BUSINESS AND MANAGEMENT INTERNAL ASSESSMENT

Should DUCAT diversify their business in BPO segment?

Candidate Name; Simran Malhotra

Candidate number; 002279-080
Session- May 2011
Date of submission; 27th January 2010
Word count; 2054
Executive summary; 244
Supervisor; Ms. Kirandeep Gour

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Research Proposal
Research Question

Should DUCAT diversify their business in BPO segment?

Rationale
DUCAT is an Indian based institution, which provides IT education, training and consultancy. According
to the current business environment, DUCAT requires to increase their revenue by new segment of
business. DUCAT has years of experience in IT training and it has now gained a brand image in field of
developing IT skills by providing accurate training and consultancy. DUCAT has expertise that has fullfledged knowledge of current IT industry and they provide the same skill to its trainees also. Thus, at this
stage of business, it will be profitable for DUCAT to open a new business segment.

Theoretical framework
It requires planning regarding the new project and assessment of various procedure and resources required
to start the new venture, SWOT Analysis, Ansoff Matrix, Ratio Analysis and Porters Five Forces. These
concepts will take into account both financial and non-financial aspects.

Key Areas:
Organizational Planning Tools
External Environment
Marketing Planning

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Methodology

PRIMARY

SOURCES

LIMITATIONS

MODIFICATIONS

Interviewing the Ducats

The number of questions has to

Ask precise and relevant

director and finance manger

be limited.

questions.

Interview with the

Biased answers from employees

Further research and refer to

employees.

and also limited perspective as

head of management initially.

discuss the investment

capacity of DUCAT and
finding the availability of
skill and technology to
interpretation and analysis

not everyones interview can be

taken.

SECONDARY

Use the balance sheet to

As the company is a private one

Try to obtain as much

analyze the monetary

it may be difficult to obtain

information as possible.

perspective of business.

financial documents.

Financial data such as

The matter would not always be

Collect the information

revenue account and

up to date.

frequently and update the

financial statement will be

data.

used to conduct the SWOT,

Ansoff, and Porters Five
Forces. Moreover
publications and articles
regarding the BPO industry
will be assessed to find out
the profitability of the
venture.

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Action Plan

Date
6.8.2010
7.8.2010

Action

Source

Topic Selection
Research and write proposal.

Anticipated Difficulty

Time consuming

Problem

in

getting
appointment

for

interviews
19.08.2010

Improvising and upgrading

Business and

takes place.

management book

internal

by Paul Hoang.

information

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No disclosure of

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RESEARCH QUESTION

Should DUCAT diversify their business in BPO segment?

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Acknowledgments

I would like to thank following people for taking time off their busy schedule and for there
support and assistance in helping me talk about their decision of diversifying there business.

Mr. Baldev Oberoi Director of Ducat institution- for his contribution to this
report and his time for the interview.

Mrs. Sunita Oberoi Chief Executive of Ducat institution- for her assistance with
the reports.

Mr. Nitin Mehta Finance Manager- for his contribution in telling me all about
the financial details about the company.

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TABLE OF CONTENTS
RESEARCH PROPOSAL .. 02
RESEARCH QUESTION 05
ACKNOWLEDGEMENT.........................06
EXECUTIVE SUMMARY...08

INTRODUCTION

BACKGROUND INFORMATION........................09
PRESENT CONDITION..09
NEED FOR ANALYSIS......................10

PROCEDURE AND METHODOLOGY.11

MAIN RESULTS AND FINDINGS.......................12

ANALYSIS AND EVALUATION

SWOT ANALYSIS..14
ANSOFF MATRIX...................15
RATIO ANALYSIS...................16

CONCLUSION AND RECOMMENDATION.18

BIBLIOGRAPHY...19
INTERVIEW TRANSCRIPT20

APPENDIX
APPENDIX 8.1 ABOUT COMPANY .21
APPENDIX 8.2 ARTICLE.24
APPENDIX 8.3 BALANCE OF PAYMENT..25
APPENDIX 8.4PORTERS FIVE FORCES..27
APPENDIX 8.5RATIO ANALYSIS28

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EXECUTIVE SUMMARY

DUCAT is an Indian based institution, which provides IT education, training and consultancy. According
to the current business environment, DUCAT requires to increase their revenue by new segment of
business. Therefore, my report focus on

Should DUCAT diversify their business in BPO segment?

