A Project Report On
ACKNOWLEDGEMENT Every project big or small, is successful largely due to the efforts of a number of wonderful people, who have always given their valuable advice or helping hand. We sincerely appreciate the inspiration; support & efforts of all team members making this project a success. We would like to express our gratitude to our Director Prof. S. XYZ, for his inspiration to do this project and get a wonderful & beneficial experience of learning things in an innovative way. By doing this project & sharing the knowledge, we can gain insight about different industries which will make us “Jack of all trades�. We would like to thank our classmates to help us in finding information & preparing the report. Without their help it could not be a complete project. It helps us to work in team & motivate us to give our hands for development of others.
PREFACE The Indian Electronics & IT Industry is one of the fastest growing sectors of the Indian Industry. India has the potential to develop and manufacture Electronics / IT hardware for the global markets and gain higher global share besides meeting the country’s future requirement. The IT & Telecom hardware industry now, operating under a zero duty regime from the year 2005 onwards as a result of implementation of Information Technology Agreement (ITA-1) of WTO. This project is a study of the Indian Hardware Industry to see how it was working, what the current situation is, after ITA-1 & what may be the strategic steps of the big companies in future. We have taken five big players under our study. These are:
•
HCL Technologies
•
Dell India Ltd.
•
Wipro Infotech
•
Acer India Ltd.
•
Intel
TABLE OF CONTENT Sr. No. 1 2 3 3.1 3.2 3.3 3.4 3.5 4 5 6
Topic Industry Profile Industry Analysis ( Porter’s Model) Company Profile Dell India Ltd. Wipro Infotech Acer India HCL Infosystems Intel Future Prospects & Growth Business Opportunities for India Bibliography
Page No. 4 9 12 21 33 44 57 62 63 66
INDUSTRY PROFILE From wealth creation to improving the quality of life for all sections of the society, IT has come to be recognized as a key-leveraging factor in National Development. Electronics is the enabling technology of the information economy and accounts for about 4% of the global GDP. Electronics/IT is not only the fastest growing industry worldwide but also has a profound effect on other industries in increasing productivity, changing cost structure and even the way we live and work. Government Initiative With the formation of a new ministry for IT, Government of India (GOI) has taken a major step towards promoting the domestic industry and achieving the full potential of the Indian IT entrepreneurs. Constraints have been comprehensively identified and steps taken to overcome them and also to provide incentives. Thus for example, venture capital has been the main source of finance for software industry around the world. However, majority of the software units in India is in the small and medium enterprise sector and there is a critical shortage of venture capital kind of support. In order to alleviate this situation and to promote Indian IT industry, the Government of India has set up a National Task Force on IT and Software Development to examine the feasibility of strengthening the industry. The Task Force has already submitted its recommendations, which are under active consideration. Norms for the operations of venture capital funds have also been liberalized to boost the industry. The Government of India is also actively providing fiscal incentives and liberalizing norms for FDI and raising capital abroad. Recently, an IT committee was set up by the Ministry of Information Technology, Government of India, comprising Non Resident Indian (NRI) professionals from the United States to seek expertise and advice and also to step up U.S. investments in India's IT sector. The committee is chaired by Minister of Information Technology,
Government of India, and the members include Secretary, Ministry of Information Technology and a large number of important Indian American IT entrepreneurs. Electronics and Information Technology is the fastest growing segment of Indian industry both in terms of production and exports. Today, the electronics industry is completely delicensed with the exception of aerospace and defence electronics, and along with the liberalization in foreign investment and export-import policies of the entire economy, this sector is attracting considerable interest not only as a vast market but also as potential production base by international companies. In recent times, ‘software development and IT enabled services’ have emerged as a niche opportunity for India in the global context. The Government is taking all necessary steps to make India, a Global Information Technology Superpower and a front-runner in the age of Information Revolution. The Government has announced promotion of Information Technology as one of the five top priorities of the country and constituted a National Task Force on Information Technology and Software Development. Mission To cater to information needs in the field of electronics of the Industry, Entrepreneurs, Planners and Decision-Makers; Data Bank and Information Division (DBID) of Department of Information Technology has developed and maintains a large integrated information base called "LIPS Information System". It covers production, exports, foreign collaborations, manufacturers, and other macro level statistics relating to Indian Electronics Industry. Electronics Hardware Committee focuses on working in close association with the industry to facilitate industry issues and concerns and provides business solutions to industry problems with the help of the Government. It plays a proactive role in interacting with the industry and provides industry - government interface to help them evolve and implement all major policies and issues of the industry. There are
perspective group of experts from the industry to provide a boost to the hardware sector and work towards the growth and development of the economy as a whole. Indian PC Market The Indian desktop PC market grossed 12.58 lakh units in the six months ended Sept 2003, registering a growth of 32 percent over the same period in the previous year, according to MAIT, the association of hardware, training and R&D services sectors of the Indian IT industry. This is the first time first-half sales have crossed the 1 million mark. MAIT expects PC sales for the full year to touch 3 million. MAIT cites "sound macroeconomic conditions" and "buoyant buying sentiment in the market" as the reasons for its revising its PC sales growth projections for FY 2003-04 from the earlier 20 percent to 30 percent. PC sales in 2002-03 were 2.3 million. These figures are contained in MAIT's industry performance review for the first-half of 2003-04. According to MAIT, the boost has come from sectors such as telecom, banking and financial services, IT-enabled services and the central and state governments. Another factor was the drop in prices, especially for entry-level products, which has perked up purchases by small and medium enterprises and homes. The trend of increased PC sales in smaller towns and cities, witnessed last year, has continued undiminished. Entry level PC prices have dropped to Rs.20,000; and those for notebooks to Rs.50,000, and servers to less than Rs.1 lakh. The prices of inkjet and laser printers have also declined. MAIT's half-yearly Industry Performance Review, or ITOPs, is conducted by the Indian Market Research Bureau. MAIT also reviews the industry's quarterly performance. The ITOPs study for the first-half of FY 2003-04 involved face-to-face interviews with over 20,000 respondents selected randomly from 16 cities in India. The MAIT-IMRB surveys, initiated in 1996-97, cover five broad product segments - computers, networking products, printers, other peripherals and the Internet.
Assembled PC share grows Smaller, lesser known regional brands and unbranded systems, accounted for 57 percent of the PC sales in H1/2003-04 from 48 percent on a year-to-year basis. Sales of such 'assembled' brands grew by 57 percent. The share of Indian brands declined to 20 percent from 22 percent earlier; but their absolute numbers grew 20 percent. The share of MNC brands fell from the earlier 30 to 23 percent, while their sales rose 1 percent. PC sales to the business segment improved 20 percent, and accounted for 74 percent of total sales. Sales to households’ sales grew 88 percent, and to home offices 97 percent. MAIT attributes the surge in sales by the unorganised sector to increased purchases by households, 90 percent of whose purchases are made from the unorganised sector. In the business segment, sales to larger businesses (over 50 employees) rose 21 per cent, and to the medium business segment (10 to 50 employees) by 39 per cent, while sales to small enterprises remained unchanged. Among verticals, the retail segment witnessed a 54 per cent increase in consumption. In terms of processor configuration, PC sales in H1/2003-04 were dominated by Intel P4, which accounted for a 66 percent share, followed by P-3, which accounted for 14 percent. The share of AMD, Cyrix and other processors grew from 10 to 18 percent over the same period last year, reflecting the demand for low-cost computing solutions. In terms of operating systems, 84 percent of the PC-based businesses bought Windows 95/98, and only 2 percent bought Linux. In the case of the server-owning enterprises, 10 percent bought Linux, UNIX, Novel and other non-Windows-based operating systems, and the rest Windows-based systems. Windows NT accounted for 13 percent, Windows 95/98 for 45 percent, and Windows 2000 for 25 percent. According to the MAIT-IMRB study, overall printer sales in H1/2003-04 grew 20 percent on a year-to-year basis. Dot-matrix printer sales shot up 22 percent with increased off
take from the household and retail segments. Inkjet printer sales grew 21 percent, led by a 102 percent increase in household purchases; inkjet sales in the business segment dropped 22 percent. Laser printers recorded 9 percent growth due to significantly higher sales in the retail segment. MAIT has revised its growth projection for FY 2003-04 for overall printer sales to 20 percent from 15 percent; sales are expected to cross 1 mn. Commenting on the findings of the study, MAIT executive director Vinnie Mehta says, "While the mood in the industry is upbeat today, we are still lagging in terms of volumes required to be internationally competitive. And this becomes even more critical when the health of the IT industry and its proliferation is a key indicator of the competitiveness of a nation. The hardware industry in India, today, has to grapple with one of the highest taxation levels in the world as a result of which PC penetration is among the lowest (nine per thousand people) while the prices are the highest; 30 per cent more than that of the global average." Low market consumption and a large grey market have made it unattractive for investments. To emerge as a true superpower in IT we need not only to sustain the competitiveness of the software industry through a robust hardware industry but also spur the domestic consumption and provide information access to the masses by making IT and PCs more affordable. The domestic IT is on the anvil of revolution and this can be achieved through a reduction in excise duty from 16 percent to 8 percent, an increase in depreciation from 60 percent to 100 percent, and removal of the 4 percent SAD or making the products "CENVATable". These recommendations are also necessary to remain competitive in the near zero duty regime which we will encounter due to the implementation of the IT agreement in 2005.
