Organisational Study
IT INDUSTRY PROFILE
Introduction
Companies in and outside the information technology (IT) industry employ information
technology workers. While one might think of the typical IT worker as employed by a major
software company or systems developer the reality is that nine out of ten IT workers are found in
banks insurance companies manufacturing plants or other non!IT businesses. " new survey by
the Information Technology "ssociation of "merica (IT"") shows that not only are IT workers
found mostly outside the IT industry but that the outlook and prospects for the two groups is
likely to be far different. In previous years characteri#ed by double digit growth and an$ious
investors betting on the ne$t new thing careers inside the IT industry appeared to be the way to
go%at least for those on the professional fast track. &uch has changed since '(() even as the
economy slowly recovers and the overall si#e of the IT workforce approaches its historic high
point of )(.* million. The employment footing outside the IT industry seems surer less turbulent.
+on!IT companies are more likely to hire according to plan far less likely to move jobs overseas
more apt to increase%not cut%compensation.
Whether non!IT companies offer IT workers long!term career advantages or just a temporary
,port in the storm- remains to be seen. IT companies are hard pressed by customers to field cost
effective solutions. The pressure on IT companies to cut costs is clearly reflected in this survey.
This survey is a continuation of the IT"" series of reports on the IT workforce. .ince )//0
IT"" has tracked employer demand for IT workers. In the run up to the year '((( IT talent was
scarce and demand e$ceeded supply. 1ecause of the talent crunch IT"" focused on the skills
most demanded by employers and the education and training alternatives for gaining those skills.
With job market conditions changing IT""2s survey has evolved to e$plore how trends like
offshore development may be changing the employment landscape.
This survey reports findings in nine areas3
4 Total IT workforce si#e
4 5uture demand for IT workers
4 6emand in specific job categories
4 7iring and layoff activity
4 .uccess at hiring to plan
Babasabpatilfrppt!ba"co! )
Organisational Study
4 .kills attainment
4 8ecruitment
4 9ffshore development
4 Compensation
#$%OR PL$YERS
I1& strive to lead in the invention development and manufacture of the industry:s most
advanced information technologies including computer systems software storage systems and
microelectronics.
&ttp'(()))"ib!"co!(ib!(us(
Computer "ssociates International Inc. (+;.'(( customers in more than )'( countries around the world. We owe our success to
the e$perience and e$pertise of our employees and the ?uality and effectiveness of our solutions.
It:s no wonder the best!run businesses run ."=.http://www.sap.com/company/index.epx
Babasabpatilfrppt!ba"co! '
Organisational Study
http3@@www. m icrosoft.co m @traincert @.
5ounded in )/0A &icrosoft is the worldwide leading software services and Internet
technologies for personal and business computing. The company offers a wide range of
products and services designed to empower people through great software B any time any
place and on any device.
The 9racle Corporation is the world:s largest enterprise software company. 5or more than 'A
years 9racle has worked on ways to help its customers manage critical information. The
company has built the only unbreakable database with )A international security
evaluations. 9racle was the first software company to move its business application
products to the Internet (www.oracle.co m).
.iebel offers 'C industry!specific applications and more than )(( industry!specific solution sets.
These pre!built solutions contain best practices and business processes to address the uni?ue
business needs and challenges of your industry.
.iebel industry solutions minimi#e customi#ation enable rapid deployment and significantly
reduce total cost of ownership. &ttp'(()))"sibl"co!(
Cisco .ystems is the worldwide leader in networking for the Internet. Cisco is committed
Babasabpatilfrppt!ba"co! C
Organisational Study
to working with educational institutions around the globe to ensure that today:s students master
the necessary skills for success in the Internet economy. http3@@www.cisco.co m @edu .
6ice Inc. (+asda?3 6IC< http3@@about.dice.co m) is the leading provider of online recruiting
services for technology professionals. 6ice Inc. provides services to hire train and
retain technology professionals through dice.com the leading online technology!focused job
board.
