INDUSTRY PROFILE Software remains one of the most innovative and fastest growing sectors of the global economy,

generating revenues of more than $150 billion every year. About half of those sales come from software applications, with the remainder split between development tools and infrastructure software (operating systems, network management, middleware, and security software). Microsoft claims a healthy chunk of all three segments -- a continuing point of contention with the US Justice Department. The Internet has vastly altered the dynamics of the software industry over the past decade. Formerly restricted to a cycle of lengthy R&D concentrated in one geographic area -- followed by an arduous process of distribution through a worldwide network of resellers, systems integrators, and other independent vendors -- the software industry has found new efficiencies on the Web. Companies such as Sun Microsystems and Oracle have employed the Web to anchor their products, in much the same ways that Microsoft used the desktop PC and IBM used the mainframe to corner their respective markets. In the past five years, the formerly explosive market for enterprise resource planning (ERP) software -- which helps companies save money by integrating back-office operations such as accounting, distribution, and human resources -- has given way to software that helps companies make money, including customer relationship management (CRM) and supply chain management software. The standardization of Internet technologies such as Java and XML (extensible markup language) -- which in tandem enable end users on the Web to interact with data stored on servers for configuring orders or personalizing services -- is speeding up the industrywide conversion to Web-enabled applications. A Business Software Alliance survey of CEOs from software companies such as Autodesk, Intuit, and Symantec confirmed that trend, predicting that by 2005, two-thirds of all software will be distributed over the Internet (compared to just 12% in 2001).

Companies including Microsoft, AOL Time Warner, and Sun are all jockeying to push Webbased software to the next level, developing a new class of applications loosely referred to as Web services. Designed from standardized building block components, Web services can theoretically be assembled in a variety of ways, allowing companies to develop business applications that function across a variety of software and hardware platforms. While large on hype (mostly centered around Microsofts .NET initiative), the current real-world applications for Web services have been limited primarily to simple integration tasks, such as managing online travel reservations and tracking shipping. If successful, however, the shift to Web services could be a dramatic one, with packaged software largely disappearing and companies instead purchasing, assembling, and modifying components as needed to create specific business applications. It's the technological revolution that at times brings surprising opportunities for some nations. India, though not among the front runners in terms of economic growth, has successfully utilized such opportunities in the revolution to become an IT hotspot. For the past several years, India has been an increasingly favored destination for customized software development. As a result, a number of software companies in India have come up. Not only the number of players has increased in the Indian IT market, but at the same time, Indian software companies have done considerably well in the global market. Such huge success of software companies in India has given birth to a new speculation whether other developing countries should imitate Indian example and whether the success of India would constitute a competitive challenge to the software industry of the developed world or not. The Software Industry in India With the huge success of the software companies in India, the Indian software industry in turn has become successful in making a mark in the global arena. This industry has been instrumental in driving the economy of the nation on to a rapid growth curve. As per the study of NASSCOMDeloitte, the contribution of IT/ITES industry to the GDP of the country has soared up to a share of 5% in 2007 from a mere 1.2% in 1998. Besides, this industry has also recorded revenue of US$ 64 billion with a growth rate of 33% in the fiscal year ended in 2008.

The export of software has also grown up, which has been instrumental in the huge success of the Indian software companies as well as the industry. In fact, software export from India accounts for more than 65% of the total software revenue. The domestic software market largely depends upon sale of software packages and products, which constitute major part of revenues. Products account for almost 40% of the domestic market. On the other hand, more than 80% of revenue from software exports comes from software services like custom software development and consultancy services etc. Reasons behind Success of Indian software companies There are a number of reasons why the software companies in India have been so successful. Besides the Indian software companies, a number of multinational giants have also plunged into the India IT market. India is the hub of cheap and skilled software professionals, which are available in abundance. It helps the software companies to develop cost-effective business s for their clients. As a result, Indian software companies can place their products and services in the global market in the most competitive rate. This is the reason why India has been a favorite destination for outsourcing as well. Many multinational IT giants also have their offshore development centers in India. Most of the software companies in India are into varied types of business. There can be several types of business in the IT sectors: Infrastructure Software: These include OS, middleware and databases. Enterprise Software: These automate business process in diverse verticals like finance, sales and marketing, production and logistics. Security Software Industry-specific Software Contract Programming