INDUSTRY ANALYSIS PORTER’S FIVE FORCES MODEL 1.
Threat from New Entrants
:
In this booming industry, there is a
constant threat from the new entrants who emphasize on the low price structures in order create a market for themselves. The new entrants like Zenith PC, Acer India have adopted this strategy. 2.
Threat of Buyers
:
Due to the high availability of various
products & tight competition the consumers have a lot of options to select as per their requirements. 3.
Threat of Suppliers
:
Company like Intel are supplying the
microprocessors to the maximum market which leads them to dominate the hardware market. 4.
Threat of Substitute
:
Now with the developing technology &
constant innovations the hardware industry is also facing threat. Like substitute for PCs are laptops, & Floppy is substituted by CDs & Pen drives. 5.
Threat of Internal Competition :
There are a lot of companies in this
industry. Companies like IBM, Dell, Intel, Wipro etc. are facing competition from the new entrants like Acer, Zenith & HCL in PC as well as other hardware sectors. Indian Electronics/IT hardware sector has grown at a CAGR of 11.6% during 1991-2002 reaching a production of Rs. 37,000 crores during the year 2002-03. Growth in production during the VIII Plan (1992-97) and IX Plan (1997-2002) was15`% and 10.3% respectively.
During the VIII plan, investment came mostly in high growth areas like Colour Televisions, picture tubes, and glass shells, audio & video components. However, during the IX plan, domestic electronics hardware companies have started loosing their dominance in market share and have resorted to trading with sliding of duties on end products. Share of imports in the total Electronics/IT hardware consumption is progressively increasing. This trend indicates that overall manufacturing in the country is declining despite the growth in production. India, presently accounts for about 0.6% of the global Electronics/IT hardware production of US $ 1200 billion (2001). As per the Tenth Plan projection (realistic scenario), Electronics/IT hardware production in terminal year (2006-07) is targeted at Rs. 69,000 crores (CAGR 15%). The removal of duty protection coupled with the relatively small domestic market and the domestic market orientation of Indian manufacturers has resulted in the closure of many of the domestic manufacturing units. This trend needs to be reversed. India has the potential to develop and manufacture Electronics/IT hardware for the global market and gain higher global share besides meeting the country’s future requirement in the converging areas of information, communication and entertainment. Countries like Taiwan, Korea, Malaysia and of late China have recorded much higher growth in Electronic/IT hardware and are exporting worldwide. Presently, these 4 countries together account for 20% of the global Electronics/IT hardware production. China has already emerged as the 3rd largest manufacturer after USA and Japan. The electronics hardware manufacturing in the above countries is significantly contributing to their country’s GDP and also helping them in creating wealth for their people, improving the efficiency of doing business, generating employment and moreover providing them better information infrastructure. The Information Technology Agreement (ITA-I) of the WTO (World Trade Organisation) to which India is a signatory, makes it mandatory to make the customs duty zero on select imported electronics components and products. Accordingly, the Government of India has been reducing customs duties on these items gradually over the last five
years and the customs duty applicable on 217 tariff lines will be eliminated from the year 2005. Recognizing the potential of Electronics/IT industry, the Prime Minister’s Office set up a National Task Force on Information Technology and Software Development in May, 1998 under the Chairmanship of Shri Jaswant Singh, then External Affairs Minister. INDUSTRY SEGMENTATION MATRIX COMPUTER HARDWARE INDUSTRY Buyers Private State-owned Majors
Product Variety
Majors
Individual Customers
Laptop Desktop Server
Industry segments exist due to differences in structural attractiveness and differences in value chain of firm as well as value chain of buyers in different segments. Buyers buying behaviour also change in different segments.
For example Private
Majors are sophisticated buyers of computers and they have strong buyer power. Where as Individual customers have lesser buyer power. State-owned majors are focused on cost and buy computers through bidding procedure. Whereas individual customers focus more on features and technology. So companies should employ different strategies for different industrial segments to gain competitive advantage over competitors. Proper selection of industry segments in which to compete is very important for firm to become successful. In case of computer hardware industry all major companies are competing with broad competitive scope and serve almost all industry segments.
Dell’s Insight In today's business world, technology changes at supersonic speed. That's why Dell Insight frames enterprise computing topics in a business perspective, discussing the facts, trends, and solutions that matter to business IT. On the pages of Dell Insight, we cut through the clutter and deliver the straight story on business technology innovations and how they can impact the bottom line. Mission DELL understands customer needs for robust Technical Support Services that will support their home or Small Business computers. Without the proper Services, there can be serious problems if they do not have proper access to experts who can help solve their technical issues. One of the biggest levers in TCO reduction is standardization. DellPlus offers a number of ways to efficiently ensure the integrity of their unique hardware configurations. They can benefit from the high quality and great dependability of having their hardware installed and configured at one time, in one place. The across-the-board standardization that results from having your hardware image consistent in every DellPlus order makes it much simpler to upgrade and transition to new software. In addition, increased standardization helps simplify system administration, training, and compatibility issues. Hardware integration services cover: •
Installation of industry-standard hardware components and the appropriate drivers, including: Network interface cards, modems, video cards, sound cards, internal storage devices, and hard drives.
Dell is globally recognized for award winning products and outstanding services. Our philosophy of dealing direct enables us to anticipate, understand and address customers’ unique needs and supply them the customized solutions that provide the maximum return on IT investment. Our dedication to customer satisfaction means that customers can count on us for a single, accountable point of contact and a responsive, reliable, quality service.
Working Procedures
• Upgrade to new technology in one easy step with the help of the Dell Asset Recovery Programme.
• Retire redundant systems in a socially responsible and environmentally friendly manner, maximising the value of the equipment. Dell works in conjunction with world-class service providers to offer asset recovery services extending from logistics management to data security and compliant environmental disposal. These organisations work to specified standards and are monitored by Dell on an ongoing basis to facilitate the highest possible service levels. Performance Computing Clusters: Toward Industry Standardization The practice of clustering servers and other standard components to create a highperformance computing (HPC) environment continues to gain wider acceptance. Highperformance computing cluster (HPCC) development has followed the product stages of other technology components: what began as proprietary, big iron systems has evolved to components that use standards-based technologies. Now, the Dell TM HPCC bundled solution moves entire configurations of standards-based clusters ever closer to becoming standardized items. The product evolution path from proprietary to standard to Industry standard Dell clusters are in the trailing part of the standardization stage. Their goal is to continue pushing toward the industry standardization of HPCC so that it becomes fully understood and widely available, with a very attractive total cost of ownership (TCO). Strategies that dell adopts to facilitate industry standards To standardize a product or service, a company needs four prime strategies:
• Continuous improvement in price/performance • Capture and grow the market share • Evangelize to push the technology • The ability to integrate new technology quickly
Strategy 1: Pricing and Its Effects Price is going down, performance is going up, and these trends will continue. Theoretically, the Intel速 XeonTM processor technology lets us easily deliver close to 9 gigaflops per node with a two-processor server. In the prior generation, performance was close to 2.8 gigaflops at the same price point. The Intel Xeon processor offers advanced features such as Streaming SIMD (single-instruction, multiple-data) Extensions 2 (SSE2), which provides the ability to execute multiple instructions using the same pipeline. That capability is very welcome in HPCC. As the term highperformance computing implies, applications are still hungry for processing power. We can now offer servers that have four times more processing power per processor than we could with the Intel Pentium速 III processor. In the HPC arena, there has been a significant decrease in the cost of deploying a cluster configuration. In 1997 and 1998, the systems and services to achieve 1 gigaflop cost $3,000 or $3,500. Today the cost is almost a third, approximately $1,000. So certainly we have shown dramatic progress in regard to price/performance, and I believe we'll reach a price point under $1,000 in the next year. Current trends in features and functionality of HPCC Interconnect the mechanism that allows cooperation and collaboration between the cluster nodes, has evolved in price and performance. Functionality has improved through cluster management software that now can more intelligently monitor and manage the allocation of jobs to the cluster nodes and handle failure situations. The storage side of the configuration also has evolved. Two years ago, shared storage was likely a node with a direct attach SCSI device. Today, we can offer highly parallel, highly scalable, and highly available shared secondary storage and we now see the integration of large storage farms within the HPCC. Finally, we see the creation of more software bundles that will run in cluster environments.
