A

RESEARCH PROJECT REPORT

ON

“REVOLUTION IN IT SECTOR IN NCR”

SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE

AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

AFFILIATED TO DR. APJ ABDUL KALAM TECHNICAL UNIVERSITY
Session 2020-2022

SUBMITTED TO: SUBMITTED BY:

MR. RAHUL SHARMA NITISH KUMAR
(HOD MBA) ROLL NO.: 2003310700015
MBA-IV SEM.
BATCH: 2020-2022

DEVENDER SINGH INSTITUTE OF TECHNOLOGY

& MANAGEMENT, MEERUT ROAD, GHAZIABAD

1
 CERTIFICATE

This is to certify that project entitled "Revolution In It Sector In NCR” , Submitted By Nitish
Kumar Roll No. 2003310700015 in partial fulfillment of Master Of Business Administration
IV Semester of DS Institute of Technology & Management , Ghaziabad is a record of
student's own work carried out under my supervision and guidance while working on project
they were sincere. Disciplined and enthusiastic.

As per our knowledge this work is original and genuine.

MR. RAHUL SHARMA MR. RAHUL SHARMA

(Assistant Professor) (HOD)
Dept. of Management Dept. of Management

2
 DECLARATION

I hereby declare that the project entitled "Revolution In It Sector In NCR” for the

MBA (2 Year Course) is my original work carried out by me for the partial fulfillment of

the award of the degree of the Master of Business Administration. The matter embodies

in this report has not submitted anywhere else for the award of any other degree/diploma.

Place :…………..

Date :………….

Nitish Kumar
ROLL No.- 2003300700015
MBA IV Sem.

3
 ACKNOWLEDGEMENT

Any accomplishment requires the effort of many people and this work is no

exception. A project of magnitude could not have been completed with

singular efforts.

I would like to pay my gratitude to Prof. Rahul Sharma (HOD)for his kind

support to understand me the concepts and valuable guidance to complete

this project.

I would also like to pass my heartiest greeting to all my friends who remain

to be my aspiration to encourage and guiding me to do my project work on

this topic. My thanks also go to all the respondents whose responses were of

utmost importance for the project.

Last but not least, I would like to place a world of appreciations on record

for all those who directly and indirectly have helped me for successful

completion of the project.

Nitish Kumar
ROLL No.- 2003300700015
MBA IV Sem.

4
 CONTENT
1. Introduction 7
2. Objective of the study 10
3. Scope of the study 11
4. Executive summary 12
5. Internet feature 21
 marketing v/s e-marketing 25
6. IT Application 28
7. Research methodology 32
 Research instruments
 descriptive research
 subjective research
 Method of data collection
 primary data
 secondary data
 Methodology 37
 Questionnaire methodology 40
 Advantage 41
 Disadvantage 41
 Industry composition 42
 India‟s IT industry 44
 Promotion of IT : Governmental initiatives 47
8. Infosys profile 49
9. TCS profile 56
10.SWOT analysis 66
11.Market share of major IT companies 70

5
12.IT in services sector: a vision for India 79
 International scenario 81
 Future scenario 83
13.Issues faced by the IT industry in NCR region 84
14.Limitation 88
15.Conclusion 90
16.Recommendation 93
17.Questionnaire 97
18.Bibliography 101

6
7
 INTRODUCTION

The information technology has witnessed an impressive growth in recent

past. It seems that it is the most beautiful of all men‟s state of the art
technology creation undoubtedly, it has reduced the distance between
continents, countries, cities and people. It has bestowed upon human the
most fascinating concepts of telecommunication and broad casing which has
witnessed major technology innovation with the introduction of mobile
communication, value added services, internet digital audio and video broad
casting, etc. consequently, the ethics of information transfer has changed
around the global. This change effects the growth of IT in India with affects
of this change it generates tremendous career opportunities.

8
9
OBJECTIVE OF THE STUDY: -

 To find out the reason behind the tremendous growth of IT and

Telecom sector in NCR region.
 To identify the involvement of IT and Telecom applications in
business sector within NCR region.
 To identify the innovation of technology in NCR region.

10
11
 SCOPE OF THE STUDY

“Information Technology has the potential to lead India into the future.”
The world is transforming into a global village, with seamless boundaries,
and the NCR region should follow the same trend,and emerge as a single,
united zone.
Knowledge industry should be a vehicle for regional development.
The NCR region should emerge as the leader in the knowledge industry ,
thereby creating more jobs and contributing to the
nation‟s progress
The scope of this study is to identify the involvement of IT applications in
business sector within NCR region

12
13
 EXECUTIVE SUMMARRY:

The development of Internet-Based E-Commerce offers the most exciting

business opportunities in the marketplace, with is pressurizing business
operations all round the world to change traditional methods of conducting
business. Organizations that want to stay in business beyond the turn of the
century must re-evaluate every aspect of their strategy and operations and
incorporate these technological changes into the way they conduct business.
Internet based E-Commerce is essential for the survival of companies
entering a virtual distribution marketplace.

The lack of integrated applications and the unavailability of universally

accepted methods of communication have been a constant plague in the
development of electronic commerce. As the Internet develops there is every
possibility that e-mail and applications-based technologies will take over
from traditional telephony as the common method of communications.
Furthermore, the Internet provides an unprecedented infrastructure for
moving information. This will have immense repercussions within the
commercial world.

The Origin
The earliest form of the Internet was the ARPANET - a project of the US
Department of Defense that began in the 1960s. Initially, it was conceived as
a communications network that could survive a nuclear war! However, no
one at that time could imagine that the small, secretive network would knit
together the world's largest community ever.

14
The Indian Market
While the Internet became commercially available in India only five years
ago, it had been present in the country long back in the form of Education
and Research Network (ERNET). However, it was not possible for many
people to get access to it, as it was meant for only the educational and
research communities. The ERNET was a joint undertaking of the
Department of Electronics (DOE) of the Government of India, and the
United Nations Development Program (UNDP), which provides technical
assistance to developing nations. ERNET was one of the most successful
operations that UNDP has funded. All major nodes of ERNET are connected
to each other using 9.6 kbps leased lines. These lines are being upgraded to
64 kbps links. Over 200 academic and R&D groups exchange e-mail with
each other using ERNET. Over 8,000 scientists and technologists have
access to ERNET facilities. International access is provided over a 64 kbps
leased line, from NCST, Mumbai, to USA.

On August 15, 1995, Videsh Sanchar Nigam Limited (VSNL) - India's

international trunk carrier and Gateway to the world - launched the Gateway
Internet Access Service (GIAS) for the first time on commercial basis.VSNL
has set up a number of Internet nodes located at Mumbai, New Delhi,
Calcutta, Chennai, Pune, Bangalore, Lucknow, Ahmedabad, Kanpur,
Ernakulam, Guwahati, Goa, Chandigarh, Patna, Jaipur and Hyderabad. Each
GIAS node is connected to the Internet via high speed circuits from one of
these service providers: MCI (USA), KDD (Japan), Telecom Italia, and
Teleglobe. Approximately 40 mbps bandwidth is available for Internet data
transmission in and out of India. VSNL in coordination with DoT has
launched Internet services in many other cities. Users in remote areas of

15
India can reach GIAS via I-NET. The Department of Telecommunication
(DoT) has a widespread network in India called the I-NET, which has direct
connectivity to each GIAS node.

VSNL has setup a robust and reliable multi protocol backbone based on
dynamic routing and offers more than 70 mbps international connectivity to
different carriers in the US, Europe and the Pacific. The company allows the
customer to access 60,000 computer networks, 7 million host computers and
70 million people in over 140 countries and these numbers are growing
every day. As of mid-1999, VSNL had about 2, 30,000 subscribers across
Mumbai (37%), Delhi (22%), Chennai (19%), Bangalore (8%) and Calcutta
(7%).

Apart from VSNL, subscriber bases of national-level private ISPs like

Satyam Infoway, Bharti BT Internet and ETH Dishnet, among others, are
also increasing rapidly. It is estimated that India today has about 5,00,000
Internet connections and over 20,00,000 Internet users. Currently many
private operators are in the process of setting up their own gateways so the
connectivity scenario will also improve in the next one year or so.

The Current Scenario:

At present, the Internet has become kind of synonymous with the World
Wide Web, what with surfing the Web and surfing the Net implying the
same meaning. Today, the Internet has more than 200 million users and as
many as one billion Web pages are available in cyberspace. Tens of
thousands of domain names are being registered across the world every day.
While most users access the Net through the PC today, new ways of

16
delivering the Internet experience to them are emerging in the form of
cellphones, set-top boxes, and a host of other Internet-enabled appliances.
This, in turn, is opening up lots of new business opportunities for
professionals, vendors and service providers.