The ITT Technical Institutes are leading providers of technology!oriented postsecondary degree
programs serving appro$imately C)((( students. The 0( campuses located across the
D... offer the information technology disciplines of Computer +etwork .ystems &ultimedia
.oftware "pplications and =rogramming and Web 6evelopment Technical =roject
&anagement for
/.0
1aseline '((' F' '((' FC '((' F* '((' F) '((C
The D... economy begins '((C with )(.C million IT workers up *.' percent from the start of
'((' (but less than one percent from last ?uarter). IT"" calculates workforce si#e by netting
out the total number of IT workers hired and dismissed in the survey period from its baseline
year measurement. Comparing ?uarter to ?uarter the economy added >G*(G IT workers in the
first three months of the year. While that is good news the net gain in jobs is actually smaller
than year!end '((' where employers hired /0))> more people than they released.
The picture presented by these numbers is a marketplace slowly reapportioning its human
resources (5igure '). Hains have been made not so much in response to companies adding new
workers but to a slow down in the rate at which workers have been let go.
Babasabpatilfrppt!ba"co! A
Organisational Study
INDI$N IT INDUSTRY PROFILE
The Indian software Industry has grown from a mere D. I )A( million in )//)!/' to a
staggering D. I J.0 billion (including over I * billion worth of software e$port) in )///!
'(((. +o other Indian industry has performed so well against the global competition.
The annual growth rate of India2s software e$port has been consistently over A(J since
)//). "s per the projections made by the +ational "ssociation of .oftware and service
Companies (+"..C9&) for '(((!() ("pril ) '((( B &arch C) '(()) India2s software
e$port would be around I G.C billion in addition to I '.A billion in domestic sales.
Today India e$ports software and services to nearly /A countries around the world. The
share of +orth "merica (D. K Canada) in India2s software e$port is about G)J. In )///!
'((( more than a third of 5ortune A(( companies outsource their software re?uirements
to India.
+"..C9&2s survey during )///!'((( indicates a reversal in the mode of services
offered by India. In )//)!/' offshore services accounted AJ and on!site service /AJ of
the total e$ports. 7owever during )///!'((( offshore services contributed over *(J of
the total e$ports.
INDUSTRY INFR$,TURE
$NNU$L TURNO-ER NO" OF ,O#P$NIES
"bove 8s. )((( Cr. A
8s A(( B 8s )((( Cr. A
8s 'A( B 8s A(( Cr. )A
8s )(( B 8s 'A( Cr. '0
8s A( B 8s )(( Cr. AA
8s )( B 8s A( Cr. ''(
1elow 8s )( Cr. '*>C
T& N$SS,O# . #c/insy rport on India0s IT Industris
"ccording to +"..C9&!&ckinsey report annual revenue projections for India2s IT
Industries in '((> are D. I >0 billion and market openings are emerging across four
Babasabpatilfrppt!ba"co! G
Organisational Study
broad sectors IT .ervices .oftware =roducts IT .A C>.A '.)
Soft)ar
Products > ' )( /.ALL )/.A (.G
IT7nabld
Sr:ics )A ' )0 ' )/ (.*
7Businss
* ) A A )( (.'
Total
A( )' G' 'A >0 C.C
Organisational Study
• =romote the growth of human resource development in the IT sector with the aim
of creating ?uality!based education.
• =romote 8K6 in the sector by identifying thrust areas and drawing up a blueprint
for action.
India2s most pri#ed resource in today2s knowledge economy is its readily available
technical workforce. India has the second largest C' educational institutions and polytechnics which
train more than G00>A computer software professionals every year. Hovernment of India
is stepping up the number and ?uality of training facilities in the country to capitali#e on
this e$traordinary human resource. It is the knowledge industry that will help take the
Indian economy to a sustained higher rate of growth and the policy makers are full aware
of this.
