vtu mba marketing project report

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SUMMER INTERNSHIP PROJECT REPORT

“Strategic Analysis and Market Research for EducationERP.Net”

At

Globals Inc., Bangalore.”

(Submitted in partial fulfillment of the requirement for the award of Degree of

Master of Business Administration)

Visvesvaraya Technological University, Belgaum.

Submitted By

Mr. Sreedhara K.R

(USN: 1BJ08MBA51)

Under the Guidance of

Dr. K. Karunakaran

Professor, MBA Department

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SRI BHAGAWAN MAHAVEER JAIN COLLEGE OF ENGINEERING

DEPARTMENT OF MANAGEMENT STUDIES

Jakkasandra post, Kanakapura Taluk, Bangalore-562 112

April – 2010

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DECLARATION

I declare that the ―Summer Project‖ undergone by me at Globals Inc, Bangalore, is

carried out by me under the guidance of Dr. K. Karunakaran, Internal Guide, Department of

Management Studies, Sri Bhagawan Mahaveer Jain College of Engineering, Bangalore and is an

independent work. The report has not been submitted earlier to Visvesvaraya Technology

University or to any other Institution. The matter in this report is based on the information

collected by me at Globals Inc. under the guidance of Anmol Vij –Associate Manager,

External Guide.

The report is towards the fulfillment of the requirement of the Master of Business Administration

course of Visvesvaraya Technological University.

Date: SREEDHARA K.R.

Place: Bangalore (USN: 1BJ08MBA51)

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ACKNOWLEDGEMENT

I wish to thank all those who helped me and without whose

support, I could not have completed this project successfully.

First and foremost I express my heart felt thanks to Mr. Anmol

Vij, Associate Manager of Globals, for granting me the

permission to do the project and for his constant guidance

during my project.

I would like to thank with immense gratitude Dr. Y Vijay

Kumar, the Principal of Sri Bhagawan Mahaveer Jain College

of Engineering and Prof. L P Rajan, the Head- Department

of Management Studies for allowing me to undertake this

project.

I have immense pleasure in expressing my deep sense of

gratitude to Dr. K. Karunakaran, Professor – MBA,

Department of Management Studies for his valuable guidance,

time, co-operation and support without which this project

report would not have been completed.

Last but not least, I would like to thank my family and friends

for their wholehearted support for the completion of this project.

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CONTENTS

CHAPTERS PARTICULARS

PART - A

1 EXECUTIVE SUMMARY

2

GENERAL INTRODUCTION

INDUSTRY PROFILE

COMPANY PROFILE

3 MCKINSEY‟S 7 S MODEL

4 SWOT ANALYSIS

5 LEARNING EXPERIENCE

PART - B

7 GENERAL INTRODUCTION

8

RESEARCH METHODOLOGY

Statement of the problem

Objectives of the study

Scope of the study

Methodology

Limitation of the study

9 ANALYSIS AND INTERPRETATION

10 FINDINGS

11 RECOMMENDATIONS AND

CONCLUSION

12 ANNEXURE AND BIBLIOGRAPHY

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EXECUTIVE SUMMARY

Indian IT/ITeS sector has seen too much of up and downs in this decade. It has become very

crucial for every company to acquire and retain best talent, getting clients and serving them

profitably, providing cost effective solutions without compromising on quality.

Indian IT/ITeS sector is dominated by a few large corporations along with presence of large

number of small and medium scale organizations. Intense competition can be seen in this sector.

This project Titled ―Strategic analysis and Marketing for EducationERP.net‖ aims at analyzing

Globals Inc and its flagship product EducationERP.net strategically.

Primarily, Indian IT and ITeS industry and its Macro Environment are analyzed.

In the later part, Market Research is done on Indian Education Sector to get insight about the

industry since, it is EducationERP. Net‘s target market.

Competitive analysis for Education ERP is conducted considering the major competitors based

on their market share.

Finally, a client satisfaction survey is conducted using Online Questionnaire Survey method with

the objective to know client satisfaction level and their expectations from the company.

Based on the analysis of the industry and company, my recommendations to Globals is to focus

more on SaaS based IT solutions, increase breadth of its offerings, enter into new markets and

should focus more on growing its partners network to strengthen its distribution channel for

Education ERP. In addition, meeting the criteria to get SEI-CMM level 5 company status and

getting ISO certification is very essential for company.

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INDUSTRY PROFILE

In an increasingly globalised world, significant complexity and uncertainty is being attached to

the unprecedented economic crisis. The Indian economy has also been impacted by the

recessionary trends, with a slowdown in GDP growth to seven per cent. The focus and

exponential growth in the domestic market has partially offset this fall and insulated the country,

resulting in net overall momentum.

The IT-BPO industry in India has today become a growth engine for the economy, contributing

substantially to increases in the GDP, urban employment and exports, to achieve the vision of a

―young and resilient‖ India. During the year, the sector maintained its double-digit growth rate

and was a net hirer. This growth has been fueled by increasing diversification in the geographic

base and industry verticals, and adaptation in the service offerings portfolio. While the effects of

the economic crisis are expected to linger in the near term future, the Indian IT-BPO industry has

displayed resilience and tenacity in countering the unpredictable conditions and reiterating the

viability of India‘s fundamental value proposition. Consequently, India has retained its

leadership position in the global sourcing market.

The Indian Information Technology industry accounts for a 5.9% of the country's GDP and

export earnings as of 2009, while providing employment to a significant number of its tertiary

sector workforce. More than 2.3 million people are employed in the sector either directly or

indirectly, making it one of the biggest job creators in India and a mainstay of the national

economy. In March 2009, annual revenues from outsourcing operations in India amounted to

US$60 billion and this is expected to increase to US$225 billion by 2020. The most prominent

IT hub is IT capital Bangalore. The other emerging destinations are Chennai, Hyderabad,

Mumbai, Pune, NCR and Kolkata.

The share of IT (mainly software) in total exports increased from 1 percent in 1990 to 18 percent

in 2001. IT-enabled services such as back office operations, remote maintenance, accounting,

public call centers, medical transcription, insurance claims, and other bulk processing are rapidly

expanding.

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The Indian IT-BPO industry is estimated to achieve revenues of USD 71.7 billion in FY2009,

with the IT software and services industry accounting for USD 60 billion of revenues. During

this period, direct employment is expected to reach nearly 2.23 million, an addition of 226,000

employees, while indirect job creation is estimated to touch 8 million. As a proportion of

national GDP, the sector revenues have grown from 1.2 per cent in FY1998 to an estimated 5.8

per cent in FY2009. Software and services exports (including BPO) are expected to account for

over 99 per cent of total exports, employing over 1.76 million employees. While the current

mood is that of ―cautious optimism,‖ the industry is expected to witness sustainable growth over

a two-year horizon, going past its USD 60 billion export target in FY2011.

While the industry has significant headroom for growth, competition is increasing, with a

number of countries creating enabling business environments aimed at replicating India‘s

success in the IT-BPO industry. Hence, concentrated efforts are required by all stakeholders to

address the current challenges, to ensure that India realizes its potential, and maintains its

leadership position.

ITES:

ITES refers to Information Technology Enabled Services. BPO or Business process outsourcing

is the arm of ITES, which facilitates delivery of services through the use of information

technology. ITES services are diverse in nature. It's easier to understand by segregating it as

customer interactive services and back office operations for remote customers. India based

service providers can deliver services in diverse areas such as finance, HR, administration,

healthcare, telecommunication and manufacturing. Services ranging from customer care, call

centers and claims processing to medical transcription, HR hiring, biotech research, Web

sales/marketing and back-office operations such as accounting, data processing, and data mining

harness the power of IT. However, it necessitates transfer of ownership and management of the

process from the customer (offshore) to India-based service provider in order to deliver service

to remote areas through telecom and Internet medium. Sensing its advantages, host of fortune

500 and fortune 1000 businesses of all sizes have set up their own BPO units or have outsourced

to Indian firms to reap the advantages of this.

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Today, Bangalore is known as the Silicon Valley of India and contributes 33% of Indian IT

Exports. India's second and third largest software companies are headquartered in Bangalore, as

are many of the global SEI-CMM Level 5 Companies.

