Information Technology Faqs

Q1.What is the future of IT industry in India ?

Q2.What are the Educational Courses and List of Institutes?
Q3.What is the Nature of Jobs ?
Q4 What is the remuneration in each field?
Q5.What are the Emerging Technologies ?
Q6.What is the Future Scenario ?

Q1.What is the future of IT industry in India ?

A1.According to leading reports, Indian software industry is set to achieve a turnover
of 10 billion dollars by the year 2005. The projected demand for trained I.T.
professionals is estimated at over 400,000 per year. There is a clear imbalance
between the demand and supply of IT professionals with the result that this sector
offers one of the highest remuneration packages. The Internet is a new revolution
that is sweeping the world. It promises to change the way we work, live, shop,
communicate and entertain ourselves.

Q2.What are the Educational Courses and List of Institutes?

A2. Most engineering colleges offer a B.E. / B.tech in computer engineering. For
more information on Computer Engineering, please refer to the section under
engineering. Other computer courses offered by universities include: B.Sc.
(Computer) also known as B.C.S (Bachelor of Computer Science) M.C.A. (Master of
Computer Applications) M.C.M. (Master of Computer Management) D.C.A. (Diploma
in Computer Applications) D.C.E. (Diploma in Computer Engineering) D.C.S.
(Diploma in Computer Science)

With the infotech boom, hundreds of private computer institutes have opened up
across the country. The courses conducted by these institutions range from computer
fundamentals to advanced computer languages. However there are no standards of
teaching and course content and the quality of students differs considerably from
institute to institute. Department of Electronics Accreditation of Computer Courses
(DOEACC) Under this scheme there are four level of courses. These are : "O" Level -
Foundation Level This would certify the candidate's competence as a programmer
assistant or equivalent level. It is visualised as the lowest rung and the course, and
should be at least a full-time one-year course. Students from accredited institutes
can apply for this examination after completing their 101 Level course if they have
10+2 or I.T.I. certificate equivalent qualification.

Direct applicants need one year relevant experience (which signifies job experience
in information Technology (IT) including teaching in a recognised institution) or a
pass in the NCVT-DP & CS (Data Preparation and Computer software) Examination,
besides 10+2 or equivalent qualification. 'A' level (advanced diploma level) This will
give proof of the candidate's skills as a programmer. It should be equivalent to full-
time studies of an average student for a year. Those who have done 'O' level and
graduation followed by an accredited "A" level course are eligible. In the case of
direct applicants, candidates with 'O' level and graduation and with one year relevant
experience are eligible. A Government recognised polytechnic engineering diploma +
A level course fulfils the eligibility. 'B' level (Graduate level) This will give certification
to the candidate for proficiency as a systems analyst or software designer or
engineer as the case may be. The course duration at the approved institute should
be equivalent to a three year, full-time course. Graduates and government
recognised polytechnic diploma holders. 'B' Level candidates who have completed the
accredited 'B' Level course are eligible. In case of direct applicants, students with
Level 'A' followed by two years) relevant experience and graduates with three years
relevant experience are eligible.

Governments recognised PPDCA / PGDCA accords exemption from some courses. 'C'
Ievel (master degree level) This will recognise the candidates proficiency as a
systems manager. The course duration at the recognised institute should be
equivalent to a full-time 18 months course. Candidates with Level 'B' or
B.Tech./B.E./M.C.A./M.Sc./Master's degree (in maths/statistics/operations re-
search)/M.B.A. (after B.Sc./B.A. with Maths) followed by an accredited 'C' Level
course are eligible. In case of direct applicants, candidate with Level 'B'/B.Tech/
B.E' /M.C.A./Master's degree (in Maths/ GATE (computer) Statistics/ Operation
Research)/M.B.A. (after B.SC., B.A. with Maths) followed by 18 months relevant
experience in each case are eligible. Registration is a prerequisite for taking the
examination. At any point of time, a candidate can register only at one level. The
registration is valid for five years.

Contact Address- DOEACC Control Centre, c/o Manpower Development Division,

Department of Electronics, Electronics Niketan (2nd Floor), 6 Lodhi Road, CGO
Complex, New Delhi.

