Project Synopsis - Infosys

Project Synopsis

Team

Purpose

The purpose of this project is to learn and understand the process and methodology for conducting Economic Analysis. This project will help us understand, design and select concepts and methodologies that contribute to the welfare of an organization and country on a whole. • Economic Analysis is being applied to determine the highest return to investment in a project • It facilitates a rational comparison of available options and ensures that investment decisions are accountable. • It is also potentially useful in identifying and clarifying the issues involved in making particular decisions.

Hence through this project we look forward to achieve our goal by taking up a case study on selected companies in the IT BPO sector in India.

Scope

The scope of this project seeks to address issues pertaining economic analysis of IT-BPO sector in India by undertaking a case based approach. The company under study will be one of the following: Infosys, IBM, TCS, Wipro & HCL.

The selected company will be economically analysed to access its demand and supply functions, product and services, costs, competition, strengths, weaknesses and opportunities to grow in future. We look forward to propose our recommendation pertaining to economic viability of the company and will attempts to measure in monetary terms the private and social costs and benefits of the company to the community and economy.

Approach & Methodology

We wish to take up a case based analysis to conduct the Economic Analysis of the IT BPO sector in India. The procedure to undertaking economic analysis will follow a sequence of interrelated steps:

1. Conduct secondary research using general internet research to understand the company 2. We will try to gather most of the company’s data using its website and publically available information such as annual reports and industry reports etc. 3. We will try to communicate with industry experts to gain insights and better understanding of companies internal processes and functions 4. We wish to approach government agencies and private organizations who conduct regular analysis on these companies such as SIIA – Software and Information Industry Association, NASSCOM etc to gain useful insights for our final project report.

About IT BPO Sector

IT-BPO industry in India has contributed to the economy by providing employment, generating revenues and creating value. It has played a significant role in transforming India’s image from agricultural economy to a knowledge based economy.

The Indian IT industry is mainly governed by IT software and services such as System Integration, Software Experiments, Custom Application Development and Maintenance, Network Services, testing services, infrastructure services, consulting and System integration.

The sector is estimated to aggregate revenues of USD 88.1 billion in FY2011, with the IT software and services sector accounting for USD 76.1 billion of revenues. The number of people employed with the sector will also increase to 2 million employees. The export revenues earned by the sector will reach US$ 59 billion in FY2011 making the sector a holder of 26 per cent of market share of the total Indian export industry.

India has been the most favourable outsourcing hub for firms on a lookout to offshore their IT operations. The factors behind India being a preferred destination are its reasonably priced labour, favourable business ambiance and availability of expert workforce. India's domestic IT market has become one of the major driving forces of the economy. Indian Government has taken initiatives to promote India's domestic IT market by establishing a National Taskforce on IT and Endorsement of the IT Act, which offers an authorized structure to assist electronic trade and electronic operations.