion as

against energy $223 billion.Creating high quality employment.

A major part of the IT industry is in the private sector and itaccounts for 76% of its total production in electronic hardware.

This is likely to reach to about 86 per cent by the end of 2002.The government has appointed a special task force onInformation Technology and Software Development in 1998.


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CONCLUSION

All other forms of industry are mainly dependenton this industry.

Pervaded a wide range of industries

Quick speed of work.

A major market for the Indian software andservices industry.

IT in recession.


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Service Sector Management Presentation on IT Industry