Industry Certified Courses Global infotech majors including Microsoft, Oracle, Cisco,
IBM etc have come out with their own certification programs which provide an
indicator of the proficiency levels of candidates with those certifications and are
recognised world wide. The certifications from Microsoft include MCSE - Microsoft
Certified Systems Engineer MCP - Microsoft Certified Professionals MCSD - Microsoft
Certified Solutions Developer. Microsoft has authorised several computer institutes to
provide training for these certifications and the examination is conducted by
Microsoft itself. Candidates who are successful in the test are globally recognised as
proficient in the corresponding Microsoft technologies. Similar certifications are also
offered by other companies.

Q3.What is the Nature of Jobs ?

A3. Introduction With the advent of the PC the information technology industry
underwent a quantum change. Suddenly computers were all pervasive and work
automation took off in a big way. The software revolution totally changed the way we
work. Availability of cheap and easy to use software packages increased productivity
levels manifold. Probably no sector is untouched by information technology.
Manufacturing, Finance, Banking, Marketing, Entertainment, Education and several
other fields are reaping the benefits of I.T. As a result the I.T industry employs not
only staff trained in computers but also professionals from all other fields which could
also be non-technical in nature. The rapid development of technologies such as
networking, multimedia and the Internet have created totally new job categories
where none existed a few years ago. This sector is also the one that is witnessing the
fastest growth and change rate. New software and techniques come out every month
and professionals have to keep pace with the rapid advancements. The hardcore
technical jobs in the IT industry can broadly be classified as hardware jobs and
software jobs. Non technical jobs include functional expert consultants, web
designers, data entry professionals etc. Hardware Jobs Software Jobs Specialised
Jobs Internet Related Jobs Multimedia Jobs
Q4 What is the remuneration in each field?
A4. Hardware Jobs Remuneration - Rs. (per annum) VLSI Design Engineers 1,20,000
upwards Production 60,000 – 3,00,000 Maintenance 36,000 – 96,000 Networking
72,000 upwards (entry level) Software Jobs Programmers 84,000 – 3,00,000 (entry
level) Project Leaders 2,00,000 – 6,00,000 System Analysts 3,00,000 upwards
Senior Managers 4,00,000 upwards Specialised Applications CAD/CAM 72,000 –
2,40,000 ERP 2,40,000 upwards Internet Related Webmasters 1,20,000 upwards
(entry level) Web Designers 84,000 upwards (entry level) Web Application
Developers 1,20,000 upwards (entry level) Multimedia DTP operators 30,000
upwards (entry level) Computer Animators 60,000 upwards (entry level) CD-ROM
developers 96,000 upwards (entry level) Video/Audio Editors 84,000 upwards (entry
level)

Q5.What are the Emerging Technologies ?

A5.E-commerce The Internet revolution is sweeping the world and is changing the
way companies traditionally dealt with customers. Now customers can compare and
shop without moving out of their homes by using the Internet. Electronic commerce
relates to all commercial transactions that take place through the Internet. It is
estimated that the quantum of e-commerce will jump to 400 billion US dollars by the
year 2001. In order to enter this field, in addition to a basic degree in computer
science/engineering one must have sound knowledge of software used in the front
end such as Java, DHTML, Visual basic etc, the backend which is generally databases
such as Oracle and SQL server as well as networking and web server maintenance.
In addition an understanding of business transactions is also essential.

Supply Chain Management In any industry there are lot of vendors providing various
material inputs used in final production. On the distribution side there are channels
comprising of wholesalers, distributors and retailers. Supply chain management
software cuts down the time taken for the supplies to arrive from the vendor and
reduces the inventory levels thus cutting cost. On the marketing side, it ensures that
products reach the end customers in time to fulfill their demand.

Customer Relationship Management Companies offering products and services have

to deal with a number of customers. Customer relationship management software
provides a record of all previous dealings with customers so that the company
personnel can take the right decision while dealing with them.

Q6.What is the Future Scenario ?

A6.According to leading reports, Indian software industry is set to achieve a turnover
of 10 billion dollars by the year 2005. The projected demand for trained I.T.
professionals is estimated at over 400,000 per year. There is a clear imbalance
between the demand and supply of IT professionals with the result that this sector
offers one of the highest remuneration packages. With the Internet rapidly changing
the way we live, shop, entertain and work there is a tremendous scope for
entrepreneurs with radical new in this field.

