Chapter 1 Introduction

1.1.OVERVIEW

The Indian IT software and service industry is one of the fastest growing industries of

Indian economy with a growth rate exceeding 40 % over last five years. The tremendous

growth of the Information technology industry in recent times has attracted a lot of

attention from analyst. This industry will provide about 2 million jobs by 2008. IT/ITES

industry contribution to the country’s GDP has been increasing from a share of 0.3% in

FY 98 to 7% in FY 08. IT spending in India is set to grow the fastest in the world in 2008,

says global research firm IDC.

The Indian information technology industry passed the $50 billion mark in 2007.

Companies are willing to take a huge share in this market but for that they need to

identify the key market areas which can be sector wise, region wise or other way. IT has

been playing a significant role in growth of many sectors like Hospitality, Telecom,

Media & Entertainment and others. Banking and financial services sector is one of such

sectors which have grown tremendously over the last decade. In fact the Prognosys e

services Pvt. Ltd.; from where I am doing summer internship project is a market

intelligence research firm whose main focused research is on Information technology.

1.2 ABOUT FINANCIAL SERVICE SECTOR

The term "finance" in our simple understanding it is perceived as equivalent to 'Money'.

Financial services refer to services provided by the finance industry. The finance industry
encompasses a broad range of organizations that deal with the management of money.
Among these organizations are banks, credit card companies, insurance companies,
consumer finance companies, stock brokerages, investment funds and some government
sponsored enterprises.

The Indian financial sector is on a roll. Driven by a strong investor interest and an
expanding market, the Indian stock market rose to record levels, with the popular sensex
crossing 21,000 and Nifty crossing the 6,000.

According to a report by Celent, an international consultancy firm, India's wealth

management will rise to an estimated 42 million by 2012 from about 13 million in 2007.

Clearly, there is huge potential in this segment. Significantly, wealth management

revenues are expected to account for 32-37 per cent of the total full-service financial
institutions by 2012. The market is also expected to undergo a structural transformation
with organized players increasing their market share.

India has emerged as the fastest growing market in the Asia-Pacific region for structured
finance, a process of arranging funds by banks and other entities through partly selling
their loan books. It was also the second largest market for domestic issuance in the
structured finance market.

Traditional business models, when businesses are clearly differentiated (banks conduct
banking, insurance companies offered risk covers and securities companies offered
investment opportunities), have become the footnotes of finance literature
Classification of Financial Service sector

For the purpose of research I have divided the financial service sector into 4 broad
categories:

1 Banking
2 Brokerage houses / stock exchanges
3 Insurance
4 Other financial services.

1.2.1 Banking

Banks in India can be categorized into non-scheduled banks and scheduled banks.
Scheduled banks constitute of commercial banks and co-operative banks. There are about
67,000 branches of Scheduled banks spread across India. During the first phase of
financial reforms, there was a nationalization of 14 major banks in 1969. This crucial step
led to a shift from Class banking to Mass banking. Since then the growth of the banking
industry in India has been a continuous process.

As far as the present scenario is concerned the banking industry is in a transition phase.
The Public Sector Banks (PSBs), which are the foundation of the Indian Banking system
account for more than 78 per cent of total banking industry assets. Unfortunately they are
burdened with excessive Non Performing assets, massive manpower and lack of modern
technology.
On the other hand the Private Sector Banks in India are witnessing immense progress.
They are leaders in Internet banking, mobile banking, phone banking, ATMs. On the
other hand the Public Sector Banks are still facing the problem of unhappy employees.
There has been a decrease of 20 percent in the employee strength of the private sector in
the wake of the Voluntary Retirement Schemes (VRS). As far as foreign banks are
concerned they are likely to succeed in India.
Structure of the Indian Banking Industry

Classification of Banks (2006) Number of Banks Total Assets (US$ billion)

Public Sector Banks 28 48.1
Indian Private Banks 27 135
Foreign Banks 29 48
Total 84 664

The burgeoning economy, surging foreign investment, financial sector reforms and a
favorable demographic profile has led to the Indian banking industry emerging as one of
the fastest growing in the world. The industry's business grew at a CAGR of 20 per cent
from US$ 471.11 billion as of March 2002 to US$ 1175.61 billion by March 2007.
Significantly, the newly licensed private sector business has grown almost twice (1.75
times) as that of banking industry as a whole, leading to their share in total banking
business increasing from 9 per cent in 2001-02 to 16 per cent in 2006-07.

This boom in the banking industry has propelled nine Indian banks to the list of top 50
Asian Banks, as per this year's Asian Banker 300 report. Similarly, seven Indian
microfinance institutions find place in Forbes list of World's Top 50 Microfinance
Institutions.

Banking companies taken into analysis includes retail banking, that deal directly with
individuals and small businesses; business banking, providing services to mid-market
business; corporate banking, directed at large business entities; private banking,
providing wealth management services to Individuals and families; and investment
banking, relating to activities on the financial markets.

1.2.2 Brokerage houses / stock exchanges

An individual or a firm who executes orders on the floor of the exchange (A place where
stocks, bonds, or other securities are bought and sold) handling its retail customers and
their orders. In tune with the global stock markets that began to recover from the second
half of 2003; Indian stock markets too witnessed rapid growth. India’s two leading
indices, the most popular BSE Sensex, and the one most used by the markets the National
Stock Exchanges’ S&P CNX Nifty rose to record levels. There are 22 stock exchanges in
the country, though the entire liquidity is shared between the countries’s two national
level exchanges namely, the National Stock Exchange of India and the Bombay Stock
Exchange Ltd. The regional stock exchanges are in pursuit of business models that make
them viable and vibrant. Meanwhile, these exchanges have become members of the
national level exchanges through formation of subsidiaries whose business is showing
continuous growth and progress.

The year 2007 saw Indian stock markets scaling new peaks. It has emerged as the third
best performing market in the world with a dollar return of 71.23 per cent. The popular
Bombay Stock Exchange (BSE) benchmark index, sensex, also posted its highest ever
absolute gain of 6500 points in over two decades

The number of brokers in various stock exchanges rose from 6,711 in 1994-95 to 9,335
in FY06. Sub-brokers are an important constituent of Indian stock markets. Sub-brokers
work under brokers with specified limits for trading and risk management. Sub -brokers
are term as useful part in the value chain since they provide active interface with a large
number of investors across the country and also extend the reach and access of the
services of the brokerage firms. With the rapid growth of securities trading and
deepening of the stock markets, the number of sub-brokers nearly doubled in the last ten
years from 9,957 in FY01 to 23,479 in FY06.

Indian Stock Markets: Growth of Market Structure (In Number)

Market capitalization of stocks in India rose from Rs 67.50 bn in 1980 to Rs 705.21 bn
in 1990 to Rs 11,926.30 bn in 2000. BSE market capitalization as of mid-2007 is about
Rs 40,000 bn, which in the background of the appreciating rupee takes it to among the
small group of exchanges with a trillion dollar market cap

Market capitalization in India

1.2.3 INSURANCE

Indian Insurance Industry: Insurance may be described as a social device to reduce or

eliminate risk of life and property. Under the plan of insurance, a large number of people
associate themselves by sharing risk, attached to individual.

The risk, which can be insured against include fire, the peril of sea, death, incident, &
burglary. Any risk contingent upon these may be insured against at a premium
commensurate with the risk involved.

Insurance is actually a contract between 2 parties whereby one party called insurer
undertakes in exchange for a fixed sum called premium to pay the other party happening
of a certain event.

Insurance is a contract whereby, in return for the payment of premium by the insured, the
insurers pay the financial losses suffered by the insured as a result of the occurrence of
foreseen events.

With the help of Insurance, large number of people exposed to a similar risk make
contributions to a common fund out of which the losses suffered by the unfortunate few,
due to accidental events, are made good.

