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IT

SECTOR
By GROUP AG2
ADIT SHAH
AVINASH DESHPANDE
FEBA THOMAS
SMITI CHATURVEDI
SURAJ THOTALU
NUMBER OF PLAYERS
IT industry contributes largely to the Indian economic growth
The number of players in the Indian IT sector are huge
Exports dominate the industry
77% of the total industry revenue comes from exports alone
The 5 top players are TCS, Infosys, Cognizant, Wipro and HCL

MARKET SIZE
Indian IT industry is divided into four major segments IT services,
business process management (BPM), software products and
engineering services, and hardware
The IT services sector accounted for the largest share of the IT
industry, with a total market size of US$ 56.3 billion during FY13
The industry grew at a compound annual growth rate (CAGR) of 13.1
per cent during FY0813
The IT outsourcing sector is expected to see exports growing by 13
15 per cent during FY15.

NATURE OF COMPETITION
Almost perfect competition due to:
Changes in customer IT spending habits and other shifts in market
demand
A trend towards consolidation of companies
Continued pressure on price/performance for data warehousing
solutions
Changes in pricing, marketing and product strategies

DIFFERENTIATION PRACTICED BY
VARIOUS PLAYERS

Trying to obtain government projects
Move from the obvious consulting to product building strategy
Hiring more employees showing them as bench strength
Outsourcing projects from developed economies
Creating unique product of high value to customers


BARRIERS IN INDUSTRY

One of the major barriers is the rising competition in the global world
The Chinese and the Dutch markets are growing
The Indian IT companies mostly provide only consulting services
The rising local competition is also contributing to the entry barriers
of IT industry.
There are no mobility barriers in the IT sector of India.
The exit barriers to the IT sector are almost negligible.
REFERENCES
http://www.investorwords.com/425/barriers_to_entry.html
http://www.ibef.org/industry/indian-it-and-ites-industry-analysis-
presentation
http://www.equitymaster.com/research-it/sector-
info/software/Software-Sector-Analysis-Report.asp
http://www.rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=
&ID=619

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