The Indian Information Technology

Training Industry
ABSTRACT

The paper illustrates the growing importance of Information Technology Industry in

India with a special reference to the Software Training Industry in India. The paper also
traces the historical development of the Indian Information Technology Industry and also
the IT Training Industry. The paper also discusses at length the varied marketing
strategies being adopted by the institutions, which are involved in imparting the IT
training thereby fulfilling the needs of the software industry.

KEY WORDS: IT Industry, IT Education Industry, Strategies, IT Training.

1. INTRODUCTION

India has seen a revolution in the I T industry in last few decades. India had only the
"Electronics Industry" in the late seventies, of which the component of IT industry was a
negligent part. If we look at the composition of the electronics industry in India, we can
clearly divide it into five basic sectors namely Electronic Components, Consumer
Electronics, Industrial Electronics (includes computers), Communication Equipment and
Defense & Aero Space Equipment.

Till early 1990's, the focus was mainly on Computer industry. With the fast convergence
of the 3C's i.e. Computers, Communications, and Controls ", the computer industry
started to be referred as "Information Technology Industry" more popularly known as the
IT Industry. The IT Industry started growing very fast and it could reach a turnover of
almost thirds of the whole Electronics Industry i.e. Rs.4800 Crores out of Rs.14,600
Crores. The tremendous growth achieved by the industry speaks about the potential it has
in it.

2. CONDITIONS FAVORING THE GROWTH OF IT INDUSTRY IN INDIA

Indian citizens are very good in mathematical, analytical and reasoning skills. The
English language skills, both written and oral are quite good when compared to rest of the
world. Various policies and schemes of the government do benefit the IT Industry, which
provides an encouraging environment for the industry to operate on. The infrastructural
capacity is being promoted by the Government.

3. GROWTH OF IT EDUCATION INDUSTRY IN INDIA

With the ever growing need for trained and qualified IT professionals across the world,
made IT Education, an industry in itself. The IT Education industry has its institutions
both in formal educational stream and in non--formal, but professional training
institutions. The formal stream consists of various universities and its affiliated colleges,
which offer IT based training courses at Diploma, Bachelor, Master and Doctorate levels.
The non formal institutions offer training for varied computer courses, which are usually
undertaken for add on qualifications and training for specific courses. The demand for the
IT qualified professionals was very high and the formal sector could not meet the
demand, which encouraged non--formal sector to enter the training market, which now
have taken over quite a big role in providing the required inputs to the IT Industry. As the
formal education sector is not governed by the rules of competition, as they are not into
the business in literal sense. The non--formal sector is flooded with innumerable IT
Education institutions like NIIT, APTECH, CMC, ECIL, STG, VJINFO,TULEC, ICSS,
BDPS, ASSET, COMTECH, etc., to name a few.

4. OBJECTIVES OF RESEARCH STUDY

Though the broad objective of the study is to analyze the IT Education industry, a highly
potential, sophisticated and profitable industry and to suggest the appropriate strategies
for the select IT Education institutions. The detailed objectives of this research study are:

* To examine the IT Education industry

* To study the existing strategies of the select IT Education Institutions

* To suggest appropriate strategies for the select IT Education Institutions.

5. SOURCES OF DATA

The data for the study undertaken is both primary and secondary data.

6. METHODS OF DATA COLLECTION

The data for the research is collected from both secondary and primary sources. The
primary data is collected for review and critical examination of strategies involved
through the following method:

6.1 Case Study Method

Case studies of the select IT Educational Institutions viz., NIIT Ltd., CMC Ltd., Aptech
Ltd., ECIT and STG Ltd. have been considered. Each individual institution has been
taken as a case study to critically examine the strategies adopted by them.

6.2. Survey Method

Three different structured questionnaires have been used to administer to three different
respondents viz., Managers (Strategy Formulators), Faculty Members (Service
Dispensers / Providers), Students (Customers). A sample (combined size of 1100) is
taken to represent the universe. This sample is derived from the cosmopolitan and metro
cities so as to represent every stratum of the society, thus representing universe under
study. The survey was conducted at varied locations, where the institutions are operating.