A background in computer science, including facility in writing and interpreting programming code, is almost always the fundamental requirement for this field. As computer technology both becomes more pervasive in Financial Services and changes rapidly, skilled IT professionals are increasingly more valuable. According to an article in the 12/5/09 issue of The Economist ("Silo but deadly"), the financial services industry was on track to spend over $500 billion worldwide on information technology in 2009. This is greater than any other industry, and also exceeds the aggregate spending by all governments on IT. In-House Information Technology Staff: One attraction of pursuing a career in information technology is that IT departments are among the most progressive in allowing staff to work from home (that is, to telecommute), being much further along this curve than most other groups in most companies. More Than Writing Code: To advance in an in-house information technology department, or to keep open the option of a potential switch to the management side of the company, you have to be more than someone who takes directions and writes code. Rather, you should learn all you can about the organizations that act as your internal clients, anticipate their needs and suggest s. This way you become a valued strategic partner rather than a mere mechanic. Managing Expectations: The best information technology people do an excellent job of managing their business partners expectations. Making accurate, realistic estimates of what you can accomplish, and in what time frame, is a key factor in establishing credibility. Just as failing to deliver what you promise is unacceptable, so is grossly overestimating the time and resources that you need to finish the job right. Systems Liaison: While the core of systems consulting includes people with expertise in programming and other technical fields, there also are jobs for people to serve as liaisons

between the "business side" and the "technical side." These liaison people are able to understand the business requirements for a given systems project, and to communicate them cogently and logically to the technical staff. Likewise, the liaison people must know enough about programming, systems design and systems implementation to advise the business side on their options and to manage their expectations realistically.

This liaison role is also very important within companies that have their own technical staffs, but rarely gets assigned as a full time job. Instead, it frequently ends up being an unofficial side job for people who acquire an aptitude for it. In Financial Services, the systems liaison role regularly falls to people in the financial organization, especially departmental controllers. COMPANY PROFILE K2S TECHNOLOGY K2S Technology is one of the India's leading IT Companies and among the top 10 Indian Software products companies. They provides complete end-to-end outsourcing solutions for various industries. It has a comprehensive set of solutions for the banking, finance, insurance, manufacturing, retail & distribution and contracting sectors. K2S Technology has worked with over 700 customers worldwide, Insurance K2S Technology serves customers in 30 countries and has presence across 4 continents. The company offers the following range of enterprise services and solutions to meet varying customer requirements. K2S Technology is SEI CMMI Level 5 compliant for its Software services and ISO 9001:2000 certified for its IT Infrastructure and Transaction services. Services *IT Outsourcing *IT Infrastructure Management *IT Security Consultancy

*Product Re-engineering *Packaged Application Implementation *EAI *e-Governance *Business Process Management K2S Technology has five delivery centers in India spread over 150,000 square feet in coimbatore, and Chennai. Each delivery center is well networked with built in redundancies and can work as an independent unit as well as backup for other units. Recruitment *Resume collation and filtering *Initial screening *Preliminary screening and short listing *Flexible staffing administration *Reporting & documentation A K2S Technology is a leading global Technology and IT Enterprise with annual revenues of US$ 4.9 billion. The K2S Technology Enterprise comprises two companies listed in India, K2S Technology Technologies The 3 decade old enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings span R&D and Technology Services, Enterprise and Applications Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems Integration and Distribution of Technology and Telecom products in India. The K2S Technology team comprises 55,000 professionals of diverse nationalities, operating across 18 countries including 360 points of presence in India K2S Technology has global partnerships with several leading Fortune 1000,including several IT and Technology majors Along with the swiftly growing software technology industry, Apex Technology, which was hitherto known as the pioneer in modern computing made the advent