Internet commerce can be classified as follows:

 Business-to-Business
 Business-to-Consumer
 Consumer-to-Consumer
 Consumer-to-business

the dot com players:-

As per the existing market equations, there are certain categories in which
the DOT COM players operate:

Infrastructure Providers:
Companies like Cisco Systems, Nortel, Sun Microsystems, etc. come under
this category which is selling systems, cables and other equipment for
building the infrastructure for the dot com economy. In a way these are like
any product vendor, but some have focused more on the Internet companies
and become themselves known as significant dot com players.

Service Providers:
This includes ISPs (Internet service providers), ASPs (application service
providers), technology consultants, web design firms, etc.

17
Content Sites: Websites which largely provide content in the form of news,
feature articles, columns etc. are generally known as content sites. In the
Internet arena, content building is playing a major role in the success of a dot
com venture. A prime example of this is the acquisition of the content site,
indiaworld.co.in, by Satyam Infoway for a whopping RS 499 crores. Some
widely visited Indian content sites include indiatimes.com,
satyamonline.com and rediff.com, etc. There are two broad categories of
content sites:

Horizontal Portals or Hortals:

A portal literally means the surfer's "door to the Internet." Initially portals
began as search engines or searchable directories on the Web (e.g. altavista,
yahoo, lycos etc.) and later came to be known as portals - because most
users came to these sites first before proceeding elsewhere to other sites.

Vertical Portals or Vortals:

As the content on the Net grew astronomically, several large websites
catering to specific segments of users came up. These sites, which
aggregated a lot of content for a particular vertical industry (for instance
chemdex for chemicals), came to be known as vertical portals. The current
trend is toward more and more niche or vertical portals.

Paid Subscription Sites:

These are mainly content sites, which normally let you access parts for free,
and several in-depth areas for a subscription fee. For instance, most research
sites like those of International Data Corp. or Gartner Group publishes press
releases and excerpts from research studies in the public area of the site. For

18
the full report and detailed studies you have to pay for further, password-
protected access.

Transaction Sites:
As the name suggests, these are websites, which allow the users to buy or
sell goods and services online so that a monetary transaction is involved.
These generally fall under three categories:
B2B:
Business-to-Business is by far the largest category in terms of the amount of
money being transacted. B2B simply means transactions happening between
companies or organizations and consists of the outsourcing and procurement
for a typical business.

B2C:
Business-to-consumer site means a transaction site that caters to the
individual consumer. Most online shops like amazon.com in the US and
fabmart.com and bababazaar.com in India fall under this category. B2C is
the more popular, "glamorous" side of transaction sites as it directly impacts
the mass consumer market.

C2C:
This is a relatively new and less explored category wherein consumers
interact with other consumers online. The most well known example in this
category is that of auction site ebay.com, which is a platform for individual
buyers and sellers to come together by posting their bids on the site. You can
think of it as a kind of online classifieds space where you can put your ad for
a product or respond to an existing ad.

19
Web-only Presence:
This is how several existing businesses went about setting up their online
presence - through putting up digitized versions of their sales or corporate
brochures. They used to display the goods and services offered by them on
their websites along with their contact details where they can get business
queries. While many companies continue to follow this "static" presence,
most have realized that in order to survive in the online world, they must
make their websites interactive and dynamic.

The Future
There is no doubt that Internet as a technology has reached critical mass.
However, with only 200 million people out of the total 6000 million in the
world using it, there's tremendous scope for further reach and penetration. In
fact, over the next few years, Internet access - which currently skews toward
the US, which has one third of the online population - will spread more
evenly across other countries. Going by the current trends, there's only one
way that Internet can go - forward. While many associated technologies of
the Internet are continuously evolving, its access is bound to grow
exponentially in the next few years. The Internet will possibly become as
ubiquitous as the telephone or the television.

20
21
INTERNET FEATURES

Global reach:
The Internet is a global network of computers- so anyone anywhere in the
world can access information that‟s put on the web- there are no restrictions
of geographical boundaries or time zones. The Internet is the only medium
with a global reach and minuscule costs at the same time. A business no
longer has to be multinational to have a global reach, in fact, a small
company based in one tiny corner of India can be known internationally
through its website, and even attract customers from Antarctica to Canada.
Because of the global reach, niche products that could not have been not
efficiently marketed before because of limited local demand can now have
access to a market that has sufficient demand, worldwide.

Convenience:
A website in reality another branch of a company, albeit in cyberspace. The
difference being that this branch does not keep the usual business hours from
9 to 5, but is open 24 hours a day, 365 days a year. This is of enormous
value to businesses that are targeting customers all over the world. Even if
there office here in India is shut for the day, prospective customers can get
information from the website, or maybe browse through a catalogue of
products- all at their own convenience, oblivious of the difference that exists
in time zones.

22
Level playing field:
The Internet offers a level playing field. Start-up companies, established
companies, small or big companies are all treated equal on the Internet. With
a very basic amount required to create a website, and with proper steps to
promote and make the site visible, a one-man company may earn more
revenue as compared to a larger, more established company on the Internet.
A classic example is a virtual bookstore that never existed prior to 1995,
forcing the largest book-store chain to list up, take notice and move online is
less than two years. You‟re right- it‟s amazon.com vs. Barnes & Noble
we‟re talking here.

Multimedia support:
Unlike any other media, the Internet supports audio, video, print, graphics,
and all this in format that allows the user to choose what he wants to see or
hear. So while a print catalogue could just show still images and text, a
catalogue on the Internet allows the customer to see the product, and if
interested, zoom in for specific details, see it in action, hear a sales pitch,
and then read about the product to the extent of his interest- from just a
general overview, to a detailed technical specifications. So the company can
put up an exhaustive amount of information, allowing the user to decide how
much enough for him is.

Interactivity:
Traditional media forces information down the throat of the customer- a top
down approach often was making a customer a passive observer. A website
being dynamic, offers twp-way communication. For instance, a site selling a
product could ask for a user his budget and then, and then based on that

23
show him different products within that budget. A few companies have
integrated the latest Internet telephony technology into their websites, which
allows the customer to talk to a company representative at the click of the
mouse!

Customization:
The Internet can be used to personalize information presented to the
customer. Using tracking technologies like cookies, customer can determine
a customer‟s taste and preference and highlight products and services that
cater to the tastes the next time he visits the site. For instance, if a customer
on a music site is particularly fond of rock music, the next time he visits the
site, he will be immediately shown the next rock releases since his last visit.

The above beside the unique feature of the Net, are also the key features that
the businesses can exploit when they decide to go online. The question
however remains: do businesses need to be on the Net? Is it worth time,
effort, and money invested in creating an ebiz? Like everything else, going
online is the traditional coin with two sides of it:

24
MARKETING VS. E-MARKETING

Marketing on Internet for a company is taken as the process of using the

Internet to market themselves, their products and their services.

The Internet is a wonderful mirror reflection of the real world, and is often
referred to as the virtual world. The most exciting part of this for businesses
is the fact that they have an opportunity to open a new branch in this virtual
world at a very low cost, which can be accessed by anyone, anywhere,
anytime. This is the website – the foundation on which a business can start
building a full-blown, fully functional business unit.

Before adapting marketing practices to the Internet, the marketer needs to

understand the characteristics of online customers:

Convenience rules:
With increasing lesser amounts of time at his disposal, convenience is
important, and shopping agents (or robots) showcase how technology makes
life simpler.

Price sensitive:
No surprise here, especially when a better price is just a click away.

Impulsive Buyer:
He may not have any intention to buy, but you can easily entice him online
to buy that product if you promote it well.

25
Instantaneous results:
That‟s a property of the net that the user expects to see in his all dealings-
quick response time, whether he‟s clicked on the search facility, or written to
you with a doubt or a complaint.

Seeks simplicity:
If a user finds a site difficult to navigate or move around, chances are he
won‟t hang around there too long.

Cautious:
Come on, he‟s got a right to be – but make him feel comfortable.