KEY INDUSTRY HIGHLIGHTS

Government IT spend estimated at INR 150 billion in 2009; expected to reach INR 250

billion by 2011.

US $ 9 billion business opportunity in e-Governance.

APAC is the fastest growing geography with an estimated growth of 10%.

Indian IT-BPO industry continues to dominate the global market place with 51 percent

market share.

Growth in emerging verticals such as retail and healthcare 3x faster than core verticals.

Infrastructure services to be a key growth driver for the industry with an estimated

growth of 10.5%.

Indian IT Industry Sector Growth

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Break up of Total Global IT Spending

The Global IT spending is expected to decline steeply below the expected levels of $869 billion by 2010.

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Revenue by Geography

Key highlights of the Indian IT industry performance in FY 2009-10

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ESTABLISHED IT/ITES HUBS IN INDIA

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PORTER‟S FIVE FORCES MODEL FOR INDIAN IT INDUSTRY

Threat of Substitutes: Medium

1. Other offshore locations such as

Eastern Europe, the Philippines and

China, are emerging and are posing

threat to Indian IT industry because

of their cost-advantage. However,

this should have an impact only in

the medium to long term.

2. Price quoted for projects is a major

differentiator, the quality of products

being same.

Barriers to Entry: Low

1. Low capital requirements.

2. Large value chain, space for small

enterprises.

3. MNCs are ramping up capacity

and employee strength.

Bargaining Power of Customers:

Very High

1. Large number of IT companies

vying for IT projects – resulting in

high competition for projects.

2. Huge decline in IT expenditure:

Indian IT sector is dependent on USA

and BFIS in particular for majority of

its revenues, and with the recent

financial crisis, the new spending

from these has reduced

tremendously.

3. However, for the existing

products and services, the clients

continue the old companies.

Bargaining power of supplier: Shift

from high to low

1. Due to slowdown, the job-cuts,

the layoffs and bleak IT outlook.

2. Demand and supply of IT

professionals is no longer that

favorable to employees.

3. Availability of vast talent pool –

freshers and experienced.

RIVALRY AMONG FIRMS: High

1. Commoditized offerings

2. 'Low-cost, little-differentiation'

positioning.

3. High industry growth

4. Strong competitors – few

numbers of large companies.

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COMPANY PROFILE

Background and Inception of the company.

Globals Inc is a multinational company founded in the year 2000 by Mr. Suhas Gopinath at the

age of 14 years at California, USA.

Suhas Gopinath is a resident of Bangalore and wanted to launch his company in India. However,

his attempt to launch a private limited company ran into difficulty, as the laws in India did not

allow a kid of 14 to start a company. Therefore, Suhas decided to turn to US where such a law

did not exist. Thus, Globals Inc was set up in California and registered online in San Jose.

Globals has drastically grown from a small home office to a recognized multinational company

with presence in 11 countries with headquarters in India.

Globals offers cost effective world-class quality solutions in Web, e-Commerce, Software, and

Mobile. Till date Globals has served more than 200 clients worldwide. Globals helps customer to

reduce their operational costs significantly, helps them cut down carbon emissions and increase

revenues.

Nature of the business

Globals is serving the global clientele base in 11 countries in the ITeS spectrum. It offers wide

range of products and services including world-class quality solutions in Web, e-Commerce, and

Mobile. Today Globals develops mission critical applications on the web for various industries

including Education, Finance, and Governments.

Vision

―To be a world class IT solution provider and to become one of the most preferred IT partner in

the world.‖

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Mission

―At Globals, we aim to offer cost effective world class quality IT solutions to every customer

and to translate our solutions into value for our customers. We are also committed to conduct our

business in a fair, ethical, and legal manner at every level of our organization.‖

Business Philosophy

At Globals, we have always placed quality over quantity, mind over machine and unity over

uni-opinion. Our work culture and philosophy has helped us to establish employee friendly

workplace where team spirit and leadership is well nurtured. There is a lot of enthusiasm among

our people to perform and this enables our work more streamlined and solutions meet the

prescribed time boundary.

We believe in doing things through proper channels for optimum results. Nothing else would

explain serving more than 200 clients worldwide. We at Globals understand we have miles

to go before even looking back. Hence, we do not rest on our prior laurels. Laurels come and

go, progress is the only thing on our minds, and will be the same for the time to come.

Total Quality Process

At Globals, we employ a total quality process that begins on day one and carries through to the

successful launch and long-term maintenance of a project. With the help of our highly trained

quality assurance personnel, we check our work, test our products, and anticipate errors, working

to maximize quality for the total solution we develop.

By providing high quality IT services, on time and at lower than market prices, we help our

clients get to market faster and with more stability than other providers. Globals shall relentlessly

strive to create a unique software development environment where every employee is aware of

quality and its economics.

To ensure quality from the ground up we are using accredited techniques for planning, testing,

project management, requirements and configurations. To complement this, we also apply

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techniques to control and measure our performance and process quality to scope out

opportunities for further improvement and improved technology.

Our interlaced quality control policy not only helps us to streamline an application‘s

development, but also to:

• Offer high quality projects that exceed expectations and come in on time and on budget;

• Reduce client risk by providing a predictable and controlled development process;

• Focus on dynamic solutions by concentrating on the tasks at hand in the most efficient way

possible.

The three most important factors that we consider and emphasize to maintain our quality

standards are Process, Technology and Personnel quality that enables to Globals to offer cost

effective world-class quality solution.

PRODUCTS/SERVICES PORTFOLIO

The portfolio of products and services comprises the following:

1. IT strategy.

2. Procurement and partnership

3. Business Process Improvement

4. Information Management

5. Contract Development

6. Web Designing

7. Web Development

8. Content Management System

9. Internet Marketing

10. Media Streaming

11. Custom Application Development/

12. Custom Software Development

13. Industry Solutions

14. WAP

15. Education Management

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Products and Services Profile

2. Solutions offered

2.1. Web Solutions

Globals offer a spectrum of web solutions that includes high quality Web Designing,

Integration and Implementation Content Management Systems, E-Commerce Solutions,

Web 2.0 Solutions, Customized Portals, Hosting & Maintenance, and Development of

customized web applications, including customization of Open Source applications. We have

been successful in making our Business Partner‘s internet presence successful by adopting

the methodology expressed below:

Web solutions development methodology

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2.1.1. Web Designing

Globals has the creative skills, advanced experience, and cutting edge resources essential to help

illustrate clients brand and image. Highly professional web development and design staff at

Globals apply a combination of proven experience with innovative design expertise to generate

zeal for clients' products and services. The team of graphic design, web design, and web

development professionals utilize years of fine-tuned skills to assist small to large corporations

in successful online customer communication. Globals can add value to its clients internet

presence at any stage of the lifecycle like revamping an existing website, building from scratch,

maintenance of the website, etc.

A site must precisely convey client‘s business philosophy and approach. Globals offer a

complete package of web design services, from initial planning to final implementation. Our web

design services include the following services:

Graphic designing including 2D & 3D Modeling

Website Content Planning & Drafting

Logo Design & Corporate Identity designing

Website layout design

Designing Flash Intros & Animations

HTML Coding & Java Scripting

Navigation Menu

Sitemap

Newsletter design

Interactive flash web design

By holding to a thorough cycle of divergent and convergent modes, Globals comprehensively

explore possible design realizations and focus on those that most successfully complete clients‘

objective.

Globals design solution follows the following basic steps:

1. Analysis – Understanding your business and its design requirements.

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2. Research - Visual research, image collection, competitive analysis

3. Briefing - Summarization of analysis and research with focus on objectives.

4. Conceptualization - generation of many ideas and prototypes

5. Refinement - Analysis of previous phase, extracting positive aspects and discarding others

6. Realization - Finalization of refined prototypes and post-production

Globals expert technology in design solution includes Adobe Photoshop, Adobe Flash, AJAX,

HTML, DHTML, JavaScript, Swish, Dreamweaver, Adobe Illustrator, QuarkXPress, etc.

2.1.2. Web Development

Globals has been developing custom web applications and websites since its inception. We

follow a process oriented development methodology planned to minimize project risks and

development time. We focus on business solutions that fulfill business objectives, instead of

merely providing technical solutions. Our work is diverse and we cater to clients from all over

the world. Our clientele range from Fortune 500 companies to individual entrepreneurs.

