ACKNOWLEDGEMENT

It is a matter of great privilege & immense pleasure to be

sited by an esteemed organization INDIA INFOLINE LTD.
For the development of project database I feel a deep sense
of gratitude.
- To Mr. Anuj Bhargava (Sales Manager, IIL)
that in spite of his busy schedule he gave me personal
attention & guidance at every stage without which the
project could not have taken concrete shape.

- I am also thankful to Colonel Sudhir Mehta (Dean, ISBM),

Ms. Ankita Jain (Coordinator B.B.A.) and Ms. Ritu Dixit for
proper guidance and assistance for undertaking the project in
INDIA INFOLINE LTD.

(ANIRUDDH MATHUR)

Dated:

1|Page
 PREFACE

The report is an outcome of training undertaken at the

INDIA INFOLINE LTD., JAIPUR.
Training aims at imparting practical exposure of the working
environment of an organization and theoretical aspect of IT
Sector.

Summer training is a part of curriculum of the

Bachelor of Business Administration under the aegis of
University Of Rajasthan. In compliance with that Gyan Vihar
Universe as made it compulsory for all of its management students
to undergo such training.

The project assigned to me by the INDIA INFOLINE

LTD., JAIPUR was an Overview of IT Sector. More specifically it
is about research on finding out strengths, weaknesses,
opportunity and threats to the IT Sector.

The project is an upshot of my sincere efforts and I affirm that the

findings in the report are independent & correct to the best of my
knowledge & belief. I sincerely hope that this report would prove
to be useful to the organization & to all students of management.

2|Page
 TABLE OF CONTENTS

Page number

1. Acknowledgement ………………………………………….1
2. Preface ……………………………………………………....2
3. Executive Summary …………………………………………4
4. Objectives Of The Report……………………………………6
5. Introduction to India Infoline………………………………..8
6. About India Infoline Ltd……………………………………..9
7. India Infoline Business model………………………………11
8. India Infoline Corporate structure………………………......12
9. Management hierarchy at India Infoline Ltd………………..14
10. Types of Depository Participant…………………………...16
11. Diagrammatic Representation of Online Trading
Network…………………………………………………….18
12. IT Companies – a Brief with e.g.…………………………...20
13. SWOT Analysis of Indian IT Sector……………………….33
14. Findings & Conclusion..........................................................44
15. Recommendations.................................................................46
16. Appendix – Bibliography......................................................47

3|Page
 EXECUTIVE
SUMMARY

EXECUTIVE SUMMARY
4|Page
The objective of the project was to find out the Strengths,
Weaknesses, Opportunities and Threats. To execute the study I preferred
to understand the same through internet.

After undergoing the training about the “know-how” of the products and
the company features, I started collecting data majorly through internet &
reading tabloids. This doesn’t required preparing any questionnaire. My
primary aim was to find out the reasons that made IT sector so popular.

The study recognizes that emergence of a strong IT industry happened due

to concerted efforts on the part of Government, particularly since 1980s,
and host of other factors like Government- Diaspora relationships, private
initiatives, emergence of software technology parks, clustering and public
private partnerships. In this study we further look at major parameters of
the Indian IT industry and give justification for including the main factors
responsible for the IT boom in India. The study has looked into the past
and present trends of the Indian IT industry that acted as catalyst for Indian
IT sector growth.

5|Page
 OBJECTIVES OF
THE
PROJECT

OBJECTIVES
6|Page
  To understand & analyze IT Sector’s growth formula

 To clearly point out and justify IT Sector’s

- Strengths
- Weakness
- Opportunities
- Threats
 To make an attempt to peep into IT/ITES (BPO)
sector’s history right from its origin in Indian Economy.

 To understand factor that stimulate IT/ITES sector growth.

 To analyze underlying growth catalysts of Indian IT/ITES

sector.

7|Page
 INTRODUCTION
TO
INDIA INFOLINE
LTD.

