Sri Lankan IT Company & Evolution Of IT Industry
Evolution Of IT Industry💓💓
Abstract:
The global software & services industry grew by 4.6% in 2012 to reach a value of $2,596 billion. The compound annual growth rate (CAGR) of the industry in the period 2008–12 was 4.8%. In 2017, the global software & services industry is forecast to have a value of $3,223.4 billion with an anticipated CAGR of 4.4% for the five-year period 2012 - 2017. Information Technology (IT) services are the largest segment of the global software & services industry, accounting for 48.3% of the industry's total value. Americas account for 36.2% of the global software & services industry. IBM is the leading player in the global software & services industry, generating a 3.5% share of the industry's value. This industry group is fragmented, with large incumbents operating alongside smaller companies, although diverse product portfolios and strong growth help to alleviate rivalry slightly.1 This paper attempts to trace the evolution of IT services industry, its current state, its challenges, mitigation of those challenges and a sneak peek at what the future has in store for this rapidly evolving area. The paper briefly discusses about the evolution of computing as a whole, the evolution of the graphical user interface, client-server architecture, and evolution of the internet, the current state of the IT industry and future prospects and outlook. It also touches upon several existing opportunities and challenges within this industry sector and space. New dimension segments such as Cloud, Big Data, Mobility and In Memory Computing are exciting new areas of research and development that have the capability to further revolutionize the industry. The study is rounded off by discussing challenges that exist within this sector and its future outlook. The study is purely literature review based and is exploratory in nature. Reference materials include Journals, Government and analyst reports, white papers and web repositories.
I. Introduction
Information Technology (IT) refers to any computerized command, communication, control and reporting systems that companies use to plan and operate their businesses. IT services refer to the development, implementation, configuration and support of computerized systems and tools that are used in the development and maintenance of such systems. While the seeds of IT industry were sown much earlier with the technological advancements, it came into existence in early 1950s, as the first computers made their way into the business world with the introduction of IBMs first large computer, the IBM 701. After decades of slow but steady growth, the IT services market stood at USD 153 billion in 1990.Since then the IT industry has shown steady growth with few adverse years in between. Worldwide IT spending had been projected to total $3.7 trillion in 2013, a 2 percent increase from the 2012 spending of $3.6 trillion, according to the forecast by Gartner, Inc.2
The evolution of computers / laptops and networks: In 1971 Intel Corporation released the first microprocessor (the Intel 4004.)The PC as we know it today was created by IBM and released in 1981. Apple introduced its PC alternative, the Macintosh, in 1984. It features a GUI (Graphical User Interface) which gave the IBM PC's DOS (text-based) run system stiff competition due to its usability and professional software. The World Wide Web was developed by Tim Lee in 1991, and CERN also created the first Web Server in 1993.The Pentium chip was included in PCs for the first time in 1993 signalling the end for the 486 chip in use at that time. A supercomputer - the most advanced type of computer (or collection of computers in one large tower) was available for the first time via IBM's ASCI Purple.
The advent of the Graphical User Interface (GUI): Doug Engelbart and his team at the Stanford Research Lab developed the first mouse in 1968. In 1973 the first computer with a mouse-driven GUI was developed. This never became a commercial product. Steve Jobs took over the concept and directed Apple to improve upon it. In 1984 Apple introduced the Macintosh, the first mass-market computer with a graphical user interface and a mouse. IBM was dominating the PC market till then with their IBM PC introduced in the 80s. Microsoft provided an operating system for the IBM PC known as ―DOS‖ or ―Disk Operating System‖ which was non-graphical in nature. Apple introduced the Macintosh with a GUI and Mouse, to dislodge IBM’s dominance in this space. In response, Microsoft developed its own PC-compatible Windows operating system which had its own graphical GUI.
The invention of the Client server architecture: Client server computing models began to rise in prominence in the beginning of the 1990s. With this invention, information technology became not just about processing transactions and handling content, but about connecting an organization’s processes. Computers now connected people together in new ways; the distinctions between computing, communication and content or knowledge began to blur. Client server technologies broke down organizational barriers and put knowledge into the hands of knowledge workers.5 Business application technology became the power to drive global transformations. It progressed from mere recordkeeping to being the key to worldwide, irreversible, and fundamental change. The first major transformation advanced by business applications was globalization. Technologies supported by the clientserver model of networked and distributed computing, for example, enabled executives to close books on a global scale and consolidate data quickly. Companies could manufacture products in one market and sell them in another without having to locate offices in either.
Evolution of the Internet There has been officially World Internet Connectivity since 15th Jun 1995.An Internet application is software that allows its users to execute business logic using a universal, client-server browser architecture (Conallen 2000). Business to consumer Internet applications directly interface with customers and constitute the product or service offered to them. Resource sharing facilitates economies of scale and pay-as you-go pricing. Multi-tier clustering allows an online service provider to more easily scale up and grow the business. And, application customization can differentiate the provider from other providers. New types of applications drove significant change through disintermediation, putting more power than ever into the hands of consumers. The new paradigm created giants such as Google, Amazon, and eBay and is now changing the very way business applications are consumed by delivering them as services in themselves. The transformative power of business applications has run so deep that it touches the way we all work, the way we communicate, and the way we consume. Today, companies’ competitiveness relies on their ability to tap into the connective power of the internet. For enterprises, applying IT to their operations significantly improve their operational efficiency. In an increasingly flat world, the potential customer base for many enterprises is extremely broad and the environments in which they operate are very complex. These enterprises inevitably confront declines in efficiency and increases in costs. Innovative IT technologies can help solve these issues, e.g., cloud computing can reduce the cost for information-based enterprise operations, and the internet can deliver smarter management systems.
Business view of the IT services industry
How the industry is organized / structured?
At the highest level the global software and services industry is divided into Information Technology and Communication. While Information Technology area covers, Services, Software, Digital media and Hardware; Communication covers the areas of Service provisioning and Network equipment. Managed services, Integration services, Support services and Online services are the sub classification of services, whereas, the Packaged Applications services fall under the software area.
Growth in the IT services industry
The global software & services industry group had total revenues of $2,596 billion in 2012, representing a compound annual growth rate (CAGR) of 4.8% between 2008 and 2012.
The information technology (IT) services segment was the industry group's most lucrative part in 2012, with total revenues of $1,254.3 billion, equivalent to 48.3% of the industry group's overall value. The internet software & services segment contributed revenues of $1,047.3 billion in 2012, equating to 40.3% of the industry group's aggregate value. The performance of the industry group is forecast to decelerate slightly, with an anticipated CAGR of 4.4% for the five-year period 2012 - 2017, which is expected to drive the industry group to a value of $3,223.4 billion by the end of 2017.
Established in 1981, Infosys is a NYSE listed global consulting and IT services company with more than 267k employees. From a capital of US$250, we have grown to become a US$14.22 billion (LTM Q1 FY22 revenues) company with a market capitalization of approximately US$ 90.25 billion.
In our journey of 40 years, we have catalyzed some of the major changes that have led to India's emergence as the global destination for software services talent. We pioneered the Global Delivery Model and became the first IT Company from India to be listed on NASDAQ. Our employee stock options program created some of India's first salaried millionaires.
A company’s culture influences results from top to bottom. We’ll dive into some specific numbers that prove this statement in a moment, but first, consider the following stat:
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