Indian insurance sector is likely to register unprecedented growth of 200% and attain a
size of Rs. 2000 billion ($51.2 billion) by 2009-10, in which a private sector insurance
business will achieve a growth rate of 140% as a result of aggressive marketing technique
being adopted by them against 35-40% growth rate of state owned insurance companies.

The liberalization of the rules for the entry of domestic and foreign players has had a
favorable impact on this sector, leading to premium collections growing by 19.9 per cent
in 2006-07, compared to the world average of 2.9 per cent. Consequently India became
the 15th largest insurance market from 19th in 2005.
This growth looks particularly impressive when seen against the fact that the combined
penetration of both life and non-life is less than 2 per cent of the GDP compared to world
average of 7.52 per cent. Clearly, the scope for growth is enormous.

With increasing per capita income, insurance penetration and entry of new players, the
Indian insurance industry is estimated to grow to US$ 50.9 billion by 2010 from around
US$ 12.72 billion in 2007. The private players are likely to see a growth rate of 140 per
cent during this period.

New private players have entered the market and with their innovative approaches and
better use of distribution channels and technology, they are eating in to the shares of
established public sector companies in Indian Insurance Market.

Since the deregulations have been put in to place, the market share of LIC has come
down to 71.4% in life insurance market while the private players have captured around
17% market in the general insurance segment.

1.2.4 Other Financial Services

Other financial services include all financial service providers other than banking,
insurance and brokerage houses or stock exchanges. It mainly includes companies which
provide accounting, assets management solutions which refers to the investment
management of collective investments, whilst the more generic fund management may
refer to all forms of institutional investment as well as investment management for
private investors. It also includes financial consultants and advisors who render
investment advice and financial planning services to individuals and businesses.
Companies providing loans, leasing and legal assistance are also a part of this category.
Investment management services providers including elements of financial analysis, asset
selection, stock selection, plan implementation and ongoing monitoring of investments
are also taken into analysis.
1.3 IT deployment in financial service sector

The financial services sector today is characterized by globalization, consolidation and

convergence. In this scenario, technology is a major driving force for achieving
competitive advantage through cost reductions and creation of new business
opportunities. Technology is creating more efficient enterprises, enabling new ways of
reaching customers through new delivery channels and smoothly links once-disparate
business practices.
The role of information technology today goes beyond being a supportive force in
achieving business goals in the financial services sector. It becomes a key driver to new
business process thinking and a tool towards building a competitive advantage.
Technology has become critical to success.

This sector worldwide uses Data Warehousing solutions normally for profitability
analysis and to enhance their risk management capability. Customer Relationship
Management (CRM) solutions are also being increasingly deployed to enhance their
ability to manage and grow their customer base in the most desired manner. Most of the
institutions take a rather narrow view of CRM and as such, benefits have been limited.
While second generation CRM has emerged to embrace the total organization (hence
Enterprise CRM), success in general has still not been widespread. It is very necessary
for the financial organizations to incorporate e business activities, channel management,
relationship management and back-office/front-office integration within a customer
centric strategy. For this reason deployment of CRM technology has given a newer
opening to financial service sector and is considered an important for building up
relationship with customers. Banks have already implemented or are in the process of
implementing a bank-wide ‘Core Banking System’ to facilitate processing of transactions
seamlessly across the enterprise. Many Banks have also aggressively implemented a
multi-channel delivery capability including Internet Banking, ATMs etc. Deploying Data
Warehousing and Business Intelligence capability is a very logical step in their strategic
use of Information Technology.
The research indicates that the Indian business is changing to deliver better value to the
customers and maintain their position in a fiercely competitive scenario. It produced
some interesting results with long term implications on the productivity and efficiency of
the Indian business sector. The findings also showed increase in number of employees
facing the screen across all sectors and organization structure becoming flatter.

Further, it showed increase in the need for IT skills in lower levels of the financial
organization. The demand for executive decision making tools is increasing across all the
sectors while Security is becoming a major concern with all the organizations and the
importance of disaster recovery and business continuity is being realized. Outsourcing
seems to be limited to market research in non IT and programming, network management
etc. within IT. In the financial sector, even transaction processing services are made
available through the website. Organizations are becomingly increasingly more conscious
about monitoring of customer facing interactions.

With increasing technology adoption and deployment, commercial costs, internal

communication costs and service costs have decreased with technology adoption while
technology costs have increased. Technology has also played a role in strategic areas
including the understanding of customer satisfaction for current products and services,
competitor knowledge and customer buying behavior.

Hence we can say that Banking and Financial Services Industry (BFSI) is in a state of
rapid transition. Fierce competition, sharp decline in margins and profitability, tighter
regulatory and disclosures norms and the need for robust risk management and early
warning systems have compelled this sector to look at ‘Data Warehousing’ (DW),
‘Business Intelligence’ (BI) and Customer Relationship Management (CRM) solutions to
manage their business more efficiently and effectively.
1.4 About Prognosys e Services Pvt. Ltd.

Prognosys e Services Pvt. Ltd. is one of the fastest growing Research & Market

Intelligence Company focused on Information Technology Industry which has pioneered

the idea of Information Warehousing. This Company was started by group of

professionals with in-depth expertise in the Analytics space, who had worked with

companies like IDC, Frost & Sullivan, GE Capital, AC Neilson etc., started with a vision

to continuously innovate and practice techniques of research to facilitate marketers

acquire, retain and build long-term relationships with the customers.

Background

Value Economic Research was started in June 2002 by group of professionals coming

from Technology and Research background. VER is a New Delhi, India based research

and consultancy firm started with a vision to continuously innovate and practice

techniques of research to facilitate marketers acquire, retain and build long term

relationships with the customers. As we progressed, Technology research presented us

tremendous opportunities, which resulted in us focusing on Technology research with the

brand identity of Prognosys.

Prognosys came into existence in June 2004 with the aim of providing Business

Intelligence to IT/ITES/Telecom players. Prognosys is in the business of providing

Business & Market Intelligence to its client’s and in the area of Information Technology.

Prognosys helps their clients with innovative solutions to their marketing problems
Prognosys have pioneered the idea of profiling the organizations under various
technology segments and making this information available off the shelf.
Vision
Develop leading edge thinking and practice on contemporary business, information,
technology and knowledge management issues to facilitate organizational and individual
performance.

Mission
Our mission is to build unrivaled partnership with our clients, through the Knowledge
and creativity.

Value Addition
Prognosys has pioneered the idea of Sales Prospect Generation (SPG).
Our existing products & services could broadly be classified into two main Categories:
• Analysis Outsourcing
• Information Warehousing

Company Services
Prognosys is full service market research & intelligence firm who provides end to end
services towards varied marketing and consulting needs, In today’s volatile market place,
what ever your needs in terms of Marketing, Intelligence, Research, Database, Market
Understanding, Customer management, Knowledge Management or just the Data
Collection, we have a solution for you:
 Company Services

CAPABILITIES

• Head Office in Noida with Offices in Delhi, Mumbai & Bangalore

• In house dedicated field services team for data collection

• Extensive database of respondents across the IT verticals

 • Skilled manpower with extensive past experience in Market Research specific to

the IT Industry, a highly skilled work workforce consisting of MBAs and

engineers

• Best of the class Infrastructure and connectivity

• There is a separate quality team to ensure integrity of data

ORGANISATION STRUCTURE
Chapter 2 Literature Review

ABOUT MARKETING RESEARCH

The systematic and objective identification, collection, analysis, dissemination and use of
information for the purpose of assisting the management in decision making related to
identification and solution of problem in marketing.

Business to business market research

Business to business (B2B) research is more complicated than consumer research.

Prognosys is a marketing research outsourcing company which carries out B 2 B
research. Finding the right respondents is crucial in B2B research since they are often
busy, and may not want to participate. Encouraging them to “open up” is yet another skill
required of the B2B researcher. Last, but not least, most business research leads to
strategic decisions and this means that the business researcher must have expertise in
developing strategies that are strongly rooted in the research findings and acceptable to
the client.