8|Page
  Incorporated on October 18, 1995 as Probity Research &
Services by a group of professionals

 Launched Internet portal www.indiainfoline.com in May

1999 – Rated as “Best of the Web” by Forbes

 Promoted by Mr. Nirmal Jain and Mr. R. Venkataraman

 Launched 5paisa.com – revolutionized brokerage rate

 Largest distributor of ICICI Prudential Life Insurance

 Our Rs. 900 million public issue was oversubscribed 7.22

times

 Listed on NSE and BSE on May 17, 2005

 Today, we are one of the fastest growing company in the

financial services space

A LEADING FINANCIAL SERVICES INTERMEDIARY

9|Page
Our businesses

 Equities and commodities broking

 Portfolio and Wealth Management services

 Investment banking

 Distribution of Life Insurance products

 Distribution of Mutual funds, Fixed Deposits, RBI Bonds and

Small Savings among others

 Distribution of Mortgages and other Loan products

Business model
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11 | P a g e
DIAGRAMMATIC REPRESENTATION
Of
CORPORATE STRUCTURE
Of
INDIA INFOLINE LTD.

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13 | P a g e
 MANAGEMENT
HIERARCHY AT
INDIA INFOLINE
LTD.

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 Management Hierarchy at IndiaInfoline Ltd.

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 TYPES OF DEPOSITORY
PARTICIPANT

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 TYPES OE DEPOSITORY PARTICIPANT

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 DIAGRAMATIC REPRESENTATION
Of
ON-LINE TRADING NETWORK

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 Satelite

Hub antenna

Broker's Premise

NSE's
Mainframe

ONLINE TRADING NETWORK

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 (Information Technology)IT Companies
- A Brief

Information Technology
20 | P a g e
The organizations which manufactures such software’s that help each &
every company to use raw data with its full meaning at the right time in
order to grab the opportunities for its growth & development.

All the listed IT Companies at BSE are well-known as Blue Chip

companies. There are many such examples like Tata Consultancy Services
(TCS), Wipro, Infosys, etc.

• Ranked 2 in 2005by
NASCOMM
• Incorporated – 1991
• Revenues – USD 2.04Bn
• 52,700 employees.

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 IT MAJOR’S PROFILE
-BRIEF

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 TATA CONSULTANCY SERVES (TCS)

Profile
Tata Consultancy Services is an IT services, business solutions and outsourcing
organization. The company offers consultancy in IT and IT-enabled services delivered
through its unique Global Network Delivery Model TM

Established in 1968 in Mumbai, TCS now has over 111,000 IT consultants in over 50
countries. The company is listed on the National Stock Exchange and Bombay Stock
Exchange in India.

Areas of business
TCS has experience and expertise across industries — banking and financial services, life
sciences and healthcare, insurance, government, travel, transport and hospitality retail,
high technology, telecommunications, energy and utilities.

• IT services: Providing system integration solutions, application development,

management services and testing solutions.
• Business solutions: Comprehensive strategies and solutions that enable
customers to overcome their business challenges.
• Outsourcing: Scalable services and program me’s that help to optimize discrete
functions and manage entire business solutions and service areas at reduced costs
and risks.
• Consulting: Defining business goals, devising strategies, implementing solutions
and verifying the effectiveness of these solutions.
• Business process outsourcing: Adding value through industry specific offerings,
cross industry shared services and platform-based solutions to bring in process
improvements and process automation.
• Engineering and industrial services: Profit impacting innovative solutions for the
manufacturing sector — aerospace, automotive, hi-tech, industrial machinery,
utilities, pharmaceuticals, etc — to enable companies to achieve engineering
excellence and operational efficiency.
• Business intelligence and performance management: Business activity
monitoring, business process and performance management, and knowledge
discovery and management.
• Enterprise solutions: Managing supply chains, devising CRM strategies,
deploying ERP solutions, integrating enterprise-wide functions, etc. TCS expertise
spans enterprise product platforms, supply chain management, master data
management, customer relationship management, RFID, call management and e-
learning.
• IT infrastructure services: IT service desk, data centre management, end user
computing services, application management services, command centre services
and managed security services.
• Full service offerings: Integrated services across consulting, IT services, BPO,
engineering services, business and enterprise solutions, etc.

