“A STUDY ON THE ACCEPTABILITY OF IT OUTSOURCING IN PHARMACEUTICAL SETOR ON BEHALF OF

WIPRO INFOTECH”

Submitted to Karunya School of Management in partial fulfillment of the requirement to the award of the degree of

Master of Business Administration,

DIVYA GRACE09BA131

Under the guidance of

Mrs. R.RUMA AGNESLECTURER

KARUNYA SCHOOL OF MANAGEMENT

KARUNYA UNIVERSITY

(Declared as Deemed University under Sec3 of the UGC Act 1956)

JANUARY 2011

CERTIFICATE

This is to certify that the project report entitled “A STUDY ON THE ACCEPTABILITY OF

IT OUTSOURCING IN PHARMACEUTICAL SECTOR ON BEHALF OF WIPRO

INFOTECH” is a bonafide record of work done by DIVYA GRACE (09BA131) under my

supervision and submitted in partial fulfillment for the award of the degree of Master of Business

Administration of Karunya University.

Director Research Supervisor

Viva voce held on --------------------------

Internal Examiner External Examiner

DECLARATION

I, DIVYA GRACE hereby declare that the project report entitled ‘A STUDY ON THE

ACCEPTABILITY OF IT OUTSOURCING IN PHARMACEUTICAL SECTOR ON

BEHALF OF WIPRO INFOTECH’ is a bonafide record of the original research work carried

out by me in the Department of Management studies, Karunya University and that it has not been

submitted earlier elsewhere for the award of any Degree, Diploma or Fellowship.

Place:

Date: Signature of the Candidate

ACKNOWLEDGEMENT

“With God behind us and his arms before we can face whatever lies before us”.

First of all I would like to thank God for his love, mercy and abundant

grace that he has showered upon me during my project period and preparing the report.

Next, I express my profound gratitude to Dr. C. SAMUEL JOSEPH,

Director, Karunya School of Management for providing all the facility to complete this

Project report.

I would like to extend my humble gratitude to all the lecturers and

professors of Karunya School of Management for their guidance during the course of my

project work. I express my gratitude to Mrs. R.RUMA AGNES, LECTURER, Karunya

School of Management providing guidance and the facility to carry out the study.

I acknowledge my sincere gratitude to Mr. JERO.G.DHAS, Regional

Sales Manager WIPRO INFOTECH and the employees who gave all the support,

without which the project would not be successful.

Finally I am indebted to my parents and all my friends who helped me

in the completion of the project work and this report.