Benefits of marketing research

Researching into market before entering is a sound decision for any business enterprise.
1. It leads to better communication.
It gives a chance to learn about our potential clients-who they are and what they want
the most.
2. It helps in identifying opportunities.
It helps in checking the competition in the market. It helps in answering questions
like: How are we ahead of our competitors? What specialties do we have? Is the client
in need of something that nobody is offering?
3. Market research minimizes the risk of doing business.
The results of market research indicate that which planned course of action should be
pursued and which not.
4. Market research creates benchmarks and helps in tracking the company’s progress.
It helps in understanding how well are we doing in the market. Setting up the targets right
from the start helps in building a sustained growth in the market. It’s important to know,
for later comparisons, the position of our business at particular moments in time.

As part of the induction process at Prognosys, they had even taught us all about the IT
infrastructure of a company-which included the computing environment, printing
environment, networking environment, storage environment, operating environment,
application software environment and middleware environment. We took interview of IT
Managers asking questions regarding these environments used in different companies and
analyzed the trend of IT deployment in financial sector.

COMPUTING ENVIRONMENT
Computing Environment in an organization are the various kinds of components used for
working in the organization specifically Desktops, Laptops etc.
Components Of Computing Environment Are As Follows:
• Desktop : A desktop system is a computer designed to sit in one position
on a desk somewhere and not move around
• Laptop: A laptop is a portable personal computer that is of a size that it
can sit on your lap.
• Server: A computer or device on a network that manages network
resources. For example, a file server is a computer and storage device
dedicated to storing files.

PRINTING ENVIRONMENT
All things which help a user to take the output on a paper or any material classify under
the printing environment. We can also say that a device that prints text or illustrations on
paper.
Components Of Printing Environment Are As Follows:
• LaserJet Printer: A printer that uses a laser and the electro photographic method
to print a full page at a time. The laser "paints" a charged drum with light, to
which toner is applied and then transferred onto paper.
• DeskJet Printer / Inkjet Printer: A type of printer that works by spraying
ionized ink at a sheet of paper. Magnetized plates in the ink's path direct the ink
onto the paper in the desired shapes. Ink-jet printers are capable of producing high
quality print approaching that produced by laser printers.
• Dot Matrix Printer: A printer that uses hammers and a ribbon to form images out
of dot.

STORAGE ENVIRONMENT
Types of Storage Solution are as follows:
• Primary Storage
• Secondary Storage
Primary Storage: By this we mean a solution wherein initially the data is stored as and
when generated.
Secondary Storage: By this we mean a solution where depending upon the criticality of
data, the data is back up.
Storage Area Network (SAN): Storage Area Network (SAN) is a high-speed sub
network of shared storage devices. A storage device is a machine that contains nothing
but a disk or disks for storing data. A SAN's architecture works in a way that makes all
storage devices available to all servers on a LAN or WAN. As more storage devices are
added to a SAN, they too will be accessible from any server in the larger network. In this
case, the server merely acts as a pathway between the end user and the stored data.
Because stored data does not reside directly on any of a network's servers, server power
is utilized for business applications, and network capacity is released to the end user.
SAN a dedicated network that is separate from LANs and WANs. It generally serves to
interconnect the storage-related resources that are connected to one or more servers.
Network Attached Storage (NAS): A network-attached storage (NAS) device is a server
that is dedicated to nothing more than file sharing. NAS does not provide any of the
activities that a server in a server-centric system typically provides, such as e-mail,
authentication or file management. NAS allows more hard disk storage space to be added
to a network that already utilizes servers without shutting them down for maintenance
and upgrades. With a NAS device, storage is not an integral part of the server. Instead, in
this storage-centric design, the server still handles all of the processing of data but a NAS
device delivers the data to the user. A NAS device does not need to be located within the
server but can exist anywhere in a LAN and can be made up of multiple networked NAS
devices.

Direct Attached Storage (DAS): In direct attached storage, the hardware is connected to
an individual server. There may be more than one server but storage for each server is
managed separately and cannot be shared.
 Type Of Tape Storage Solutions Can Be Classified As Follows:
• Tape Drives.
• Digital Audio Tapes (DAT).
• Digital Linear Tapes (DLT).
• Linear Tape Open (LTO).

SOFTWARE ENVIRONMENT
Software: Software, consisting of programs, enables a computer to perform specific tasks.
Software can be further classified into:

1. Application Software: Application software is a subclass of computer software that

employs the capabilities of a computer directly to a task that the user wishes to perform.
Various Types of Application Software can be classified as follows:
General Applications: These are those applications with are generic in nature and can be
used by any organization in any industry vertical. Some prominent types of applications
under this category are ERP, CRM, and Financial Management Software which are
explained below:

• Enterprise Resource Planning (ERP): is the planning of how business resources

(materials, employees, customers etc.) are acquired and moved from one state to
another. An ERP system is a business support system that maintains in a single
database the data needed for a variety of business functions such as
Manufacturing, Supply Chain Management, Financials, Projects, Human
Resources and Customer Relationship Management. Ideally, the data for the
various business functions are integrated.
• Customer Relationship Management (CRM): is a multifaceted process, mediated
by a set of information technologies that focuses on creating two-way exchanges
with customers so that firms have an intimate knowledge of their needs, wants,
and buying patterns. In this way, CRM is intended to help companies understand,
as well as anticipate, the needs of current and potential customers.
 • Financial Management Software (FMS): is software that is used for accounting
purposes. The financial and payroll accounting software are feature rich and
deliver all the important reports that the accountant and the management need.
This software keeps the accountant happy by providing all the typical statutory
reports..

Vertical Specific Applications: Vertical specific applications can be summed up as those

applications which are used by specific industry verticals. These types of applications
cannot be used across all the industry verticals.

2. Middleware environment: Middleware is computer software that connects software

components or applications
• Operating System: An operating system (OS) is a set of computer programs that
manage the hardware and software resources of a computer. An operating system
rationally processes electronic devices in response to approved commands. This
operating system can be dived into two: desktop operating system and server
operating system.
• Database Management Software (DBMS): A DBMS is computer software
designed for the purpose of managing databases. Typical examples of DBMS
include Oracle, DB2, Microsoft Access, Microsoft SQL Server, MySQL.
• Messaging & collaboration (MC): an email server pr messaging and
collaboration is a computer within the network that works as virtual post office
and communication modules one of its components handles the transfer of
messages to and from other mail servers and clients. Its major brands are IBM
Lotus nodes, Microsoft exchange server.
• Backup Software: Backup software is software designed to backup data for the
purpose of having a second copy of an original source in case of damage to the
original data source
Chapter 3 Research Methodology
3.1 Purpose of the Study

The purpose of the study is to understand the IT infrastructure, to identify the IT Trend,

Consumption pattern of IT Products and to estimate the future potential of IT in Banking

and financial services Sector.

3.2 Objectives of the Study

i) To understand the significance of IT in Banking and financial services

sector

ii) To find out how much IT is deployed in Banking and financial services

sector.

iii) To find out major IT Brands in Banking and financial services sector

iv) To identify the emerging IT trend in Banking and financial services sector

v) To estimate the future potential of IT in Banking and financial services

Sector.

3.3 Scope of the Study

The study required includes all the types of companies in the Banking and financial

services Sector in India. So that IT Potential can be properly explain in the Banking and

financial services Sector. It is a very vast study and due to many limitations it may not be

possible to include all the type of companies covering all India.

3.4 Duration of the Study

The duration of the study is 8 Weeks.

3.5 Limitations of the Study

1. Duration of the study is very small for in-depth study on this topic.

2. Low awareness level of the Company in the market comes as a big hurdle in

collecting data.