A customized web application development derived out of the vision of the client results in

higher productivity, managing information effectively, reducing cost and smooth functioning of

business processes. As the market leader in Web Solutions, Globals has always added value to its

business partner‘s internet presence.

Some of Globals Web Development service includes:

Custom Website

Newsletters

Social Networking & Dating portals

Real Estate portals

Healthcare and Tele-medicine portals

Online Catalogue

User registration and member database websites

Event management portals

RSS feeds

Corporate Websites and more

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Advanced database driven websites can be used in a number of areas to boost positive online

experiences. From the security of user password protection to data retrieved from referral

tracking programs, all web sites that strive for better interactivity rely on database programming

at the server.

Few database-driven websites includes:

E-commerce or online ordering systems

News feeds and finance portals

Product search and site search websites

Member database

Restricted access to sites

Event registration and more

Features of our Application Development Process

We dedicate a great deal of our consulting hours in understanding your business, your

core objective & then draft a strategic plan to achieve the end in most cost-effective

manner.

Our professional methodology ensures delivery on time and within the budget.

We give special emphasis on scalable web application development. A scalable web

application development can accommodate the rapid business changes with ease in the

time to come.

Technology

Globals has teamed with the finest programmers and analysts in various web-based technologies

who have great experience in their respective skill sets.

Technologies include:

Internet Programming Languages ASP, ASP.NET, VB.Net, C#, PHP, Ruby, Perl (CGI),

ColdFusion, Python, JavaScript, VBScript, Active Script (Flash)

Technologies HTML, XML, AJAX, DHTML, OLE/COM, ActiveX, DCOM, COM+,

COM.NET, Cobra, WAP, J2EE, SQL, ADO, ADO.Net, .Net Compact Framework.

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Databases MS SQL Server, MS Access, MySQL, PostgreSQL, Oracle, Informix, DB2, Sybase

Web Servers MS Internet Information Server (MS IIS), Apache, WebSphere, Tomcat Apache,

Jrun

Operating Systems MS DOS, MS Windows 98,ME, Windows NT/2000, Windows XP, Linux,

FreeBSD, Unix.

Technologies Used at Globals.

2.2. E-Commerce Solutions

Leveraging the unique combination of technical competence and business knowledge Globals

delivers integrated B2C (business-to-customers) and B2B (business-to-business) e-commerce

solutions. Our solutions designed to serve our clients business needs ensuring streamlined

operations, improved customer service, brand awareness, connection with business partners and

prospects.

From e-commerce strategy consulting, solution development and application integration to

solution deployment and post-implementation support our business analysts and technical

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experts can help you implement a dependable solution that will maximize your competitive

advantage and organizational productivity.

Globals has a wealth of experience building and maintaining both retail and B2B e-commerce

solutions.

Globals e-commerce solutions allow you to start trading online quickly and cost effectively.

Your website handles the entire sales workflow fast and securely. Orders are processed via a web

based back office, automatically updating all records and generating the required sales,

invoicing, customer and supply-chain documentation. Globals‘ e-Commerce solution includes a

complete lifecycle of integrating and implementation of e-Commerce based services our end

user. The following is a typical e-Commerce model with various entities and third party systems

like Shipping, Payment Processing, Security, Merchant Notification, etc for which Globals has

remarkable expertise.

E-Commerce Model

Clients website has easy-to-use customer relations management tools and the website content is

quick to update; making it simple to buy and sell online. Globals delivers high-performance

ecommerce solutions helping business partners maintain a competitive edge including multiple

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features that facilitate connect a customer to complete transactions. End-users will have the

ability to place real-time credit card transactions in a secure mode, and the complete order

process from a client viewpoint can be completed in a matter of minutes. Globals e-commerce

solutions also seamlessly incorporate the web store into the current store operations using such

tools as order fulfillment and management system, integration with several shipping gateways,

and extension to POS/Accounting and other legacy systems.

Globals E-Commerce Solutions includes the following:

• Online Payment Gateway integration like Citibank, VeriSign, PayPal, WorldPay, etc

• Shipping Gateway integration like FedEx, DHL, UPS, etc

• Inventory Management

• Online Shopping carts

• Customer Order Tracking systems

• Mobile Commerce

• Payment Management system

• Tailor made payment gateways

• Auctioning and Online Shop portals

Open Source e-Commerce Integration

Globals have been successfully integrating, customizing and implementing Open Source e-

Commerce solutions like OS Commerce, Zen Cart, Fish Cart, etc. Globals offers one of the

largest compilations of ecommerce templates for a customized ecommerce solution with our

exclusive design and development skills and resources.

2.3. Web 2.0 Solutions

The Web 2.0 Division has taken conventional text based internet marketing techniques and

combined them with Web 2.0 Technologies like audio, video, social networking and mobile

promotion. The goal of the Web 2.0 Division is to get your product and service messages into the

everyday lives of the internet public at lower costs than traditional media outlets.

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At Globals, we have been specializing on the state of the art Internet Technology – Web 2.0,

where we have already developed various Web 2.0 applications like Social Networking Portals

for various groups of interests like Medical Professionals, Hedge Fund Investors, Students,

Celebrities, etc. Apart from Social Networking portals, our other expertise of Web 2.0

applications includes Auction Portals, Content Management Systems (CMS), Blogs, Mobile

based Web 2.0 (Mobile 2.0), News Publishing Systems, Event Management Systems and Portals

for Events like Conferences, Webinars, etc, and Ecommerce portals.

Web 2.0 Solution

Key Features of Web 2.0:

• Websites that use the WWW as a platform to offer application driven websites

• Linking information within websites and the use of systems designed by an architecture of

participation (systems designed for user contribution, such as open source projects)

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• Lightweight application development that allows for service (web services) and content (RSS)

syndication

• Perpetual Beta, applications are in constant state of Beta and upgraded continuously.

• Lightweight business models enabled by content and service syndication

• A rich, interactive, user-friendly interface based on AJAX or similar frameworks.

Globals Web 2.0 Solution can assist your organization in bridging the information divide to the

marketplace. Web 2.0 solution offers the next generation of online marketing tools that will

enable your organization to harness the power of the Internet to reach customers in unique and

varied ways. This with the goal to get people together to share their expertise and thoughts about

your products and services through social interaction thereby creating brand awareness, buyer

interest and enhanced selling opportunity. Just as the open source movement changed the face of

software development, so has Web 2.0's open source content model changed online marketing.

Globals has gained enormous experience in the development of Web 2.0 applications for in-

house Internet Ventures and for external business partners across the world. Hence, reassuring

world class quality solutions on Web 2.0 technology and with the major advantage of reducing

costs in development and quicker delivery by integrating Open source technology.

2.3.1. Custom Application Development

To gain a competitive edge requires innovation, automation and streamlined software

development. Globals satisfies requirements in almost any industry where speed and accuracy

are vital. There are times, however, when a client needs a customized engineering workflow,

focused functionality or a solution that requires intensely customized technology in order to stay

competitive. To achieve this objective, Globals offers custom software development with its

Agile Application Development Methodology, which is a globally proven and acclaimed

development process, and is the technology base to Globals. Through user interface reduction

and supplementing or reducing functionality, clients easily realize their goal to maximize the

automation Globals can bring to an enterprise while limiting the risk introduced through options

and complexity.

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The competence and experience of Globals ensures excellent services and solutions to our

clients. The highest quality standards are maintained at every stage of the development process

from conceptual design to final release. We use the most popular and cutting edge technologies.

Development Process: The approach that we adopt is the iterative methodology, where the

project goes through one or more iterations of all project stages till we meet client‘s expectations.

We have defined processes for requirements capture, analysis, design, development, testing and

deployment. We generate UML diagrams representing the Use Case Model, Analysis Model,

Design Model, Implementation Model and Test Model.

Requirement Definition: Client requirements are gathered. This is done on the basis of

information provided by the client in the form of documents, existing systems & process specs,

on-site analysis interviews with end-users, market research and competitor analysis.

Analysis: A detailed analysis is carried out from the information in the vision & scope document

and feature list.