Organization’s Clusters Organization Clustering allows organizations to refresh technology much more quickly. Previously, if an organization had a proprietary supercomputer or enterprise platform machine, any changes in technology would require an extensive overhaul or complete replacement of the system. In a cluster configuration originally based on Pentium III technology, for example, an organization could augment it with Intel Xeon processor-based nodes without any disruption. Nothing really needs to be thrown out. In addition, high availability and scalability are inherent in the cluster design. Strategy 2: Growing Market Share Dell currently has hundreds of customers and installations, and has seen an everincreasing demand. They expect this to increase to a couple thousand installations in one to two years. Dell has become one of the two major players in the Intel architecturebased HPCC space and has helped to grow the market significantly. According to IDC, in Q2 ‘02, Dell ranked as the leading supplier in the HPC Name Brand RISC and Intelbased clusters, with more than 40 percent market share of the $170 million market. They have seen a wide spectrum of opportunity. The configurations can be as small as 8 servers or as large as 2,500 servers or more. Some customers such as academicians and researchers are very hands-on and just want the hardware with the operating system. Other customers such as oil companies want not only the hardware, but also all the elements that go around it: services, support, software version control, and so forth. And we can provide those services for them. Customer base for clusters changing They have seen the boundary blurring between what has been known traditionally as technical computing and commercial computing-and by commercial computing mean both the type of application and the function of the organization itself. Commercial applications such as data mining could run in an HPCC architecture. Commercial entities in addition to academic research institutions are asking for supercomputer clusters. For example, oil companies use these clusters to perform seismic evaluations,
oil reservoir simulations, and other tasks. The financial services industry uses these machines to do portfolio forecasting. The application domain is increasing. Bioinformatics is another area that could use HPCC. Today, IT organizations are searching for one architecture that will evolve and serve both their data processing and engineering needs. Technical computing environments now demand functionality that traditionally was the domain of commercial applications, and vice versa. For example, we see great demand for integrating our storage area network (SAN) and network attached storage (NAS) products into supercomputer clusters. Highly available, reliable, and scalable storage is not particularly new, but this example illustrates how the technical or the computational segment of the market is requesting technology traditionally used in data processing environments. Similarly, commercial entities are requesting the high availability and scalability that comes with these clusters. Enterprise requirements such as reliability, availability, and serviceability are becoming requirements for all customers. Cluster architectures provide these features at a reasonable cost, and in some cases, at no cost. If you have a cluster of 50 nodes configured in a standby or hot-shadow configuration, you basically have the high availability and scalability at no additional premiums. Strategy 3: Evangelism They are working with several organizations to move the technology forward. To begin, their partnership with the Cornell Theory Centre, Microsoft, and Intel helped them launch their HPCC offerings. Dell recently announced that it will invest more money, evangelize the technology, and make sure the intensity continues. During the past three or four years, they have come a long way in standardizing cluster architectures. They have actively participated with research organizations and a few other companies in the Open Source Cluster Application Resources (OSCAR) project.
This project drives the injection of best utilities and best practices for deploying and managing cluster configurations. They are funding four to five universities to work with them to further develop the technology and help them accelerate the movement of supercomputer clusters into different application domains, such as energy services, bioinformatics, automotive, finance, and environmental sciences. At the World Multiconference on Systemics, Cybernetics and Informatics (SCI 2002), they hosted a one-day session where they gathered scientists, practitioners, and industry experts from commercial and educational institutions for a discussion of HPCC trends, best practices, and experiences in the field. The event was very successful, and they certainly plan to continue driving those kinds of activities. They are determined to function as evangelists and in the future they expect they will work with and fund more universities and national labs. Strategy 4: Standardization The last component is the integration of new technologies into the HPCC solution and responding to customer demands rapidly. For every new technology—whether it is a server, a processor, or an interconnect—that they feel is appropriate and that is demanded by the customer, we can respond. The Dell engineering organization can test and benchmark basic technologies and configurations, and integrate them very quickly. A typical HPCC configuration contains many variables. “They believe the best way to serve their customers is to generate knowledge and information, so they can jointly build the optimal configuration for their applications. That's their engineering strategy.” They don't create technology just for the sake of technology; they create technology solutions to help customers—if the customer wants it and if the price is right.
Industry standardization of HPCC In the last several months, Dell has put in place bundles of 8-, 16-, 32-, 64-, and 128node clusters that include the interconnect, software stack, and professional services. They have evolved these bundles very rapidly from a Pentium III-based platform to an Intel Xeon processor-based platform. They have evolved the SCSI interface to SANs and have integrated these technologies into HPCC offerings. They have rapidly responded to customer needs and injected new technologies into the solutions. These are the common turnkey solutions, and our salespeople use half a dozen stock-keeping units (SKUs) to order the full cluster configuration. These turnkey solutions can include not only the hardware and software, but also professional services. Dell has established partnerships with several companies so that if a customer wants a proof-of-concept or pre-sales consultation, they have a SKU to provide it. If customers want the equipment staged before they ship it to them, a service is available. If they want these service partners to port applications, tune the system, or optimize compilers, they can provide those services. Their definition of industry standards is a little bit broader than just the hardware and the software; they also include services that go around a solution. Several companies now offer services in the HPCC market, and that's yet another aspect of the transition to industry standards. Current trends in high-performance computing clusters They believe that clustering is revolutionizing traditional HPC. They see a mushrooming of ever-growing supercomputer clusters for solving technical and commercial computing problems. And, has seen a blurring of the line between commercial and technical computing, as enterprise requirements expand to HPCC. Dell continues its efforts to create bundled solutions that simplify the design, ordering, and deployment of cluster architectures. There is no need to put anything proprietary in these machines. They can use industry-standard components to build a manageable and scalable high-performance computing cluster.
SWOT ANALYSIS Strengths:
•
Globally recognized for award winning products and outstanding services because customers can count on for a single, accountable point of contact and a responsive, reliable, quality service
•
Upgradation to new technology because we can test and benchmark basic technologies and configurations, and integrate them very quickly
•
Continuous improvement in price/performance because prices are going down, performance is going up, and these trends will continue
•
Standardization : Dell continues its efforts to create bundled solutions that simplify the design, ordering, and deployment of cluster architectures
Weaknesses: •
Requires technical experts to solve the problems
•
High costs of the products
•
Hardware peripherals not available easily. Requires only branded peripherals.
Opportunities: •
Interconnect the mechanism that allows cooperation and collaboration between the cluster nodes
•
Evolution in price and performance
•
They can cater to the smaller clients. And make a larger market share in home PC segment.
Threats: •
Products having lower costs will capture the dell market share.
•
Major other Indian IT hardware companies are a threat to their home market.
Wipro InfoTech is the IT Services, Solutions & Products division of the Rs.81.7 billion Wipro Limited. Chairman of Wipro Ltd. is Mr. Azim Premji. Wipro was set up in the backdrop of the small town of Amalner in Maharashtra in 1945. Primarily an oil factory, the chief products were Sunflower Vanaspati and 787 laundry soap (a by-product of the Vanaspati operations). The company was called Western India Products Limited, with a modest presence in Maharashtra and Madhya Pradesh. It was in the early eighties that Wipro made its foray into the InfoTech arena. An energetic, committed team of professional R & D and marketing managers came together in Bangalore in 1980. With this began the Wipro InfoTech story. In a small lab at the Indian Institute of Science (IISc), the team developed the first Indian 8086 chip. Wipro has transcended from being a service provider to being a consultant, guide and trusted partner. Today, Wipro stands at the firmament, as a trusted and experienced provider of a comprehensive range of IT services, solutions and products. An experience that now spans the globe. For the year ended March 31, 2005, the revenues touched Rs. 13.96 billion, an increase of 43% year on year. Profit Before Interest & Tax (PBIT) grew by 32% year on year to Rs. 1.04 billion. There are more then 1900 employees and 275 business partners serving over 40000 customers Wipro has stamped its presence on the Indian market and leads the Indian IT industry. Headquartered at Bangalore, our business spans India, Asia Pacific and the Middle East. By collaborating with Wipro, organizations garner the power of tried and tested frameworks, strong domain knowledge, a large pool of certified technology specialists and best of breed alliances. We bring to market tailor-made, industry specific solutions that help meet your business challenges while increasing operational efficiency.