3. Sampling error may be there

4. Information related to IT may not be complete or 100% correct as most of the

companies provide approximate figure

5. We need to collect information through telephonic interview as per the company

policy, respondents either don’t give enough time to collect information or

disconnect the line without listening.

3.6 Sampling Design

Target Population: It will be the companies who are in the Financial Service Sector

(which includes Banks, brokerage houses/stock exchanges, insurance companies and

other financial service providers) and using more than 10 computers.

Sample Size: The sample size is 250 due to time constraints. Geographical region:

Samples includes company of all regions. They are

East North South West Total

25 40 45 140 250

Table 3.1 Region wise Sample Size

Factors which will influence the sample size are:

• Number of companies related to financial service sector given in the database by

the company.

• Number of companies interviewed fully by us out of those given in the database.

• Number of interviews done are approved by quality check team

• Most of the companies interviewed were in west region because of the head

offices situated in Maharashtra.

Sampling Frame: Database of companies in financial sector created by Prognosys for

collecting data through telephonic interview.

3.7 Research Design

A Descriptive research design has been used to know the potential of Information

technology products (i.e. Hardware + Software) in Financial service Sector. In this study

qualitative and quantitative technique will be used. Data collection will be done both

from primary research and secondary research.

The approach which has been followed for doing the research is the same as which is

been followed by Prognosys e Services Pvt. Ltd.

Step 1: Training on the Theoretical aspect of IT & IT products as per the objective

of the company

We have given the proper training on theoretical aspect of IT & IT products. It was

essential as we have to collect information related to IT from the IT managers of different

companies. Not only that that understanding of IT was important for the project which we

have undertaken

Step 2: Design of Questionnaire:

We didn’t have to make any questionnaires as company has already given us the standard

open ended questionnaires. Through this questionnaire mainly qualitative information

will be collected. They are

• Demographics of Interviewed company’s which includes company’s name,

address, contact numbers, number of branches, regional offices, factories , number

of employees working, turnover etc.,

• About IT Hardware products used by companies which includes number of

Computer, Laptops, Servers, Storage technologies, Tape storage drive, printers,

networking devices ( Routers, Switches, hubs ) and brand breakup.

• About IT Software which includes Application Software ( ERP,CRM,SCM etc.)

and Middleware Management Software ( Desktop Operating System,Server

Operating System etc .)

• About Local vendors with whom interviewed company deals with or purchase

their IT Products
 • Allocation of IT Budget

• Contact details of Key personnel in the company.

Step 3: Generating Database of the companies to be interviewed

Our Team Leader provides us with database of companies with whom the interview has

to be conducted and data is collected. This database is mostly provided by the Prognosys

clients like HCL, Microsoft, IBM etc. who have their own objective like generating sales

prospect, estimating market potential, to know the penetration level of their products etc.

The database of companies can be of different criteria like vertical wise, region wise etc.

The database is also generated by the Prognosys them self depending upon their own

purpose or study they are doing side by side.

Step 4: Data Collection

This step is the most important and critical step in the context of the project because the

major portion of data collection will be primary in nature. The primary data is collected

through telephonic interview and secondary data is collected through internet ( from

company’s website, Kompass.com,justdial.com ).

Primary Data Collection: The method for primary data collection selected is Telephonic

Interview. Proper Training was given to us on how to collect data through telephone by

Prognosys. There are some advantages of Telephonic interview because of which this

method was selected. They are:

 1. This method is useful when large number of samples is to be selected all across

India.

2. High Conversion rate of interview in short time

3. Cost effective – Since the charges of phone calls has come down drastically and

overall it is less than travel cost.

4. Fixing an appointment and collecting data is easy as compared to face to face

interview

5. Respondents are more comfortable in telephonic interview.

6. Making call back is easier then visiting the person again and again.

There are some obstacles or drawbacks also while collecting data through telephonic

interview like mood of the respondents, telephone sound and connectivity, interviewee

communication skills etc.

Interview time: Generally around 5 minutes are taken to complete an interview with the

IT manager and 5 min are taken in findind contacts of Finance manager and Managing

Director or CEO of the company .

Respondent Profile: Mostly target respondents are the IT manager, System

Administrator or other persons in an organization who have the knowledge of IT

Infrastructure and then we used to target the Finance Manager, Director or Managing

Director for their personal contact .

Secondary Data Collection: The secondary data collection is done through internet by

logging into interviewed company’s website, Directory & database websites like
bseindia.com, Kompass.com, Sulekha.Com, Tradeindia.com, Justdial.com. Most of the

data is collected for cross verification of primary data.

The data collected are:

1. Company Address, Contact numbers, Year of inception,Branches etc.

2. Turnover of the company

3. Any additional information related to IT infrastructure

Step 5: Data Scrutiny

Filled Questionnaires are sent to the quality checking team who check whether all the

information has been captured properly or not. Some logical check is also done. Once

they approved the questionnaire the same is send further for data entry. Otherwise is send

back to us for correction.

Step 6: Data entry.

Those questionnaires which has been approved by quality team is entered into excel sheet

in a prescribed format. Each questionnaire is given unique identity by coding them.

Step 7: Data Cleaning

Data entered required some checking as mistakes like wrong recording of data or

unrecorded data entry in some fields. Thus data cleaning involved both data entry check

& how to treat wrong and missing responses. This is the final error check and after this

data will be ready for tabulation and statistical analysis.

Step 8: Data Analysis

The clean data is used for data analysis purpose by making various tabulation is

MS Excel and creating charts & graphs.

Statistical Tool – MS Excel

Chapter 4 Analysis & Finding

For the analysis purpose I have divided financial service sector into 4 categories:
• BANKING
• BROKERAGE HOUSES/STOCK EXCHANGES
• INSURANCE
• OTHER FINANCIAL SERVICES

The break up companies in financial sector is given below where 36% companies are
from banking sector, 26% companies are brokerage houses, 10% companies are from
insurance sector and rest 28% are other financial service providers.

Ins urance
10%

Bank ing
Financial 36%
s e rvice s
28%

Brok e rage
hous e s
26%

BREAK UP OF FINANCIAL SERVICE SECTOR

The focus of the Study is on IT Hardware & Software Products only. IT hardware
products have been studied Sub vertical wise and IT software products is studied in
context of overall financial service sector.
The following is the analysis

4.1. IT Hardware Market in Banking Sector

1. PCs – Desktop & Laptop

In banking sector desktops are used more than laptops as 91% of desktops are used and
the remaining are laptops. But this trend may get change as the Laptop prices are getting
par with desktop.

9%

91%

DESKTOPS LAPTOPS

PC BREAK UP

<501 0-25
28% 14%

26-100
25%

101-500
33%

1.1 TYPES OF PC
1.2 BREAKUP OF PC

We can see that there is more usage of desktop in banking sector as compared to laptops
and the majority of banks are using 100 to 500 PC .With the growth of economy, more
banking companies are becoming IT deployed.
Brand market share of PC

BRAND MARKET SHARE OF PC

60000
50000
40000
30000
20000
LAPTOPS
10000
DESKTOPS
0
HP/ IBM/ Dell HCL Asse Acer Other
LAPTOPS 2461 5604 2195 1841 20 7 1096
DESKTOPS 34994 52312 15993 19751 5099 3044 6189
BRANDS

1.3 BRAND MARKET SHARE OF PC

Fig. 1.3 shows the market share of different brands in banking sector. It can be seen that
IBM has the largest market share in laptops and desktops, followed by HP.
89982

9888
w est
32575

735
south
5670

1901

north
9210

1000

east

0% 20% 40% 60% 80% 100%

DESKTOPS LAPTOPS

1.4 USAGE OF PC (REGION WISE)

Fig 1.4 shows that maximum no. of desktops are deployed in southern region and laptops
in northern India. Very less laptops are deployed in other regions, as laptops are more
costly so companies prefer using desktop.