Traditional Marketing Internet Marketing

 Bound by geography and  The Internet market is

location borderless
 Marketing is of the push  Internet marketing is pull
variety, where the marketer marketing, allowing users to
decides the time and place define the time and place
 Costs are relatively high  Internet marketing costs are
relatively low
 Lead times for implementation  Lead time are virtually non-
are substantial existent
 Limited interactivity exists, if  Internet marketing is based on
at all high levels of interactivity

26
 Getting customer feedback is a  Customer feedback is
slow process immediate
 Tracking the effectiveness of  Effectiveness can be easily
the marketing efforts is relatively monitored
difficult
 Marketing efforts are restricted  On the Internet, marketing can
by time and space be carried out 2 hours a day, 35
days a year
 Various media need to be  Internet marketing can be
employed for different parts of completely carried out using
marketing (advertisements, direct different services on the Internet
mail etc)
 Cross promotion between  Cross promotion is easily
related businesses requires a lot of achieved on the WWW by just
planning and coordination linking one site to another where
appropriate

27
28
IT APPLICATIONS IN SERVICES SECTOR :
FUTURE SCENARIO
Likely Time-
Frame of
Future Technologies
Introduction (in
Years)
1. Networked ATMs for banking & other 5 to 10
transactions
s2. Smart phones for home banking operations 10 to 15
3. „Virtual‟ branches of bank operating from 10 to 15
Customer Activated Terminal (CAT) or a Kiosk
4. Debit Cards for EFTPOS 10 to 15
5. Smart Cards with built-in microchips for paperless 5 to 10
cash, pay phones etc.
6. Electronic Data interchange (EDI) for paperless 5 to 10
banking transactions
7. Image processing technologies for optical 5 to 10
scanning and storage of digitized images
8. Expert Systems and Neural Networks for credit 10 to 15
risk appraisal, monitoring/prediction of stock price
movement, detection of credit card fraud
9. Business Process Reengineering, training & skills 5 to 15
development for absorption of new technologies
10. Information Security for confidentiality, 5 to 10
prevention of data corruption and fraudulent

29
practices
11. Legal aspects for paperless & electronic financial 5 to 10
transactions
12. Single optical fiber connection to homes to blur 10 to 15
the differences between communication &
infotainment cables offering the whole range of
services like home shopping, music & movies on
demand, interactive TV.
13. Telemarketing & Visual Shopping would be in 5 to 10
great demand
14. Online Electronic newspapers & Magazines to 5 to 10
dominate over print media
15. Multimedia technology & Virtual Reality to 5 to 10
emerge as the major medium of advertisement
16. Availability of Interactive Television & user 10 to 15
controlled on-demand interactive advertising
17. Direct broadcast satellites, PCs for reading 5 to10
electronic book, digital camera for storing, viewing
& editing still photographs on discs to be available.
18. Bar coding to emerge as an important device for 5 to 10
payment processing, accounting & inventory
management.
19. Decentralized warehouses to act as hubs for rural 10 to 15
distribution to be networked to manufacturers and
retailers by VSATs

30
20. Complete networking of supply chain viz. 10 to 15
retailers, distributors, warehouses, transporters,
manufacturers, material suppliers etc.
21. Use of demographic database for age & sex 10 to 15
composition, income levels & distribution, regional
disparities, fertility & mortality rates, incidence of
diseases, life expectancy etc. would come handy for
designing new insurance products & services.

31
32
RESEARCH METHODOLOGY

RESEARCH DESIGN
Research design is of key importance primarily because of the increased
complexity in the market as well as marketing approaches available to the
researchers. In fact it is the key to the evolution of successful marketing
strategies and programmers. It is an important tool to study buyer behavior
changes in consumer life styles, consumption patterns, brand loyalty and
also focus market changes. A research design specifies the methods and
procedures for conducting a particular study.
According to Kerlinger, “Research Design is the plan, conceptual structure
and strategy of investigation conceived as to obtain answers to research
questions and to control variance.
The types of research are:
(1) Exploratory Research
(2) Descriptive Research
(3) Conclusive Research

The type of research adopted for the study is descriptive. Descriptive studies
are undertaken in many circumstances when the researcher is interested to
know the characteristics of certain group such as age, sex, educational level,
occupation or income, purchase frequency.
 A descriptive study is necessary in cases when a researcher is
interested in knowing the proportion of people in a given population who
have behaved in particular manner, making projections of a certain things, or
determining the relationship between two or more variables.

33
 The observation approach was adopted in the process by gathering
the data essential and material for the decision-making and with clear
objective of measuring customer‟s perception towards Videocon A.Cs and
other products.

DATA COLLECTION METHODS

After the research problem we have to identify and select which types of
data is to research. At this stage, we have to organize a field survey to collect
the data. One of the important tools for conducting market research is the
availability of necessary and useful data. Therefore we would go for
personal interview, as we need to collect details information.

PRIMARY DATA
Primary data is the data, which is collected for the first time. They are
collected through Surveys, observations and assessments by meeting
different authority of Videocon in Gurgaon and Delhi.

SECONDARY DATA
Secondary data means data that is already available i.e., they refer to the
data, which have already been collected and analyzed by someone else.
Secondary data may either be published data or unpublished data.
Usually published data is available in reports and publications of various
associations connected with business and industry.
Marketing journals Newspapers, Magazines, and other published reports are
the important sources of secondary data.

34
SAMPLING UNIT:
The several Purchase Managers and Customers in Delhi and Gurgaon
market been taken as sampling unit to concentrate and does an in depth
study on the concerned project title.

SAMPLE SIZE
Sample size of the study is 85 companies and 200 customers.

SAMPLING PROCEDURE
In my project point of view I have taken mainly the method of:
Personal interview by Questionnaire Technique

 In the personal interview by “Questionnaire Technique” I usually

gathered information by face-to-face interviewing. In this survey method I
saw that the respondent was asked about his personal opinion and attitude
towards Videocon products.
In this method the direct interaction on occurred with the concern authority
of the Videocon sales offices and I could collect the reliable information
from them.

RESEARCH INSTRUMENT
A structured non-disguised concern authority Response Form/Questionnaire
was developed as a research instrument for collecting the desired
information. All types of questions were used while talking with the concern
authority and visitors at the respected research areas.

35
Survey has been done and data is collected from various companie‟s
purchase manager‟s all over Gurgaon and some part of Delhi. Primary data
has been collected by interviewing customers and purchase managers, while
secondary data has been collected from the sites of Videoconworld.com.

Sampling plan for survey:

Sampling units Purchase managers and customers

Sampling size 20 companies and 200 customers
Sampling area Gurgaon ,Delhi and NCR
Sampling time frame 50 days (7 weeks)

36
METHODOLOGY

In actual working , with sub panels and sub groups Technology Vision 2020
exercise covered more than 100 sub areas directly involving around 500
members from Industry, Government, R&D Institutions and Academia in the
studies, and indirectly involving around 5000 nation wide experts from
Industry, Government, R&D Institutions and Academia through
questionnaires, interviews etc.

37
Out of 17 task forces and panels, 10 were headed by experts from Industry, 5
from R&D Institutes, and 2 from the government. Each task force had a
chairperson, a co chairperson, and a coordinator along with other members
& experts apart from others who took part in this exercise.

The studies employed various techniques of forecasting like Brainstorming

sessions, Preparation of perspective and scenario reports, Delphi technique,
and Nominal group technique in some cases and a subsequent Workshop(s).
A separate panel of experts for each area was constituted to bring out
technology assessment in the form of perspective reports. The perspective
reports for each area were read by a team of expert readers who prepared an
objective scenario report. In order to derive the benefit of inputs by many
other experts, the Delphi technique was adopted soliciting responses from
experts to specific questions on various issues which may prevail in future
based on scenario reports. Nominal group technique was applied in some
areas. In some areas responses from individuals were obtained at a
workshop.

The perspective and scenario reports of panels, Delphi responses, NGT

rankings formed as the basis, to finalize the vision and action reports and to
arrive at suggestions for –Policy Guidelines, Strategies, and Action plan, for
Govt, Industry, R&D Institute and Academia to realize the vision for India,
upto 2020.

38
Reports
The recommendations of this exercise Technology Vision 2020 have been
brought out for the wider access to different users like technology managers,
scientists, policy makers, professors, new entrepreneurs etc,. Technology
Vision 2020 reports were released on 2nd October 1996, by the then Prime
Minister of India.

Each Vision report runs into numerous pages having the valuable
information on current status, the forecast, the assessment in the Indian
context. They bring out strategies for policy and action plans for
Government, Industries, R&D Institutes and Academia

Actions suggested range from, simple modification of policies, and/or

administrative measures, or the introduction of relatively simple technology
practices on the one hand, as well as those involving mastery of new and
emerging complex technologies. One would find them have a thread of inter
connection. It is very difficult to choose one or the other to be sufficient for
India. It would be essential, to orchestrate all of them in a systematic form
and also with a reasonable time synchronism.

The full depth of the technology visions brought out & action plans would
be understood only when these detailed reports are studied by several groups
of interested people for drawing plans for action.