6.3. Interviews
Apart from questionnaire administration, personal interviews were conducted, which
involved both personal and telephonic conversations. This helped the researcher to gain
an insight into the strategies being adopted and implemented for combating competition,
giving the competitive advantage and edge over competitors, to the institutions adopting
them. These were supplemented by the observational method, where in the practices
followed by various institutions have been observed to find out the strategies generally
adopted by them.

7. PHASES OF IT INDUSTRY IN INDIA

The evolution of the information technology in India can be classified and examined,
under the following phases, each phase having its own importance and contribution to
Indian IT industry, viz., Introductory Phase(late 1950's to 1980), Integration Phase(1980-
1990) and Rising Phase (early 1990 onwards).

8. THE IT EDUCATION INDUSTRY IN INDIA

In continuation of this rich tradition, India has once again proved itself in IT Education
Industry also, where it is providing IT Education to millions of software professionals
across the Globe, thereby contributing to the IT industry as a whole. Had India not done
this, today there would have been acute shortage of IT professionals' world across and the
Industry would not have been emerged like this, as there is a clear linkage between the
growth of the overall software industry and the IT Education industry. Though the
concept of IT Education is not new, but it took a vibrant shape in 1990s, when the
industry rose to its potential and started attracting many major and small players. As a
part of the study the IT Education industry has been considered and has been examined at
a stretch. So as to understand, its features factors affecting it, the strategies being
followed and suggesting suitable strategies.

This industry is highly dependent on the demand--supply equation of the IT industry on

the whole. The products of this industry are varied and highly technical. This industry is
usually affected to a large extent by the trends. Some of the emerging trends of this
industry, which are going to cast on the future of this industry are Hybrid courses,
growing strategic alliances with global majors, diversification of IT Educational
institutions into software services sector, growing focus on distance education programs,
e-learning etc. The Government has been a major force, which has supported this
industry realizing the potential. It has played a major role in the enhancement of the
growth prospects of this industry. It played an instrumental role in starting formal
educational courses as well extending the support for private institutions to come up, so
as to meet the growing demand of IT professionals.

The major players in this industry from time to time have tested varied strategies for
combating the competition as well as the changing market environment. Some of the
strategies include differentiations, branding, franchises, corporate training, customization,
mergers and acquisitions, expansion into foreign markets, other sectors of IT Industry,
etc., so as to sustain the growths rates as well as to succeed in the future. The players are
trying out varied innovative strategies to succeed. The decline in IT Industry, during the
years 2001-2002 led to lot of reengineering, so as to save cost and increase operational
efficiency.

But, the IT Education Industry will always be lucrative as it has some fundamental
strengths like there is a continued rise in the number of IT Jobs as well IT related jobs,
where the need for IT trained professionals is felt to a great extent. There is also a
growing need for training employees so as to enhance productivity. There is a generic
growth in the outsourcing of IT operations and IT has become very important for most of
the businesses strategically, as having adequately trained IT professionals is core to a
business strategies.

Another noteworthy feature of IT Education industry being seen currently is that it is

increasingly merging with other areas of IT services industry for example consultancy
and outsourcing. Most of the clients now desire a number of value added services like
training consultancy end-to-end training solution apart from the basic IT courses. They
are even demanding basic training programs blended with both instructor led training and
e-learning. This was come as a blessing as the doors of general management training
market are opened for he IT Education industry.

It is predicted that there would be high activity in IT Education industry in next 5 years in
the key growth areas of high growth software markets (like XML), IT related (call
centers, and other ITEs) as well training IT professions in general business skills.

The IT Industry is again recovering world across, there by once again bringing in the
necessary demand for the IT Professionals. This is good news to the IT Education
industry especially in India. Even, the people in all aspects of life have realized the need
to be IT literate, which is also triggering the demand for IT Education. The IT Education
has become so prominent that every year December 2nd, is celebrated as World
Computer Literacy Day. Even the Government both at Country Level as well as State
Level has extended their support for IT Education, which came as a boon for this
industry. We can hope to see more coming up in future. A part from these players in the
market there are many small players who are trying their best to survive and sustain their
share.