We help architect, implement and manage the entire IT lifecycle of customers through a complete portfolio of IT Services. Wipro services are backed by over two decades of experience handling complex integration projects in India and abroad. Multi-platform expertise, extensive reach and tested delivery mechanisms help us deliver reliable, high-quality, cost-effective IT services. Wipro IT services are crowned by in-depth Consulting Skills that are reinforced by a keen understanding of the key role that technology plays in enabling business. The Consulting portfolio includes Strategic Consulting Services, IT Governance & Optimization
Consulting,
Process
Consulting,
Business
Continuity
and
Risk
management Consulting. Wipro bring to their customers every component of IT infrastructure – servers, storage, networking and software product – through a host of Alliances with global technology leaders. These leading technology offerings are complemented by Wipro’s all round skill in planning, building, integrating and supporting the IT infrastructure. Wipro’s twenty-year-old computing business completes the product portfolio with a comprehensive range of desktops, servers, thin clients and notebook computers. Wipro InfoTech also bring the innovation business to business (B2B) model to enterprise in India through e-procurement services, solution and consulting offered by 01Markets Wipro’s position of leadership in the IT business is built on a strong foundation of quality processes (Six Sigma and ISO 9000), Knowledge Management Innovation & People processes (P-CMM: People Capability Maturity Model). Wipro InfoTech was also one of the earliest adopters of Six Sigma. Quality is focused on the product and service that touches our customers, and also internal processes. Moreover, there are quicker deliveries, higher reliability, simplified processes for customers and employees, call response and productivity. Wipro have extended their expertise to customers in Asia Pacific and the Middle East. Wipro bring to these markets a unique combination of domain knowledge, experienced
skill sets and a high thrust on quality. Wipro have established offices in Australia, Middle East, Hong Kong, Taiwan and Singapore, besides India. Wipro provides customers an advantage over time to meet every IT infrastructure need with a deep-rooted service delivery structure. Wipro reaches customers through 5 regional offices, 22 area offices, 164 service centres and partners across the country. Wipro's “Simpal Connect”, a 24x7 toll free customer support service, provides easy access and faster online resolution. Wipro offers complete IT Lifecycle Services 1.
Technology Integration Services With
over
15
years
of
experience
and
proven
methodologies,
Integration and Procurement Services from Wipro has adequate expertise to design and deploy the right infrastructure solution to organizations of any size and nature. Wipro's strong Project Management skills are complimented by strategic relationships with the world's leading technology players, providing cost-effective and reliable solutions for its customers. Range of Services include •
Call Center Practice
•
Data Center Practice
•
Enterprise Management Service
•
Network Integration
•
Platform Integration
•
Security Services
•
Storage Practice
2. Personal Computing Services To ensure maximum availability of IT infrastructure, Wipro’s 164 Service Centers and
125
Spare
locations
across
the
country
providing
reliable
24/7
support. “Simple Connect” (Toll free customer support) enhances the support
system further, for faster and effective online resolutions to reduce downtime along with taking its reach even to remote locations. Wipro's commitment to deliver excellent IT maintenance and support services revolves around customer needs and is tailored to suit every business requirement. Range of Services include 1 .Hardware Support Hardware support brings proactive and maintenance services that physically repair and includes basic installation, contract maintenance, and per incident repair, both Onsite and Off-site. Hardware support also includes telephonic technical troubleshooting and assistance for setup and all fee-based hardware warranty upgrades. 2. Software Support Wipro's Software services include telephone and on-line troubleshooting, installation assistance and basic support. Software support covers operating systems, office automation and other packaged software. 3. Upgrades: Wipro helps you take the technology leap that fulfils varying needs of your Personal Computing environment. With Wipro's relationship with global technology majors and OEMs, you could be assured that you get nothing but the latest technology PC upgrades which is well supported across the country. 4. Value added Services: To ensure 'continuous availability' of IT infrastructure, Wipro offers a range of value added services to cover entire IT infrastructure. These services can be customized to IT requirement. 3. Managed IT Services Managed IT Services from Wipro enables enterprises to focus on their core competencies, lowering the cost of managing IT infrastructure through improved
productivity and operational efficiencies. Wipro's Managed IT Services provide an effective combination of people, processes and tools to ensure that your IT infrastructure is always up and running. Wipro’s stringent quality processes like ITIL, Six Sigma, Flexible service delivery and convenient service options are integral Features of Wipro's Managed IT services. The Wipro Advantage •
Scalability of operation
•
Assured reliability and availability of system
•
Enhanced operation efficiency
Wipro’s state of the art Network Operation Center (NOC) provides remote delivery through a pool of highly-skilled technical experts via a dedicated link or secured VPN, while expert teams across the country provide on-site support. 4.
Enterprise Services Today, buzzword amongst enterprises is "Continuous Availability", Wipro is capable of preventing infrastructure breakdowns, averting information loss, ensuring system uptime and safeguarding the IT environment against calamities. Wipro extends a full portfolio of Enterprise Services that span every facet of mission critical enterprise IT infrastructure to deliver seamless operations, continuous data accessibility and high availability of IT infrastructure. This translates into higher productivity and cost optimization. The Enterprise Services team at Wipro works in partnership with some of the world’s leading hardware and software technology players to deliver solutions that meet customers' unique needs. Wipro taps its vast experience, and alliances with global technology leaders to offer single point, vendor neutral support services. Wipro offer a bouquet of Enterprise Services for a suite of servers, storage devices, operating systems, middleware applications and security software.
Benefits of Wipro's Enterprise Services
•
Best-of-Breed Technologies: Enterprise is assured of flexibility and scalability through integration of best-in- class technologies
•
Platform Independent Support: Wipro Enterprise Services is platform independent and adopts a vendor neutral approach. This enables us to serve organizations that have a diverse range of enterprise products across platforms
•
Controlled Complexity: Enterprise can have access to expertise that helps it overcome the complexities brought about by a heterogeneous IT environment
•
Sustained Uptime: A proactive approach help enterprise in reducing downtimes that is brought about by deploying the right tools and following stringent quality standards
•
SLA Based Delivery: One can count on the reliability of the service through well-defined SLAs.
•
Customer Satisfaction with TAM: Technical Account Management services enable a single point of contact and tighten integration with your IT environment.
•
Integration Through a Multi-skilled Workforce : Technical specialists skilled in multiple products & platforms bring forth expertise to address
Solutions
1.
Application Development & Maintenance In today’s competitive business scenario, strategic objectives of a typical customer for outsourcing information systems solution delivery are based on the following imperatives: •
Meet customer commitment
•
Maintain and improve service quality
•
Reduce operational expenditure
Wipro offers its core competency for successfully designing and developing innovative solutions using global delivery model. With over 15 years of extensive experience in Application Development & Maintenance (ADM) services using proven framework, methodology and experience, Wipro is a pioneer in offering state of the art solutions addressing customer needs. Wipro’s value proposition in global delivery model is: •
Committed cost savings
•
Commitment to support customers through long-term relationship
•
Demonstrate flexibility in customer relationship
Wipro has built its core competency in the areas of: •
World’s best delivery process
•
Strong partnership and governance model
•
Specialization in different business verticals of the industry
•
Continuous improvement using six sigma methodology
Wipro offers solutions in the ADM space in the three dimensions of:
2.
•
Responsibilities - Development, maintenance and production support
•
Service offerings - SLA based delivery, consolidation and migration
•
Productivity improvement using six sigma tools & methodology.
Business Application
Customer Relationship Management: Wipro’s CRM solutions help customers address a variety of CRM implementation issues in areas like customer retention, account management, campaign management or call center interactions, and devise strategies to increase revenue, productivity and customer satisfaction. Enterprise Resource Planning: Wipro's solutions in Enterprise Resource Planning (ERP) help you in automating the enterprise, and speeds up transactions across the organization. These solutions are typically integrated with Supply Chain, HR and Payroll systems, Eprocurement, E-business and CRM applications. Supply Chain Management: Wipro provides complete business consulting and technical integration services for supply chain management (SCM). Wipro’s years of experience in doing large-scale ERP implementations have contributed greatly 3.
Warehousing & Business Intelligence
Insta Intelligence: Speed to Business Insight: With over 600 consultants and over 90 customers in data warehousing and business intelligence, Wipro offers complete "end-to-end" data warehousing and business intelligence solutions, including on-site business / technical needs assessment, development and integration services and partial or total outsourcing of application implementation and maintenance. At Wipro, success stories in the
area of business intelligence and data warehousing span a wide spectrum of solutions and organizations like Nike, Transco, Thames Water and Nationwide. 4.
Enterprise Application Integration (EAI)
Delivering the right product at the right time, at the right place. Wipro's expertise in the EAI space includes specialization on middle-ware products like MQSeries, See beyond, web Methods, Web Sphere, Tibco, Vitria and Mercator. Wipro has also developed an optimized EAI Project methodology and product evaluation framework based on work experience with large Fortune 500 companies across industry domains and geographies. Wipro is one of the first IT consulting organizations to recognize and develop the expertise required to implement integration solutions using EAI technology. This has helped Wipro implement business critical EAI solutions for a number of customers develop methodology, standards and templates to speed up project implementations. Wipro's service offerings in EAI provide the following clear cut benefits to any business: •
Reduces systems/IT total cost of ownership
•
Maximizes investments in existing systems
•
Implements business change in underlying information technology systems
•
Provides global enterprise visibility of information and business processes
•
Extends supply chain visibility
PRODUCT PROFILE 1.