into software development .K2S Technology R&D was spun off as K2S Technology Technologies in 1997 to mark their advent into the software services arena. Todays K2S Technology sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane. And this it does across 18 countries and across 360 service locations in India The Engineering and R & D services department runs the largest outsourced engineering center outside the US which is a testimony to the 30 year product engineering experience. The company offers a comprehensive range of R&D and Engineering services to component vendors, OEMs, ODMs and ISVs across multiple industry segments and domains. Infrastructure K2S Technology Infrastructure Management Division is focused on addressing the growing demand for the cost-effective management of technology infrastructure across geographically dispersed locations. IT Infrastructure Management is in the K2S Technology DNA, drawing resources from the 30 year pioneering heritage in the area of computing, in line with global giants BPO Business Processing Outsourcing is heading towards a maturity level where a new form of BPO, called Transformational BPO, is evolving that constitutes Full Process Outsourcing and Multiple Process Outsourcing . The evolving trend is more focused towards compliance , time-to-market, focus on core process, and quality improvement

Applications Leveraging strong partnerships with platform / product companies, the team of applications professionals deliver unprecedented value to few of the largest players in the field of Financial Services, Retail and Healthcare.K2S Technology of products covers the entire spectrum of the information technology needs of its customers. By virtue of the immense diversity of markets and customers that it address, K2S Technology Info systems products offerings include everything from high end enterprise level servers for mission critical applications to multimedia home computers.K2S Technology Infinite covers a range of telecom and imaging products

including enterprise networking. K2S Technology tied up with Nokia in 1995 with the sale and services of Nokia mobile phones Network Management involves Network Monitoring of Bandwidth Utilization, Network Errors / Collisions, Network Troubleshooting, Day-to-day Network Operations, Network performance monitoring, Tuning Network Operating System and advise action plan. The traditional outsourcing method has had its celebrated failures. Regular reports are published about cost overruns, contract disputes, and poor customer satisfaction. Many of these failures have been due to inflexibility of the sourcing contract, which may not easily change to respond to market pressures and business requirements. It is commonly known in the service industry and outsourcing is cyclic, with companies moving from in to out source and back again. This is extremely and distracts the IT organization from core business. Organizations need to be able to change the financial model, adjust the IT service portfolio and alter the technology landscape. The blame for this is not entirely in the hands of the service provider. While traditional outsourcing places responsibility on the provider, in reality, a sourcing method has demands on both the organization and the provider. : Often existing internal IT departments and business are not integrated. A gap in knowledge exists between IT capability and the business's requirements. Sourcing providers are brought in to solve this problem but are only able to understand the organization at a snapshot in time. Failure to properly prepare the IT organization: Sourcing is undertaken to resolve a problem with the current IT service delivery. The provider has the task of reforming the delivery method in an environment that the organization had been unable to do for many years. Adversarial provider selection and contract negotiation process: The use of outsourcing for cost reduction as the principle method for evaluating a sourcing solution makes a conflicting relationship between organization and provider. derived service levels: A lack of historical knowledge of current services levels and capabilities puts the onus on the provider the commit to services levels that have no baseline reality

Poorly planned transition and implementation: Often the K2S Technologysolution design and transition phases are performed by completely separate teams (e.g. organization senior management and provider sales vs. organization technical staff and provider delivery staff). Transition is often less that 20% of the solution design effort, but can make or break the success of the sourcing solution. Smart Sourcing is an evolution of the outsourcing that mitigates the limitations of the traditional sourcing methodology to provide a win-win relationship for the business and the provider over the long term. There are six core principles that serve to guide the implementation and strategy for the sourcing relationship. The three principles of implementation are: Preparation of the enterprise for outsourcing by designing the existing IT service delivery in a flexible, modular way that provides maximum flexibility in sourcing strategy. Enterprises should design a measurement framework into the environment to collect real data about service delivery performance. Proper preparation limits risk for both the enterprise and the provider.