39
QUESTIONNAIRE METHODOLOGY

The questionnaire has to be self administered in order to know the exact

views & some other suggestions of the purchase manager and customers the
questionnaire were administered in the form of a small interview.
The advantages of the questionnaire method is its versatility, almost every
problem of making research can be approached from the questionnaire
standpoint. Every marketing problem involves people & its solution can be
obtained by asking these people about the problem.

ADVANTAGES OF QUESTIONNAIRE METHOD

 Probably the greatest advantage of the questionnaire method is its

versatility. Almost every problem of marketing research can be approached
from the questionnaire standpoint.
 Questioning is usually faster and cheaper than observing. Interviewers
have more control over their data-gathering activities than do observers.
 It is an impersonal technique and does not call for any special skills or
training on the part of the field investigators.

40
DISADVANTAGES OF QUESTIONNAIRE METHOD

Despite the fact that the questionnaire method is widely used in marketing
research, it has several important limitations.
 Unwillingness of the respondent to provide information.
 Inability of respondent to provide information. and a high non-response
rate.
 Questionnaire can be administered to respondents who has considerable
amount of education.
 Success and effectiveness mainly depends on the co-operation of the
respondent.

41
42
INDUSTRY COMPOSITION

Software export companies in NCR.

small &
medium
10% enterprises
(export 22%)
foreign equity
30% companies
(export 34%)
60%

major indian
companies
(export 44%)

43
 INDIA’S INFORMATION TECHNOLOGY INDUSTRY

The Indian software industry has grown from a mere US $ 150 million in
1991-92 to a staggering US $ 5.7 billion (including over $4 billion worth of
software exports) in 1999-2000. No other Indian industry has performed so
well against the global competition.

The annual growth rate of India‟s software exports has been consistently
over 50 percent since 1991. As per the projections made by the National
Association of Software and Services Companies (NASSCOM) for 2000-
2001 (April 1, 2000 - March 31, 2001), India‟s software exports would be
around $ 6.3 billion, in addition to $ 2.5 billion in domestic sale.

Indian Software Industry 1995-2000 (US $ million)

1996- 1999-
1995-96 97 1997-98 1998-99 2000 2000-01*
Domestic
software Market 490 670 920 1250 1700 2450

Software Exports 734 1085 1750 2650 4000 6300

Indian Software
Industry 1224 1755 2670 3900 5700 8750

Today, India exports software and services to nearly 95 countries around the
world. The share of North America (U.S. & Canada) in India‟s software

44
exports is about 61 per cent. In 1999-2000, more than a third of Fortune 500
companies outsourced their software requirements to India.
NASSCOM‟s survey during 1999-2000 indicates a reversal in the mode of
services offered by India. In 1991-92, offshore services accounted 5 per
cent and on-site services 95 % of the total exports. However, during 1999-
2000 offshore services contributed over 40 percent of the total exports.

The NASSCOM - McKinsey report on India's IT industry

According to a NASSCOM-McKinsey report, annual revenue projections for
India‟s IT industry in 2008 are US $ 87 billion and market openings are
emerging across four broad sectors, IT services, software products, IT
enabled services, and e-businesses thus creating a number of opportunities
for Indian companies. In addition to the export market, all of these segments
have a domestic market component as well.
Other key findings of this report are:
 Software & Services will contribute over 7.5 % of the overall GDP
growth of India
 IT Exports will account for 35% of the total exports from India
 Potential for 2.2 million jobs in IT by 2008
 IT industry will attract Foreign Direct Investment (FDI) of U.S. $ 4-5
billion
 Market capitalization of IT shares will be around U.S. $ 225 billion

45
Projected Revenues – 2008 ($ US billion)

Sub
total
India India Domesti
(Intern Total 1998
Based Centric c
ational
)
IT Services 23 7* 30 8.5 38.5 2.1
Software
8 2 10 9.5** 19.5 0.6
Products
IT-enabled
15 2 17 2 19 0.4
Service
E-business 4 1 5 5 10 0.2
Total 50 12 62 25 87 3.3

Exports of $50 billion in 2008

 Legacy/client server, ERP and package work and Internet all have
different proportions of work outside India where revenues are not
export revenues.
 Resale of imported products included.

46
PROMOTION OF IT
GOVERNMENTAL INCENTIVES:

With the formation of a new ministry for IT, Government of India (GOI) has
taken a major step towards promoting the domestic industry and achieving
the full potential of the Indian IT entrepreneurs. Constraints have been
comprehensively identified and steps taken to overcome them and also to
provide incentives. Thus for example, venture capital has been the main
source of finance for software industry around the world. However,
majority of the software units in India is in the small and medium enterprise
sector and there is a critical shortage of venture capital kind of support. In
order to alleviate this situation and to promote Indian IT industry, the
Government of India has set up a National Task Force on IT and Software
Development to examine the feasibility of strengthening the industry. The
Task Force has already submitted its recommendations, which are under
active consideration. Norms for the operations of venture capital funds have
also been liberalized to boost the industry. The Government of India is also
actively providing fiscal incentives and liberalizing norms for FDI and
raising capital abroad.
Recently, an IT committee was set up by the Ministry of Information
Technology, Government of India, comprising Non Resident Indian (NRI)
professionals from the United States to seek expertise and advice and also to
step up U.S. investments in India's IT sector. The committee is chaired by
Minister of Information Technology, Government of India, and the members
include Secretary, Ministry of Information Technology and a large number
of important Indian American IT entrepreneurs.

47
The group will:
 Monitor global IT developments and refine Indian IT policy to meet
global requirements. Specifically, this will help angel investors, venture
creators and incubation;
 Promote the growth of human resource development in the IT sector
with the aim of creating quality-based education;
 Promote R&D in the sector by identifying thrust areas and drawing up
a blueprint for action.
India‟s most prized resource in in today‟s knowledge economy is its readily
available technical work force. India has the second largest English-
speaking scientific professionals in the world, second only to the U.S. It is
estimated that India has over 4 million technical workers, over 1,832
educational institutions and polytechnics, which train more than 67,785
computer software professionals every year. Government of India is
stepping up the number and quality of training facilities in the country to
capitalize on this extraordinary human resource. It is the knowledge
industry that will help take the Indian economy to a sustained higher rate of
growth and the policy makers are fully aware of this.

48
49
Infosys Technologies Limited

Public NASDAQ: INFY

Type
BSE: 500209
Founded July 2, 1981

Headquarters Electronics City, Hosur Road, Bangalore, India

N. R. Narayana Murthy (Co-founder, Non Executive

Chairman and Chief Mentor)
Key people Nandan Nilekani (Co-founder and Co-Chairman)
Kris Gopalakrishnan (Co-founder, CEO and MD)
S. D. Shibulal (Co-founder and COO)

Industry Software services

Finacle (a financial software package for the banking
Products
industry)

Services Information technology services and solutions

Revenue ▲ $3.1 billion (in FY 2006-07)

Employees 88,601 (As on December 31st, 2007)

Slogan Powered by Intellect, Driven by Values

Website www.infosys.com

50
Infosys Technologies Limited (NASDAQ: INFY) is an information
technology (IT) services company founded in Pune, India in 1981 by N. R.
Narayana Murthy. In 1983, Infosys moved its headquarters to Bangalore,
capital of Karnataka. It operates nine development centers in India and has
over 30 offices worldwide. Annual revenues for fiscal year 2006 exceeded
US$2.15 billion with a market capitalization of over US$30 billion. With
over 66,000 employees worldwide, Infosys is one of India's largest IT
companies.

History
Infosys was founded on July 2, 1981 by seven software professionals: N. R.
Narayana Murthy, Nandan Nilekani, N. S. Raghavan, S. Gopalakrishnan, S.
D. Shibulal, K. Dinesh and Ashok Arora.[2] Murthy started the company by
borrowing Rs.10,000 from his wife Sudha Murthy. The company was
incorporated as "Infosys Consultants Pvt Ltd.", with Raghavan's house in
Matunga, north-central Mumbai as the registered office. In 1983 Infosys got
its first client, Data Basics Corporation from USA.
In 1999 Infosys attained a SEI-CMM Level 5 ranking and became the first
Indian company to be listed on NASDAQ. In 2001 it was rated "Best
Employer in India" by Business Today,[3] and in 2002 Business World
named Infosys "India's Most Respected Company".