To begin with, the research proposal outlines the theoretical framework, rationale and methodology
utilized and possible anticipated difficulties in finding the solutions. The introduction gives background
of the company and its association with the IT Industry and intellectual technique and examines the
current position of the company in the current market situation.
The analysis and interpretation is based on the primary research through direct interview of the
management personals and the secondary sources like DUCAT Prospectus and education policy,
company website and online articles has allowed me to evaluate the proposal with the help of business
management tools such as SWOT analysis, Ansoff matrix, Ratio analysis and porters five forces.
However, my analysis is unable to find the sources of finance, which is, require for expansion project.
After analyzing the problem, conclusion has been drawn out and later some recommendations have been
provided to make this proposal a super success.

Unsolved Question:

Despite availability of required resources with evidence1, it can not be ensured that
DUCAT would be able to sponsor its proposed project due to lack of any bona fide
financial evidence.

How profitable it is going to be in absence of any experience about new industry?

DUCAT has trained qualified staff including network administrators, systems analysts, systems architects, test
engineers, software developers, help desk staff, IT managers, senior executives, administrative assistants and
business professionals. Its evidence can be review with help of
Appendix 8.1

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1. INTRODUCTION
1.1 Background2
Backed by a team of professionals who have successfully trained and placed students. DUCAT offers a
wide spectrum of technical courses and application courses designed to suit every skill level, as well as
the ability to consult directly with organizations to tailor made learning plans for any number of
employees. DUCAT products and services have a wide appeal and are applicable those in varied positions
including network administrators, systems analysts, systems architects, test engineers, software
developers, help desk staff, IT managers, senior executives, administrative assistants and business
professionals
In this short span of business life, DUCAT is able to generate a wide distribution channel of its product
and hence, the company is able to generate a brand image in the IT market. Unlike other firms in the
industry, DUCAT offers development, training and consultancy services apart from IT education. Thus,
DUCAT has sufficient knowledge and fund to diversify its business.
Thus, company is looking forward to diversify in BPO segment based on IT knowledge to expand its
business. Company has efficient manpower and professional skill for the proposed project. Hence, my
report focuses on Should

DUCAT diversify their business in BPO segment?

1.2 PRESENT CONDITION

India is on the move with IT sector as the driver of growth from the last two decades. Education in IT has
become the main target of the country. DUCAT is the IT institution, which provides trained manpower
and produce good quality professionals. But, at the same time when more and more firms are entering
the same business, the market share of DUCAT has shrunk. Thus, DUCAT is facing tough competition
from other leading IT institutions such as NIIT and Aptech.

Refer Appendix 8.1

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1.3 NEED FOR ANALYSIS

With growth in higher IT education sector, the formal sector is producing around 3 Lakhs graduates every
year with qualified degree such as B.Tech, MCA, BE and Msc. Moreover, firms in training industry such
as DUCAT, NIIT and APTECH are also producing IT graduates every year. But, out of all these
graduates only 1 lakhs graduates are actually employable by IT industry. Thus, a market sale of DUCAT
is shrinking in the current market situation. Thus, company is looking forward to diversify in BPO
segment based on IT knowledge to expand its business.

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2.PROCEDURE AND METHODOLOGY

2.1 Primary research has been conducted through direct interview of the management personals
(name) and in this process I have identify the strength of the company in the current market
situation. The company did not reveal its financial reports and document but while interviewing
the manager, I got to know that company has sufficient manpower3 and finance4 to diversify its
business in new venture.
2.2 Through secondary sources like company website5, I come across some essential
information about the company and I find the company is capable in terms of technique and
skills required for new project. The decision of the company has been analyzed with the
following business and management tools:
SWOT Analysis
Ansoff Matrix
Ratio Analysis
Porters Five Forces
No government data or publication was available related to the business.
2.3 Validity of Data: Primary data has been collected through direct interview and secondary
data has been taken from companys website and from online BPO journal called bpoindia.org.
Information obtained from both the sources is analogous to great extend; therefore my research
comes out to be more authentic. However, I got excess to extracted balance sheet figures whose
validity cannot be guaranteed.

