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    SWOT Analysis of IT and ITES Sector: Strengths

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    Rahul Mahajan
    The document analyzes the strengths, weaknesses, opportunities, and threats (SWOT) for India's IT and ITES sector. The key strengths are a highly skilled English-speaking workforce, lower costs than Western counterparts, and time zone advantages. Weaknesses include rising attrition and infrastructure costs. Opportunities exist in growing various IT markets and employment. Threats come from potential legislation against outsourcing and competition from other lower-cost countries.

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    SWOT Analysis of IT and ITES Sector: Strengths

    Uploaded by

    Rahul Mahajan
    271 views3 pages
    The document analyzes the strengths, weaknesses, opportunities, and threats (SWOT) for India's IT and ITES sector. The key strengths are a highly skilled English-speaking workforce, lower costs than Western counterparts, and time zone advantages. Weaknesses include rising attrition and infrastructure costs. Opportunities exist in growing various IT markets and employment. Threats come from potential legislation against outsourcing and competition from other lower-cost countries.

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    SWOT_IT

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    The document analyzes the strengths, weaknesses, opportunities, and threats (SWOT) for India's IT and ITES sector. The key strengths are a highly skilled English-speaking workforce, lower costs than Western counterparts, and time zone advantages. Weaknesses include rising attrition and infrastructure costs. Opportunities exist in growing various IT markets and employment. Threats come from potential legislation against outsourcing and competition from other lower-cost countries.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    271 views3 pages

    SWOT Analysis of IT and ITES Sector: Strengths

    Uploaded by

    Rahul Mahajan
    The document analyzes the strengths, weaknesses, opportunities, and threats (SWOT) for India's IT and ITES sector. The key strengths are a highly skilled English-speaking workforce, lower costs than Western counterparts, and time zone advantages. Weaknesses include rising attrition and infrastructure costs. Opportunities exist in growing various IT markets and employment. Threats come from potential legislation against outsourcing and competition from other lower-cost countries.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    SWOT Analysis of IT and ITES Sector

    Strengths:
     Highly skilled, English-speaking workforce.
     India has a cheaper workforce available than their Western counterparts. According to
    Nasscom, the wage difference is as high as 70-80 percent when compared to their
    Western counterparts.
     Lower attrition rates than in the West.
     Dedicated workforce aiming at making a long-term career in the field.
     Round-the-clock advantage for Western companies due to the huge time difference.
    Indian time zone (24 x 7 services to the global customers). Time difference between India
    and America is approximately 12 hours, which is beneficial for outsourcing of work.
     Lower response time with efficient and effective service.
     Operational excellence
     Conducive business environment.
     Initiatives taken by the Government (setting up Hi-Tech Parks and implementation of e-
    governance projects).
     Many global players have set-up operations in India like Microsoft, Oracle, Adobe, etc.
     Following Quality Standards such as ISO 9000, SEI CMM etc.
     Quality telecommunications infrastructure

    Weaknesses
     Recent months have seen a rise in the level of attrition rates among ITES workers who
    are quitting their jobs to pursue higher studies. Of late workers have shown a tendency
    not to pursue ITES as a full-time career.
     The cost of telecom and network infrastructure is much higher in India than in the US.
     Manpower shortage
     Local infrastructure
     Political opposition from developed countries.
     Dearth of suitable candidates.
     Less Research and Development.
     Employee salaries in IT sector are increasing tremendously. Low wages benefit will soon
    come to an end.

    Opportunities

     To work closely with associations like Nasscom to portray India as the most favoured
    ITES destination in the world.
     Indian ITES companies should work closely with Western governments and assuage their
    concerns and issues.
     India can be branded as a quality ITES destination rather than a low-cost destination.
     $69 billion ITES business by 2010
     $97.5 billion IT (consulting, software solutions) market by 2010.
     High quality IT education market.
     Increasing number of working age people
     India 's well developed soft infrastructure
     Upcoming International Players in the market.
     Currently employing about 106,000 people in India, the ITES industry is estimated to
    give employment to more than one million people.
     Banking and insurance is likely to provide the maximum opportunity to the ITES
    industry due to a high cost base and a large number of processes which can be
    outsourced.
     E-governance initiatives of Central and State Government

    Threats
     The anti-outsourcing legislation in the US state of New Jersey. Three more states in the
    United States are planning legislation against outsourcing Connecticut, Missouri and
    Wisconsin.
     Workers in British Telecom have protested against outsourcing of work to Indian BPO
    companies.
     Other ITES destinations such as China, Philippines and South Africa could have an edge
    on the cost factor.
     Slowdown of demand.
     Lack of 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
     Global Backlash: The industry is facing an unprecedented backlash globally against the
    outsourcing of work to India. Protests in USA, UK and Australia are already rising at an
    alarming rate. E-Funds, a US based corporation has even been forced to transfer some
    jobs from its Mumbai operations back to the US because of huge protests.
     Threat from Other markets: Markets like China, Philippines and Ireland with cheap and
    skilled labour pose a large threat to the Indian ITES sector
     Lack of Expansion: The industry soon face risks like continuously expanding the pool of
    talent and education. Lack of fluency in European languages like French, Spanish, Italian
    i.e. languages other than English, is India’s weak point.

    http://bpolink.in/news/swot-analysis-on-indian-ites-sector

    Source: 
    http://www.bpoindia.org/knowledgeBase/

    http://www.naukrihub.com/india/information-technology/overview/swot-analysis.html

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