51
Timeline
 1981: Founded on July 2
 1987: First international office in the US in Fremont, California, now
its US headquarters
 1992: Became a public limited company in India
 1996: First office in Europe in Milton Keynes, UK
 1997: Office in Toronto, Canada
 1999: Listed on Nasdaq
 2000: Opened offices in France and Hong Kong
 2001: Opened offices in United Arab Emirates and Argentina
 2002: Opened new offices in Netherlands, Singapore and Switzerland
 2002: Started Progeon, its BPO (business process outsourcing)
subsidiary
 2003: Acquired 100% equity of Expert Information Services Pty
Limited, Australia (Expert) and changed the name to Infosys Australia Pty
Limited.
 2004: Set up Infosys Consulting Inc., U.S. consulting subsidiary in
Texas, U.S.
 2006: July 2, Infosys celebrated its 25 years
 2006: Became the first Indian company to ring the NASDAQ Stock
Market Opening Bell
 2006: August 20, N. R. Narayana Murthy retired from his position as
the executive chairman[4]
 2006: Acquired the 23% stake Citibank had in its BPO offshoot
Progeon, making it a wholly owned subsidiary of Infosys and changed the
name to Infosys BPO Ltd.

52
 2006: December, became the first Indian company to make it to
Nasdaq-100[5]

Key industries
Infosys serves various industries through its vertical business units, such as:
 Aerospace and Automobile (AnA)
 Banking & Capital Markets (BCM)
 Communication Service Providers (CSP)
 Resources, Energy & Utilities (REU)
 Hi Tech & Discrete Manufacturing (HTDM)
 Insurance, Healthcare & Life Sciences (IHL)
 Media and Entertainment
 Product Lifecycle and Engineering Solutions (PLES)
 Retail, Distribution & CPG
 Transportation & Services (TnS)
 Independent Validation Solutions (software testing services) (IVS)
 Real Estate
 IT Infrastructure Management services, managing core networks, data
centers, servers of clients (IMS)

In addition to these, there are a few business units aligned to clients'

geographies, such as EMEA (Europe, Middle East & Africa) and APAC
(Asia-Pacific). There is also a horizontal business unit named ES (Enterprise
Solutions), which specializes in ERP and package implementation and
works with clients across industries and geographies.

53
Initiatives
In 1996, Infosys created the Infosys Foundation in the state of Karnataka,
operating in the areas of health care, social rehabilitation and rural uplift,
education, arts and culture. Since then, this foundation has spread to the
Indian states of Tamil Nadu, Andhra Pradesh, Maharashtra, Orissa and
Punjab. The Infosys Foundation is headed by Mrs. Sudha Murthy, wife of
Chairman Narayana Murthy.

Infosys offers internship to university students from many parts of the world
through its InStep programme. Most of the interns work at Electronics City,
Bangalore. The premise of the internship is to promote the corporate brand
globally while interns gain business or technical work experience.
In 1997 Infosys started the "Catch them Young Programme", to expose the
urban youth to the world of Information Technology by conducting a
summer vocation programme. The programme is aimed at developing an
interest and understanding of computer science and information technology.
This programme is targeted at students in Grade IX level.

54
In 2002, the Wharton Business School of the University of Pennsylvania and
Infosys started the Wharton Infosys Business Transformation Award. This
technology award recognizes enterprises and individuals who have
transformed their businesses and the society leveraging information
technology. Past winners include Samsung, Amazon.com, Capital One, RBS
and ING Direct.

Open source
Infosys has contributed to various open source initiatives. Computer
scientists working at Infosys have contributed to the Mozilla community by
inventing a new browsing concept called LiveURLs.[6] Infosys has also
worked with the Linux community in adding support for the EDB9312
(ep93xx based) development board developed by Cirrus Logic in the Linux
kernel. This was later accepted by Linus Torvalds and incorporated into
Linux.[7]

55
56
Tata Consultancy Services Limited

Type Public BSE: 532540

Founded 1968
TCS House, Raveline Street, Fort, Mumbai -
Headquarters
400 001
Ratan Tata, (Chairman of the Board, TATA
Group)
S Ramadorai , (CEO & Managing Director)
K Ananthkrishnan, (CTO)
S Mahalingam, (Executive Director and CFO)
Key people N Chandrasekaran, (Executive Director and
COO)
Phiroz Vandrevala,(Executive Director and Head,
Global Corporate Affairs)
Ajoyendra Mukherjee, (Vice President and Head,
Global Human Resources)
Industry Information Technology Consulting
Services Information technology Services and Solutions

57
Revenue ▲ $4.3 billion (in FY 2006-07)
Employees ~110,000 (As on Jan 31st, 2008)
Slogan Experience certainty
Website www.tcs.com

Profile
Tata Consultancy Services (TCS) is one of the world's leading information
technology companies. Through its networked delivery model, domain-
specific expertise, a global workforce of over 74,000 professionals, and its
flexible approach to client relationships, TCS relentlessly focuses on helping
3,000 global organisations address their business challenges effectively and
stay ahead. Pioneer of the flexible global delivery model for IT services,
TCS focuses on delivering technology-led business solutions to its
international customers across varied industries. The company's vision is to
be a Global top 10 IT services company by 2010.

With over 50 global delivery centres, TCS focuses on delivering technology-

led business solutions to its customers across varied industries. Seven of the
top 10 corporations in the Fortune 500 list of the largest corporations in the
United States work with TCS. TCS offers a comprehensive range of IT
services to clients in diverse industries, such as banking and financial
services, insurance, manufacturing, telecommunications, retail and
transportation.

58
TCS' ability to deliver high-quality services and solutions is unmatched.
Since its inception, TCS has been investing in process improvements that are
now recognised as the benchmark of excellence in software development. It
became the world's first organisation to achieve enterprise-wide 'Maturity
level 5' on both CMMI® and P-CMM®, using the most rigorous assessment
methodology, SCAMPISM. TCS' integrated quality management system
(iQMSTM) integrates process maturity, people maturity and technology
maturity through the practices and standards of various established
frameworks and models, including IEEE, ISO 9001:2000, CMMI, SW-
CMM, P-CMM and Six Sigma.
TCS continues to invest in new technologies, processes, and people who can
help its customers succeed. From generating novel concepts through its
innovation labs and university alliances, to drawing on the expertise of key
partners, TCS keeps customers operating at the very edge of technological
possibility.
In the fiscal year 2005-06, TCS reported consolidated revenues of USD 2.97
billion. The company is listed on the National Stock Exchange and the
Bombay Stock Exchange in India.

Industries
TCS helps enterprises across industries solve complex problems, mitigate
risks, and become operationally excellent. TCS works across the following
industries:
 Banking and financial services
 Energy and utilities
 Government
 Healthcare and life sciences

59
 Hi technology
 Insurance
 Manufacturing
 Retail
 Telecom
 Travel and hospitality

Areas of business
TCS helps enterprises stay agile and respond better to changing market
conditions by optimising business processes, making their IT infrastructure
resilient, and ensuring faster business results. TCS' services include
consulting, IT services, business process outsourcing, infrastructure
outsourcing, and engineering and industrial services.
TCS' consultants provide services and solutions to customers across
industries and business areas such as banking, financial services, insurance,
telecom, manufacturing, media and entertainment, retail and consumer
goods, transportation, healthcare and life sciences, energy and utilities, and
s-governance.

IT services: From providing system integration solutions, application

development and management services, and testing solutions, TCS helps
companies make the most of their IT investments. TCS offers application
development and maintenance services over the entire IT application
lifecycle, including migration and reengineering, e-commerce and internet
services, testing services, architecture and technology consulting, systems
integration, as well as packaged software implementation across multiple
industry and technology domains.

60
IT infrastructure: The company offers services that include complete
outsourcing of IT networks, consulting and integration, hardware support
and installation, and infrastructure management.
Asset-based solutions: TCS utilises its proprietary software assets to deliver
solutions to clients in specific industries and has licensed several software
intellectual property rights. Besides providing IT solutions to its clients, TCS
develops and markets a variety of products across diverse industries. It has
developed products such as the Hospital Management System, eIBS, NCS,
FIG and Quartz™ for the banking and financial services industry, CemPac
for the cement industry and also software development tools such as
MasterCraft™, Assent, DataClean and Infrex.

Engineering and industrial services: Using best-in-class technologies,

processes, and competencies, TCS helps enterprises realise their product
development, production management, and asset management strategies.
TCS offers a range of engineering services, embedded software and R&D
services to diverse clients, assisting in new product development and product
lifecycle management through services in the areas of product design,
simulation, engineering drafting, computer-aided engineering design and
manufacturing, product data management and customisation of engineering
software.

Consulting: One of the first companies to set up an independent consulting

division, TCS today includes consulting as an integrated part of any
assignment to its customers in different industry segments. By optimising
business processes, aligning IT with their business needs, supporting IT

61
operations, and designing effective risk management strategies, TCS helps
enterprises transform the way they do business.
Infrastructure outsourcing: TCS partners with enterprises to help them
make their IT infrastructure flexible, scalable and secure, while maximising
performance.