Refer to Interview Transcript; Question 1

Refer to Interview Transcript; Question 4
5
Company Website: www.ducatindia.com
4

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3. MAIN FINDINGS

DUCAT is Indias leading IT training centre which provides development and training to young
student and help them to emerge as a skilled professional IT trainers. It offers wide spectrum of
technical courses and aims at overall development of the professionals. DUCAT specialized in
providing application courses6 such as network administrators, system analysts, system architect,
test engineers, software developers, help desk staff, IT managers, senior, executives,
administrative assistants and business professionals. It means DUCAT has qualified professional
back up to start its new BPO segment.
Since 1991, when India had been gradually opened for foreign investment and process of
labialization start gearing up; the growth rate of India is visibly growing. More importantly, IT
industry in India has reached US$65 billion in 2009 and around one third of this revenue
exclusively comes from BPO exports.

Source: DUCAT Website: http://www.ducatindia.com/index.php

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The above figure depicts the future prospects of Indian IT and BPO market which is growing
year by year.
However, diversifying its business in BPO segment with merely knowledge of IT knowledge
may not count as sufficient ground for the proposal because DUCAT may face dispute regarding
rules and regulations of IT industry while diversifying its business in entire new business as
existing big firms7 can easily dominate the smaller new firms. DUCAT has biggest threat from
existing firms who deals in same business and has more market share in the IT industry. The
table8 below depicts the strong position of leading BPO IT service providers:

Rank

7
8

Company

Genpact

Annual Revnue

Number

(m)

employees

$ 822.7 million

34,300

Refer Appendix 8.3

Source: http://www.indiamarks.com/guide/Top-10-BPO-s-in-India-A-Nasscom-Report/1059/

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WNS Global

$ 459.9 million

Data Unavailable

IBM Daksh

Data Unavailable

20,000

Aditya Birla Minacs Worldwide

$ 392 million

12,000

TCS BPO

Rs. 12.90 billion

Wipro BPO

Rs. 44.05 billion

19,000

First Source

Rs. 12,988 million

17,000

Infosys BPO

$ 250.3 million

16,295

HCL BPO

$ 220.9 million

13,200

10

EXL Service Holdings

$ 50.9 million

8,200

DUCAT is currently engaged in education service, which is totally different from BPO service as
it involves controlling and managing the professional work. Thus, DUCAT lacks business
experience so it may find it difficult to run its own IT BPO segment without aid of any help.

4. ANALYSES AND EVALUATION

4.1 SWOT Analysis:

SWOT analysis is done to identify the companys strength and opportunity and comparing the
same with its weakness and threat so that profitability of proposed project can be evaluated.

STRENGTH:
DUCAT has high-qualified technicians who use their skills to manufacture great quality of
computer products.
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DUCAT is able to generate a wide consultancy channel and collaboration with other recruiters,
which the other firms in the industry, is not yet able to achieve9.
DUCAT has gained advantage over IT knowledge and technique as it has great education
background and experts10.
WEAKNESS:
DUCAT is a fresher in IT industry and it knows very little about the management and controlling
of the IT venture.
OPPORTUNITIES11
India has potential market for BPO services and even government is keen to increase the
employment in IT based BPO sectors.
Indian market is highly demanded by international MNCs for its BPO services which means
DUCAT would have enough business environments.

THREAT
IT industry is most competitive in nature and company can face rivalry nature of existing firms 12.
The company lacks IT business skills as it has been in education industry from last few years
only.

Refer Appendix 8.1, Para: Consultancy

Refer Appendix 8.1, Para: Software Development
11
Refer Appendix 8.2
12
Refer Appendix 8.3
10

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4.2 ANSOFF MATRIX:

Since, DUCAT is diversifying its current business so it is very essential to analyze the strategy of
business depending on whether DUCAT wants to market its new or existing product in either
new or existing market.

