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This Report covers the overall analysis Indian Telecom Industry through three Major Indian Telecom Players namely Bharti Airtel, Reliance Infocomm and Idea Cellular. The Topics Covered are: 1...Full description
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PEST ANALYSIS OF INDIAN IT INDUSTRY Political: • Political Political stability: stability: Indian political political structure structure is considered considered Stable enough expect the fact that there is a fear of hung Parliament (no clear majority). - Positive • U.S. government government has declared declared that U.S companies companies that Political outsource IT work to other locations other than •
U.S. U.S. will will not get tax benefi benefit. t. – Negati Negative ve
• Government Government owned owned companies companies and PSUs have decided decided t o Give more IT projects to Indian IT companies. - Positive •
Terrori Terrorist st attack attack or war. war. – Negati Negative ve
Economical: • •
•
Global Global IT spendi spending ng (deman (demand). d). (–ve) (–ve) Domestic Domestic IT Spending Spending (Demand): (Demand): Domestic Domestic Market Market grow by 20% & reach approx USD 20 billion in 2008-09 Nasscom (+VE). Curre Currenc ncy y Fluc Fluctu tuat atio ion n (-ve (-ve))
•
Real Estate Estate Prices: Prices: Declin Declinee in real estate estate prices prices has has resulted resulted reducing reducing the rental expenditure (+ve).
•
Attrition Attrition:: Due Due to recession, recession, the layoffs layoffs and job-cuts job-cuts have resulted resulted in low attrition rate (+ve).
•
Economic Economic attractive attractiveness: ness: Due to cost advantage advantage and other factors factors (+ve)
Social: •
Language Spoken: English is widely spoken language in India. English medium is the most accepted medium of education (+ve)
•
Education: Large number of technical institutes and universities over the countries provide IT education. (+ve
• Terrorist attack or war. – Negative
Technological: •
Telephony (+ve) India has the world lowest call rates o Expected to have total subscribers base of about 500 million o by 2010
India has the second largest telephone network after china Enterprise telephone services, 3G, Wi-max, VPN, poised to grow. Internet Backbone: Due to IT revolution in 90’s India is well connected with undersea optical cables. (+ve) New IT Technologies: Technologies like SOA, web 2.0, High definition content, grid computing, and innovation in low cost technologies is presenting new challenges & opportunities for Indian IT industry.(+ve)