BPO: TCS works with enterprises worldwide, helping them focus on their
core business while accelerating the outsourced operations, ensuring round-
the-clock service delivery. TCS offers a variety of transaction-based IT-
enabled services. These include inbound call centres, back office support,
engineering services and database services. TCS' focus in this space is on
transactional services, 24x7 for client needs from various geographies,
ensuring business continuity and disaster recovery.

Collaborations
TCS increases the diversity of its offerings through strategic alliances and
joint ventures with global leaders in technology and e-business, such as
IBM, Netscape, Microsoft, SAP, Oracle, Compaq, etc. TCS is also a founder
member of the Internet Security Alliance (ISA) and a member of the
Universal Description, Discovery and Integration project (UDDI), through
which it works with world technology leaders to enhance internet security
and usability.

62
Joint ventures and subsidiaries

CMC: TCS has business synergies with CMC, especially in system design
and engineering, infrastructure management services, third-party equipment
supply, and hardware maintenance. An end-to-end solutions provider, CMC
is one of India's leading computer networking, facilities management and
maintenance companies (www.cmcltd.com).

InnovaTV Inc: InnovaTV offers solutions using products built around

streaming media. These products include eVOLV, an e-learning solution for
corporate training; RSVP, which allows hospitals in remote locations with
no specialist on site to obtain a second opinion on echo-cardiograms and
sonograms; and SAMVAD, which enables remote capture and processing of
video over the web for production and distribution of video news
(www.evolv.innovatv.com).

CONSCRIPTI (proprietary): Conscripti provides information

management consultancy services to South African clients in those areas
where such skills and expertise are not available in South Africa.

BPO subsidiaries
Aviation Software Development Consultancy (ASDC): ASDC was
incorporated in 1995 as a joint venture between Singapore Airlines and Tata
Sons to develop and maintain software for the aviation industry. Its clients
include Emirates and Singapore Airlines (www.asdc.co.in).

63
WTI Advanced Technology: A joint venture involving Westinghouse
Electric Corporation, USA, Tata Sons and International Finance
Corporation, USA, WTI provides engineering services such as geo-spatial
information technology services, CAD/CAM services for engineering
applications and data conversion services. Its clients include British
Telecom, Qwest, GE, AT&T, Concert, Mississippi Valley Gas and Northern
Utilities (www.wtiatl.com).

Airline Financial Support Services: This fully-owned subsidiary renders

revenue accounting services to Swissair, Austrian Airlines, Sabena, Lauda
Air and Air Europe. It has now diversified into Qualiflyer support services,
distribution support services, navigation support, etc. AFS focuses on the
areas of airline revenue accounting, logistics management, airline fares
solution, traffic accounting, passenger interline billing, frequent flyer
programme administration, navigation support, and customer care and
analytics. Its other clients include Malmo Aviation, Loyalty Gate, Singapore
Airlines, SN Brussels and UnitPool (www.airlinefinancial.com).

TCS Business Transformation Solutions: TCS Business Transformation

Solutions, acquired by TCS in June 2004, is a total transaction service
provider, delivering insurance solutions that encompass information
technology, business process outsourcing and customer care services to
support business transactions in the insurance domain (www.tcs-bts.com).

64
Research and development

The Tata Research, Development and Design Centre (TRDDC), the R&D
wing of TCS, focuses on applying science and technology research to
industrial and social applications. TRDDC studies, invents and improves
leading-edge technology tools and engineering techniques and applies its
intellectual property to TCS' worldwide commercial projects. TRDDC's
strength lies in its interdisciplinary team of professionals in key areas such
as process engineering, tools and technologies and software R&D. There are
currently over 700 professionals working on dedicated R&D in TCS.

TCS has set up the Advanced Technology Centre (ATC) in Hyderabad. It is

part of the corporate R&D activity of TCS, and complements the R&D
activities undertaken by TRDDC. ATC carries out R&D in several areas
broadly related to secure communication, encryption and associated
activities. It has designed a complete public key infrastructure (PKI) for
issuing digital certificates, generation and verification of digital signatures,
and other related aspects of secure transactions.

Locations
TCS is headquartered in Mumbai, and operates in more than 50 countries
and has more than 170 offices across the world

65
66
SWOT ANALYSIS

SWOT (strength, weakness, opportunity & threat) analysis of Infosys

Technology Ltd.

Strengths

 Integrated manufacturing allowing cost efficiencies and enhanced

speed to market.
 Lower capital investment, manpower and overhead costs allow cost
leadership.
 Strong focus on R&D and engineering to constantly innovate products
and reduce costs.
 Committed shareholders add strength, longevity and sustainability to
future plans.


Weaknesses

 Need to scale up operations and evolve internal controls to meet

exponential growth.
 Need to constantly expand capacities, requiring continuing capital
investment.

Opportunities

 Exploding DVD-R market: With world-class capacities, existing top-

tier customer base and efficient in-house technology, the Company is well
positioned to tap this opportunity.

67
 Domestic market: India has one of the largest movie industries in the
world and customers are shifting to CDs for audio and DVDs for video
requirements.
 Blu-ray/HD-DVD: Efforts are on worldwide to define and develop the
next-gen storage format and Moser Baer is part of that effort.

Threats

 Emerging technologies: In a dynamic technology environment, the

Company‟s business could be threatened from more efficient emerging
technologies. However, the extent of the threat is mitigated by the
explosive growth in digital content, low cost and ease of storage on
optical media, the huge installed base of read/write drives and time to
market for a new format.
 Anti-dumping and anti-subsidy levies: The Company derives a
significant part of its revenues from international markets. These have
seen a growing protectionist attitude and a tendency by some local
governments to use anti-dumping and trade protection tools to provide
protection to local businesses. However, the Company continues to keep
a close watch on this front and take necessary steps to minimize any
fallout.

 Fall in product prices: As products move into the mature phase in their
life-cycle, they start to emulate commodity-type characteristics. Also, as
the industry is characterized by high volumes, large capacities and
investments, a sharp reduction in product pricing can impact
performance. Pricing could fall due to oversupply, low demand, cost

68
 reduction due to reduction in input costs or setting up of capacities in
low-cost regions

SWOT ANALYSIS
SWOT (strength, weakness, opportunity & threat) analysis of Tata
Consultancy Services Limited

Strengths

 Premium pricing
 Focus on technology & quality
 In-house manufacturing facility
 Product design

Weaknesses

 Low quality as compared to other brands

 Little presence in “A” class area

Opportunities

 Large market potential

 Wide production portfolio
 Consumer willingness to change brand.

Threats

Highly competitive market, therefore, a stiff competition from domestic and

other multinational companies.

69
70
Market share of major IT companies

PATNI,
0.66, 4%
HCL, 4.7, HCL
WIPRO, 30% INFOSYS
3.47, 21%
TCS
TCS, 4.3, INFOSYS, WIPRO
26% 3.1, 19% PATNI

71
72
A VISION FOR INDIA
Technology Information, Forecasting and Assessment Council (TIFAC), an
autonomous organization under the aegis of the Department of Science &
Technology (Govt. of India) plays a vital role in technology development
and promotion in India through its various programmes.

Technology Vision: 2020

TIFAC embarked on a major long-term technology forecasting and
assessment exercise - Technology Vision: 2020 on the national level
encompassing various technology areas. A detailed survey of key areas in
major infrastructure, advanced technologies and technologies with
socioeconomic implications was taken up. In a span of two years, over 5000
area experts from the industry, Government, R&D agencies and academia
were brought together for a thorough survey of shared opinion in select
areas.

Concerted action-plans were formulated on short, medium and long-term

basis up to 2020 AD and seventeen key technology areas of prime
importance to the country were addressed; around 1 00 sub-sectors were
covered for specific details. The exercise was carried out in the backdrop of
a complex and heterogeneous social milieu of India and thus a country
specific vision emerged.

The Task Forces were constituted for seventeen areas. Each Task Force was
headed by a Chairperson and comprised of a Go-Chairperson, Coordinator
and panels of experts looking at major sub-areas covered.

73
The typical technology forecasting techniques like brain-storming, scenario
writing, Delphi, nominal group techniques (NGT) etc. were adapted to some
extent for the exercise to bring out the vision. The perspective/scenario
reports of the panels, Delphi responses; NGT rankings were formed as the
basis to arrive at suggestions for policy guidelines, strategies and action-
plans for Government, NGOs, industry, R&D institutes and academia to
realize the vision for India for 2020 AD.

While Technology Vision : 2020 exercise covered classical technology

sectors like Agro- Food Processing, Chemical Industry, Engineering
Industry, Electronics etc., this article focuses on Services sector due to its
immense potential for value-addition and employment generation. The
services sector draws heavily on Information Technology (I1) for its
advanced applications.