Market Penetration: Under this growth strategy, business focuses to expand its current business
with the existing product in the existing market. When company adopts this growth strategy, it
aims at increasing its current market share with the existing product by increasing its sales
revenue. For, DUCAT market penetration will not be a good idea as it is already occupying the
existing market13 to its high saturation.
Market Development: this segment of growth strategy involves medium risk of expanding the
business with existing product in new market. DUCAT broadly deals in few region of North
India (Noida, Ghaziabad, Faridabad, Jaipur, Gwalior, Greater Noida and Jalandhar) and as a
small enterprise it cannot expand its business to far remote area. Expanding the business in new
market will require more finance and working capital to fulfill the initial set up cost.
Product Development: It is medium risk growth strategy, which aims at selling a new product
in the existing market. As of now, DUCAT offer almost every course related to IT industry. It
offers more than 18 course14 with certify the skills of a globally dispersed staff with standardized
course materials through every stage of the IT learning curve. Thus, Product development would
not be the fruitful idea for DUCAT.

Diversification: This growth strategy involves high risk as it refers to market the whole new
product in new market. It is also a high growth strategy and it suits to the businesses that has
already saturated in the current market and looking forward towards the new opportunities and
growth prospectus.
13
14

Noida, Ghaziabad, Faridabad, Jaipur, Gwalior, Greater Noida and Jalandhar

Source: http://www.ducatindia.com/curriculum/it_education.php

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According to the current business environment, DUCAT requires to increase their revenue by
new segment of business. DUCAT has years of experience in IT training and it has now gained a
brand image in field of developing IT skills by providing accurate training and consultancy.
DUCAT has expertise that has full-fledged knowledge of current IT industry and they provide
the same skill to its trainees also. Thus, at this stage of business, it will be profitable for DUCAT
to open a new business segment.
Hence, as per my analysis, DUCAT should adopt product development as part of its business
strategy.

4.3 Ratio Analysis:

Ratio analysis is conducted to find out the financial position of DUCAT in order to plan and execute the
diversification project. The ratio analysis would be helpful in finding out the current financial position of
the business and prospects of further expansion.
Analysis and Interpretation:

As per the results shown by net profit ratio15, the firm has incurred loss in the succeeding year.
The reason for the decline in net profit could be diseconomies of scale. Thus, it is advisable to the
firm that it should execute the expansionary project in order to achieve economics of scale and
hence, the firm will be able to increase its profitability.

Current ratio of the firm is showing a positive result which means firm will be able to meet its
short-term expenses, which will be incurred during the expansionary project. The ideal current
ratio is 2:1, which means current assets, should be twice of current liabilities so that any firm can
meet their short-term expenses on time. For both the financial year, firms current ratio is
depicting the strong financial position of the firm16.

Return on assts ratio has been calculated to find out the relation of firms profitability with its
total assets. As per the calculations Ducats ROA has been showing negative results17 which
means management of the firm is unable to utilize its assets efficiently to generate earnings.

15

Refer Appendix 8.5; Para Net Profit Ratio

Refer Appendix 8.5; Para Current Ratio
17
Refer Appendix 8.5; Para ROA
16

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The ratio analyses of DUCAT depicts that firm is suffering losses in its current operation due to existence
of many firm in the industry and thus, it is advisable to DUCAT to diversify its business in new segment.

5. CONCLUSIONS AND RECOMMENDATION

Should DUCAT diversify their business in BPO segment?

The management of the company is a determined team and has a significant track record in the
successful path of business. But a huge leap from education industry to IT BPO segment would

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be highly risky. Company should generate more finances18 and should focus deeply on their
established business so that their future projects will not run short of finance. The firm should be
advised to make a joint venture and share the risk of diversification. The firm should also make
primary and secondary research over the market and they should also keep a check on the issues
like political and economical factors. Firm should also advise not to see only the profits earned
by the firms engaged in the IT - BPO industry but they should also concentrate on their working
procedures of the firm. Firm should also take the data regarding the technological factor which
may go to give a challenge to the firm in the near future. Firm should open a HR segment which
employs the experienced persons who are engaged in the IT - BPO.
Thus, DUCAT should take into account the following main threats:

Financial Requirements

Competition in new industry

Working procedure and experience

DUCAT is advisable to initially collaborate with any existing firm in IT BPO segment in order to get
clear view of new industry.