LittleGenius CP
6. SuperGenius900.gx
2.
SuperGenius533.VX
7. WSG 302
3.
SuperGenius800P
8. WSG 401
4.
SuperGenius800.VX
9. NetPower9425Z
5.
SuperGenius800.gx-P
10. NetPower1112Z
SWOT ANALYSIS Strengths: There are so many strengths with Wipro because of the company is on top. o The first and foremost strength for the company is the trust of the customers on Wipro. The company earns lots of faith and trust from the customers. o Wipro has strong Brand Name which is also one of the strong strengths for the company o Wipro has always tried to satisfy the customers and their needs. So Wipro always try to give good services to the customers. o Wipro has very good, Skilled Engineers. With the help of them Wipro can solve complains and problems of the customers. o Because of Good Communication and Regular Interaction with the customers, the faith of the customers is always with Wipro. o Wipro Provide 24 hours Toll Free, complain lines especially for the customers so they can easily inform about their complaints to the Company. Weaknesses: With the lots of Strengths, Company has also some Weaknesses which can improve. •
Some time customers are not fully satisfied with the service of Wipro, they need to improve more in service area.
•
Because of so many customers and complains, sometimes company can’t deliver service on time.
•
There are so many customers with Wipro so it also create problem in Toll Free complain lines. The company has to find out some solution for it.
Opportunity: In this global world there are so many Opportunity with which company can always improve. •
After globalization, there are great chances for IT company to improve & expand more.
•
Considering the present scenario, in every sector the companies are using IT so Wipro can take advantage of it.
•
In present time, each and every person need computer for their personal use so it’s also big opportunity for company.
•
The demand of IT products is high and it’s increasing day by day so company have lots of opportunity to grow more.
•
Because of globalization and with high demand company can increase their work in foreign countries.
Threats: With the lots of opportunity, there are some threats also about which company has to take care. •
Because of globalization, there are many companies working as competitors.
•
Because there are many companies as competitor, the customers are divided among many companies.
•
Because of high competition, the post sale service has become more important and if company fail to do it then they lose their customers.
•
Working in foreign countries in global environment is full of risk.
Acer History Established in 1976, Acer is among the world's top ten PC vendors, offering a broad range of PC products from industry-leading high-end PC servers and multimedia desktop computers to notebooks, computer peripherals and components. Acer is also a major Internet enabler, providing Internet component technologies, devices and services. These include end-to-end solutions, mobile phones, plasma displays, TFTLCDs, projectors, wireless communications, and e-corp solutions. The Acer Group employs 35,000 people in 232 enterprises spanning 41 countries worldwide, supporting dealers and distributors in over 100 nations. Acer Group revenues were US $9.9 billion in 2000. Acer India: A Profile Few IT companies offer the breadth and depth of products that Acer Group does. Leveraging the vast collective technological resources available - Acer India (Pvt) Ltd., was incorporated as a wholly owned subsidiary of Acer Computer International Ltd. on 9th September 1999. Acer's mission in India is to translate the Group's goal of making computer technology easier to use and more affordable - to everyone in this country. With a focused customer-centric approach, Acer in India is offering unmatched uptime for all it's systems through a vast network of Service points, innovative and user friendly functionality while continuously lowering barriers that limit the access to the fruits of technology. Desktop PCs from Acer are ready to use 'straight out of the box' offering a wide range of value priced configurations for diverse segments. Servers from Acer cover the gamut from work-group users to enterprise users are specifically geared to cope with the rigors of local conditions. The Acer Altos range of Servers offers a cost-of-ownership that is unmatched in its class. With its focus on Reliability & Manageability it has become a brand of choice on various critical applications. The innovative and intelligent power management systems available on Acer's range of Notebooks are but one of the unbeatable features that have made these sleek technological masterpieces global
bestsellers. The International Traveller’s Warranty gives all road warriors complete peace of mind, almost anywhere in the world. At Acer, we consider much more than the tangible hardware when we create these marvels. A total product perspective, efficient support infrastructure, needlepoint focus on the customer's needs and constant innovation bring to you - Fresh Technology. It's no wonder then that we are the world's 3rd largest PC producer and the market leaders in more than 12 countries across the region! Acer India has its headquarters in Bangalore, with branch offices in New Delhi, Mumbai, Chennai and Hyderabad. Our 100 man strong team in India comes with over 1000 man years of IT experience, geared to listen and provide to the IT user in India the very best in Sales & Marketing support, After-Sales support backed up with infrastructure to bring fresh technology to India. Within a year of operations, Acer India has managed several accolades in its endeavours: A state of the art reconfiguration centre for fast and flexible offerings to different customer needs; Acer Care Clinics to service notebooks in the top nine cities in the country and a unique unmatched guarantee within the warranty period to provide peace of mind to the customer. An extremely robust service coupled with the ability to make the latest technology affordable makes Acer India a force that shapes the dreams of millions of people. Corporate structure of Acer ltd. Acer is among the world's top 10 PC vendors. The brand mission, 'Breaking barriers between people and technology', signifies Acer's long-term vision and direction to bridge the gap between technology and its users. Acer understands that only by listening to our customers developing relevant PC products that really meet your every day computing needs becomes possible.
"Acer wants to make sure that people who buy our products are happy and well served. We make our products easy to use and dependable because our users concerns are our concerns" Stan Shih, Chairman and CEO - The Acer Group. However large or small your needs are, Acer has a wide range of reliable desktops, notebooks, and servers so you can choose a solution that suits your demands. In the office or at home, rest assured that Acer can support all your computing needs, today, tomorrow and well into the Internet Age. Innovative Progress Intellectual Property (IP) is the valuable assets created by innovation. In fact, Acer thrives in innovating for progress as is evident in the 1000 patents against its name. One of these is the Acer invented 'Chip-Up' technology, which made it possible to upgrade a PC by simply replacing the CPU on the motherboard. This technology was an inspiration for the development of other similar technologies. Another example of IP is Acer's Heuristic Thermal Power Management™ system (HTM™). This system, specifically developed to increase notebook battery life, intelligently monitors how you use your notebook and turns off any facilities or programs that you regularly do not use. Naturally, longer battery life is highly desirable in any notebook. Another Intellectual Property that Acer has developed is TimeMachine™, which is a revolutionary approach to the problem of system recovery. With TimeMachine™, the user or system manager can literally "go back in time", returning to a condition when the system functioned as desired. In other words, it is a unique facility enabling a quick and simple fix in the event of a software problem. Product Profile TRAVELMATE MOBILE PC.
As the professional user's primary business-computing tool, the TravelMate mobile PC is an important depository for sensitive information. The biometric fingerprint recognition system featured on certain models of Acer's flagship mobile PC series provides a new level of security, guarding against unauthorised use and protecting even the most sensitive encrypted files. With Acer's security software, users simply record their fingerprints by pressing the sensor built into the palm rest area. During system start-up and when decrypting files in Windows速, users are prompted to provide a fingerprint before they can proceed. TM 739 SERIES Acer has become the only notebook vendor in India to offer a complete spectrum of security solutions on its notebooks targeted at specific segments. Besides the Finger Print Technology on TM 739 series, Acer has the Smart Card Reader on TM 350 and TM 611 series of notebooks and password protection on all the notebooks. The launch of TM 739 Series completes the broad spectrum of Acer's notebook offering, starting at the entry level, value conscious customer to state-of-the-art desktop replacement notebooks. With a market share of 6.9 per cent in India, Acer is among the top five notebook vendors & wants to replicate its current APAC standing within the next two years, in India. NOTEBOOK TECHNOLOGY Acer has invested in notebook technology for over eight years now and its technology offering viz battery, thermal and security management is incomparable to any other player in the world. Other Technology solutions from Acer on its TravelMate range of notebooks include the CD Read Write-DVD Combo, a unique combination of CD Read Write and DVD, IEEE 1394 Port, a State of the Art communication interface giving very high data throughput rates (of upto 400 mbps) and the DASP, a Disk Anti Shock Protection system for enhanced ruggedness.