2. SERVERS

We can see from fig. 2.1 that IBM has the largest share in server market of 54% followed
by HP with 18% share. All other brands have very less percentage of servers in banking
sector and IBM alone enjoys the market leadership in server market.
 MARKET BRAND SHARE OF SERVERS

15% 18%
2%

2% HP / Compaq
IBM
3%
Sun
HCL
6%
Assembled
Acer
Others

54%

USAGE OF SERVERS(Region Wise)

east
18%
north
3%
south
7%

w est
72%

2.1MARKET BRAND SHARE OF SERVERS

2.2 USAGE OF SERVERS (REGION WISE)

Even the usage of server is very high in the west region as can be seen from fig. 2.2
because of high number of computers used in this region. This shows that there is a direct
relation between no. of servers and computers deployed.
3.PRINTERS

In banking sector, 74% of market share is with laser jet printers followed by dot matrix
and desk jet printers with market share of 18% and 8%.
 TYPES OF PRINTERS

18%

8% LASERJET
DESKJET
DOT MATRIX

74%

3.1 TYPES OF PRINTERS

MARKET BRAND SHARE OF PRINTERS

As we know that laser jet printers are used more as compared to dot matrix and desk jet
printers. It can be seen from fig. 3.2 that HP is the market leader of laser jet printers with
the usage of 1400 printers and TVS is the market leader in case of dot matrix printers
followed by Epson.

MARKET BRAND SHARE OF PRINTERS

DOT MATRIX
DESKJET
HP Can Eps Xero TVS Wep Othe
LASERJET
DOT MATRIX 1107 265 836 12 866 162 1029
DESKJET 1682 130 115 0 32 20 25
LASERJET 1400 323 143 5 10 41 3162
BRANDS

2.2 MARKET BRAND SHARE OF PRINTER

USAGE OF PRINTERS (REGION WISE)
The north zone uses the highest amount of laser Jet printers and usage of desk jet printer
is highest in southern region. It can also be seen that the eastern and southern zone have
high consumption of dot matrix printers which is clearly depicted in fig. 3.3.
 BREAK UP OF PRINTERS(REGION WISE)

w est
REGION
south

north

east

0% 20% 40% 60% 80% 100%

NO. OF PRINTERS

LASERJET DESKJET DOT MATRIX

2.3 USAGE OF PRINTERS (REGION WISE)

4.NETWORKING DEVICES

The companies are using Networking devices to share and complete the task quickly.It
can be seen from fig. 4.1 that among networking devices ,57% switches are used
followed by routers.

TYPES OF NETWORKING DEVICES

Routers Sw itches Hubs

9%

34%

57%

4.1 TYPES OF NETWORKING DEVICES

MARKET BRAND SHARE OF NETWORKING DEVICES

The market brand share of networking devices can be seen from fig. 4.2 where CISCO is
the market leader in case of all types of networking devices: let it be hubs, switches or
routers.
 BRAND SHARE OF NETWORKING DEVICES

12000
1016
10000

8000
5062
6000 HUBS
401
SWITCHES
4000
ROUTERS
3174 4419 1060
2000 2 76
900 188 0 171
0 0 2
0
D-Link Cisco 3 Com DAX Avaya Others
BRANDS

4.2 MARKET BRAND SHARE

USAGE OF NETWORKING IN DIFFERENT REGIONS.

The western zone uses highest amount of networking devices that involves routers, hubs
and switches followed by the western zone which is clearly represented in fig 4.3.

USAGE OF NETWORKING DEVICES (REGION WISE)

8000

6000
Routers
4000 Switches
Hubs
2000

0
east north south west

Routers 56 124 1135 4268

Switches 512 167 1828 6960
Hubs 0 0 57 1364

4.3 USAGE OF NETWORING DEVICES IN DIFFERENT REGIONS.

4.2. IT Hardware Market in brokerage house/stock exchanges

1. PC- Desktop & Laptop

In brokerage houses/stock exchanges, desktops are used more than laptops. As can be
seen in fig. 1.1, 74% of brokerage houses use desktops and remaining 26% use laptops.

TYPES OF PC

DESKTOPS LAPTOPS

26%

74%

1.1 TYPES OF PC

MARKET BRAND SHARE OF PC

As we know that there is more consumption of desktops as compared to laptops HP is the

market leader for in desktop market. It can also be seen from fig 1.2 that IBM is the
market leader in laptop market selling the highest no. of laptops.

MARKET BRAND SHARE OF PC

880 106
733

Others
1152807

Acer
Assembled
10 4853
BRANDS

1146

HCL
957

Dell
283

17961
9104

IBM/ Lenovo
39812

578

HP/ Compaq

0 5000 10000 15000 20000 25000 30000 35000 40000 45000

DESKTOP LAPTOP

1.2 MARKET BRAND SHARE OF PC

USAGE OF COMPUERS IN DIFFERENT REGIONS

It can be seen from fig. 1.3, that northern and eastern use about 97% of desktops whereas
its usage is in western region where brokerage houses/ stock exchanges use more laptops
as compared to other regions of India.

USAGE OF PC (REGION WISE)

100%
90%
80%
70%
60%
LAPTOPS
50%
DESKTOPS
40%
30%
20%
10%
0%
east north south west
REGIONS

1.3 USAGE OF PC

2. SERVER

Fig 2.1 shows that IBM is the market leader with 47% share in server market followed by
Sun with 26% share and the highest number of servers are used in western region due to
usage of highest no. of PC in western region.
 MARKET SHARE OF SERVERS

2%
7%
0% 18%
0%
HP/ Compaq
IBM
26% Sun
HCL
Assembled
Acer
Others

47%

USA GE OF SERV ERS (R egion Wise)

east
8%
south
north
3%
3%

west
86%

2.1 MARKET SHARE OF SERVERS 2.2 USAGE OF SERVERS

3. PRINTERS

In brokerage houses and stock exchanges, 72% laser jet printers are used which are much
larger than 19% desk jet printers followed by dot matrix printers as shown in fig 3.1.
 9%

19%
Laserjet printer
Deskjet printer
Dot matrix printer

72%

3.1 TYPES OF PRINTERS

MARKET BRAND SHARE OF PRINTERS

It can be seen from fig. 3.2 that HP is the market leader in printer market with the
maximum no. of dot matrix printers. It can also be observed that TVSE is the market
leader for laser jet printers.

MARKET BRAND SHARE OF PRINTERS

150

100

50
Dot matrix printer
Deskjet printer
0
HP Canon Epson Xerox TVSE Laserjet printer
Dot matrix printer 82 0 67 0 6
Deskjet printer 13 0 10 1 3
Laserjet printer 11 1 17 0 58
BRANDS

3.2 MARKET BRAND SHARE OF PRINTERS

USAGE OF PRINTERS IN DIFFERENT REGIONS

The following graph shows the consumption of printers in different regions of India. It
can be seen that the maximum no. of laser jet printers are used in western region whereas
the maximum no. of desk jet printers are being used in eastern zone. It is observed that
maximum no. of dot matrix printers are being used in southern region of India.
 USAGE OF PRINTERS (Re gion Wise)

west

south Laserjet printer

REGION

Deskjet printer
Dot matrix printer
north

east

3.3 USAGE OF PRINTERS

4. NETWORKING DEVICES

Fig. 4.1 depicts that both routers and switches that are considered as better devices for
networking as compared to hubs are used in this sector. This shows that new networking
technology is used in this sector with switches and routers both having a share of 49%.