Services Sector
Services the 'tertiary sector' of the economy covers a wide gamut of
activities like trading, banking & finance, infotainment, real estate,
transportation, security, management & technical consultancy among several
others. The contribution from services sector today stands over 40 per cent
of the total GDP in India. The sector currently employs close to 20 million
people in India. The TIFAC study on Services covered nine select sub-
sectors ranging from advertising, HRD services, testing & certification to
Government administration
.
For all the aforesaid areas IT plays the prime role in information processing,
storage & access with a view to providing improved services to the

74
consumers. Some of the typical IT applications in major services sector are
outlined in the following sections.

Financial Services
Financial services have been the major users of IT and communication
technologies. IT expenditure by US banks has recorded a compounded
annual growth rate of 8.4 per cent. The Management Information System
(MIS), distributed computing devices, open systems, high-speed data
networks (LAN, NIAN, WAN, ISDN etc.), RDBMS have been important
development milestones in IT with ma or impact on financial services.

The development of optical fiber has greatly improved the communication

speed, anticipated to touch 2 trillion bits per second eventually. Packet
switching transmission method like asynchronous transfer mode achieving a
speed upto 622 million bits per second have been the major breakthrough in
communication technology. CD-ROMs with storage capacity of 1.6 GB of
data have been instrumental in fast information retrieval and access. Use of
multimedia for storage of text, graphics, video, sound etc. has immensely
benefited the information storage system. All these technologies are used
extensively by the banking and financial services sector.

Automated Teller Machines (ATM)

ATMs though operational in the country for quite some time, are expected to
make a big head-way in India. It has been estimated that there are around
400,000 ATMs worldwide out of which 100,000 are located in Japan alone.
The latest generation networked ATMs allow the user to perform upto 150
kinds of transactions ranging from simple cast withdrawals & deposits, to

75
fund transfer to trading in stocks to buying mutual funds to something
mundane like payment of electricity bills, booking air-tickets and making
hotel reservations.

ATMs are synonymous with credit cards - 578 million credit cards issued
worldwide were involved in a transaction of US $ 1092 billion by June,
1993. India is poised to become one of the world's largest credit card users
by 2000 AD.

'Virtual' Bank
Multimedia technology has been quite effective 'm bringing the banking
services to the door-step of its customers. The Customer Activated Terminal
(CA]) or Kiosk is an interactive multimedia display unit, housed in a small
enclosure, typically consisting of a computer workstation, monitor, video
disk player and a card reader. It allows the customers to browse through
information and use the available banking services at their own speed. Some
banks are thinking of establishing 'virtual' branches where a customer can
walk through the door; explore services by touching parts of the screen and
at any time call up a member of the bank staff by video conferencing. While
the banks do not need to invest heavily in real estate for setting up such a
branch, the customer gets the benefit of 'one-stop banking' at a convenient
location.

Home Banking
Smart phones with screen built-in modems and programmable
microprocessors let the customer access a variety of financial services from
home.

76
Electronic Funds Transfer at Point of Sale (EFTPOS)
While travelers‟ cheques meant 'pay-now-buy-later’ and credit cards had
'buy-now-pay-later’ advantages, EFTPOS or debit cards signify 'buy-now-
pay-now' but without cash transaction. The user presents his ATM card
when he buys goods and the EFTPOS system immediately debits his bank
account.

Smart Cards
The 'processor' type Smart Cards with in-built integrated circuits (ICs) or
micro-chips offer a wide range of transactional opportunities even from
remote areas. The Smart Cards are extensively being used for employee
'clocking in', withdrawing cash from ATM, using pay-phones, payment of
various bills etc.

Electronic Data Interchange (EDI)

EDI typically denotes paperless financial transactions across the locations.
EDI is fast becoming the norm for inter-company transactions and also for
procurement of bought-out items from the suppliers. The companies can
now operate their bank accounts through corporate banking terminals in
their own offices which are linked to the bank computers. Companies can
thus carry out transactions like transferring funds, managing its cash flow,
opening Letters of Credit etc. without any paper work. Singapore has
established Trade- Net to facilitate electronic submission of trade documents
by traders to various Govt. agencies and the response of these agencies to
the sender. It has reduced document processing time from one day to 15-30
minutes and the estimated savings are of the order of $ 1 billion annually.

77
Image Processing
As financial services including capital markets and banking are highly
document intensive, image processing technology can have a far reaching
impact for such applications for its 'less paper' handling characteristics.

In banks, image technology could be used for automatic identification or

character recognition to read text and diagram wherein the cheques or
documents can be scanned.

Expert Systems
The financial services sector is increasingly using decision support systems
(DSS) or expert systems for functions such as credit risk appraisal,
forecasting loan delinquencies, investment decisions etc. One of the most
promising developments in this field is the use of 'neural network' approach
to build an expert system which lets the software literally learn from
example and experience. Several banks today are using neural network
programmes to detect credit card fraud. It is also being used by some leading
investment banks to track stock price patterns and predict their movements.

Information Technology & Financial Services : Key Issues

While the technological possibilities of IT may be unlimited, their
applications and adoption in India need a conscious approach towards
Business Process Reengineering of existing practices and procedures to take
the fullest advantage of IT. Continuous training & skill upgradation of
human resources assume critical importance towards absorption of new
technologies.

78
The elimination of manual records, the introduction of electronic fund
transfer, ATMs etc. raise the important issue of security and integrity of
data. This includes issues relating to confidentiality of information,
preventing data corruption and prevention of fraud. Appropriate
technologies for encryption of data for secured transaction, regular &
multiple backups, extensive use of passwords and other forms of
authorization would need to be adopted.

For paperless and electronic financial transactions in India, a host of legal

aspects need to be looked into. As in case of EFT, a cheque is not required to
be presented physically for making payment as per the current practice. Also
the legal liabilities of banks and customers in case of loss of ATM cards,
ATM frauds etc. are not quite understood in the present system. The
adoption of new technologies would warrant a thorough review of the
system towards changed legal stipulations.

Finally, the most important aspect of costs involved and benefits expected
need a closer scrutiny. Expenditure on IT has always not been in tune with
the returns envisaged. The American example of spending US $ 100 billion
on IT applications in financial services during 1970-80 has been a pointer.
With 100 per cent more expenditure on IT per worker, it increased
productivity by only 0.7 per cent per year. Hence, proper implementation
programme and technology management aspects assume much importance.

79
Advertising, Media & Infotainment
The areas of advertising, media & infotainment are interrelated and their
growth & momentum are closely linked with economy, demography, life-
style and simultaneously with technological innovations. The levels of
literacy and poverty alleviation also have direct bearing on mass media. And
again IT applications would have far reaching impact on these services
sectors.

80
INTERNATIONAL SCENARIO:-

The Deloitte delphi survey of more than 100 industry executives

(comprising Chairmen/ Presidents/CEOs, VPs, Directors/Managers) from
telecom, broadcasting & cable TV, consumer electronics, computer industry,
publishing & advertising agencies in USA has predicted the following future
scenario:
 40 per cent of the key residential & business markets across the USA
would be served by cable TV network based on optical fiber
 Most popular mass market services as expected –
1. Movies & music on demand
2. Home shopping
3. Video games via network
4. Participatory TV
 Distinction between telephone and cable entities are expected to
become blurred
 Direct broadcast satellites (DBS) would emerge as a potent delivery
factor
 Affordable mass market for multimedia products & services are
predicted by 1998 - 2000 time-frame Potential new products
1. PCs for scheduling appointments or displaying an electronic
book
2. Digital camera for still photographs stored on disk for viewing
& editing
3. Multimedia CD Player desired as a compact disk attached to a
TV

81
Internet has already revolutionized the media & advertising scenario all over
the world. The companies in USA had spent US $ 70 million in 1993 (that
was easily doubled in 1994!) for advertising in the Internet. Internet usage is
growing @ 15 per cent a month, that's 435 per cent a year! Currently more
than 200 magazines are available online in USA. Time, Money and
Entertainment Weekly provide W-text articles through their home-pages in
the Internet. Newsweek on Prodigy enables advertisers use high quality
graphics, video and sound. It is expected that 30-50 per cent of the
magazines' earnings are from the advertisement whereas download fees from
the users provide the rest.

The commentators have predicted some more interesting technological

innovations. The most important of them all is interactive television; this is
expected to be available by another ten years in advanced countries. This
would provide the impetus for user controlled 'on demand' interactive
advertising services. The interactivity reduces the time gap between image
advertising and tactical promotions. Interactivity further allows the
advertisers to target or address the audience with absolute precision. It is
expected that 55-60 per cent of US households would be served by
interactive networks by another ten years.