All Acer TravelMate notebooks have a standard one year International Traveller Warranty. Additionally, Acer notebooks are backed by Acer's service and support toll free call centre. POWER PC Acer products carrying and supporting Windows® 2000 will encompass the AcerPower commercial PCs, TravelMate mobile PC, Altos server, and WT 300 Windows ®-based terminal lines. The AcerPower commercial Desktops will support and are fully compatible with the Windows 2000 Professional Operating system. The full range of Acer Altos servers will carry Windows® 2000 logo support, indicating readiness for Windows® 2000 Server versions, as will WT 300 Windows®-based terminals. Achievements o Acer India gears up for Indian market with strong channel partnerships o
Acer records highest growth of 566% in notebook segment
o Acer was the first vendor to adopt an aggressive pricing strategy for their notebook segment o Gains top third position according to latest IDC results o Acer introduced their entry level Celeron notebook, TravelMate 240 series, at sub Rs. 50,000 in September 2003. o They launched their Pentium based TM243-FXP4 at sub Rs. 50,000 in December 2003. The pricing of these notebooks have again been dropped to sub Rs. 45,000 and sub Rs. 50,000 respectively, post the pre-budget in Feb 2004. o Several new products were added to Acer's product portfolio in the last two quarters. The Acer Ferrari 3000 notebook, the Pentium based TravelMate TM243FX-P4 notebook, Value desktop APSle, the multimedia powerhouse Aspire T310 consumer desktop and the Acer Veriton 7600GT commercial PC are some products with completely new technical specifications. o Acer India has been granted certification to meet ISO 9001: 2000 standards for their manufacturing facilities at Pondicherry. The certification approves Acer India's quality management systems for design and development of products to
meet international standards established by the International Organization for Standardization. o The certification marks that the Quality Management System of Acer India has been assessed and approved in accordance with the requirements of ISO 9001: 2000. This has been achieved during the first audit conducted by the certifying agency without any major or minor non conformance. o
Acer India awarded ISO 9001 : 2000
Company Strategies o
Acer Computer International Ltd., has announced the incorporation of its Indian subsidiary. The company, Acer India (Pvt) Ltd. will operate out of the headquarters in Bangalore. It may be recalled that Acer got its FIPB (Foreign Investment Promotion Board) clearance in July this year to set up a fully owned subsidiary for manufacturing, marketing and selling the Acer brand of PC products in India.
o Acer India (Pvt) Ltd.’s immediate focus is to consolidate its sales, marketing and support initiatives for the Acer brand of Personal computers, Notebooks, Servers and Home PCs. It offers a complete line of PC products, from desktops, servers to notebooks, with new product introductions positioned most attractively. "With a current installed base of over 125,000 Acer computers in the country today, India, to Acer, offers an accessible, potential market. We will strive to make Acer a leading PC brand in India," said Arun Sinha, Managing Director, Acer India (Pvt) Ltd. o On the System Integrator front, Acer is also working closely with SIs, who will address large accounts directly. In addition to Wipro, these SIs include CMC, Nelito, PCS and MOL. A strong synergy is being worked out to focus on the Finance, Banking, Oil & Gas, Corporate and the Government user segments.
o Acer India (Pvt) Ltd. plans to offer customized support plans for various segments of customers. "We wish to be seen as a service company selling products and therefore, our marketing initiatives will be purely customer centric. Through our 'Customer-Centric' framework, we will place customer satisfaction in everything we do. Call centres and web-enabled services will be launched soon to enhance ease in customer/partner interaction with Acer" said Bharath Gopalakrishnan, Deputy Managing Director, Acer India (Pvt) Ltd. o Acer India has a wide range of notebooks in the TravelMate Series; TM 240 Series, TM 250 Series, TM 290 Series, TM 800 Series, TM C111 (Tablet PC) and the Acer Ferrari 3000 notebook. Entry-level Acer notebooks are targeted at the SME, SOHO, and educational sectors while the high-end tablet notebook and the Acer Ferrari 3000 is targeted at top-level management. o Acer India has a wide range of notebooks in the TravelMate Series; TM 240 Series, TM 250 Series, TM 290 Series, TM 800 Series, TM C111 (Tablet PC) and the Acer Ferrari 3000 notebook. Entry-level Acer notebooks are targeted at the SME, SOHO, and educational sectors while the high-end tablet notebook and the Acer Ferrari 3000 is targeted at top-level management. o Acer was the first vendor to adopt an aggressive value for money strategy for its notebooks, desktops and servers. Acer introduced their entry level Celeron notebook, TravelMate 240 series, at sub Rs. 50,000 in September 2003 and subsequently the price has been dropped to Rs. 37,999 in June 2004. Acer also introduced the TravelMate Pentium 4 - sub Rs. 54,999 notebook into the market in December 2004 and is currently priced at Rs. 46,999. o Microsoft has launched four editions of their new operating system, entitled Windows速 2000 Professional, Server, Advanced Server, and DataCenter Server. Windows速 2000 Professional is designed for commercial desktop and mobile PC use. Windows速 2000 Server and Advanced Server support entry-level and advanced server use, such as departmental or application server function.
Windows®
2000
DataCenter
supports
extreme
task-intensive
server
environments. o Operations & Support, ". The focus of the quality systems in Acer has been on producing "Dependable" and "Easy to Use" products by offering fresh technology to its customers. It is achieved by empowering employees to work towards better quality in all transactions.". It has been possible for Acer India to achieve these results in such a short time by employing Acer's global strength in manufacturing and implementing the same in India with modifications needed to suit local requirement. o Acer has several models in its PC, notebook and server range to suit varied customer segments and requirements. These products are focused at home segments, SMEs & large enterprises. Strategic Partners •
3COM
•
ADAPTEC
•
COMPUTER ASSOCIATES
•
INTEL
•
MICROSOFT
•
NOVELL
•
SCO
•
TENDBERG DATA
Company Growth o
Acer has climbed to the fourth position in PC unit sales according to the latest International Data Corporation (IDC) results. The company grew over 200% in Q1 2004 compared to the previous quarter of Q4 2003, selling over 32,585 units
comprising laptops, desktops and servers. Year on year, Acer has shown 70% quarter growth in Q1 2004 compared to Q1 2003. o
Several new products were added to Acer's product portfolio in the last two quarters. The Acer Ferrari 3000 notebook, the Pentium based TravelMate TM243FX-P4 notebook, Value desktop APSle, the multimedia powerhouse Aspire T310 consumer desktop and the Acer Veriton 7600GT commercial PC are some products with completely new technical specifications.
o
Acer was the first vendor to adopt an aggressive value for money strategy for its notebooks, desktops and servers. Acer introduced their entry level Celeron notebook, TravelMate 240 series, at sub Rs. 50,000 in September 2003 and subsequently the price has been dropped to Rs. 37,999 in June 2004. Acer also introduced the TravelMate Pentium 4 - sub Rs. 54,999 notebook into the market in December 2004 and is currently priced at Rs. 46,999.
o
Acer ranks among the world's top ten branded PC vendors, designing and marketing easy, dependable IT solutions that empower people to reach their goals and enhance their lives. Acer's product offering includes desktop and mobile PCs, servers and storage, displays, peripherals, and e-business solutions for business, government, education, and home users. Established in 1976, the pan Acer Group employs 39,000 people supporting dealers and distributors in over 100 countries. Revenues reached US$12.9 billion in 2002.
o
These include end-to-end solutions, mobile phones, plasma displays, TFT screens, projectors, wireless communications, and e-corp solutions. The Acer Group employs nearly 34,000 people in 193 enterprises spanning 42 countries worldwide, supporting dealers and distributors in over 100 countries. Acer Group revenues in 1999 were US$8.4 billion. For more information about the Acer Group.
SWOT ANALYSIS Strengths: •
Strong market position
•
Large range of products
•
Innovation
Weaknesses: •
Not yet established in the Indian Hardware Market.
•
Brand name is not yet well known in India.
Opportunities: •
Growth possibility in Corporate & Household Market.
Threats: •
Already established firms.
Vision Statement
==
"Together we create the enterprises of tomorrow"
Mission Statement
==
"To
provide
world-class
information
technology
solutions and services to enable our customers to serve their customers better" Quality Policy
==
"We deliver defect-free products, services and
solutions to meet the requirements of our external and internal customers, the first time, every time" HCL’S Main Objectives
==
To fuel initiative and foster activity by allowing
individuals freedom of action and innovation in attaining defined objectives. People Objectives
==
To help people in HCL Infosystems Ltd. share in the
company's successes, which they make possible; to provide job security based on their performance; to recognize their individual achievements; and help them gain a sense of satisfaction and accomplishment from their work. Core Values •
To uphold the dignity of the individual
•
To honour all commitments
•
To be committed to Quality, Innovation and Growth in every endeavour
•
To be responsible corporate citizens
HCL draws it's strength from 29 years of experience in handling the ever changing IT scenario, strong customer relationships, ability to provide the cutting edge technology at best-value-for-money and on top of it, an excellent service & support infrastructure. Today HCL is country's premier information enabling company. It offers one-stop-shop convenience to its diverse customers having an equally diverse set of requirements. Be it a large multi-location enterprise, a small/medium enterprise, a small office or a home, it has a product range, sales & support capability to service the needs of the customer.