Design: The application design is developed on the basis of the software requirement

specification, use case specification, business rules & diagrams and the scope agreed upon in the

Requirement Definition stage.

Development: The actual code based on the design is created and tested against design

requirements and test cases.

Integration and Testing: The developed application is tested through test cases, test plans and

user acceptance criteria in the deployed environment, followed by client acceptance tests.

Deployment and Acceptance: In this stage, the developed application is deployed on the live

server, and after complete documentation, user manual, etc, the application transfers the

knowledge to the maintenance team.

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2.4. Software Solutions

Client organization's operations, strategic direction, and information system challenges are

unique. Globals Inc. provides its clients with a distinctive understanding and thorough

assessment of your enterprise systems, from the desktop to the mainframe. Globals assessment

capabilities empower clients organization to visually access, manipulate, and analyze complex

data, systems, and applications. With this understanding, clients can achieve their objectives,

avoid disruption, expedite implementation, and reduce the total cost of ownership. Globals

provide full-range service to Define, Develop and Support software projects.

2.5. Industry Solutions

2.5.1. Financial services

Globals looks at the sweeping changes, business challenges, and customer demands impacting

the financial services industry and sees opportunities—for virtual multichannel enterprises,

expansive customer-focused services, evolving business partnerships, and cost-effective

integration of today's leading technologies across your enterprise. Let us offer you a new view of

the future with cutting edge solutions that transform your business and help you seize the

opportunities for a successful financial services future.

2.5.2. Manufacturing

Globals looks at market trends and key business issues to identify opportunities to help you

streamline your time-to-market, improve employee effectiveness, enhance customer channels,

speed market expansion, and build a solid infrastructure. From Customer Relationship

Management, to Converged Voice and Data Networks, to Unified Communication, we can

deliver cutting-edge solutions that equip your manufacturing firm for a successful business future

in today's customer economy.

2.5.3. Retail

Globals Inc is prepared to help meet the changing needs of businesses in the retail industry. We

can help you make the most of your existing communications network by giving you cost-saving

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efficiency and competitive savvy. Globals Inc brings you the best in next-generation

communications technology backed by an impressive array of services and support to meet your

needs for Customer Relationship Management (CRM), Converged Voice and Data Networks,

and Unified Communication solutions.

2.5.4. Government

Government at all levels is challenged with protecting people, property, and infrastructure during

emergencies and disasters. We believe that communications are critical to enabling government

organizations to respond to, recover from, and manage through emergency situations. As a world

leader in communications solutions, Globals Inc delivers powerful communications systems,

applications and services designed to meet the needs of Federal, State, and Local Government

bodies.

2.6. Mobile Solutions

Globals Inc. Mobile Solutions provides network operators and OEM partners with a complete

end to- end solution for the delivery of easy to use, simple to support, and cost effective mobile

data applications.

As a creative software solutions developer and system integrator with proven credentials in

advanced technology, Globals Inc can speed the efforts of your organization to bring wireless

applications to market.

Globals Inc provides the tools and infrastructure to fit your mobile strategy - whether it's

accessing e-mail and PIM data, accelerating the delivery of data to remote users, or deploying

full-scale, customized mobile solutions. We offer you Wireless applications and Micro-controller

systems that can be monitored from any remote locations.

Globals Inc also provides solutions like SMS applications, Group SMS, SMS controlled devices,

etc. Overall our aim is to support our partners, enabling them to deliver a branded product that

hides the technological complexity of mobile data; is simple to use; and is geared for the mass

market.

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3. Products

3.1. EducationERP.net

EducationERP.net is a specialized ERP solution for Educational Institutions resulting in better

management and enabling institutions with better decision making capabilities. With excellent

domain and technical expertise, educationERP.net has been developed by working closely with

premium institutions and domain experts in the education sector. educationERP.net has evolved

as the most preferred ERP for educational institutions.

EducationERP.net is our ingenious effort to streamline your Institution‘s process starting from

admissions management to placement cell management, we have an answer to all your problems.

A range of modules of our ERP would facilitate you to manage your institution successfully.

educationERP.net helps in controlling the working and functionality of your institution. It also

strengthens the bond between students, teachers, parents, management and the administration

staff of your institution. The open ended and scalable architecture enables our ERP to be

customized according to your unique requirements.

Concisely, educationERP.net is a comprehensive and an extremely user friendly solution with

Web 2.0 interface and mobile enabled ERP.

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4. Business Process Outsourcing

Business Process Outsourcing (BPO) - Enables you to focus on the core activities of your

business, by outsourcing the labor-intensive processes where the objective of the processes,

which is a non-value addition task, is effectively and efficiently achieved in terms of cost and

time.

At Globals we deliver a predictable and flexible process management services. We offer the

following services:

Insurance Process

Data Management Services

Knowledge Process Outsourcing

RPO

4.1. Insurance

At Globals we offer highly cost effective healthcare insurance data processing and administrative

services. We offer claims administration and management solutions to PPOs, HMOs, TPAs,

Insurance carriers, Re-Insurance Carriers, Medicaid, and Medicare Administrators, Self-funded

plans, Benefit administrator and provider groups.

Our entire portfolio of Front-end Services, Claim Administration Services, Back-end Processing

Solutions, and IT Services allows GIPL to provide a complete & integrated package of insurance

data processing services.

4.2. Data Management services

Our data-entry experts work with utmost accuracy and confidentiality. We plan the service that

we offer for your specific data entry projects and form consistent processing requirements and

the technologies we use, enable us to deliver on time data quality, accuracy, and swift turnaround

time.

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Area of Opearation

Global operation in 11 countries, excluding India.

Headquarters is at Bangalore, India and having branches in the following countries:

USA, UK, Spain, Netherlands, Italy, Germany, Chile, Canada,Bangladesh, Bahrain, Australia.

Ownership Pattern

Privately held sole proprietorship company registered in India as Globals ITeS Pvt.Ltd.

Owned by the founder Mr.Suhas Gopinath, a Resident of Bangalore.

Registered Headquarters

Globals ITes Pvt. Ltd.,

Samriddhi, 10, 2nd

Floor,

RMV 2nd

Stage, New BEL Road,

Bangalore - 560094 INDIA.

Achievements/Awards

Globals was chosen as one of 9 ICT partners of World Bank.

Member of World Economic Forum.

Information and Communication Technology (ICT) partner of European Union.

Corporate Social Responsibility

Organized Global Dignity Day at Jain Vidyaniketan.

Globals has adopted Deena Seva Sangha School.

Employees of Globals have volunteered in social service initiatives of Yuva Bengaluru, a NGO.

SBMJCE - 31 -

Future Growth Prospects

As the world gets out of the recession, IT spending by companies is going to increase which in

turn would benefit Globals.

With the increase in adoption of Software as a Service, popularly known as SaaS model of

application delivery, Globals foresees an increasing demand for its SaaS based applications.

In addition, Mr.Suhas Gopinath, CEO & President of Globals in an Exclusive interview revealed

his plan of expanding operations into Pakistan, thus being the very first indian company to setup

its branch in Pakistan.

Company is looking for Venture Capital funding to scale up its business. Also, it has plans for

going public through IPO (Initial Public Offering) in the near future.

Globals has launched a new internet venture named ‗DoRef‘ which is a social networking site for

officials.

Global Partners Network

a) HCL

b) European Business School

c) World Economic Forum

d) WHU

e) BrainNet

f) Hindsight

g) World Bank

h) European Union

SBMJCE - 32 -

HOW WILL WORKING WITH GLOBALS BE CHEAPER?

The way Globals keeps its cost low can be explained by comparing the salary of the talented

programmer in US versus India. While a talented programmer in the US will be in the higher

salary range, the actual cost to company for every employee is substantially more. In addition to

the salary, every company needs to make other statutory payments for each employee. In

addition, for each role, there will be other infrastructure costs such as hardware, software, utility,

and space costs that get added as overheads.

About the earnings of Globals‘ employees it was observed that the employees in India earn

between Rs.20,000 to 25,000 a month. (approximately equal to US $ 550 to 650) which is

considered as a good wage in India but is about one third of what the Globals employees get

(approximately US $1500) in the western countries.