23 | P a g e
 • Innovation catalyst: TCS has set up innovation labs that work in new technology
areas and attempt to achieve breakthroughs in new products and standards. Areas
include next generation software processes, human-computer interface,
bioinformatics, nanotechnologies, embedded solutions, grid computing, utility
computing and other technologies. TCS has also set up the Co-Innovation Network
– an IT innovation ecosystem that includes representation from strategic corporate
alliances, start-up companies, academic institutions, venture funds and multi-lateral
organizations. The aim is to develop solutions for collaborative innovation and
management of intellectual property.

Share market Position

Tata Consultancy Services (TCS) on March 16, 08 displaced IT major, Infosys Technologies in
market cap ladder to clinch the fourth position with market cap of Rs 87,760 crore. TCS share price
has risen by 9.48 per cent to Rs 1,830 on BSE between January 10, 2006 and till March 13, 2006.
TCS on March 16 was 1.5 times more than the average volume during the last 2 months.

Tata Sons Ltd, the holding company that runs Ratan Tata's industrial empire, is planning to raise $2
billion (Rs 9000 crore) by offering a part of its holding in information technology leader Tata
Consultancy Services (TCS) through a listing in the US market. TCS is planning to do a
sponsored ADS issue on the US bourses in the near future, where Tata Sons, as a promoter, will
offer part of its own holding of domestic shares for conversion to American shares.

This would be the first sponsored issue by TCS, India's largest software exporter, outside India.

TCS has a current market capitalization of around Rs 1, 25,000 crore ($28 billion). The company
had its market debut in August 2004 when it made an initial public offering at Rs 850 per share.
Even after a bonus issue in a one-for-one ratio, the share is currently trading at around Rs 1,263.

The promoters' holding in TCS is at 83.65 per cent, of which Tata Sons alone controls 79.5 per
cent.

24 | P a g e
 WIPRO- Applying Thoughts
Coming off its strongest year since 2000, Wipro grew at 43% in 2004. The company
has branched out from offerings such as software development, R&D, and
applications maintenance to providing remote infrastructure management,
financial services, and applications and product testing. All that while
maintaining its position as the world’s largest third-party R&D provider.
Wipro, which gets the majority of its revenue from the U.S., is pushing
further in Europe and expects to make some acquisitions there this year. At
home, the company’s back-office operation, Wipro BPO, got a jolt when
Chief Executive Raman Roy quit in early June to start another business.
The $150 million operation, mostly call-center work, will move into higher-
end back-office jobs such as insurance processes in order to achieve
greater profitability and to stem the high employee attrition to new foreign
players. Wipro Limited was founded in 1945.The company is headquartered in
Bangalore, India.

Company Info
STOCK INFO $ 11.64(NYSE)

REVENUES* $1.9 BILLION

Revenue Growth 39.2%
RETURN ON EQUITY 27.9%

Total Return 41.4%

PROFITS* $363 MILLION

Industry SERVICES

The company is also listed in New York Stock Exchange (NYSE), Munich Stock Exchange, Berlin
Stock Exchange and many more. On 6 July, 08 it was priced at $ 11.64.

25 | P a g e
 INFOSYS TECHNOLOGIES

Infosys, India's No. 2 software services exporter, grew nearly 50% in 2004, to $1.59
billion in revenues. And it's well on its way to cross $2 billion this year. Progeon, the
unit that manages business processes, is doubling every year and expects to reach
$80 million in sales this year. Thrilled investors in India value it more than rival Tata
Consultancy Services, which is two-fifths bigger in revenues. Infosys customers are
happy too: 19 out of 20 come back to the Bangalore company with repeat orders.
Now, Infosys has its eye on China. Of the 12,600 people it will hire this year, nearly
1,000 will be at its Shanghai offices.