HCL has 28000 employees with 500 global clients. It has operations spanning in 15 countries where major delivery centres are USA, UK, Malaysia, Singapore & 32 centres in India.
Last 29 years apart from knowledge & experience have also given us
continuity in relationship with the customers, thereby increasing the customer confidence in us. Tasks accomplished for achieving customer recognition To provide world-class solutions and services to all their customers, they have formed Alliances and Partnerships with leading IT companies worldwide. HCL Infosystems has alliances with global technology leaders like Intel, AMD, Toshiba, Ericsson, Microsoft, Nokia and Sun Microsystems, SAP, Scansoft, SCO, EMC, Veritas, Citrix, CISCO, Oracle, Computer Associates, RedHat, Infocus, Duplo, Samsung, Novell. These alliances on one hand give them access to best technology & products as well enhancing their understanding of the latest in technology. On the other hand they enhance their product portfolio, and enable themselves to be one stop shop for their customers. Technology Leadership HCL Infosystems is known to be the harbinger of technology in the country. Right from their inception they have attempted to pioneer the technology introductions in the country either through their R&D or through partnerships with the world technology leaders. Using their own R&D they have: •
Created their own UNIX & RDBMS capability (in 80s)
•
Developed firewalls for enterprise & personal system security
•
Launched their own range of enterprise storage products
•
Launched their own range of networking products
They strive to understand the technology from the view of supporting it post installation as well. This is one of the key ingredients that go into their strategic advantage. HCL Infosystems has to its claim several technology pioneering initiatives. Some of them are: •
Country's first DeskTop PC - BusyBee in 1985
•
Country's first branded home PC - Beanstalk in 1995
•
Country's first Pentium 4 based PC at sub 40k price point
•
Country's first Media Center PC
HCL Endorsements HCL Technologies ranked among World’s Top 5 IT Services Cos. Ranked #1 among World’s Specialty Offshore Infrastructure Service Providers CMP “For companies that want to form a joint venture in India…..… HCL is a top choice. It is also a top choice for embedded systems engineering and product development work” Forrester research HCL Technologies positioned as Leaders in Offshore Outsourcing METASpectrumSM , 2004 Ratings HCL Differentiators are
•
Wider service offerings
•
Greater economic benefit to Customers- Highest level of Offshore
•
Exhibited ability to manage multi countries culture
•
Track Record of Departmental carve outs
•
Open for assuming customers’ risks
Wider Service Offerings
•
Product Engineering Services
•
Application Development and Management
•
BPO
•
Remote Infrastructure Services Management
•
Systems Integration
Managing Multi-Country Cultures
•
History of successfully managing ventures / partnerships in various countries
•
Largest BPO Centre in Northern Ireland & amongst the top ten employers
•
Sophisticated solution development centre in USA - Retail
•
Domain
•
Help Desk facility for Microsoft in Malaysia
Assuming Customers’ Risks
•
Customers seek cost reduction and solution improvement
•
HCL has assumed product development risks on a reward basis with KLA Tencor, Boeing etc.
•
HCL has invested in Departmental carve outs
Strategies Followed By HCL:
Achievements and Milestones 1976 •
Foundation of the Company laid.
•
Introduces
microcomputer-based
programmable
calculators
with
wide
acceptance in the scientific / education community 1977 •
Launch of the first microcomputer-based commercial computer with a ROM -based Basic interpreter
•
Unavailability of programming skills with customers results in HCL developing bespoke applications for their customers
1978 •
Initiation of application development in diverse segments such as textiles, sugar, paper, cement, transport.
1979 •
Formation of Far East Computers Ltd., a pioneer in the Singapore IT market, for SI (System Integration) solutions.
1983 •
HCL launches an aggressive advertisement campaign with the theme ' even a typist can operate' to make the usage of computers popular in the SME (Small & Medium
Enterprises)
segment.
This
proposition
involved
menu-based
applications for the first time, to increase ease of operations. The response to the advertisement was phenomenal. •
HCL develops special program generators to speed up the development of applications.
1985 •
Bank trade unions allow computerisation in Indian banks. However, a computer can only run one application such as Savings Bank, Current account, Loans etc.
•
HCL sets up core team to develop the required s/w - ALPM (Advanced Ledger Posting Machines). The team uses reusable code to reduce development efforts & produce more reliable code. It becomes largest selling s/w product in banks.
•
HCL designs and launches Unix- based computers and IBM PC clones
•
HCL promotes 3rd party PC applications nationally.
1991 •
HCL enters into a joint venture with Hewlett Packard
•
HP assists HCL to introduce new services: Systems Integration, IT consulting, packaged support services (basicline, teamline)
•
HCL establishes a Response Centre for HP products, which is connected to the HP Response Centre in Singapore.
•
There is a vertical segment focus on Telecom, Manufacturing and Financial Services.
2002
•
Declared as Top PC Vendor by Dataquest
•
HCL Info systems & Sun Microsystems enters into a Enterprise Distribution Agreement
•
Realigns businesses, increasing focus on domestic IT, Communications & Imaging products, solutions & related services
2003 •
Became the first vendor to register sales of 50,000 PCs in a quarter
•
First Indian company to be Numero Uno in the commercial PC market
•
Enters into partnership with AMD
•
Launched Home PC for Rs 19,999
•
HCL Info systems' Info Structure Services Division received ISO 9001:2000 certification
•
Launches Infiniti Mobile Desktops on Intel Platform
•
Launched Infiniti PCs, Workstations & Servers on AMD platform
2004 •
1st to announce PC price cut in India, post duty reduction, offers Ezeebee at Rs. 17990
•
IDC India-DQ Customer Satisfaction Audit rates HCL as No.1 Brand in Desktop PCs
•
Maintains No.1 position in the Desktop PC segment for year 2003
•
Enters into partnership with Port Wise to support & distribute security & VPN solutions in India
•
Partners with Microsoft & Intel to launch Beanstalk Neo PC
•
Becomes the 1st company to cross 1 lac unit milestone in the Indian Desktop PC market
•
Partners with Union Bank to make PCs more affordable, introduces lowest ever EMI for PC in India
•
Launched RP2 systems to overcome power problem for PC users
•
Registers a market share of 13.7% to become No.1 Desktop PC company for year 2004
•
Crosses the landmark of $ 1 billion in revenue in just nine months
PRODUCTS RANGE PRODUCTS & SOLUTIONS DESKTOPS & NOTEBOOKS Business PCs Home PCs Infiniti Powerlite Notebooks WORKSTATIONS Infiniti Challenger Workstations SUN Workstations SERVERS Overview Intel Servers Infiniti GL Servers Infiniti Solutions Infiniti Xcel Line Servers Infiniti Xcel Line 2200 Series SUN Servers HP Risc Servers & Workstations THIN CLIENTS Winbee Thin Clients SUN Thin Clients DISPLAY PRODUCTS Product Line-up
NETWORKING PRODUCTS Overview SECURITY PRODUCTS
HCL HCL HCL HCL HCL
InfoWall InfoSecuAccess InfoVPNe InfoSecuMon InfoNetMon
HCL HCL HCL HCL HCL HCL HCL
InfoSurveillance InfoSecuDesk - Biometric Logon InfoSecuDesk - SmartCard Logon InfoSmartCard InfoLoadBalancer InfoSMS InfoDashboard
STORAGE SOLUTIONS HCL Storage Solutions HCL Infiniti SAN ARRAY 2502FC HCL IGL NAS Servers - IGL NAS 1400 BT - IGL NAS 2700 SP - IGL NAS 2700 BD SUN Storage Solutions EMC Storage Solutions TOSHIBA NOTEBOOKS Product Line-up
SOLUTIONS
Infostructure Services Networking Services Security Services Facilities Management Services Domestic Hardware Services
SWOT ANALYSIS
Strengths: •
Ability to understand customer's business and offer right technology. With customers requirements.
•
Long standing relationship with customers
•
Plan India support & service infrastructure
•
Best-value-for-money offerings
•
It offers one-stop-shop convenience to its diverse customers having an equally diverse set of requirements.
•
HCL Infosystems has alliances with global technology leaders like Intel, AMD, Toshiba, Ericsson, Microsoft, Nokia and Sun Microsystems, SAP, Scansoft, SCO, EMC, Veritas, Citrix, CISCO, Oracle, Computer Associates, RedHat, Infocus, Duplo, Samsung, Novell.
Weaknesses: •
Lack of world-wide supply chain and operations.
Opportunities: •
Customers seek cost reduction and solution improvement
•
HCL has assumed product development risks on a reward basis with KLA Tencor, Boeing etc.
•
HCL has invested in Departmental carve outs
•
Acquiring larger market shares in other hardware.
