it & market falldown

As IT demand from businesses shows signs of slowing down, solution providers are taking measures to counter the downturn.

“We did exceedingly well in the first half of the year, and according to our knowledge, many of our peers are also not complaining,” commented A L Srinath, CEO of the Hyderabad-based Shell Networks. “However, what’s in store for us in the next six months is a million-dollar question.”
“There is no doubt that the situation in the US will reflect on the Indian economy. I feel that the real impact will be felt only three months from now,” opined Navin Kapur, Managing Director of Iris Unified Learning, a Delhi-based software solution provider.
K V Jagannath, CEO of Hyderabad-based systems integrator, Choice Solutions said, “We were quite positive about the market situation till a month back. In fact, we had a great first half with our revenues growing well over 50 percent. There will, no doubt, be some difficulties in the days ahead, but I am still bullish that with the right strategies we can overcome the issues.”
The first signs of a cash crunch were felt when many enterprises, during the first quarter of the financial year, insisted on shifting 30-day payment terms to 45 days and later to 90 days. “This movement was the first signal. However, we feel that by spreading yourself wide and engaging with smaller customers—whose payment terms are better—you can still offset the credit squeeze,” said Jagannath. Choice has already taken steps to handle any potential slowdown. This includes staying away from some of the MNC vendors, where margins are likely to be lower, and increasing their share of business from services.

Outsourcing

A research by Gartner forecasts India as the undisputed leader in the outsourcing space in the year 2008. The Outsourcing Service Provider Performance Study 2007, undertaken by sourcing advisory firm Equa Terra, reported that the majority of UK businesses offshore all or parts of their IT functions to India and plan to continue with this strategy as India continued to be the favourite outsourcing destination for businesses in UK in terms of satisfaction.
India's most prized resource is its readily available technical work force. India has the second largest English-speaking scientific professionals in the world, second only to the US. 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. The enormous base of skilled manpower is a major draw for global customers. According to a Gartner study, India remains the undisputed leader in offshore services and tops the list of 30 countries on criteria's such as language, government support, labour pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property, security and privacy.
Twenty-nine India-based companies including Tata Consultancy Services, HCL Technologies, Genpact, and WNS Global Services amongst others, have been listed among the best 100 IT service providers in a new survey carried out with a view to assist business heads of major outsourcers identify reliable, innovative and tech-savvy partners.

Information Technology

The information technology industry has truly transformed the way the world looks at India. Rapidly capturing global imagination, the success of its IT industry has placed India at the forefront of the emerging global knowledge economy. According to the National Association of Software and Service Companies (NASSCOM), the apex body for software services in India, the revenue of the information technology sector has grown from 1.2 per cent of the gross domestic product (GDP) in FY 1998 to an estimated 5.5 per cent in FY 2008. The net value added by this sector, to the economy, is estimated to be 3.3 to 3.9 per cent for FY 2008.
India's IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services.
The government expects the exports turnover to touch US$ 80 billion by 2011, growing at an annual rate of 30 per cent per annum, from the earlier few million dollars worth exports in early 1990s.

Banking

The banking sector is the most dominant sector of the financial system in India, and with good valuations and increasing profits, the sector has been among the top performers in the markets. According to a FICCI survey, the chief strong point of the Indian banking industry is the regulatory system, which has enabled India to carve a place for itself in the global banking scene. The regulatory systems of Indian banks are rated above China and Russia; and at par with Japan and Singapore.
The public sector banks (PSBs) maintained its dominance in the banking system. As on March 31, 2008, PSBs accounted for 69.9 per cent of the aggregate assets and 72.7 per cent of the aggregate advances of the Scheduled Commercial Banking (SCB) system. An exceptional feature of the reform of the public sector banks was the course of their financial restructuring.
Furthermore, a report "Opportunities in Indian Banking Sector", by market research company, RNCOS, forecasts that the Indian banking sector will grow at a healthy compound annual growth rate (CAGR) of around 23.3 per cent till 2011.
Banking, financial services and insurance (BFSI), together account for 38 per cent of India's outsourcing industry (worth US$ 47.8 billion in 2007). According to a report by McKinsey and NASSCOM, India has the potential to process 30 per cent of the banking transactions in the US by the year 2010. Outsourcing by the BFSI to India is expected to grow at an annual rate of 30–35 per cent.

Auto Components

The Indian automobile components industry has come a long way since the country's economic liberalisation which opened up the sector in the early 1990s. From a quiet supplier of low-value components to the domestic market, the industry has transformed itself into a global hub for sourcing a range of high-value and critical automobile components. The Indian auto components industry is a favourite among many global auto makers such as GM, Toyota, Ford, Volkswagen, etc., who source auto components worth millions from India.
The Indian auto components industry had a turnover of US$ 18 billion in 2007–08. The spiralling demand from domestic and international auto companies has seen this sector emerging as one of the fastest growing manufacturing sectors in India and globally. Between 2002–07 it grew at a compound annual growth rate (CAGR) of 27.2 per cent and according to the Auto Components Manufacturers Association of India (ACMA), it is likely to grow at a CAGR of 10.5 per cent between 2007–15 to touch US$ 40 billion by 2015–16.
The auto components industry is predominantly divided into five segments:
Engine parts
Drive Transmission & Steering Parts
Suspension & Brake Parts
Electrical Parts
Body and chassis
This sector is now working towards an open market. A large number of joint ventures with leading global manufacturers have already been set up in the auto components sector. And with India estimated to have the potential to become one of the top five auto component economies by 2025, the pace is expected to pick up even further.
Moreover the automotive components industry is perceived as a lucrative sector with tremendous potential for foreign direct investments. Further according to ACMA, exports grew from US$ 2.8 billion in 2006–07 to US$ 3.6 billion in 2007–08, and constituted 20.1 per cent of the turnover. Exports have been growing at a CAGR of 35 per cent during 2002–07 and are estimated to grow at a CAGR of 24 per cent during 2007–2015 to touch US$ 20 billion–22 billion by 2015–16.

Indian Information Technology Sector: A Presentation

One of the fastest growing sectors in India, IT-ITeS has been growing at a CAGR of 30 per cent.
With such huge potential, IT-ITES is one of the key thrust areas of Government of India.
Liberal Policy framework for the sector
- Continuous liberalisation and reform policies of Government of India had a positive impact.
- Liberalisation and reforms in the telecom sector have had a direct impact on the industry's competitiveness and created further avenues for the growth of IT and BPO sectors.
Export promotion and Tax/duty incentives
- Foreign Trade Policy 2004 - 2009 permits import of all kinds of computers (Except second hand computers) in India without any licences.
- EPCG Scheme for software sector allows import of capital goods at 5 % basic customs duty subject to undertaking certain export commitments - A number of Special schemes including Export Oriented Unit , Special Economic Zone etc offer a wide range of duty concessions and exemptions for IT exports.

cybotech

hi
cybotech is the best it institute in patna