Babasabpatilfrppt!ba"co! /
Organisational Study
IT INDUSTRY PROFILE
Introduction
Companies in and outside the information technology (IT) industry employ information
technology workers. While one might think of the typical IT worker as employed by a major
software company or systems developer the reality is that nine out of ten IT workers are found in
banks insurance companies manufacturing plants or other non!IT businesses. " new survey by
the Information Technology "ssociation of "merica (IT"") shows that not only are IT workers
found mostly outside the IT industry but that the outlook and prospects for the two groups is
likely to be far different. In previous years characteri#ed by double digit growth and an$ious
investors betting on the ne$t new thing careers inside the IT industry appeared to be the way to
go%at least for those on the professional fast track. &uch has changed since '(() even as the
economy slowly recovers and the overall si#e of the IT workforce approaches its historic high
point of )(.* million. The employment footing outside the IT industry seems surer less turbulent.
+on!IT companies are more likely to hire according to plan far less likely to move jobs overseas
more apt to increase%not cut%compensation.
Whether non!IT companies offer IT workers long!term career advantages or just a temporary
,port in the storm- remains to be seen. IT companies are hard pressed by customers to field cost
effective solutions. The pressure on IT companies to cut costs is clearly reflected in this survey.
This survey is a continuation of the IT"" series of reports on the IT workforce. .ince )//0
IT"" has tracked employer demand for IT workers. In the run up to the year '((( IT talent was
scarce and demand e$ceeded supply. 1ecause of the talent crunch IT"" focused on the skills
most demanded by employers and the education and training alternatives for gaining those skills.
With job market conditions changing IT""2s survey has evolved to e$plore how trends like
offshore development may be changing the employment landscape.
This survey reports findings in nine areas3
4 Total IT workforce si#e
4 5uture demand for IT workers
4 6emand in specific job categories
4 7iring and layoff activity
4 .uccess at hiring to plan
Babasabpatilfrppt!ba"co! )
Organisational Study
4 .kills attainment
4 8ecruitment
4 9ffshore development
4 Compensation
#$%OR PL$YERS
I1& strive to lead in the invention development and manufacture of the industry:s most
advanced information technologies including computer systems software storage systems and
microelectronics.
&ttp'(()))"ib!"co!(ib!(us(
Computer "ssociates International Inc. (+;.'(( customers in more than )'( countries around the world. We owe our success to
the e$perience and e$pertise of our employees and the ?uality and effectiveness of our solutions.
It:s no wonder the best!run businesses run ."=.http://www.sap.com/company/index.epx
Babasabpatilfrppt!ba"co! '
Organisational Study
http3@@www. m icrosoft.co m @traincert @.
5ounded in )/0A &icrosoft is the worldwide leading software services and Internet
technologies for personal and business computing. The company offers a wide range of
products and services designed to empower people through great software B any time any
place and on any device.
The 9racle Corporation is the world:s largest enterprise software company. 5or more than 'A
years 9racle has worked on ways to help its customers manage critical information. The
company has built the only unbreakable database with )A international security
evaluations. 9racle was the first software company to move its business application
products to the Internet (www.oracle.co m).
.iebel offers 'C industry!specific applications and more than )(( industry!specific solution sets.
These pre!built solutions contain best practices and business processes to address the uni?ue
business needs and challenges of your industry.
.iebel industry solutions minimi#e customi#ation enable rapid deployment and significantly
reduce total cost of ownership. &ttp'(()))"sibl"co!(
Cisco .ystems is the worldwide leader in networking for the Internet. Cisco is committed
Babasabpatilfrppt!ba"co! C
Organisational Study
to working with educational institutions around the globe to ensure that today:s students master
the necessary skills for success in the Internet economy. http3@@www.cisco.co m @edu .
6ice Inc. (+asda?3 6IC< http3@@about.dice.co m) is the leading provider of online recruiting
services for technology professionals. 6ice Inc. provides services to hire train and
retain technology professionals through dice.com the leading online technology!focused job
board.