9. GENERIC STRATEGIES ADOPTED INSTITUTIONS UNDER STUDY

The following are the major strategies which are adopted by varied study institutions
under study, which have been the findings of the research study conducted.

9.1. Diversification

The study institutions are using diversification as one of the prominent strategies, where
they are trying to expand the market share by diversification in the following:

9.1.1. Markets
The institutions are diversifying into new unexplored markets like housewives, senior
citizens, school children, corporate training etc., to expand their market base.

9.1.2. Products

The study institutions are entering into new products, by offering varied range of courses
from introductory to advanced, specialized programs. Some highly potential courses are
acting as cash cows to other courses, thereby helping the institutions to keep the revenue
balanced. The institutions are also trying out some courses for re training the already
trained software professionals, so that they upgrade their existing skills to meet the
market demands.

9.2. Differentiation

The differentiation in the form of Brand, Quality, Value added services like placements,
live projects, curriculum meeting industry requirements, Tailor made courses,
courseware, teaching methodologies, etc., are being used by the institutions to create the
difference. The price, scholarships, bank loans assistance, vendor certification etc., are
also being used to differentiate.

9.3. Focus

The study institution is also using Focus as a strategy, where the focus is on quality
certifications, vendor certification, Industry relevant curriculums etc. The focus is being
used in combination of other strategies so as to attain maximum mileage.

9.4. Multiple Branding

This is also being used as a strategy, where different product areas, technologies, etc., are
being offered under varied brand names, so that the customers do get attracted to one of
the brands, resulting in overall business of the institutions.

9.5. Consolidation

To reduce the competition is the "in strategy" now for varied players in the industry. This
is carried out through mergers, acquisitions, takeovers, tie-ups etc. so that the synergy
effect is gained. Once the small and medium institutions are consolidated, the
competition is reduced as well their market share is added to the current market share of
the institution.

There is no single strategy which is singly followed by the Institutions under the study.
The strategy is changing from time to time, situation to situation and combination of
strategies is the most commonly observed phenomenon. The following section gives
detailed analysis of strategies being adopted by individual Institutions under study.
10. STRATEGIES BEING ADOPTED BY ALL THE INSTITUTIONS UNDER
STUDY

There are certain strategies which are adopted by the institutions under study in addition
to the individual strategies. These strategies include:

10.1. Franchising

All the institutions are expanding their reach through Franchises, apart from their own
centers, and maintaining the same quality standards, which is helping in expansion of
their market base as well as add up to the revenues.

10.2. Placement Assistance

This is one of the most popular strategy begin adapted by the institutions, which is
helping them to attract students, as it is the placements which are one of the major
deciding factors for the selection of the institution for study.

10.3. Short Term Promotional Measures

Most of the times, these institutions are trying their best to sell their courses through
various promotional measures like Scholarships tests, seminars, discount offers, value
added courses etc., which are giving results.

10.4. Entering Foreign Markets

The diversification strategy of entering foreign countries is the "in thing" for these study
institutions as they are expanding their base by entering unexplored foreign markets. This
is giving them the revenue so that they can survive turbulence in the industry.

10.5. Training the Trainers

This strategy is being adopted, as the industry is knowledge based, and the knowledge
providers have to keep themselves abreast of latest and emerging technologies, which
will in-turn, help the institutions to frame and run effective and qualitative courses.

10.6. Re-focus on Corporate Training

As the revenues from Individual training are dwindling to balance their revenues, these
institutions are adopting the refocus strategy on corporate training, both in the public as
well as private sectors.

10.7. Focus on Non-IT Firms

The IT Education institutions are now focusing on non--IT firms for training their
employees to use IT Tools for enhancing their productivity and bring in effectiveness.
10.8. Cost Differentiation

The IT Education institutions are adopting to create cost difference by focusing on Cost
cutting as a strategy, where the costs can be cut without effecting quality. The institutions
are cutting down the costs on advertising which forms a major part of overhead costs and
are resorting to more focused local direct marketing efforts.

10.9. Corporate Citizenship Programs

The institutions are using corporate citizenship programs as a strategy to create brand
awareness and equity for their brands. They are participating into various programs like
Akshar Missions, World Computer Literacy day etc. and offering free as well as
concessional programs to the under privileged.