In a typical project, the analysis, architecture and design takes up approximately 15% of the time

in terms of effort and costs approximately 20% of the total cost, project management takes up

approximately 20% of effort and 28% of cost, and development and testing takes the remaining

65% effort and 52% of the cost.

Overall, a 12 man month project that would take approximately a year for a programmer in the

US (costs about $100,000) can be completed in about 6 months by a team in India, and at an

approximate total cost of $25,000.

Thus, Globals delivers cost effective, quality solutions within the stipulated time period to its

clients.

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MCKINSEY & COMPANY 7S FRAMEWORK MODEL

What is 7S-Model?

The 7S-model is a tool for managerial analysis and action that provides a structure with

which to consider a company as a whole, so that the organization‘s problems may be diagnosed

and a strategy may be developed and implemented. The seven –Ss is a framework for analyzing

organizations and their effectiveness. It looks at the seven key elements that make the

organizations successful or not.

The 7S diagram illustrates the multiplicity interconnectedness of elements that define an

organizations ability to change. The theory helped to change managers thinking about how

companies could be improved. It says that it is not just a matter of devising a new strategy and

following it through. Nor is it a matter of setting up new systems and letting them generate

improvements.

SBMJCE - 34 -

To be effective, their organization must have a higher degree of fit, or internal alignment

among the seven Ss. All Ss are interrelated, so a change in one has a ripple effect on all others. It

is impossible to make progress on one without making progress on all. Thus, to improve their

organization, you have to pay attention to all of the seen elements at the same time. There is no

starting point or implied hierarchy-different factors may drive the business in any one

organization.

STRATEGY

Strategy is a plan an organization formulates to gain substantial advantage over the competition.

It is the art of devising and employing a system of activities that mobilizes all resources towards

a valuable goal. ―Strategy is the determination of basic long term goals and objectives of an

enterprise, and the adoption of course of action and the allocation of resources necessary for

carrying out these goals.‖

Strategies adopted by Globals

Globals has drastically grown from a small home office to a reputed MNC by adopting the

following strategies:

Generic Competitive Strategies

a) Low Cost Leadership

Globals from its inception has provided its quality services at a cost which is significantly

lower than its competitors to achieve a rampant growth.

b) Differentiation

EducationERP.net, a flagship product of Globals is differentiated in terms of technology

used, delivery model, customer service, which contributes a considerable portion to

company‘s revenue.

Ansoff‟s Matrix: Grand Strategy

Current Market New Market

Current Product

Market Penetration Strategy Market Development Strategy

New Product

Product Development Strategy Diversification Strategy

SBMJCE - 35 -

Also, it has separate functional strategies for HR, Finance, Operations and Marketing.

STRUCTURE

Structure describes the hierarchy of authority and accountability in an organization. These

relationships are frequently diagrammed in organizational charts. Most of the organizations use

some mix of structures pyramidal, matrix or networked ones to accomplish their goals. A

structure is the formalizing of relationships, roles, and responsibilities in order to organize and

perform work.

In simple terms, Structure is the pattern in which the various parts or components are interrelated

or interconnected. Therefore, organization structure is the pattern of relationships among various

activities and positions. Because various persons hold these positions, the structure is the

relationships among the people in the organization.

Management Structure at Globals

Chief Executive Officer & President – Mr.Suhas Gopinath

Chief Operating Officer – Mr.Vineeth Kumar.

Chief Technology Officer and Vice President,Software Solutions – Mr.Samuel S Carre

Vice President, Finance – Mr.Anil Desai

Vice President, Strategy and Marketing – Ms.Amruta Desai

Vice President, Worldwide Human Resources – Mr.Micheal Vaughan

Senior Vice President, e-Commerce & Web Solutions – Mr.Vantt Chris

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Board of Directors

Departments

Web Solutions

HR & Administration

System & Administration

Opalesque

Jadoos

Strategy & Marketing

.Net Development (EducationERP)

SYSTEMS

A system refers to the processes used to manage the organization. It includes:

Management information Systems

Innovation Systems

Performance Management System

Financial System/Capital Allocation System

Compensation System/Reward System

Customer Satisfaction Monitoring System

A system is defined a process or set of processes that links and orders activities to enable work to

be done and goals to be achieved. System in simple words is the formal and informal procedures

Chairman of the Board (CEO Deepti Marketing Services) Mr. M.R. Gopinath

Vice Chairman of the Baord (CEO, Globals Inc.) Mr. Suhas Gopinath

Executive Director (COO, Globals Inc.) Mr. Vineeth Kumar

Non-Executive Director (Chairman, Jain Group of institutions) Mr. R Chenraj Jain

Non – Executive Director (CEO Deepti Electronics & Electro-

Optics Pvt. Ltd.)

Dr. Sheshadri M.R.

Executive Director (Legal Counsel, Globals Inc.) Mr. Joshi D.N.

Non-Executive Director (NASA – Washington DC.) Dr. Narayan Rao

SBMJCE - 37 -

including compensation systems, management information systems and capital allocation

systems that govern everyday activities.

Systems used in Globals

Globals has automated its systems such as Employee Attendance using a web based application

GScheduler, Leave application, HR using a ERP system called OrangeHRM, and all the

marketing activities are synchronized together using SugarCRM.

STYLE

Style of leadership or relationship refers to the manner in which an individual uses his or her

talents, values, knowledge, judgment, and attitudes to lead and relate to others. Style expresses

the person‘s character. Style is the leadership approach to top management and the

organization‘s overall operating approach; also the way in which the organizations employees

present themselves to the outside world, to suppliers and customers. In simple words, Style is the

pattern of behavior, which the leader adopts in influencing the behavior of his followers in the

organizational context.

Management Style in Globals

Globals encourages entrepreneurial spirit in its employees.

The leadership at Globals is result oriented and emphasizes on time management.

Leaders at Globals are decisive, take initiative, and believe in teamwork.

They believe in delivering the quality irrespective of the quantity.

SKILLS

A skill is the ability, knowledge, understanding, and the judgment to accomplish a task. Skills

maybe defined as what the company does best, the distinctive capabilities and competencies that

reside in the organization.

Globals has mastered the best practices in these areas of management – Project management, Off

sourcing related activities, Marketing management, Jargon free practical IT consulting and

handling mission critical application development projects.

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STAFF

Staffing maybe defined as filling, and keeping filled the positions in the organization structure.

This is done by identifying workforce requirements; inventorying the people available and

recruiting, selecting, placing, promoting, appraising, planning the carriers of compensating and

training or otherwise developing both the candidates and current job holders so that the task is

accomplished effectively and efficiently.

Globals recruits both freshers and experienced people. Globals is an equal employment

opportunity provider without any discrimination like race, gender etc.

SHARED VALUES

Shared values are what engender trust. Values are the identity by which a company is known

throughout its business areas. These values must be explicitly stated as both corporate objectives

and individual values. A shared value is an essential characteristic or attribute promoted by the

organization to motive the behavior of members of the organization.

Globals has few core values which are the essence of their business:

Leadership – Entrepreneurial spirit

Integrity – Ethical & Legal business practices

Swiftness – Timely, quick delivery to clients.

Commitment – Accountability in delivering the promised.

Globals follows these code of ethics:

Respect for people

Training and Development

Maintain confidentiality

Ethical business practices

Green policy

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S.W.O.T ANALYSIS OF GLOBALS

Strengths

> Brand Name

>Advanced Technologies

> Efficient Management team

> Cost advantage

> Quality and matured process

Weaknesses

> High employee attrition rate

> Unable to get deals of large sum.

> Not a SEI-CMM Level 5 company which is mandatory to get most of the Govt and PSU projects.

Opportunities

> Govt spending on IT increased.

> FDI in education sector to be allowed.

> High growth potential in new markets.

> Greater scope to service domains other than BFIS like manufacturing, retail, infrastructure, logistics etc.

Threats

> Increased competition from low wage countries like China, Indonesia.

> Rupee - Dollar exchange rate fluctuations affects revenue.

> Easy availability of substitute products

> US govt is against outsourcing

S.W.O.T Analysis

SBMJCE - 40 -

MY LEARNING EXPERIENCE

During my 10 weeks tenure at Globals as a Trainee – Strategy & Marketing, I have learnt a

number of the invaluable lessons about the corporate world and how to face the challenges it

throws at us at every step.