6. BIBLIOGRAPHY
DucatIndia.com- IT Training Center in India, Delhi, Noida, NCR, Java Training Institute, DOT
NET Corporate Training Center, Summer Training Institute, IT, Java Training, J2EE Training,
J2ME Training, .NET Training, Dot Net Training, SAS Training, PHP Training, Flex Training,
Adobe Flex Training, IBM Mainframe Training, Linux Administration Training, Data
Warehousing Training, Oracle Training, Software Quality Testing (SQT) Training, SQT

18

Refer Appendix 8.5

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Training, Embedded System Training, VLSI Training, CCNA Training, CCNP Training, MSCE
Training SEO Training. Web.

26 June 2010. <http://www.ducatindia.com/>.

"IT Education & Training Classes: Java, .Net, SQT, Mainframe, Embedded, Oracle, Linux, Data
Warehousing, SAS, PHP, C." DucatIndia.com- IT Training Center in India, Delhi, Noida, NCR,
Java Training Institute, DOT NET Corporate Training Center, Summer Training Institute, IT,
Java Training, J2EE Training, J2ME Training, .NET Training, Dot Net Training, SAS Training,
PHP Training, Flex Training, Adobe Flex Training, IBM Mainframe Training, Linux
Administration Training, Data warehousing Training, Oracle Training, Software Quality
Testing(SQT) Training, SQT Training, Embedded System Training, VLSI Training,CCNA
Training, CCNP Training, MSCE Training SEO Training.

17 July 2010 <http://www.ducatindia.com/curriculum/it_education.php>.

"Welcome DucatIndia.comcareer, it, job, placement." DucatIndia.com- IT Training Center in
India, Delhi, Noida, NCR, Java Training Institute, DOT NET Corporate Training Center,
Summer Training Institute, IT, Java Training, J2EE Training, J2ME Training, .NET Training,
Dot Net Training, SAS Training, PHP Training, Flex Training, Adobe Flex Training, IBM
Mainframe Training, Linux Administration Training, Data warehousing Training, Oracle
Training, Software Quality Testing(SQT) Training, SQT Training, Embedded System Training,
VLSI Training,CCNA Training, CCNP Training, MSCE Training SEO Training.

20 Aug. 2010 <http://www.ducatindia.com/faculty/career.php>.

"IT Training, Career IT Training, Corporate Training, Training Courses, Industrial Training."
DucatIndia.com- IT Training Center in India, Delhi, Noida, NCR, Java Training Institute, DOT
NET Corporate Training Center, Summer Training Institute, IT, Java Training, J2EE Training,
J2ME Training, .NET Training, Dot Net Training, SAS Training, PHP Training, Flex Training,
Adobe Flex Training, IBM Mainframe Training, Linux Administration Training, Data
warehousing Training, Oracle Training, Software Quality Testing (SQT) Training, SQT
Training, Embedded System Training, VLSI Training,CCNA Training, CCNP Training, MSCE
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Training SEO Training.

20 Sept. 2010 <http://www.ducatindia.com/training/training.php>.

"Ducat Training in Noida, Gautam Budh Nagar, Uttar Pradesh, India, 201301, 0120." TrainingClasses.com - Training Seminars and Certification Providers - Skills Training Classes.

25 Oct. 2010 <http://www.trainingclasses.com/providers/00/25/2598_ducat.php>.

"DUCAT Noida Be Alert Complaints - providing fake experience letter." Indian Consumer
Complaints Forum.

15 Nov. 2010 <http://www.consumercomplaints.in/complaints/ducat-noida-bealert-c265457.html>.

"Training Offered: Java, .Net, SQT, IBM Mainframe, Embedded System, Linux Administration,
Data warehousing, Oracle Applications, SAS, PHP/MYSQL, C , SEO." DucatIndia.com- IT
Training Center in India, Delhi, Noida, NCR, Java Training Institute, DOT NET Corporate
Training Center, Summer Training Institute, IT, Java Training, J2EE Training, J2ME Training,
.NET Training, Dot Net Training, SAS Training, PHP Training, Flex Training, Adobe Flex
Training, IBM Mainframe Training, Linux Administration Training, Data warehousing Training,
Oracle Training, Software Quality Testing(SQT) Training, SQT Training, Embedded System
Training, VLSI Training,CCNA Training, CCNP Training, MSCE Training SEO Training.