Company Info
STOCK INFO $42.60(NASDAQ)
REVENUES* $1.6 BILLION
Revenue 49.8%
Growth
RETURN ON 33.4%
EQUITY
Total Return 75.2%
PROFITS* $419 MILLION
Industry SERVICES

Company Snapshot
Infosys Technologies Limited provides consulting and information technology services
primarily in North America, Europe, and the Asia-Pacific region. Its solutions include
custom application development, maintenance and production support, software re-
engineering, package evaluation and implementation, and information technology
consulting. The company also provides testing services, operations and business process
consulting, engineering services, business process management, systems integration, and
infrastructure management services. In addition, Infosys Technologies provides software
products to the banking industry and business process management services. It also
provides business process management services, such as offsite customer relationship
management, finance and accounting, and administration, and sales order processing.
The company is headquartered in Bangalore, India. The company is also listed in
NASDAQ, Berlin Stock Exchange, Munich stock Exchange and many more.

26 | P a g e
 SATYAM COMPUTER SERVICES LIMITED
After years of status as the far-behind No. 4 to the Big Three Indian software
companies, Satyam is finally catching up. It will hit $1 billion in revenues this year,
thanks to expansion into new areas such as infrastructure-management and
software for engineering processes in the auto and defense industries. That's in
addition to the application-maintenance work the company ran on for years.

Satyam's deals are getting bigger, too. The company boasts more $1 million
contracts from clients these days than it did two years ago. Satyam already has a
large U.S. presence and is wooing clients in non-English-speaking countries in
Europe, Latin America, and northern Asia.

Company Info
STOCK INFO $24.60(NYSE)
REVENUES* $793.6
MILLION
Revenue Growth 40.1%
RETURN ON 20.0%
EQUITY
Total Return 27.7%
PROFITS* $153.8
MILLION
Industry SERVICES

Company Snapshot
Satyam Computer Services Limited offers consulting and information technology (IT)
services worldwide. The company operates in three segments: IT services, Business
Process Outsourcing (BPO), and Software Products. The IT Services segment provides a
range of services, including software development, packaged software integration, system
maintenance, and engineering design services. Its BPO segment provides services
covering human resource, finance and accounting, customer contact, and transaction
processing. Its Software Products segment engages in the product development and
creation of propriety software. The company offers services to customers in a range of
industries, including insurance, banking and financial services, manufacturing,
telecommunications, transportation, and engineering services. The company markets its
services primarily to companies in the United States, Europe, the Middle East, and the
Asia-Pacific region. The company has a strategic alliance with Mind Flow Technologies
Inc. Satyam was organized in 1987 and is headquartered in Hyderabad, India. The
company is also listed in NYSE (New York Stock Exchange) with $24.60 on 6July, 08.

27 | P a g e
 GROWTH OF INDIAN
IT SECTOR

28 | P a g e
 Growth of Indian IT Sector

The Indian IT / ITES industry has been one of the great

success stories of modern India. An industry that did not
exist barely 2 decades ago is now the toast of the nation
and the envy of the world. It is arguably the most global of
any Indian industry and has created international
benchmarks for quality, proving to the world and to
ourselves that Indian companies can compete globally and
win on quality.

BMI (Business Monitor International)

Forecasts IT-market CAGR during the next two years of our

forecast period of 13%, compared with expected GDP growth of
between 7%-8%. The potential of India's IT market is plain: less
than 2% of people in India own a computer, about one-fifth of the
level in China, meaning particular potential in the lower-end
product range. Significantly, 45% of India's population is under 25,
which should boost PC and IT usage. Mindful of increasing global
vendor interest, a number of federal and local government
initiatives to encourage hardware production have been designed.
Despite a number of potential difficulties, including regional
imbalances, low incomes and a possible demand slowdown, India
should therefore confirm its potential as a key emerging market
over the forecast period.