TYPES OF NETWORKING DEVICES

2%

49%
49%

Routers Switches Hubs

4.1 NETWORKIN PRODUCTS

MARKET BRAND SHARE OF NETWORKING DEVICES

CISCO is the market leader of networking devices in brokerage houses/stock exchanges

as shown in fig 4.2 with highest share of hubs and routers.3 Com and CISCO share
almost an equal position in switches market.
 BRAND SHARE

3000

2000

1000
Hubs
0 Switches
D-Link Cisco 3 DAX Avaya Other
Routers
Hubs 21 37 13 4 2 0
Switches 299 704 617 7 0 248
Routers 83 1779 21 0 0 3
BRANDS

4.2 BRAND SHARE

USAGE OF NETWORKING DEVICES IN DIFFERENT REGIONS

It can seen from fig. 4.3 that switches are used at a very large scale as compared to hubs.
The western region consuming maximum no. of switches and routers. Very less hubs are
used and that too in southern region only.

USAGE OF NETWORKING DEVICES(Region Wise)

1694

1568

57
west
28

62

18
REGION

south
64

79

north
2
100

166

east
0

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Routers Switches Hubs

4.3 USAGE Of NETWORKING DEVICES

4.3. IT Hardware Market In Insurance industry

1. PC – Desktop & Laptop

In insurance industry 72% desktops are used which is very high as compared to usage of
laptops that hold 28% stake in computer market. It can also be seen from fig 1.2 that HP
is the market leader in PC market followed by IBM and Dell.

TYP ES OF P C

LAPTOPS
28%

DESKTOP
S
72%

M A RKET B R AND SHAR E OF PC

Others
Assem bl
17%
ed
1%
HCL
4%
/HP
Dell
Com paq
8%
55%

/IBM
Lenovo
15%

1.1 TYPES OF PC
1.2 MARKET SHARE

USAGE OF PC IN DIFFERENT REGIONS.

It can be observed from fig 1.3 that each region uses more no. of desktops as compared to
laptops. Highest no. of desktops are used in southern and eastern region whereas when
we talk about laptop market western region has a wide market for it.
 USAGE OF PC (Re gion Wise )

100% 10
953 530
90%
80%
6998
70%
60%
50% 240 Total No. of laptops
5200 7200
40%
30% Total
20% 9087 No. of desktop
10%
0%
east north
south
w est
REGION

1.3 USAGE OF PC
2. SERVER

It can be seen from fig 2.1 that maximum no. of servers, 77% are deployed in southern
region in insurance sector followed by western region with 20% of servers. IBM occupies
the leading position in the server market with 68% share competing very strongly with
other players as shown in fig 2.2.

S ER VER S DEP LOYED ( Regi on Wi se)

77%

east
3%
nor th
south
0% west

20%
 MARKET BRAND S HARE OF S ERVERS

6% 12%
14%
HP/ Compaq
0% IBM
Sun
HCL
Assembled
Acer
Others

68%

2.1 SERVERS DEPLOYED (REGION WISE)

2.2 MARKET SHARE

3. PRINTERS

Maximum no. of laser jet printers are being deployed in insurance sector with a stake of
83% followed by desk jet and dot matrix printers represented in fig. 3.1.

TYPES OF PRINTERS

7% LASERJET PRINTERS
10%

DESKJET PRINTERS

DOT MATRIX
83% PRINTERS

3.1 TYPES OF PRINTERS

BRAND MARKET SHARE OF PRINTERS

Fig 3.2 shows that Wep is the market leader in printer with maximum sale of laser jet
printers. This is followed by HP selling the maximum no. of desk jet and dot matrix
printers.

BRAND MARKET SHARE OF PRINTERS

0
120
150
Other

3000
Wep

0
TVSE
10
BRANDS

1 50 35
0
4

Xerox
0

Epson
0
0 2

Canon
50
0

1945

420

483
HP

0 500 1000 1500 2000 2500 3000 3500

LASERJET DOT MATRIX DESKJET

3.2 BRAND SHARE OF PRINTERS

USAGE OF PRINTERS (REGION WISE)

South India has the big market for printers in insurance industry with maximum usage of
laser jet printers and dot matrix printers used in north region as seen in fig 3.3.

USAGE OF PRINTERS (Region Wise)

3500

3000
2500
DOT MATRIX PRINTERS
2000
DESKJET PRINTERS
1500
LASERJET PRINTERS
1000

500
0
east north south west
REGION

3.3 USAGE OF PRINTERS

4. NETWORKING DEVICES
Fig 4.1 shows 81% of switches are used for networking in insurance industry with D-
LINK as the market leader in switches. It can also be seen that routers hold 19% share
with CISCO as the market leader of routers. No hubs are being used in insurance industry
which shows new technology being used in the industry.

TYPES OF NETWORKING DEVICES

HUBS ROUTERS
0% 19%

SWITCHES
81%

1000 911
900
800
700
600 553 ROUTERS
500 447 SWITCHES
368
400 HUBS
300
200 103
100 4 0 0 0 000 0 200 0 150
0
D-Link Cisco 3 Com DAX Avaya Others
BRANDS

4.2 BRAND SHARE OF NETWORKING DEVICES

USAGE OF NETWORKING DEVICES (REGION WISE)

It can be seen from fig 4.3 that under insurance sector, western region uses highest no. of
networking devices with maximum usage of switches and routers which is followed by
southern region.
 USAGE OF NETWORKING DEVICES (Region Wise)

4
0 0 0
100%

80%
18 701
60% 673
554 HUBS
40% SWITCHES

20% 7 287 ROUTERS

145
32
0%
east north south w est
REGION

4.3 USAGE OF NETWORKING DEVICES

4.4. IT Hardware Market In other Financial Service Sector

PC- DESKTOP & LAPTOP
Usage of desktop is much more as compared to laptops in financial service sector. As can
be seen from fig 1.1 financial service companies use 87% desktops and only 13% of
laptops for their work. But this trend may get change as the Laptop prices are getting par
with desktop.

PC PRODUCTS

LAPTOPS
13%

DESKTOPS
87%

1.1 TYPES OF PC

MARKET BRAND SHARE OF PC

HP is the market leader in PC segment due to sale of maximum desktops in other

financial service sector. But in case of laptops, HP and IBM share almost an equal market
share as represented in fig 1.2.
 MARKET BRAND SHARE OF PC

Others 3040 346

Acer 3061 115

Assembled 2643 480

BRANDS

HCL 2942 19 DESKTOPS

Dell 7429 466 LAPTOPS

IBM/ Lenovo 6768 2379

HP/ Compaq 18489 2650

0 5000 10000 15000 20000 25000

1.2 MARKET BRAND SHARE OF PC

USAGE OF PC (REGION WISE)

Western region has the highest consumption of desktops that mainly involves laptops
which shows that this region is more IT equipped which is followed by southern region.
It also shows that northern zone is the largest consumer of laptops as illustrated below.

USAGE OF PC (Region Wise)

20000

10000

LAPTOPS
0 DESKTOPS
east north south w est

LAPTOPS 105 3650 1194 1506

DESKTOPS 1515 8709 16316 17917

REGION

1.3 USAGE OF PC

2. SERVER

Fig 2.1 shows that HP is the largest share in server market which is followed by IBM. Fig
2.2 shows that this usage of server is largest in western region where 44% of servers are
deployed in this region and it is followed by southern region with 31% share.
 MARKET BRAND SHARE OF SERVERS

/HP
Others Com paq
38% 37%

Assem ble
d AcerHCLSun
IBM
0% 0% 1%5%
19%

USAGE OF SERVERS (Region Wise)

1%
24%

44%

31%

east north south w est

2.1 MARKET BRAND SHARE 2.2 USAGE OF SERVERS

3. PRINTERS

In this sector we can see that consumption of laser jet printer is much more than other
printers as it has market share of 75%, which is depicted in fig 3.1 and HP is the market
leader in printer market with maximum share of 68% and is competing very strongly with
other brands.
 TYPES OF PRINTERS