20 Dec. 2010 <http://www.ducatindia.com/curriculum/curriculum.php?id=31>.

"Institute noida - Noida, Computer - Multimedia Classes - Noida, Classes." Free classifieds in
Noida, classified ads in Noida (For Sale in Noida, Personals in Noida, Vehicles in Noida, Real
Estate in Noida, Community in Noida,...).

28 Dec. 2010 <http://noida-uttarpradesh.olx.in/q/institute-noida/c-281>.

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"Ducat- Leading IT training Institute Ghaziabad Uttar Pradesh Phone Number, un official
website." India schools, colleges, education, entrance practice tests, aptitude questions.

20 Jan. 2011 <http://www.indiastudychannel.com/training/2175-Ducat-LeadingIT-training-Institute.aspx>.

7. INTERVIEW TRANSCRIPT
Q 1) Competition in IT BPO sector is hotting up with number of MNCs entering the domestic market?
Where do you see the opportunity as a fresher?

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Ans) IT BPO sector is the key for our decision for diversification. BPO segment requires qualified
specialized skilled professionals and we are already expertise in that. Initially we are planning to launch
our new segment with collaboration with existing firms but after analyzing our expertise strength we have
decided to launch our independent BPO firm.
Q2) Do you expect the proposed project to be fruitful?
As freshers, we are responsible to grow the market as well. The consumers are now getting more and
more choices. People are coming with similar kind of benefits. There is an effort to grow new categories.
Q3) Can you visualize any strong threat in BPO industry?
Ans) our competitors in BPO sector would be different from IT education sector. Indian companies are
entering BPO sector where MNCs are still leading so, we are not obsessed with one competitor.
Q4) But, innovation would be incomplete with enough financial back up??
Ans) company has enough financial power to invest in new ventures and we are also negotiating with
leading banks to grant us some loans for preliminary expenses.
Q5) How do you addressing this new market?
Ans) Some years ago, IT was the new technology for the Indian people but change in time has teached
them the pro and cons of IT sector. Earlier, people used to count on manual work but now, every one
wants to get their work done in just click of mouse. So, we are supporting faster work for fast people.

8. APPENDIX
APPENDIX 8.1
About DUCAT
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Backed by a team of professionals who have successfully trained and placed students. DUCAT
offers a wide spectrum of technical courses and application courses designed to suit every skill
level, as well as the ability to consult directly with organizations to tailor made learning plans for
any number of employees. Our products and services have a wide appeal and are applicable
those in varied positions including network administrators, systems analysts, systems architects,
test engineers, software developers, help desk staff, IT managers, senior executives,
administrative assistants and business professionals.

Consultancy
Skilled and Knowledgeable recruiter of Excecutive talent
At DUCAT, you get the best HR solutions for different domains in IT. Since our inception, we
have made a mark as one of the most prominent recruitment consultants in India. With the
ongoing change in the various industries in India, which was initiated in the last decade, because
of the globalization and open market strategies, companies are facing stiffer competitions from
its MNC counterparts. Therefore, they have focused on the intensive business strategies, and a
perfect HR strategy which is one of the most important aspects of a well managed company. This
is why the importance of the recruitment agencies in India is felt in a greater extent these days.
We believe in acquiring in-depth knowledge of the domains of our client, because we understand
that without understanding the business of our clients, we cannot help them in their HR policies.
Therefore, unlike other HR companies in India, we at DUCAT have decided to narrow the
horizon of our service, so that we can enhance the depth of the service. That is why our
recruitment services are restricted to the IT and ITES sector only.
Our extensive network enables us to source for the right candidates with the right experience and
qualifications for our Clients. We aim to be your partner and are able to identify and select
candidates to fill your requirements in the technical, managerial and functional roles. With our
extensive experience in HR, and expertise in placing candidates with top MNCs, we will provide
customized solutions to your HR requirements. We make every effort to understand your