The ITT Technical Institutes are leading providers of technology!oriented postsecondary degree
programs serving appro$imately C)((( students. The 0( campuses located across the
D... offer the information technology disciplines of Computer +etwork .ystems &ultimedia
.oftware "pplications and =rogramming and Web 6evelopment Technical =roject
&anagement for
/.0
1aseline '((' F' '((' FC '((' F* '((' F) '((C
The D... economy begins '((C with )(.C million IT workers up *.' percent from the start of
'((' (but less than one percent from last ?uarter). IT"" calculates workforce si#e by netting
out the total number of IT workers hired and dismissed in the survey period from its baseline
year measurement. Comparing ?uarter to ?uarter the economy added >G*(G IT workers in the
first three months of the year. While that is good news the net gain in jobs is actually smaller
than year!end '((' where employers hired /0))> more people than they released.
The picture presented by these numbers is a marketplace slowly reapportioning its human
resources (5igure '). Hains have been made not so much in response to companies adding new
workers but to a slow down in the rate at which workers have been let go.
Babasabpatilfrppt!ba"co! A
Organisational Study
INDI$N IT INDUSTRY PROFILE
The Indian software Industry has grown from a mere D. I )A( million in )//)!/' to a
staggering D. I J.0 billion (including over I * billion worth of software e$port) in )///!
'(((. +o other Indian industry has performed so well against the global competition.
The annual growth rate of India2s software e$port has been consistently over A(J since
)//). "s per the projections made by the +ational "ssociation of .oftware and service
Companies (+"..C9&) for '(((!() ("pril ) '((( B &arch C) '(()) India2s software
e$port would be around I G.C billion in addition to I '.A billion in domestic sales.
Today India e$ports software and services to nearly /A countries around the world. The
share of +orth "merica (D. K Canada) in India2s software e$port is about G)J. In )///!
'((( more than a third of 5ortune A(( companies outsource their software re?uirements
to India.
+"..C9&2s survey during )///!'((( indicates a reversal in the mode of services
offered by India. In )//)!/' offshore services accounted AJ and on!site service /AJ of
the total e$ports. 7owever during )///!'((( offshore services contributed over *(J of
the total e$ports.
INDUSTRY INFR$,TURE
$NNU$L TURNO-ER NO" OF ,O#P$NIES
"bove 8s. )((( Cr. A
8s A(( B 8s )((( Cr. A
8s 'A( B 8s A(( Cr. )A
8s )(( B 8s 'A( Cr. '0
8s A( B 8s )(( Cr. AA
8s )( B 8s A( Cr. ''(
1elow 8s )( Cr. '*>C
T& N$SS,O# . #c/insy rport on India0s IT Industris
"ccording to +"..C9&!&ckinsey report annual revenue projections for India2s IT
Industries in '((> are D. I >0 billion and market openings are emerging across four
Babasabpatilfrppt!ba"co! G
Organisational Study
broad sectors IT .ervices .oftware =roducts IT .A C>.A '.)
Soft)ar
Products > ' )( /.ALL )/.A (.G
IT7nabld
Sr:ics )A ' )0 ' )/ (.*
7Businss
* ) A A )( (.'
Total
A( )' G' 'A >0 C.C
Organisational Study
• =romote the growth of human resource development in the IT sector with the aim
of creating ?uality!based education.
• =romote 8K6 in the sector by identifying thrust areas and drawing up a blueprint
for action.
India2s most pri#ed resource in today2s knowledge economy is its readily available
technical workforce. India has the second largest C' educational institutions and polytechnics which
train more than G00>A computer software professionals every year. Hovernment of India
is stepping up the number and ?uality of training facilities in the country to capitali#e on
this e$traordinary human resource. It is the knowledge industry that will help take the
Indian economy to a sustained higher rate of growth and the policy makers are full aware
of this.
Babasabpatilfrppt!ba"co! /
Organisational Study