Accomplishments

1. Developed corporate video for EducationERP.net

2. Published whitepaper on ― Software as a Service (SaaS)‖

3. Conducted market research of Indian Education sector, market sizing and potential.

4. Done competitive analysis for Education ERP.

5. Done Strategic analysis of external environment of Globals.

6. Worked on Search Engine Optimization (SEO) by posting blogs, tweets for EERP.

7. Prepared Sales Documents and material to help HCL Sales Associates in promoting

Education ERP.

8. Done analysis of GESS(Gulf Education Supplies and Solutions) Exhibition to decide

whether it is worth attending for Globals as an Exhibitor.

9. Prepared a case study on the success story of a client of Education ERP.

10. Assisted Business Analyst and Vice President, Marketing in Client Presentations.

Learning

1. Learnt how to conduct market research.

2. Learnt to use many applications such as Go To Meeting, Team Viewer and SugarCRM

etc. which are used in Marketing activities.

3. Got good exposure to deal with clients, which gave me a clear idea about B2B marketing

scenario and processes.

4. Meliorated the skill of writing reports and publishing whitepapers.

5. Gained insight about new technologies like SOA, SaaS, Cloud Computing, SEO etc.

SBMJCE - 41 -

SBMJCE - 42 -

PART – B

INTRODUCTION

This part is further divided into four sections for the purpose of study.

Section-I deals with Strategic analysis of Globals macro environment.

Section-II deals with Competitive analysis for EducationERP.Net of Globals.

Section-III deals with the Indian education sector analysis with regards to EducationERP.Net

Section-IV deals with studying the customer perception, expectation and level of satisfaction.

NEED OF THE PROJECT/SIGNIFICANCE

In today‘s ever changing, volatile market scenario, it becomes very important for the

organization to analyze its external environment and to understand its impact on the business.

As there are lot of competitors who are striving to capture a better market share, it becomes

essential for the organization to do competitive analysis. In order to compete best in the market

place one must know key information about competitors.

Also, determining the market segment to serve and knowing depth and breadth of those segment

is needed for effective marketing.

Finally, “Gaining a new customer is 5 times costlier than retaining the existing customer”, says

Marketing experts. Hence, knowing what client feels about the product/services offered,

understanding the client satisfaction level is much required in order to serve the clients better.

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SECTION-I

General Introduction

This section deals with the analysis of external environment of Globals.

Problem Statement

Studying the external environment of Globals to analyze the position of company strategically

with respect to the factors in macro environment.

Objectives of this study

Scan the Political, Economic, Social, Technological, Environmental and Legal

environments that affect the business directly or indirectly.

Foresee the long-term impact of those factors from organizations perspective.

Scope of Study

Data collected from the news articles featured in various Newspapers and Magazines. Analysis is

based on the data of Financial Year 2008-09.

Methodology

Secondary research conducted to collect data about the macro environment.

Sources of data:

Government websites

NASSCOM

Gartner Research

AT Kearney Research

Data Quest India

Silicon India

Limitations of study

The economic condition of IT industry getting revamped from the starting of 2010. But during

FY 2008-09 scenario was totally different as economic slowdown, Satyam fraud resulted in

reduced growth of the sector. Data used in this study is of FY 2008-09 and hence, might not be

represent the latest quarter information.

SBMJCE - 44 -

Political

Economic

STRATEGIC ANALYSIS OF GLOBALS

EXTERNAL ENVIRONMENT – P E S T L E ANALYSIS

1. Political Stability: Highly Stable Government at

Central as well as in State.

2. U.S. government has declared that U.S companies

that outsource IT work to other locations other than

U.S. will not get tax benefit.

3. Government owned companies and PSUs have

decided to give more IT projects to Indian IT

companies.

4. Terrorists attack on Mumbai, bomb blasts

in Bangalore.

1. Increase in Global IT spending(Demand)

2. Domestic IT Spending (Demand): Domestic market

to grow by 20% (CAGR) - NASSCOM.

3. Currency Fluctuation.

4. Attrition: High attrition rate in the industry with

increase in the job opportunities.

5. ECOMONIC ATTRACTIVENESS due to cost

advantage and other factors.

(Source: Global competitiveness report-2010)

Positive

Deep

Negative

Positive

Negative

Positive

Positive

Negative

Deep

Negative

Positive

SBMJCE - 45 -

Social

Financial Attractiveness of Top 5 Global service locations

1. Language spoken: English is widely spoken

language in India, English medium being the most

accepted medium of education. Thus, India boasts of

large English speaking population.

2. Education: A number of technical institutes and

universities over the country offer IT education.

3. A large number of population is in working age.

i.e., 25-45.

India continues to

be the leader in

terms of

“Financial

Attractiveness”

Highly

Positive

Positive

Positive

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Number of IT Graduates in India

As per NASSCOM

Strategic Review

report, India is one of

the few countries to

have an increasing

share of working

population.

India creates a

large pool of

skilled IT

professionals

each year, to meet

industry

requirement.

SBMJCE - 47 -

Techno

-logical

Legal

1. IT Act: Indian government is strengthening the IT

act, 2000 to provide a sound legal environment for

companies to operate esp. related to security of data

in transmission and storage, etc.

2. Companies operating in Software Technology

Park (STPI) scheme will continue to get tax-benefit

till 2010.

1. High penetration of Telecommunication services

with world‘s lowest call rates.

Enterprise telephone services, 3G, Wi-max and

VPN are poised to grow.

2. Internet Backbone: Due to IT revolution of

1990s, Indian cities and India is well connected with

undersea optical cables.

3. New IT technologies: Technologies like SOA,

Web 2.0, High-definition content, grid computing,

cloud computing, green IT solutions etc and

innovation in low cost technologies is presenting

new challenges and opportunities for Indian IT

industry.

Highly

Positive

Positive

Positive

Highly

Positive

Mildly

Positive

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Environ

-mental

INTERPRETATION OF PESTLE ANALYSIS

POSITIVE IMPLICATIONS

Indian Government and PSU‘s to increase IT spending and projects to be given to

indian companies.

With the allowing of FDI in Education sector, market for ERP solutions will

expand.

NEGATIVE IMPLICATIONS

U.S Government is against outsourcing IT activities to India and removed tax

benefits for the outsourcing companies.

High employee attrition rate in the industry.

Rupee – Dollar rate fluctuations hurting export revenue.

Energy Efficient processes and equipments:

Companies are focusing on reducing the carbon

footprints, energy utilization, water consumption,

etc. Green IT solutions gaining more importance.

Positive

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BCG MATRIX FOR OFFERINGS OF GLOBALS INC.

Market Share

High Low

Market Growth High

Low

EducationERP,

Custom application development,

SaaS based applications.

IT consulting,

Social Networking.

Web 2.0, CMS, Off sourcing.

Media Streaming.

SBMJCE - 50 -

ABOUT EDUCATIONERP.NET

With the stupendous growth of the education sector, educational institutes are becoming

increasingly complex organizations just like corporate houses. Therefore, today educational

institutions deserve the best modern management practices and state-of-the-art technology,

which improves performance in terms of cost, speed, & accuracy. In these days of information

overdrive, it is most critical to have an Enterprise Resource Planning System (ERP), which is a

complete solution to all the educational management hassles.

EducationERP.net™ is a flagship product of Globals Inc. Globals has a remarkable

experience in service-offering for the Education Industry since its inception starting from Basic

School Management Systems to Mission Critical enterprise systems for the Higher Education

and Universities.

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SECTION-II


This section deals with the Competitive Analysis for Education ERP.Net of Globals.

Problem Statement

To study the competitors and compare them with Education ERP on different parameters.


To determine the technological superiority of the competitors.

To know the customer satisfaction level for competitors products.

Scope of Study

Only 6 major domestic competitors are chosen from a vast 100+ companies in the same segment.

International players are not considered as this study is confined only to India.

Methodology

Primary research: few key details about the competitors is collected by calling them up by

disguising as a prospective customer, since some of the data were not disclosed.

Secondary research conducted to collect data.

Sources of data:

Silicon India

Capterra Business Directory

Respective company‘s website.


Only 6 competitors from domestic market are chosen for the study.