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Organizational needs, current requirements, market availability as well as the compensation for
the positions we take up.
Training
Our courses feature hands-on tasks and real-world scenariosin just a matter of days, you'll
be more productive and embracing new technology standards.
The goal of our training program is to provide the world with skilled human resources who
are competent to practice and provide solutions in an ever-changing technology world.
To attain this goal, DUCAT uses a robust and well-researched proven training model.
Trainees are exposed to a wide range of professional role models, mentors, and trainers
while in the process they develop a professional identity that is uniquely their own.
Since we always believe that each trainee bring with them their own unique skills and
abilities, training staff recognizes and encourage them to develop and enhance these while
sharing with other trainees. During the training period, our mentors provide an appropriate,
graded sequence of experiential learning activities. Trainees are expected to attain
increasing levels of autonomy and complexity in their progression from the role of student
to the role of entry level professional by the end of the training where as our corporate
training programs make the experienced profession filled with new passion to face the next
project challenge with full confidence.

We believe that self-awareness and the ability to continually reflect on one's own personal
dynamics are critical to the development of effective professional skills. Towards this aim,
trainees may be asked to engage in a process of personal exploration with their supervisors
and trainers. In this process, mentors will encourage trainees to discuss and reflect upon
how their experiences, personal qualities, and interpersonal dynamics related to their
professional functioning. Mentors take care to create a training relationship characterized by
trust, safety, and respect. They also take care to differentiate between training and
supervision. As such, the focus of the discussion is always directly related to the trainees
professional functioning and development.

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Our Training Methodology includes

Class room Lectures
Group Discussions
Case studies
Paper Presentation.
Field Visits
Audio Visuals
Interaction with various organization and experts from the fields
Preserving latest knowledge by maintaining up -to-date library
Learning by actual doing the work
Observing live Models of various projects

Software Development
With software projects becoming more complex day by day, clients demand high visibility,
frequent deliveries and smaller iteration cycles and as businesses change so does software;
DUCAT recognises change is inevitable and we produce scalable and maintainable software
solutions.

Insurance & Financial

Services
Manufacturing, Logistics &
Distribution

Microsoft Solutions

Sun Java

Telecom

Unix/Linux

Technology /IT

ERP Solutions

Hospitality & Travel

IBM Mainframe

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Energy & Utilities

APPENDIX 8.2
Article: Revenue from domestic BPO service to touch &1.6 billion in 2014
Source: BPO India.org
NEW DELHI: India's domestic business process management services segment is expected to achieve a revenue of USD
1.6 billion by 2014 from USD 521 million in 2009, according to research firm Gartner. Gartner has forecast that revenue
from BPO services within the domestic market will grow by 31.1 per cent from USD 521 million in 2009 to reach USD
683 million in 2010 and experience steady growth through 2014 to touch USD 1.6 billion by 2014.

"High economic growth, competitive pressure, agility, time to market, innovation and adoption across verticals and
breadth of services will be driving this high growth rate in this segment," a Gartner report said. Large scale outsourcing of
process management will bring in the next wave of growth in the Indian domestic IT/IT- enabled services (ITES) industry.

"IT services spending will continue to shift from discrete spending to outsourcing in 2010. New avenues of growth will
open in the mid-market and in up-selling," Gartner Senior Research Analyst Arup Roy said.

"The entry of new hybrid providers will blur the lines between product and IT services and the new offerings will be on a
pay-per-use model," he added. While BPO services are at present largely restricted to the telecommunications and banking
and financial services sectors, going ahead, it is likely to be adopted in verticals such as government, utilities, healthcare
and retail, the Gartner report said.

"These are high growth verticals with a high degree of transaction processing work requirement. Such transactional
processes, although crucial, are not core to the activities of those organisations.

Hence, outsourcing of such processes to third party specialists would bring in advantages of efficiency, efficacy and cost,
thereby increasing the competitive edge," it added. Roy said the Indian domestic market is still heavily dominated by
voice-based services.

"Most of the BPO work is around contact centre type of work catering to customer care and sales/marketing services. This
would comprise almost 65-70 per cent of the market," he said.

"This is likely to expand into other service lines such as HR process outsourcing, finance and accounting, analytics and
other niche services," Roy added. "BPO is in the emerging stages.

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As adoption increases, and it becomes adolescent, the provider landscape would also change with much larger,
sophisticated and specialist providers playing in the space. This would further drive the expansion of the service lines
within BPO," Roy said.

