India’s IT sector generated US $ 146 billion in FY 2015 accounting for around 55% share of the Global IT outsourcing market making it the world’s largest sourcing destination.
The article begins with an explanation of India’s advantage with the use of Porter’s Diamond Model. The IT spend by businesses, government and consumers comprises of spend on continuing operations and implementing new business models. The specifics of the IT industry are understood through the Value Chain with a closer view of the user segments and the major service lines offered by IT Firms.
The Five forces that shape competition in the IT industry is elucidated. The Value Proposition of a typical IT player is explained. It may be noted that the IT Firms within a decade during the early 2000’s had moved up their value proposition from providing staffing services to Application Development services. The positioning, strategy and the service lines of the Top Three Indian IT companies viz TCS, Infosys and Wipro are discussed. A comparative study between the three companies is made. The article ends with a perspective on the road ahead.
Porter’s Diamond Model, Five Forces Framework, Value ChainAnalysis, Value Proposition, Positioning, Strategy, Service Lines, Onsite, Offshore, Application Development