29 | P a g e
 FACTORS RESPONSIBLE FOR
THE GROWTH OF IT SECTOR

30 | P a g e
 Stimuli for IT Sector Growth

The Indian IT sector is expected to continue on an upwards path

through 2008 and beyond driven not only by continued growth in
off shoring, but also by a growing domestic market for hardware
and solutions. The total size of the IT market is forecast by BMI to
increase from US$11.8bn in 2007 to around US$21.7bn in 2012,
with drivers including new tax incentives for hardware
manufacturers, falling computer prices, and the government's
ambitions to connect the vast rural areas to the outside world.
However, there are a number of risks to our forecast scenario.
India's legal regime for patent protection remains flawed, while
measures to encourage the domestic hardware sector have had
mixed results, and the important BPO sector faces a strong
challenge from other market including China.

Key Growth Drivers of Indian IT/ITES

Abundant Talent- India’s young demographic profile is an inherent advantage complemented

by an academic infrastructure that generates a large pool of English
speaking talent.

Sustained cost competitiveness- India has a strong track record of delivering a significant
cost advantage, with clients regularly reporting savings of 25-50 percent
over the original cost base.

Continued focus on quality- Over the years, the industry has built robust processes and
procedures to offer world class IT software and technology related services.

World class information security environment- Stakeholders of Indian BPO recognizes

fool proof security as an indispensable element of global service delivery.

Enabling Business policy and Regulatory environment- The enabling policy environment
in India was instrumental in catalyzing the early phases of growth in this
sector. The Indian ITES-BPO sector has benefited from this approach, with
participating firms enjoying minimal regulatory and policy restrictions along
with a broad range of fiscal and procedural incentives.
Increasing value of dollar ($) - Recently increasing trend in Dollar value has also increased
income of many IT/ITES.
31 | P a g e
 SWOT ANALYSIS OF
IT MAJORS

32 | P a g e
 STRENGTHS
Strengths of IT/ ITES like BPO can be counted as
Infrastructure Elements, Qualitative factors and
Government or Regulatory Environment. All Strengths are
well presented in the form of a diagram as below:

To become a global leader in the IT industry and retain that

position , India needs to constantly keep moving up the
value chain, focusing on finished products and solutions,
rather purely on skilled sets and resumes. India needs to
be able to package their services as products, rather
offering them as raw material.

33 | P a g e
Government Regulations & Policy.

The Government of India is providing for more liberal policy

framework for the IT Sector. Government & NASSCOM have

34 | P a g e
 worked together in close cooperation over a long time for
forming
and implementing these policies.

WEAKNESSES
Weakness of Indian IT/ITES sector does not count much but yet pose hurdles in
achieving 100% growth as year per year targets determined by Indian Ministry
of Information Technology. Some of weaknesses are hereunder:

 Lack of proper telecommunication infrastructure.

 Slow speed of new business registration.

 Absence of practical knowledge.

 Dearth of suitable candidates.

 Less Research and Development,

 Contribution of IT sector to Indian’s GDP is rather small.

 Employee salaries in IT sector are increasing tremendously.

Low wages benefit will soon come to an end.

The IT/ITES industry has made a beginning and with the encouragement and
support of NASSCOM and NASSCOM Foundation, it is on track to set an
example that would encourage others to emulate and help change the face of
India.

35 | P a g e
 OPPORTUNITIES

IT/ITES are on the side to avail many opportunities which

can be classified as:

• Huge Market Potential

36 | P a g e
 • Large Talent Pool available

37 | P a g e
 • Attractive Cost Savings

38 | P a g e
 • Infrastructure being beefed up.

39 | P a g e
 • Proactive Regulatory Bodies.

40 | P a g e
 These were some opportunities available to IT/ITES
which can help it overcome its weaknesses.

THREATS
For Indian IT/ITES threats are posed in the same way as
their weaknesses which have to be overcome as soon as
possible.
Some of the threats are given below:

41 | P a g e
 Lack of proper data security systems.

 Countries like China and Philippines with qualified

workforce making efforts to overcome the English
Language barrier.

 IT development concentrated in a few cities only.

 Still lack of English versed candidates especially in rural

areas.

 Ever changing IT/ITES policy as of unstable Government.