APPENDIX 8.3
Source: BPO India. orgTop 20 IT-BPO employers in India
Top 20 IT-BPO employers in India

SL No.

Companies

Employee strength

Tata Consultancy Services

14,992 crore (as on March 31, 2010)

Infosys Technologies

114,822 (as on June 30, 2010)

Wipro Ltd

112,000 (as on july 23, 2010)

Cognizant Technology Solutions India Pvt Ltd. 80,300 (as on May 4, 2010)

HCL Technologies Ltd

65,000 (as on March 31, 2010)

Genpact

41,000 (as on March 31, 2010)

MphasiS Ltd

33,000

Intelenet Global Services Ltd

31,000 (as on June 2010)

Tech Mahindra Ltd

33,524 (as on March 2010)

10

Aegis Ltd

More than 39,000

11

Capgemini Consulting India Pvt Ltd

20,000 in india and

90,000 in North America, Europe,

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and Asia Pacific region.

12

WNS Global Services (P) Ltd

21,958 (as on April 2010)

13

Firstsource Solutions Ltd

24,697 (as on June 30, 2010)

14

CSC India Pvt Ltd

15

3i Infotech Ltd

15,000

16

Hinduja Global Solutions Ltd

14,000

17

L & T Infotech

11,500

18

Patni Computer Systems Ltd

15,500 (as on March 2010)

19

Exl Service.com (India) Pvt Ltd

1,500 (as on March 31, 2010)

20

Aditya Birla Minacs Worldwide Ltd

13,000

16,000 in India and

3,000 in other locations

APPENDIX 8.4
PORTERS FIVE FROCES: The objective of this business project of DUCAT is to diversify its
current business in BPO segment. Porters five forces will help the company to understand its current
strength under given market situation for evaluating the profitability of the business prospectus.

Threat of new entry:

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It is not too expensive to enter the IT industry19.

Up - to - date technology up gradation is required

Threat of rivals firms and existing firms20.

No tough barrier to restrict the new entry

Competitive rivalry21:
-

Very large number of competitors dealing in same business with same business strategies.

No accurate product differentiation is possible except in terms of price.

Business identity is difficult to gain as large number of firms are exists in the industry

Supplier Power:
-

It is not difficult to recruit large number of man power as DUCAT already deals in IT training
and consultancy services.

Buyer Power:
-

MNCs are well aware of Indian IT industry and its potential to assist them with IT technical
support system.

Threat of substitute:
-

MNCs have access to wide range of similar services

Substitute of product is easily available, if price is taken into account22.

APPENDIX 8.5
Ratio Analysis
For the purpose, following financial data 23has been obtained from management personals:

Sales

2008-2009
28,598,014.09

19

Since DUCAT already equipped with qualified staff. (Refer Appendix 8.1)
Refer Appendix 8.3
21
Refer Interview Transcript
22
Due to existence of many firms in the industry
23
Bona fide evidence of financial data is unavailable.
20

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2007-2008
12,530,732.72

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(116,029.93 )

Net Profit Before Tax

Net Profit After Tax (PAT)
Current Assets Loans & Advances
Current Liabilities & Provisions
Fixed Assets

(116,029.93)
19,124,785.14
7,990,638.24
4,527,208.23

82,391.21
(20,858.70)
17,216,387.96
7,942,619.62
4,870,139.68

To find out the profitability of the firm, I will conduct net profit ratio. Net profit ratio will be helpful in
finding the actual profit of the firm after meeting all the operating and non operating expenses.
Calculation of net profit ratio:

Net Profit for the year 20072008

0.65%

Net Profit for the Year 20082009

(0.40%)
(Loss)

The expansion plan will require various preliminary expenses for executing the plan of expansion. Thus,
current ratio analysis has been done in order to find out whether the firm is in position to meet its short
term expenses. Calculation of current ratio:

Net Profit for the year 20072008

2.16

Net Profit for the Year 20082009

2.39

I will find out whether the firm is in position to increase its sales with the current available resources. For
this purpose, I will calculate the return on assets ratio (ROA) to find out how much assets will require to
increase the sales by $1. Calculation of ROA:

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Net Profit for the year 20072008

(0.04)

Net Profit for the Year 20082009

(0.02)

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