LASERJET PRINTERS DESKJET PRINTERS

DOT MATRIX PRINTERS

19%

6%

75%

MARKET BRAND SHARE OF PRINTERS

Other
TVSE
Wep 15%
4%
3%
Xerox
0%
Epson
9%
Canon HP
1% 68%

3.1 TYPES OF PRINTERS 3.2 BRAND SHARE

REGIONWISE USAGE OF PRINTERS

Comparing the 3 types of printers on basis of region we can see from fig. 3.3 that
northern region uses about 90% of laser jet printers whereas western region has the
largest consumption of dot matrix and desk jet printers.
 USAGE OF PRINTERS (Region Wise)

2085

324

877
w est

1665

506
south

71
REGION

2061
north

78
58
148
east

23
0
0% 20% 40% 60% 80% 100%

LASERJET PRINTERS DESKJET PRINTERS DOT MATRIX PRINTERS

3.3 USAGE OF PRINTERS

4. NETWORKING DEVICES

It can be seen from fig 4.1 that maximum no. of financial providers use 60% switches and
27% routers and very less hubs to do their work quickly and more effectively.
.
NETWORKING DEVICES

13%
27%

ROUTERS
SWITCHES
HUBS

60%

4.1 TYPES OF NETWORKING DEVICES

Market brand share of networking devices

As can be seen from fig 4.2, CISCO is the market leader in networking with maximum
usage of routers, switches and hubs. It gives a tough competition to its competitor D-Link
who also has a large market share in financial service sector.
 MARKET BRAND SHARE OF NETWORKING DEVICES

Others 29 189 0

Avaya 1
0
BRANDS

DAX 0

3 Com 40559

Cisco 871 1010 198

D-Link 74 953 272

0 500 1000 1500 2000 2500

ROUTERS SWITCHES HUBS

4.2 MARKET BRAND SHARE

REGION WISE USAGE OF NETWORKING DEVICES

Fig 4.3 clearly depicts that usage of switches is higher in all the regions as compared to
other networking devices. North and south zone uses maximum no. of switches whereas
maximum hubs are used in western region and routers in eastern region.

USAGE OF NETWORKING DEVICES (Region Wise)

100%

50%

HUBS
SWITCHES
0%
east north south west ROUTERS
HUBS 0 6 12 461
SWITCHES 74 480 815 838
ROUTERS 55 189 266 505
REGION

4.3 USAGE OF NETWORKING DEVICES

4.5 IT Software Market in Financial Service Sector

IT initiatives like centralized management and automating daily operations are important,
the key part of retaining a customer is critical to the Financial service sector. Mostly
companies apart from its size or status use the software for accounting purpose i.e.
Financial Management Software’s (FMS) .But today many advanced application
software’s have come into the service market like Enterprise Resource Planning (ERP),
Customer Relationship Management (CRM) and others which improve efficiency, reduce
operation cost, integrates various functions of the companies and above all retain &
create new customer.

Enterprise Resource Planning (ERP)

YES
20% 2% 15% 0-25

48% 26-100
101-500
35%
NO 501<
80%

1.1 ERP DEPLOYED 1.2 ERP VS EMPLOYEES SIZE

In financial service sector, 20% of companies have implemented ERP in their companies
shown in fig 1.1. Out of this 20%, ERP is implemented by companies whose employee
size is more than 25. .In Fig 1.2 employee size determines the size of company. . As the
size increases from 25 to 100, the deployment of CRM increases from 15% to 35%. The
ERP deployment is highest in companies having more than 500 employees. The ERP
deployed are mostly of SAP, Customized, Oracle and in-house built as mentioned in fig
1.3. SAP has the maximum share capturing 51% of market.

INHOUSE
2% 12%
CUSTOMISED

19% ORACLE

51% RAMCO

9% SAP

7%
MILESTONE
SOLUTION

1.4 BRAND SHARE OF ERP

Customer Relationship Management ( CRM)

10%

YES
NO

90%
 0%4% 0-25
31%
26-100
101-500
65%
501<

2.1 CRM DEPLOYED 2.2 CRM VS EMPLOYEES SIZE

In financial service sector, 10% of companies have implemented CRM in their company’s
shown in fig 2.1. Out of this 20%, CRM is implemented by companies whose employee
size is more than 25. In Fig 2.2 employee size determines the size of company. As the
size increases from 25 to 100, the deployment of CRM increases from 4% to 31%. The
ERP deployment is highest in companies having more than 500 employees. The ERP
deployed are mostly of Frontage, Customized ,Oracle ,SAP and others as mentioned in
fig 2.3 Customized CRM are have the maximum share capturing 32% of market
followed by Frontage with 18% share.

10%
CUSTOMISED
5%
FRONTRANGE
5% 32%
IBM
INFOSYS
10%
INHOUSE
SAP
ORACLE
5% TCS
18%
10% THIRD PARTY
5%

2.3 BRAND MARKET SHARE OF CRM

Financial Management Software ( FMS )

 38%
YES
NO
62%

12%
31%
0-25

23% 26-100
101-500
501<

34%

3.1 FMS DEPLOYED

3.2 FMS VS EMPLOYEE SIZE

Every company is using some financial application software for recording their day to

day transaction. Around 62% of companies are using only FMS .The remaining 38% may

be using ERP or any other Industry specific software for financial purpose. FMS is used

by all types of companies despite of their size (employee wise).The FMS software of
Tally seems to be market leader having 74% share in overall FMS market in this sector.

1%
7% 1%
1% CUSTOMISED
13% FINNACLE
SAP
INHOUSE
2%
1% SHILPI SOFTWARE
SUN
TALLY
74% TAPEX

3.3 BRAND SHARE OF FMS

DESKTOP OPERATING SYSTEM

Desktop operating system is required by the companies who are using PCs. Desktop
operating system of Microsoft has 97% market share. Desktop operating system of other
brands – HP, IBM, and Linux has very minimal share.
 IBM
HP 0% LINUX
1% 2%

MICROS
OFT
97%

4.1 BRAND SHARE OF DESKTOP OS

SERVER OPERATING SYSTEM

Companies which are using server have to use operating system. Server operating system
of Microsoft has 83% market share. Server operating system of other brands – HP, IBM,
Linux, Solaris and Novell covers the remaining market.

LINUX SOLARIS
6% 1%
NOVEL
HP IBM
1%
5% 4%

MICROSOF
T
83%

5.1 BRAND SHARE OF SERVER OS

Database Management software ( DBMS)

 NO
30%

YES
70%

0-25 26-100
2% 15%
<501
46%

101-500
37%

6.1 DBMS DEPLOYED

6.2 DBMS VS EMPLOYEE SIZE

In financial service sector, 70% of companies have implemented DBMS in their

company’s as shown in fig 6.1. Out of this 70%, DBMS is implemented by companies
whose employee size is more than 25. In Fig 6.2 employee size determines the size of
company. As the size increases from 25 to 100, the deployment of CRM increases from
15% to 37%. The DBMS deployment is highest in companies having more than 500
employees. The DBMS deployed are mostly of Microsoft, Oracle, IBM and others as
mentioned in fig 6.3 Microsoft and Oracle have the equal market share capturing 44% of
market.
 3%
1% 2%
4%
2%
FOX PRO
HP
IBM
44% LINUX
MICROSOFT
44% ORACLE
SYBASE

6.3 BRAND MARKET SHARE OF DBMS

MESSAGING & COLLABORATION (MC)

7%

20% 19%
37% 0-25
YES 26-100
NO 101-500
501<
80%

37%

7.1 MC DEPLOYMENT 7.2 MC VS EMPLOYEE SIZE

Messaging & Collaboration is deployed by 80% of the companies in this sector. Out of
this 80%, MC is deployed by mostly big companies having employee size more than 100,
covering around 70% share. Companies having small employee size are also using MC.
MC is very essential in improving efficiency and communication through internet. The
different brands that provide MC are Microsoft (43%), IBM (10%). Interestingly 41% of
the market is hold by third party who provides the MC solutions at reasonable cost. The
branded one is very costly.
 10% 1% IBM
LINUX
41%
MICROSOFT
ORACLE
43% POST MASTER
3%2% THIRD PARTY