82
FUTURE SCENARIO FOR INDIA

Television would forge ahead with its domineering role in mass media
relegating the print media much behind. With more and more channels
getting available coupled with strong emergence of cable networks for
localized programmes, TV would pave the way for multi-million
entertainment, advertisement & allied business. While rural sector would
account for nearly 50 per cent of TV ownership, it is predicted that not more
than two- thirds of all the households across the country would own a TV by
2020. TV (including satellite and cable transmission) would account for 40
per cent of advertisement outlays in 2020 against 22 per cent at the current
level.

Online electronic newspapers may become a reality in India with the

advances in telecom services but such dramatic changes are unlikely for at
least another five years. Steep rise in input costs, declining advertisement
support (anticipated reducing by 20 per cent) and shortage of trained
manpower would pose major threats to the newspaper industry.

Multimedia technology enabling simultaneous exchange of voice, text &

data would prove to be a major medium of advertisement. Adspend on
multimedia is expected to be around 5 per cent by 2000 and to reach 12-15
per cent by 2020 AD. Ultimately the market would see an increase from
Rs.350 million to Rs.120-150 billion by 2020. Around 50-75 million
households are expected to be potential users of multimedia by 2020.

83
This article attempts to touch upon the emerging IT applications in a few
select services sectors. The TIFAC study covers in details the IT aspects in
diverse sectors like Marketing, Logistics & Distribution, and Technical &
Management Consultancy to even in the Government administration.

The services sector covers a vast range of occupations involving

comparatively little capital investment leading to gainful employment and
has a very good potential for export revenues. The sector calls for continued
induction and infusion of knowledge-based technologies with cutting edge
applications of information technology. With the highly skilled manpower
and excellent entrepreneurship qualities, India can truly emerge as a 'global
player' in the services sector.

84
85
ISSUES FACED BY THE KNOWLEDGE INDUSTRY IN NCR

1. Government Initiative
Lack of policy support taken by the government to promote IT.The southern
state governments have provided several inducements and benefits to the IT
industry.
• Lack of proactive government policies
• Lack of promotional measures taken by the state governments
• Agencies and departments under the state governments function
as water-tight compartments.

2. Inadequate infrastructure
• There is a huge and growing demand - supply gap in the power and
electricity sector
• The telecom facilities are lacking, compared to the southern states of
Hyderabad, Bangalore and Bombay
• There has been a lack of comprehensive projects along the lines of
the ITPL Park in Bangalore and Hi tech City-Hyderabad
• There is a lack of quality infrastructure
• Lack of Residential facilities/townships for knowledge professionals,
and need for a sound social infrastructure

3. Need for a knowledge corridor

• Though there have been concrete steps taken in the field of education
such as the establishment of IITs and IIITs in the region, there is a need for
establishing more institutes imparting technical education and training, such
as the IIS in Bangalore and RECs in the south

86
• There is a need to establish specialized finishing schools which churn
out industry ready professionals.

4. Support for SMEs and entrepreneurs

Though the number of SMEs and entrepreneurs is high in the region, the
contribution to exports by this segment is quite low
• Lack of infrastructure support being offered of entrepreneurs
• Lack of economic support offered to SMEs.

5. Other Important issues

• Bureaucracy and red Tapism
• No local calling from Noida - Gurgaon/other areas in the region
possible
• Restricted movement of goods and labor between borders.

87
88
LIMITATION : -
The study had the following limitation mainly in the survey work that was
done..
1. The survey sample is only from a small geographical area, Managers in
Gurgaon & Delhi. This may result in the sample not being true
representation of the NCR region.
2. While all attempts have been made to keep the survey free of the bias.
There may be bias introduced in a few interviews.
3. The survey was limited to few Managers, which form only a part of the
NCR region, and also consider people who belongs to the NCR region.
4. Research is restricted in NCR region

89
90
CONCLUSION

 NCR alone accounts for over 35% of the total FDI inflows into India
 Distribution of software companies in NCR

call centres

back up/data
conversion
5% 14% re engg &
migration
30% image
18% processing
e-commerce &
6% web
3%
18% 6% system
software
application
software
others

 NCR region-advantages
 High per capita incomes
 Conducive investment climate
 Educated workforce

91
  Geographically well connected
 Advanced Infrastructure-telecom,roadways, power
 Proximity to central government
 Availability of finance/VC funding

 The NCR region Leading the IT revolution

 The NCR region has emerged next only to Bangalore as the IT hub of
the nation.
 The NCR region has been ranked as the number one destination in
terms of overall investment rankings, as per a study conducted by CII.

Noida has come along way , from being a satellite township of Delhi
housing retired military personnel to being the hub for IC design companies,
and MNCs dealing in software and IT services.

Gurgaon is fast emerging as a call center hub, with several large companies-
GE, Daksh operating on a large scale, besides being home to many software
and IT enabled services companies.

92
93
RECOMMENDATIONS:-

1. Infrastructure
• Construct more expressways/highways to facilitate free movement of
labor and goods in the region
• Improve the transportation within the cities, to facilitate easier
movement
• Establish a sound social infrastructure such as hospitals and schools
• Establish more IT promotion parks and export promotion zones,
complete with residential facilities and high speed data connectivity and a
strong telecom backbone

2. Education
• Promote higher education and specialized training facilities in NCR
like IIITs, IITs in the region,emphasizing on quality training
• Increase the no. of technical courses being offered at universities, such
as the BIT and BCA courses
• Encourage more industry interaction among educational institutions

3. Employment
To generate more employment in the IT sector and other ancillary industries,
by promoting IT and thereby indirectly creating employment in several areas
• One job created in the IT sector creates 15 more jobs in allied sectors
• IT helps bridge the gender divide
• Part time employment opportunities are created and TELE-
WORKING is made possible through IT

94
4. Single Economic Zone
The NCR region should be promoted as a single economic zone, with free
movement of labor, capital, goods, and uniform and centralized laws for
land ownership, licensing, taxation

5. Incubation facilities
There is a need to promote SMEs by providing them with comprehensive
incubation facilities, thereby doing away with the need for initial heavy
investments in infrastructure

6. E-governance initiatives
The government needs to bring in e-governance as a way of functioning, and
have a suitable action plan in place.

7. Economic support
SMEs need more economic benefits/incentives and adequate VC funding

8. Better coordination among state governments

Need for more coordination among the various state governments under the
NCR region with respect to a uniform policy

9. Other knowledge industries

Need to promote other knowledge industries such as biotechnology and IT
enabled services

95
10. Law and Order
To improve the law and order situation in the NCR region. To work towards
a safe and secure environment, thus facilitating working in late night shifts ,
and ensuring more participation from women

11. Work Culture

Work towards improving the work culture in the region, and to bring about
more professionalism

96
97
 QUESTIONAIRE

1) Experience with Access to Computers:

at home  at University  at campus  at college 

2) I have used computers to

games homework  Internet  E-mail 

3) I am familiar with:
windows  unix  www  vista 

4) Have you used electronic Library / bibliographic reference systems/ data

bases?
yes no

5) Mark those expressions which, at this point, best describe your feelings
about the use of electronic technology in this class:
entertaining  exciting time saving 
time consuming motivating, 

6) Governtment may provide the better facilities to the IT companies in the

NCR region.
Yes  No

7) It is easy to established IT companies in the NCR region.

Yes No

98
8) Higher competition exist between the IT companies with in the NCR
region.
Yes No

9) I used computers in
elementary  junior high/middle  high school 

10) In which situations you have used electronic mail before this week
a question by E-mail 
for job 
business-related matters 
for "general chats" 
keeping in touch with some friends or family

11) From the following list, mark all the situations in which you have used
the Internet (incl. E-mail):
to read news group 
to transfer files 
to download files or graphic images
to participate in online discussion groups 
to browse the World Wide Web (WWW) 

Contact Person‟s Name:

Designation:

Phone: `

99
100
BIBLIOGRAPHY

Books Consulted:
 Kothari, C.R. “Research Methodology”, (2005), Wishwa Publication
 Kotler, Philip “Marketing Management” (2006),Pearson Education
(Singapore)
 Kalakota,”Fontiers of electronic commerce”,(2002)pearson
education(Asia)
Magazines:
 Yozana (2007)
 E-Business(2007)
 Infosys magazines 2007)
 TCS magazines (2007)
News papers:
 The Times of India
 The Economics Times
 The Hindustan Times
Web Sites visited:
 www.indiainfoline.com
 www.infosys.com
 www.google.com
 www.indiatimes.com
 www.tcs.com

101