The Indian information technology industry | Reliable Papers

The world has made immense strides in recent years with economic progress linked to the explosion in Information Technology (IT), accompanied by globalization led shrinking of national boundaries. Physical borders no longer define markets and organizations have the freedom to source products from the lowest cost locations. The Indian information technology industry has not only been among the fastest growing industries globally, it has played a key role in transforming India from a largely inward looking economy to an emerging knowledge power that is being recognized as one of the most dynamic and entrepreneurial in the world. As Dahlman and Utz (2005) note, ‘the success of the IT industry on the whole influenced competitiveness in other sectors as well by building confidence in Indian industry, enhancing the country’s brand equity in the world, and offering entrepreneurial opportunities on a global scale’. The success of this industry has had profound effects on the political decisions, economic growth, social outlook and norms, and technological structure of this nation apart from being a prime mover of the Indian economy. This industry’s contribution to the country’s GDP has increased from 1.4 per cent in 2001 to about 7 per cent in 2009 and is expected to contribute nearly 20 per cent of incremental GDP growth between 2001 and 2009. The industry, which employed 0.8 million people in 2001, is expected to employ over 2 million people directly and create direct employment opportunities for at least an additional 2 million people by 2008 (Nasscom, 2002). This study shall present an analysis of the industry landscape of Indian Information Technology industry using analysis frameworks and tools such as PESTEL Analysis, SWOT Analysis, Porter’s 5 Forces Analysis, 8Ps of the Industry, Porter’s Generic forces analysis, 7S analysis, Ansoff Matrix, BCG Product categorization, Analysis of Indian Software Companies using financial ratios, PIMS Analysis, Gap Analysis, Environment Scanning Analysis, 6 Forces Model Analysis, Product life cycle analysis.