Complete information about the flow of processes within the competitors organization was not

available and were not revealed.

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COMPETITIVE ANALYSIS FOR EDUCATION ERP.NET

Major competitors for EducationERP.net of Globals are:

Mylyceum from PacSoft

School Management System from Entab

Smart Campus from Idenizen

i-school from CEON

Literom from WHBS

Quickschool from NIIT

Competitive analysis conducted considering the following parameters:

Product offered for which segment? K12, Higher Education.

Number of modules available

Customer Satisfaction rating on a scale of 5.

Whether offers a web based solution

Total number of implementations done so far

If the company is Venture Capitalist Funded?

Average price per implementation

Technology platform used in the development

Customization time required

Areas covered by marketing channel.

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Number of modules offered

Interpretation:

It is very important that the number of modules offered meets the requirement of the educational

institutions.

CEON offers the highest number of modules, while Globals offers the next highest number of

modules.

Since, It is very essential for any products success, company must offer what clients want; not

what they have.

Globals must increase the number of modules offered. By benchmarking with international

Education ERP vendors like Oracle PeopleSoft, DataTel, SCT it should make its product.

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Customization time required

Interpretation:

Once the sales order is closed, companies undertake a customization process to make the product

fit to the requirement of education institute. The time required for this process matters a lot in

Customer decision making, when the customers focus is on Fast Introduction of ERP solution for

their institute.

CEON, NIIT, and Globals almost take the same amount of time to customize the product.

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Customer Satisfaction Rating out of 5

Interpretation:

Client satisfaction rating is obtained by a third party IT product reviewing and evaluating

company.

On a scale of 5, Education ERP.Net and NIIT Quick school scored a decent 4 points.

It can be found from the above chart that many of the competitors customers are dissatisfied with

the service they are getting. Hence, Globals must take the advantage of this by acquiring clients

who are changing vendor.

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SECTION-III


This section deals with the market analysis for educationerp.net (Indian Education Sector

Analysis)

Problem Statement

A clear picture of the Indian Education Sector was not available which resulted in the difficulty

of positioning the ERP product and this information was critical for the organization to get

Venture Capital (VC) funding.


1. To get segment wise data of educational institutes in India.

2. To get information about average number of students enrolled per segment, revenue of each of

these segment and CAGR( Cumulative Annual Growth Rate).

3. To help management in making sales projection for the financial year 2010-2011.

Scope of Study

Covers the geographical area of Indian subcontinent and includes data about Pre-Schools, K-12,

Higher Education, Training institutes.

Methodology

Design

Indian Education Sector divided into the following segments:

Pre-School

K12 Institutes

Teachers Education Institutes

Polytechnic Colleges

Graduation Colleges

Engineering Institutes

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Medical Colleges

MBA Institutes

Professional Training Institutes

Secondary research method is used to collect segment wise data.

Sources:

Government: AICTE, UGC, HRD Ministry.

CLSA, IDFC Research reports on ‗Indian Education Sector‘.


Time limit was the major constraint.

No clear information was available about some segments like Coaching & Training, play

homes/preschool, as these formats basically run in home/small private space with no need of

affiliation or recognition from authorities.

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MARKET ANALYSIS FOR EDUCATION ERP.NET

Indian Education Sector: Segment wise Statistics June.2009

Segment No of

Institutions

No. of

Students

in

Segment

Market

size(2008)

in US $

Million

Market

Potential(2012)

in US $ Million

Preschool 3000 802345 307 1024

K12 Institutes 75060 90000000 19520 30899

Engineering 1400 1440000 4596 6974

Medical 140 65000 346 521

MBA 2639 316000 2017 3854

Polytechnic 1674 1193750 635 912

Teachers

Education

1669 333800 142 210

Graduation 14300 7734254 6582 12464

Training

Institutes

7000 6023000 7689 13240

SBMJCE - 60 -

SEGMENT WISE MARKET ANALYSIS

Preschool Segment

In Preschool segment, Key Players listed below account for 2000 institutions out of 3000

institutions.

KidZee

Euro Kids

Apple Kids

Shemrock

Kangaroo Kids

Tree House

Bachpan

Podar Jumbo Kids

Mother‘s Pride

DRS Kids

Sunshine

Other major preschools account for 1000 institutions across India.

Interpretation:

Preschool market is growing rapidly with an expected CAGR of 36% to reach US $ 1024 million

by 2012.

Globals must focus more on this segment, particularly target chain of schools like Kid Zee, Euro

Kids etc. as these organized players can easily afford ERP solutions.

For the unorganized players it is quite difficult to go for ERP solutions with their limited

resources.

SBMJCE - 61 -

K12 Segment

Interpretation:

This segment constitutes the highest number of institutes (75 thousand) with largest student

universe (90 million).

Kinder Garden to Class 12th (K12) segment is expected to grow at 12% CAGR to reach US $31

Billion by 2012.

This is the highly targeted market segment by Globals as well as competitors and market

potential is the highest compared to other segments.

Engineering Segment

Interpretation:

Number of engineering institutes is 1400 and during 2010-11 it is expected that more than 400

institutes will be added newly.

This category of market is always ahead in adopting the technology hence, more emphasis has to

be given to this segment.

Medical colleges segment

Interpretation:

Number of medical colleges is around 140 and constitutes a student universe of 65000. Though

not a huge segment like K12 and Engineering, this segment is attractive since the market

potential is not exploited yet by any of the player. For Globals this will be a new segment to cater

to.

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MBA Institutes Segment

Interpretation:

Number of MBA institutes is growing at a rapid pace compared to Engineering and Medical

institutes and revenue of the segment is expected to reach US $ 3 billion by 2012. So, Globals

must capitalize this opportunity by focusing on this segment specially in Metropolitan cities.

Professional Training Institutes

Key Players:

NIIT

Aptech -IT and Aviation

Avalon

Jet King

ICA

CMS

VETA English Training

Russell English Training

Frank Finn

K10

Agarwal classes

Brilliance

Mahesh Tutorial

FIITJEE

Career Launcher

TIME

Career Forum

IMS

SBMJCE - 63 -

Interpretation:

The market potential of this segment is US $ 7.5 billion and is expected to reach US $ 14 billion

by Year 2012. This is the untouched market segment with least market penetration among all

segments.

Group of Institutes and Institutes with multiple branches which are running in different

geographic locations are in a need of good connectivity and synchronization of data. This

segment has some of the most successful chain of institutes like TIME, VETA, Frank Finn etc.

Education ERP of Globals has to be projected as the solutions for the problem these institutes

facing while integrating their business processes.

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SECTION-IV


This section deals with measuring the client satisfaction level with regards to Globals.

Problem Statement

The purpose of the study is to understand the level of customer satisfaction, thereby

understanding the customer base, their perception and their contentment with the service

provided by Globals.

On the basis of this problem statement, the following specific objectives have been crystallized.


To understand the customer base of Globals.

To understand customers perception about Globals.

To gauge the effectiveness of service provided by Globals

To measure the level of client satisfaction of Globals.

To understand the customer expectations and their response to new services offered by

Globals.

Scope of Study

The study will cover the overall customer opinion survey on customer satisfaction and the study

will be restricted to few clients only. The study will be done to analyze the satisfaction level of

the customers, and the responses will be related to the project done period only.

Methodology

Formal research will be conducted to study the level of client satisfaction.

The study requires data to be collected from Primary research, which will be done using Online

Questionnaire Survey method.

Sample Size: A sample size of 30 organizations who are clients of Globals has been selected.

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Sources of data

The data required for the analysis will be collected as follows

Primary Data: In order to collect data a structured questionnaire is prepared. In the

questionnaire, questions are presented with exactly same wordings and exactly in the same order

to all respondents in order to elicit the right responses.


Time limit was the major constraint.

Since the approached respondents were at Senior Manager level, it was quite difficult to get

response from them.

The result and analysis are based on the customer survey method and small sample size has taken

only 30.

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CLIENT SATISFACTION SURVEY

1. From how long you are a client of Globals?

Interpretation:

Out of 30 respondents 17% are the clients of Globals for more than 4 years which implies that

Globals is providing quality cost effective solutions and hence is able to retain the clients.