RECENT DEVELOPMENTS IN INDIAN IT SECTOR

42 | P a g e
 • Growth in Indian IT Sector can well be reflected by their quarterly results as recently
shown by
 Infosys Q1,2008 net rises 21% to Rs.1,302 crore
 Wipro Q1,2008 net profit up 25% at Rs.908 crore
 Satyam Q,2008 net rises 45%

• Attrition Rate which reflects the job hobbing tendency among employees is also lowering
down due to the introduction of new bond agreement at the time of selection of the
candidate.

• IT companies are devising new strategies to ward off pressure on bottom lines due to
recessionary trends in the US. They are now looking at non-linear growth models to shore
up revenues. It means that instead of deploying more manpower, the focus will be on
raising output by offering high-value services and acquiring expertise in niche areas. The
new model could trigger consolidation in the market and ensure better pricing of products
and services.

• In line with the government's intent to set up 20 additional Indian Institute of Information
Technology (IIIT) across the country in the 11 Five Year Plan, NASSCOM, the trade body
representing the Indian IT-BPO industry, has recommended locations including Jammu,
Dehra Dun, Chandigarh, Delhi, Lucknow, Patna, Shillong and Kolkata, for setting up of the
new institutes of excellence.

43 | P a g e
 CONCLUSION
&
SUGGESTIONS

44 | P a g e
 CONLUSIONS
• The domestic market in India has come of an age now and beyond
2006 it is expected to show faster growth compared to the IT/ITeS
export revenue.

• The market for domestic ITeS/BPO segment has been estimated at

Rs. 3,800 crore in 2005 and is expected to grow at a 55% CAGR to
touch rs.30, 000 crore by 2010.

• NASSCOM Mckinsey Reports that the IT industry is likely to create over

nine million by 2009.

• Lack of information infrastructure is considered to be one of the

major impediments in the diffusion of Information and Communication
technologies.

• In urban areas, tele-density has reached 31%. However, tele-density

in the rural areas at 2% remains low.

• Government can influence the growth of IT/ITeS by embarking on

economic policies aimed at affecting not only supply side but also on
demand side factors.

45 | P a g e
 SUGGESTIONS

In order to fully capitalize on the opportunity and sustain a disproportionate

lead in the global IT/ITeS space, it needs to focus on five key areas:-

• Enhancing the talent pool advantage ---- focus on skill development to

better leverage the world’s largest working population.

• Strengthening urban infrastructure in existing and emerging cities ,

• Continued emphasis on proactive regulatory reform to facilitate greater

ease of doing business.

• Driving a philosophy of excellence amongst industry players to ensure

that India based delivery systems sustains world leading benchmarks in
performance,

• One needs to catalyze domestic market development with particular

attention paid to hardware and software product development.

• Government can play an important role in building global, national and

local information infrastructure.

46 | P a g e
 BIBLIOGRAPHY

47 | P a g e
 BIBLIOGRAPHY

 www.indiainfoline.com
 India Information Technology Industry: a study by Somesh K.
Mathur
 www.ibef.org
 A NASSCOM – DELOITTE Study 2008.
 www.google.com
 Many other websites.
 Reference Books:

1) Legal issues in information technology industry: country experiences.

BY K.bharati Thakar. The ICFAI University Press.

2) Information Technology Industry in India. By tapan choure Yogeshwar

Shukla. Kalpaz Publications,India (30 Sep 2004)

3) India in the Global software Industry: Innovation, firm strategies and

development. By Anthony P. D'Costa and E. Sridharan. Palgrave
Macmillan (18 Dec 2003)

4) Information Technology, Innovation System and Trade Regime in

Developing Countries: India and the ASEAN by K.J. Joseph. Palgrave
Macmillan (28 Jul 2006)

5) Political Economy and Information Capitalism in India: Digital Divide,

Development Divide and Equity (Technology, Globalization and
Development) by Govindan Parayil. Palgrave Macmillan (25 Nov 2005)

48 | P a g e
6) Closing the Technology Gap: Technological Change in India's
Computer Industry by Hans-Peter Brunner. Sage Publications Pvt. Ltd (31
Aug 1995)

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