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Sample Essay on PESTEL Analysis of Indian IT Industry

PESTEL Analysis of Indian IT Industry

The information and technology industry has gone through a lot of transformation. India is one of the countries that rule the IT world today. Information Technology has integrated India’s economy through removal of many barriers in the sector. IT sector has developed rapid and India is no exceptional. However, to excel in the information technology sector or in any related venture, conducting PESTEL analysis of Indian IT industry is one of the great strategies to rally on.

The global sourcing information technology related services and products are estimated to have grown at a rapid rate. With the unmatched growth on the worldwide technology products and related services, any investment in the field needs to be well calculated. India is a popular choice of customers who are ever seeking outsourced services due to the fact that it offers services on 24/7 basis. This has helped maintain quality and cost of services as well.

Every job created in the IT sector creates more than four jobs that help boost economy. There are many companies in India that are providing good careers and helping increase revenues. Interestingly, looking at the PESTEL analysis of most of the Indian companies has been a great way to succeed in the information technology sector. These are factors that determine how an IT company operates in the market and they include the following;

Political factors– These are factors that include government rules and regulations on any business environment. Factors such as customer protection law, terrorist attracts or threats and competitive regulations are also known to impact operations of any business regardless of status. The Indian government has been supportive and on the front line on the growth of IT services. The government has decided to contract IT job to IT companies developing new and more opportunities for the company and the IT industry in general. The Indian government has made it easy and strengthened the Information Technology act, 2000 to provide a comprehensive legal environment.
Economic factors– Global recession, increasing working pay, competition from other IT companies an increased contract fee are a number of factors that impact the IT sector. Currency fluctuation and devaluation has affected the industry greatly during the recession time. Recession has been one of the core factors that affect global economy. It causes low attribute rate due to job layouts and cuts. The decline in the financial and banking industry has led to a decline in revenue and this has affected the IT sector greatly.
Social factors– These are factors that range from employee rights, race nationality of the IT Company of choice, language barrier or other common social factors. Due to the large number of people in India who can speak in English, this has helped fostering good relations in the industry and on the global platform. Many institutions in the country offer IT course creating jobs for many people at lowers costs.
Technological factors– India offers lowest tariffs in the world. Today, India has the second largest telephone network after china offering 3G , enterprise telephone services, WI-MAX and VPN have become the in-thing.
Legal factors– India has come up with great Acts that have made it easy for the IT sector to develop on. It has become easy for IT companies to carry out electronic using legal infrastructure made possible by the Legal Aspects and Policies IT Act 2000. Government can easily issue notification in the web signaling e-governance.
Environmental factors– Environmental conservation and protection is an issue that has been causing a lot buzz and it has gained prominence with time. Deteriorating environmental balance has been threatening the sustainability of life and nature. IT sector has also been affected by floods, earthquake, cyclone and tsunami.

The Indian IT industry has a good future prospect. It has become the on-going requirement of every nation not only India. Indeed, it has opened many opportunities for investors, youths and countries. To excel in the industry, conducting the PESTEL analysis of the Indian IT sector is the best way to get going.

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Online sources:

http://www.authorstream.com/Presentation/titu957-939800-indian-it-industry-ppt/

http://www.slideshare.net/NiteshSinghPatel/pest-it-32360882

http://www.reuters.com/article/2012/12/11/idUS73089+11-Dec-2012+BW20121211

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Sample Essay on PESTEL Analysis of Indian IT Industry

PESTEL Analysis of Indian IT Industry

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