Threats: •
Other major competitors in Indian & Global Market like Zenith Computers, IBM etc.
Mission At Intel, we believe in innovation. We're driven by it. We live by it. And it's this principle that led us to create the world's first microprocessor back in 1971. Read below to see how Intel's commitment to innovation continues to shape the world's future. Global Community See how Intel fosters learning and diversity in its communities worldwide through creative programs and exhibits designed to encourage the spirit of innovation. A major barrier to greater IT efficiency has been removed by Intel速 Active Management Technology (Intel速 AMT). Using built-in platform capabilities and popular third-party management and security applications, Intel Active Management Technology allows IT to better Discover, Heal, and Protect their networked computing assets. Technology & Industry The innovative products, cutting-edge research, and strategic alliances that have helped Intel lead advancements in technology for the past 35 years. o
Technologies & Trends
o
Technology & Research at Intel
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Intel Dual Core Processors o Intel速 Centrino速 Mobile Technology o Architectural Innovation
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35 Years of Innovation
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90 Nanometre Technology
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Hyper-Threading
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Technology
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Intel Capital
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Intel Developer Forum (IDF)
Computing At Intel Intel is architecting the future of computing by developing and accelerating platforms that are making new uses of computing a reality. Discover: Intel® Active Management Technology (Intel® AMT) stores hardware & software information in non-volatile memory. With built-in manageability, Intel AMT allows IT to discover the assets, even while PCs are powered off. With Intel® AMT, remote consoles do not rely on local software agents, helping to avoid accidental data loss. Heal: Intel AMT's built-in manageability provides out-of-band management capabilities to allow IT to remotely heal systems after OS failures. Alerting & event logging help IT detect problems quickly to reduce downtime. Protect: Intel AMT helps to protect your network by making it easier to keep software and virus protection consistent and up-to-date across the enterprise. Third party software can store version numbers or policy data in non-volatile memory for off-hours retrieval or updates. How valuable are these new built-in manageability capabilities? Based on extensive proof-of-concept testing, Intel’s own IT organization estimates annual savings of at least $24M. Software Support for Intel Active Management Technology
Recognizing the advantages and benefits of Intel AMT for improving IT platform management efficiency, major Independent Software Vendors (ISVs) around the world are building in support for Intel AMT features to their products and major OEMs are implementing Intel AMT on their platforms. Together, these ISVs and OEMs provide leading-edge solutions in the areas of asset management, remote diagnosis/remote repair and network security for the IT community. 64-Bit Solutions 64-bit computing gives headroom for growth, with the ability to support more memory, larger data sets, more capable operating systems and more demanding applications. With million's of 64-bit processors already shipped, Intel offers a proven track record, extensive enabling experience and industry-leading software tools to smooth your transition and optimize the return on your investment. •
Intel®-based servers offer end-to-end choice for 64-bit enterprise computing.
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64-bit Intel® Xeon™ processor-based servers 1 support the broadest range of applications for all-purpose computing.
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Intel® Itanium® 2-based servers provide cost-efficient RISC replacement for mission-critical computing solutions.
Resource Center This comprehensive online resource will help you plan and implement a successful migration to 64-bit server computing based on your specific applications, workloads, IT environment and business drivers. It is divided into four categories: About 64-bit Server Computing: Get the facts about the benefits and limitations of 64bit server computing. 64-bit Server Migration Strategies: Understand your migration options, so you can reduce your cost and risk, and improve the return on your 64-bit server investment.
64-bit Software Support: Find out which enterprise applications and operating systems are 64-bit-ready, and learn how you can simplify migration for your custom applications. 64-bit Server Platform Recommendations: Learn about the key differences between 64-bit server platforms based on the Intel Xeon processor and the Intel Itanium 2 processor, and find out how you can use them most effectively to address your specific application requirements.
SWOT ANALYSIS Strengths: •
Strong market position
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Large range of products
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Innovation
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Intel®-based servers offer end-to-end choice for 64-bit enterprise computing
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2-based servers provide cost-efficient RISC replacement for mission-critical computing solutions.
Weaknesses: •
Niche markets are not being catered.
Opportunities: •
Intel can expand its product line and leverage its existing brand image.
Threats: •
AMD Athlon is a major competitor gaining market share.
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Any major technological advancement by competitors can erode competitive advantage of Intel in Technology.
FUTURE PROSPECTS AND GROWTH •
Monitor global IT developments and refine Indian IT policy to meet global requirements. Specifically, this will help angel investors, venture creators and incubation;
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Promote the growth of human resource development in the IT sector with the aim of creating quality-based education;
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Promote R&D in the sector by identifying thrust areas and drawing up a blueprint for action.
India’s most prized resource in today’s knowledge economy is its readily available technical work force.
India has the second largest English-speaking scientific
professionals in the world, second only to the U.S. It is estimated that India has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which train more than 67,785 computer software professionals every year. Government of India is stepping up the number and quality of training facilities in the country to capitalize on this extraordinary 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 fully aware of this.
BUSINESS OPPORTUNITIES FOR INDIA Mr. Splinter's views on making India an attractive destination for manufacturing IT Hardware,
global
developments
in
semi-conductor
industry
and
investment
opportunities. •
Companies, both Indian and MNCs, are beginning to take, some serious first few steps towards setting up manufacturing operations in the hardware sector in India, however, a lot more needs to be done for opportunities are immense and time is short. The most important imperative for focusing on manufacturing comes from significance of world trade and its linkages to economic development.
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The IT hardware sector has potential of employing over 5 million people in India, against current employment level of about 1.5 million.
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20 million mobile phones are added every year and unfortunately, none of them are made in India.
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Auto manufacturing has been a great success in India.
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With both domestic and global demand going strong, India has potential to build 100 billion plus hardware industry, over the next few decades.
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Semi-conductor industry has been trend setting, bench-mark industry in the world.
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We should try to capitalize on the reduction of time, to design a product. We can have engineers in the US be working by day on a product design, we can have engineers, here in India working, if we are talking about US time zones, at night, on a design and reduce the amount of time, it takes us to develop and put a particular element of our products or a whole product in the manufacturing. When we can do that, we get a competitive advantage over our competition.
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There were 700 million cell phones sold in the world, last year. Only about 30 million of them, sold here in India. There's a much greater potential than a 100 million per year. That's dramatic amount of electronics demand that would have to be imported to the country but when you start thinking about the volume of a hundred million units, a year, you think that, you have to have the assembly,
much of the assembly of those units here and certainly the amount of electronics that it demands, may be 50 dollars per unit, that is 5 billion dollars of electronic components alone that will be delivered in cell phones, per year, maybe in three or four or five years from now. That alone could fill several semi-conductor manufacturing factories. •
But cell phones aren't the only thing that is hot, computers are still hot, white band, Wi-Fi, Wi-Max, evolution of white bank data communications is just starting, only 2% of the world's population has access to high speed data, that number has to increase and should increase to a high percentage of the world's population and it has a unifying affect in data and communications and video.
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There is this TV industry here today manufacturing industry today. It is going to be able to move the times and manufacturing LCD panels and make that transition, drive the cost down of those products so that, everybody who wants to have a flat panel TV can afford one, have access to one and these are the kind of things that are changing in our lives and then, you just have to think about the emerging markets of the world, the developing economies of the world, this has been one, China another, one-thirds of world population but Russia, the Middle East, Africa, these are economies that are going to be growing over the next twenty or thirty years and are going to want to have the impact of the electronics industry occur in their cultures, in their environments.
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Then there is computing. Only 3 million computers are sold in India during a year. The cost should come down so more are sold, however, that number is so small relative to the overall 200 million computers that are sold in the world.
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Semi-conductor manufacturing is the most sophisticated or one of the most sophisticated
manufacturing
capabilities
in
the
world.
Semi-conductor
manufacturing has moved really around the world from US and Europe to Japan, to Taiwan, to Korea, to South East Asia, to China but not to India. •
India has so many advantages and a great workforce.
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Semi-conductor
manufacturing
is
really
the
foundation
of
electronics
manufacturing. Applied Materials can help. We support every semi-conductor manufacturer. However, we have been the first mover, as the semi-conductor has moved around the world and with our already existing presence here. We
are in an excellent position to support, to enable and ensure the success. I am just waiting for the opportunity to help and work with you to enable that reality, here in the country. Source: Interactive Meeting with Mr. Michael R Splinter, President & CEO, Applied Materials, Inc.
BIBLIOGRAPHY (1)
Annual Report on Electronics & Information Technology (2004-2005) by Department of Information and Technology.
(2)
Websites: www.acer.co.in www.wipro.com www.intel.com www.hcl.in www.hclinfosystems.com www.dell.com www.ficci.com
(3)
Magazines: a. Digit b. PCQuest c. Chip