7.3 BRAND MARKET SHARE OF MC

BACKUP SOFTWARE

26-100
7%
0-25
YES 2%
18%
101-500
26%

<501
NO 65%
82%

8.1 BACKUP SW DEPLOYED 8.2 BACKUP SW VS EMPLOYEE SIZE

Backup Software is deployed by 18% of the companies in this sector. The remaining 82%
of the companies are keeping their backup in CD, DVD or using Tape Drive. Out of 18%,
backup software is used only in bigger companies having employee size more than
500.Backup software of Symantec, Veritas & IBM dominates the market having
combined market share of 78%. The other brands of backup software used in this sector
are HP, Oracle, and others
 3% 8% HP
IBM
36% 24% INHOUSE
MICROSOFT
ORACLE
SYMANTEC
3%
3% VERITAS
5%
18% CUSTOMISED

8.3 BRAND MARKET SHARE OF BACK IP SOFTWARES

IT TRENDS

NO. OF EMPLOYEES VS NO. OF PC

NO. OF EMPLOYEES VS NO. OF PC

100%
90%
80%
70%
60% 501<
PC 50% 101-500
40% 26-100
30% 0-25
20%
10%
0%
0-25 26-100 101-500 501<
NO. OF EMPLOYEES

1.1 EMPLOYEES VS PC

In overall financial service sector, a trend that can be noticed is that as the no. of
employee’s increases, more amount of PC are required. As can be seen from fig. 1.1,
when no. of employees were less than 25, companies used to deploy lesser no. of
computers that is there was 1:1 ratio of employees and PC and 10% of companies
increased their IT infrastructure more than the employees in the anticipation of increasing
their employees or the size of the organization. As the employees are growing more than
100, the larger is the consumption of PC. But when the employees are increasing more
than 500, around 80% of the companies are increasing their PC more than 500 but very
few companies are not able to maintain their 1:1 ratio that is they are deploying less no.
of IT infrastructure compared to their size.

NO. OF PC VS NO. OF SERVERS

NO. OF PC VS NO.OF SERVERS

100%

80%
EMPLOYEES 60% 101<
21-100
40%
6~20
20% 0-5

0%
0-25 26-100 101-500 501<
NO. OF PC

1.2 PC VS SERVERS

Direct relationship between no. of PC and no. of servers can be seen from fig1.2. As the
PC count is increasing from 26-100 the no. of servers employed are also increasing from
0-5 to 6-20. The same trend is observed as there is growth in no. of PC.

NO. OF PC VS NO. OF PRINTERS

 NO. OF PC VS NO. OF PRINTERS

100%

80%

60%
PRINTERS
40%

20%

0%
0-25 26-100 101-500 501<
NO. OF PC

0-5 6~20 21-100 101<

1.3 NO. OF PC VS NO. OF PRINTERS

We can see from fig. 1.3, when the no. of PC are less than 100 lesser amount of printers
are deployed that is between 0-5 and as the PC range exceeds from 100, the printers
deployment also increases accordingly.

IT DECISION MAKING

IT DECISION MAKING

14%

CENTRALISED
DECENTRALISED

86%

1.4 IT DECISION MAKING

IT decision making is represented in fig. 1.4 which shows that majority of the companies
have centralized decision making in terms of IT deployment and only 14% companies
prefer decision making at localized level.

IT Adoption Ratio
The IT adoption ratio will help us to understand how and on what basis the demand of
one Hardware products is related to other. It gives an idea to the companies that how
deployment of other IT infrastructure is is dependent on usage of no. of PC.

HEADINGS RATIOS
Employee / PC 1.37
Desktop/PC 0.842
Laptop/PC 0.158
PC/Server 24.58
PC/Printer 7.68
LaserJet/Total Printer 0.75
DeskJet/Total Printer 0.08
Dot matrix/Total Printers 0.14
PC/Network Devices 11.9
PC/Switches 20
PC/Routers 34.8

The above table shows some useful ratios in hardware market which tells some
interesting facts about IT deployment. It shows that in financial service sector, 85% of the
companies use desktops and remaining laptops. Also on deployment of around 25 PC,
necessity of one server is generated and on deployment of 7 printers necessity of one
printer is generated. It also shows that the companies mostly use laser jet printers.
Chapter 5 Summary & Conclusion
Deployment of IT in banking, insurance and other financial services not only calls for
better monitoring capability and efficient operations but also helps the company in inter
firm coordination and maintaining relationship with suppliers and customers. On the
basis of my analysis I have come to following conclusion:

About hardware market

• Majority of companies are using desktops for their operations as 85% of PCs
deployed in this sector are Desktop. But this trend is going to change as laptop
prices are coming par with the laptops. At present there are around 15%
companies which are using PCs less than 25 and there is a need to tap these
companies for IT infrastructure expansion.
 • Around 90% of the companies have deployed server. But still around 15% of the
companies have still deployed only one server. The major Server Brand in the
sector is IBM.

• Companies prefer Laser jet printer over desk jet and dot matrix printers. 75% of
the printers used in this sector are Laser jet. HP is market leader in printer
segment

• Among the brands, HP is the market leader in hardware market covering the
overall financial sector.

• The southern region has the largest market for hardware products as compared
with other regions.

About the software market

• ERP is deployed by only 20% of the companies in this sector. Mostly companies
with more than 500 employees are using. But slowly the trend is shifting as
companies having around l00 employees have also started to deploy ERP but
customized one as it is cost effective. The major Brand for ERP is SAP.

• Building new customers and retaining the old ones is essential for the growth of
all the company. Only 10% of the companies have deployed CRM in their
operation which mainly includes large scale companies. Major Brands are
Frontage and IBM. Most of the CRM are customized

• 74% of the companies are using financial management software, Tally for
accounting purposes. Even small and middle sized companies use Tally as it is
affordable & simple.

• Messaging & Collaboration is very essential in improving efficiency and

communication through internet .About 80% of companies has deployed this
 system irrespective of their size. Interestingly 41% of the market is hold by third
party who provides the MC solutions at reasonable cost and the major brand for
M&C is Microsoft.

• Desktop operating system and server operating system is used by all the
companies using desktop and server. Microsoft occupies the leading position with
around 90% of market share in this market.

About IT adoption trends

• Around 85% of the companies have centralized decision making.

• There is a direct relation between No. of PC and No. of employees. As the no. of
Employees increases , the consumption of PC increases accordingly

• Even No. of printers and servers have a direct relation with the no. of PC in a
company.

• Demand of 1 Server is created when company add 25 PCs. Similarly demand of 1

printer is generated on addition of 7 PCs. Thus demand of one hardware product
can be forecasted depending upon other.

• Demand of 1 networking device is generated as the company deploys around 12

PC in which the need of a router is aroused on deployment of 35 PC.

Chapter 6 Recommendations
1. The IT Companies should target companies with following features for selling

their hardware products:

a. Companies which are using less than 25 PCs

b. Companies which are using only one server

c. Companies which are using Assembled PCs

2. IT Companies can forecast demand of hardware products on the basis of IT

Adoption trend & ratio.

3. The IT Adoption Ratio will be very helpful for companies like HP which have all

type of hardware products in its portfolio. They can create a bundle offer of all

Hardware products from PC to networking devices on the basis of ratio.

4. High surge in Demand for ERP, CRM application software is expected in next

years. At present big financial companies have deployed this application. The

large numbers of financial service companies are still using outdated application

software. IT Companies have to create awareness about the benefit.

5. There are many IT companies whose market share is low. In order to increase

their market share or revenue, they must increase their penetration level.