Response No of Respondents Percentage

0-1 Years 7 23%

1-2 Years 12 40%

2-4 Years 6 20%

4+ Years 5 17%

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2. What is the employee strength of your organization?

Interpretation:

Out of the chosen 30 organizations, 53% are small scale organization with <100 employees, 40%

are medium scale and 7% are large organizations.

Small and medium scale companies scored highest growth during fiscal 2008-09 according to

Economic Times. (40% GR compared to 20% GR of large companies.) This would result in

increased IT spending by these companies.


5-100 16 53%

100-250 7 23%

250-1000 5 17%

1000+ 2 7%

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3. What is the annual revenue of your organization?

Interpretation:

57% of clients of Globals earn a annual revenue of <US $ 10 million, which implies that major

portion of clients of Globals are Small and medium scale organizations.

Few multinationals with annual revenue off the US $50 million mark are the clients of Globals.

(18%)


<US $ 10 million 12 40%

US $ 10-50 million 17 57%

> US $ 50 million 1 3%

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4. What product or service of Globals you are using?

Interpretation:

46% of the clients are using Education ERP which shows majority of clients are Education

Institutes. Next are 27% clients using web development service. Custom application

development and Graphic design services account for the rest.


Web Development 8 27%

Flah/Graphic design 3 10%

Education ERP 14 46%

Custom Application

Development

5 17%

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5. Are you satisfied with the processes and quality of the services provided by Globals?

Interpretation:

73% of the clients expressed that they are satisfied with the quality and process of the solutions

provided by Globals. But more than a quarter of clients(27%) are dissatisfied with the service

which Globals has to address quickly.


Yes 23 73%

No 7 27%

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6. Do you think pricing of the products/services are appropriate?

Interpretation:

Majority of clients feel that Pricing of services is proper(53%), mere 10% told that its very high.

20% of the clients told its low. Overall, the Pricing policy of Globals is the key reason that keeps

its clients satisfaction high.


Very high 3 10%

High 5 17%

Proper 16 53%

Low 6 20%

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7. Rate the service provided by Globals.

Interpretation:

About 50% of the clients rated service of Globals Good and 17% rated it as Excellent.

Rating for the services of Globals gives positive outlooks and affirms the fact that Globals

provides world class quality solutions and are on their toes to serve the customer every time.


Excellent 5 17%

Good 15 50%

Average 8 27%

Poor 2 6%

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8. How did you came to know about Globals?

Interpretation:

Starting from its inception Globals got huge media coverage as promoter Suhas Gopinath is

famous as world‘s Youngest CEO. No wonder most of the clients came to know about Globals

through Media coverage.


Website/Blog 7 23%

Media coverage 12 40%

Sales personnel 6 20%

Word of mouth 5 17%

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9. Are you aware of the fact that, Globals is providing IT applications also on „Cloud

Computing‟ model (SaaS)?

Interpretation:

57% of clients told they were unaware of the fact that Globals also provides its application on

cloud.

Inference can be drawn from the above data that Globals is not updating its clients about new

offerings. Hence, newsletters, tweets, e-mails, catalogues has to be sent to clients periodically to

keep them updated.


Yes 13 43%

No 17 57%

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10. Would you like to use IT applications on SaaS model? If yes, rate the reasons based on

your priority, why you would go for SaaS model?

Interpretation:

IT cost saving, Ease of use, Mobile access to data are the key drivers for adopting SaaS based

application according to the priority of clients.


Ease of use 11 37%

Mobile access to

data

13 43%

Fast Introduction 7 23%

Automatic upgrades

and updates

10 33%

IT cost saving 19 63%

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FINDINGS

Strategic analysis of Globals

Globals is well situated strategically, with very good growth opportunities.

Capitalizing the opportunities posed using its strengths has to be the focus for Globals.

Competitive analysis of Globals

Major competitors of Globals in Education ERP market are: CEON, NIIT, which are consistently

striving to be the best in terms of technology, unique offerings, better customer service and

ultimately to own more market share.

Globals must benchmark its business process with international vendors like PeopleSoft, DataTel

to make itself more competitive.

Education Market research

Indian education sector is booming. Many of the segments are untouched, like medical institutes,

professional training institutes etc. Globals must harness this potential.

Client satisfaction survey

Clients of Globals are satisfied with the quality, responsiveness, processes of Globals. Many of

the clients are not aware of new offerings from Globals, which has to be resolved soon.

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RECOMMENDATIONS

Globals needs to focus more on delivering SaaS based IT solutions, since its going to be the next

big thing according IT Trend Analyst firm Gartner.

It must increase breadth of its offerings, to serve new set of clients in different industry

segments.

Globals must enter into new markets. Expanding its base in Europe, North America, and Asia-

Pacific region has to be done at the earliest.

Globals should focus more on growing its partner‘s network to strengthen its distribution channel

for Education ERP.

In addition, meeting the criteria to get SEI-CMM level 5 company status is very crucial for the

company to get projects from Government and PSU‘s.

Getting ISO certification is very essential for company to ensure its global clientele base about

the quality of the process.

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CONCLUSION

Globals is emerging as one of the good IT company in India. Already it has served more than

200 clients globally starting from individual entrepreneurs, small and medium scale enterprises

to fortune 500 companies. Still, it‘s a long way to go for Globals.

In the present situation, Globals must expand its business operation by getting financing from

Venture capitalists or from Banks. Company should strengthen its competitive position by

Research & Development to have unique selling proposition.

This project gave me business acumen about the IT industry and the responsibilities I have given

made me industry ready by providing me an opportunity to handle marketing activities like client

presentations, interactions with clients, using CRM solutions etc.

This project has helped me understand the importance and significance of consumer satisfaction

and has given me exposure to the practical side of IT industry and at the same time enhanced my

knowledge by applying theory learnt in class to practice.

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ANNEXURES

ONLINE QUESTIONNAIRE

(www.surveymonkey.com)

NAME: _________________________________

DESIGNATION: ____________________________

ORGANIZATION: ___________________________

CONTACT NUMBER: ________________________

( Tick which is applicable)

1. From how long you are a client of Globals?

a) 0-1 Years

b) 1-2 Years

c) 2-4 Years

d) 4 + Years

2. What is the employee strength of your organization?

a) 5-100

b) 100-250

c) 250-1000

d) 1000+

3. What is the annual revenue of your organization?

a) < US $10 million

b) US $10-$50 million

c) > US $50 million

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4. What product or service of Globals you are using?

a) Web development

b) Flash/Graphic design

c) Education ERP

d) Custom Application Development

5. Are you satisfied with the processes and quality of the services provided by Globals?

a) Yes

b) No

6. Do you think pricing of the products/services are appropriate?

a) Very high

b) High

c) Proper

d) Low

7. Rate the service provided by Globals.

a) Excellent

b) Good

c) Average

d) Poor

8. How did you came to know about Globals?

a) Websites/Blogs

b) Media Coverage

c) Sales Personnel

d) Word of mouth

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9. Are you aware of the fact that, Globals is providing IT applications also on ‗Cloud

Computing‘ model(SaaS)?

a) Yes

b) No

10. Would you like to use IT applications on SaaS model? If yes, rate the reasons based on your

priority, why you would go for SaaS model?

Ease of use

Mobile access to data

Fast Introduction

Automatic upgrades and updates

IT cost saving

Any suggestions or feedbacks ___________________________________________

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

____________________________________________________________________

-Thank You-

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BIBLIOGRAPHY

Web Sites

www.globalsinc.com

www.educationerp.net

www.dqindia.com

www.mckinseyquarterly.com

www.atkearney.com

www.gartner.com

www.research.yahoo.com

www.harvardbusiness.org

www.indiaedu.com

www.siliconindia.com

Books

Kotler Philip, Marketing Management, 12th/e, PHI

Hill,Jain, International Business, 5th/e, TMH

Pearce, Robinson, Strategic Management, 9th/e, TMH

Magazines

The Economist

Education World

The Entrepreneur

Research Reports

IDFC SSKI India Research: ―Indian education sector report‖, Jan.2009.

CLSA Asia Pacific Markets Research: ―Indian education sector outlook‖, March.2008.

McKinsey Quarterly Web Exclusive: ―Delivering Software as a Service‖.