10.10. Employee Retention

The institutions are coming up with varied strategies for retention.

11. RECOMMENDATIONS

The following are suggestions and recommendations, after the thorough research, for the
IT Education Institutions in India:

[check] Realize that old strategies are not going to help much, work on innovative
strategies.

[check] Create unsustainable advantages for brief periods of superiority, which will do
away the leader's advantage and help the institution to provide a unique value to the
customers.

[check] Build strategies on strengths and resources so that they can create a field of
influence, which can be used to fight off the forces of competitors.

[check] Build strong strategic alliances in the area, where the competitors will dare not to
enter.

[check] Realize that there is life beyond metros and cities. India is more spread in semi
urban and rural areas, focus on these un-catered areas with competitive strategies by
offering differentiation in prices & products.

[check] Concentrate on corporate training and offer customized solutions

[check] Design and Adopt newer hybrid models of teaching methodology, which can
include integration of instructor led training, on-line training, class room facilitation &
training etc.
[check] Concentrate on Career oriented courses and make the youth realize that they need
to "know" computers to enhance their knowledge, find jobs and get better jobs, get an
edge in their careers.

[check] Focus on the industry needs, design curriculum as per the needs of industry
revise it to enhance employability.

[check] Quality element should be the differentiation factor.

[check] Expand market share by going global.

[check] Create more franchises, so that the return on capital employed improves

[check] Add credibility by vendor certifications

[check] Aim at bringing customer delight, through excellence in service delivery and
quality, rather than just customer satisfaction.

[check] Re-align strategies and reach out to the customer in innovative ways

[check] For career courses, tap the customers at the college levels.

[check] Diversify and tap the Government segments, as it has potential to spend

[check] Look forward to the emerging sectors like insurance, finance and
pharmaceuticals, as they will be the high users of IT. Develop and design courses to suit
these sectors and make a mark.

[check] High--end, niche software courses are very popular, which are looked forward for
retraining or enhancing the existing skills of the IT professionals, this will give very good
scope to market.

The most important aspect for any IT Education institution is be customer oriented in
every thing they do, as if the customer is delighted, then there is no need for anything
else. All the strategies have to be based on bringing in the customer delight and help the
institution to establish great Customer relations, which can be used in long run to get new
customers. One should always remember to be ethical and value based in everything they
do as that is a key success factor.

REFERENCES & BIBLIOGRAPHY

Richard A D' Aveni, Robert Gunther, " Hyper Competition: Managing the Dynamics of
Strategic Maneuvering", Free Press, 1994.

Gary Hamel & C.K. Prahalad, "Competing for the future ", Boston, Harvard Business
School Press, 1994.
Samuel C. Certo & J. Paul Peter, "Strategic Management", Chicago, Irwin 1995.

Gary Hamel & C.K. Prahalad," Managing for the future", Boston, Harvard Business
School Press, 1994

Heeks, R.B., India's Software Industry--State Policy, Liberalization and Industrial

Development, Sage Publications, New Delhi, 1996.

Henry, David and Dalton, Donald, Information Technology Industries in the New
Economy, Digital Economy-2002,2002.

Schware, R., "Software Industry Entry Strategies for Developing Countries", World
Development, 20(2), 1992

Team DQ., "The Great Indian Software Revolution", Dataquest, December, 2002.

Satyanarayana Rao, Gandikota, "Innovative Strategies in marketing in Indian Information

Technology Industry--A Study of select organizations ", Ph.D. Dissertation, O.U., 1995

www.nasscom.org.

AUTHOR PROFILE

Dr. Chetan Srivastava earned his Ph.D. at Osmania University, India in 2004. Currently
he is a Faculty Member and the Placement Coordinator at School of Management
Studies, University of Hyderabad, India.

Chetan Srivastava, University of Hyderabad, Hyderabad, INDIA

The Top Players

(Rs cr)

NIIT 418 34%

Aptech 319 26%
SSI 69 6%
Jetking 42 4%
CMC 25 2%
Tata Infotech 25 2%
Rest 317 26%

Total: TS 1,215 cr

Source: Data Quest

Note: Table made from pie chart.

COPYRIGHT 2007 International Academy of Business and Economics
COPYRIGHT 2008 Gale, Cengage Learning