itco presentation

7/31/2019 ITCO Presentation

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From Group 3Section A

Members:-Priyang agarwal (11237)Kaushal Kishore (11220)Rohit Kr. Shrivastwa (11245)Atreya Kumar (11205)Deepak malik (11210)

Akhil kr. Juneja


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IT sectors

Enterprise Software

Product based softwareHardwareNetworkingServices (support, maintenance, BPO & consultancy)Cloud computing apps

Mobile applications.

software

In nascent stage.


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Porter five force analysis of IT industry

Availability of substitutes:- Medium

Supplier power:- Low or NoBuyer power:- Medium to HighThreats of new entrant:- Very HighCompetitive rivalry:- High


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Porter five forces analysis for software

Barriers to entry:- Quite low

Threat of substitutes:- (See explanation in notes)

Bargaining power of customers:- High in enterprise software but low in productSoftware.

Bargaining power of suppliers:- Low

Competitive rivalry:- Very Intense


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History of IT


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Growth drivers of IT

Easy availability of Talent pool and cost advantageProcess and QualitySupportive government policiesUnique geographic location

Threat of new emerging service economies

Emergence of China as substituteHardware Sector lagging behindPoor InfrastructureExchange rateDomestic consumption

Things to look for


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Future of IT

According to NASSCOM, India can reach $ 130 Billion in IT revenue by 2015, with

CAGR of 14%. With this, it would be contributing to 7% of annual GDP andcreating 14.3 million employment opportunities.

BPO industry will experience high growth but the Software and ITeS segment isexpected to see slower growth.

Adapt new business models to compete with global players e.g. Cloud, On-demand services, and SaaS.With increased threat from countries like China,the companies will suffer loss unless they change business models.

It is very important that while investing in a company, an investor selects asector, where the long-term future prospects are bright. In the above case, wehave seen that the IT sector is expected to have good growth in the long run.


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Options for Selection

IT hardware growing at a fast pace 28.41%

IT Software has largest market, and a good growth rate 19.94%

A number of small players in the market, working on

small projects IT Education has a small market, and will take time to

establish in this market

BPO has good market and growth, but will not be

considered Based upon the analysis, we can say that IT Software

will be optimal for investment


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Start a new company

Issues May take some time to get clients

Create a new team

No experience in the field

Acquire a companyBenefits

A number of small companies present in the market

Have got small clients for development and maintenance

Have got a team

Need capital to grow, so can be a good option for acquisition

How to enter the market???


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itco presentation

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