CONTENTS

CHAPTERS TITLEPAGE

NO.I INTRODUCTION

1.1THEORITICAL BACKGROUND

1.2STATEMENT OF THE PROBLEM

1.3NEED FOR THE STUDY

1-4

55

II REVIEW OF LITERATURE 6-14

III INDUSTRIAL AND COMPANY PROFILE

3.1 INDUSTRY PROFILE

3.2 COMPANY PROFILE

3.3 PRODUCT PROFILE

15-18

19-28

29-31

IV RESEARCH DESIGN AND METHODOLOGY

4.1 OBJECTIVES

4.2 HYPOTHESIS

4.3 TYPE OF DESIGN

4.4 DATA COLLECTION METHOD

4.5 SAMPLE SIZE

4.6 TOOLS OF ANALYSIS

4.7 LIMITATIONS

32

32

33

33

34

35

35

V ANALYSIS AND INTERPRETATION

5.1 PERSONAL INFORMATION OF THE

RESPONDENTS

5.2 ANALYSIS OF RESULT THROUGH TABLES AND

GRAPHS

5.3 STATISTICAL ANALYSIS

36-39

40-51

52-53

VI FINDINGS,SUGGESTIONS AND

CONCLUSION

6.1 FINDINGS

6.2 SUGGESTIONS

6.3 CONCLUSION

54-55

56

57

BIBILIOGRAPHY 58

APPENDIX 59-60

LIST OF TABLES

TABLE NO

TITLE PAGE NO

5.1.1 Table showing number of employees working in the company 36

5.1.2 Table showing the annual turnover of the companies 38

5.1.3 Table showing the number of the company locations 39

5.2.1 Table showing the companies having outsourced and In-house IT

infrastructure

40

5.2.2 Table showing the number of companies outsource partial and

fully

41

5.2.3 Table showing the companies that have remote and onsite IT

service

42

5.2.4 Table showing the number of members in the IT support team 43

5.2.5 Table showing the satisfaction level with the In-house IT facilities 44

5.2.6 Table showing the major challenges faced by the In-house IT

facilities

45

5.2.7 Table showing the benefits companies want while they outsource

to an external provider

47

5.2.8 Table showing the acceptability level to outsourcing if benefits

are given

48

5.2.9 Table showing the opinion of IT heads about the option of IT

outsourcing

49

5.2.10 Table showing the reason of IT heads for not considering IT

outsourcing as good option

50

5.2.11 Table showing the reason of IT heads for considering IT

outsourcing as good option

51

5.3.1 Table showing the relationship between no of employees working

and outsourcing

52

5.3.2 Table showing the relationship between annual turnover of the

company and the outsourcing

53

LIST OF CHARTS

CHART NO

TITLE PAGE NO

2.1 IT adoption level in pharmaceutical companies 13

2.2 Asian pharmaceutical IT market demand and potential 14

5.1.1 Chart showing the number of employees working in the company 37

5.1.2 Chart showing the annual turnover of the companies 38

5.1.3 Chart showing the number of the company locations 39

5.2.1 Chart showing the companies having outsourced and In-house IT

infrastructure

40

5.2.2 Chart showing the number of companies outsource fully and

partially

41

5.2.3 Chart showing the companies that have remote and onsite IT

service

42

5.2.4 Chart showing the number of members in the IT support team. 43

5.2.5 Chart showing the satisfaction level with the In-house IT facilities 44

5.2.6 Chart showing the major challenges faced by the In-house IT

team

45

5.2.7 Chart showing the benefits the companies want while they

outsource to an external provider

47

5.2.8 Chart showing the acceptability level to outsourcing if benefits

are given

48

5.2.9 Chart showing the opinion of the IT heads about the option of IT

outsourcing

49

5.2.10 Chart showing the reason of the IT heads for not considering IT

outsourcing as good option

50

5.2.11 Chart showing the reason of the IT heads for considering IT

outsourcing as good option

51

CHAPTER I

INTRODUCTION

CHAPTER II

REVIEW OF LITERATURE

CHAPTER III

INDUSTRIAL AND COMPANY PROFILE

CHAPTER IV

RESEARCH DESIGN AND METHODOLOGY

CHAPTER V

ANALYSIS AND INTERPRETATION

CHAPTER VI

FINDINGS, SUGGESTIONS &

CONCLUSION

BIBLIOGRAPHY

APPENDIX

ABSTRACT

Outsourcing is often viewed as involving the contracting out of a business function to an external

provider. In this sense, two organizations may enter a contractual agreement involving an

exchange of services and payments. Of recent concern is the ability of businesses to outsource to

suppliers outside the nation, sometimes referred to as offshoring or offshore outsourcing. Almost

any conceivable business practice can be outsourced for any number of stated reasons.

This study was primarily undertaken to thoroughly understand the readiness to the outsourcing of

IT infrastructure in pharmaceutical sector within the Indian mid-market, which is believed to

have immense untapped potential. It was therefore, vital to understand the mindset of the people

in pharmaceutical businesses to identify the possible obstacles in the path of adoption of

outsourcing. In the process, many significant IT adoption challenges faced by the pharmaceutical

segment were noticed. It also highlights how internet-enabled technologies can help this sector in

increasing efficiency and achieving faster growth. The study has been done on behalf of the

Wipro Infotech.

Wipro (an acronym of "Western India Palm Refined Oils") started as a vegetable oil

trading company in 1947 from an old mill at Amalner, Maharashtra, India founded by Azim

Premji's father. In 1980 Wipro moved into software development and started developing

customized software packages for their hardware customers. Wipro Infotech is a subunit of

Wipro. Wipro Infotech adds value to organisation through consulting services, business

solutions, and professional services and as a total outsourcing partner

The type of the research use for this study is the Descriptive Research. The sampling unit

consists of the pharmaceutical companies in the Bangalore city and all the pharmaceutical

companies in the Bangalore city was selected for the study. A total of 80 companies were listed

and samples were collected from the fifty pharmaceutical companies. The respondents for the

study were the IT heads of the selected pharmaceutical companies. Simple percentage analysis

and correlation has been used to analyze the data

CERTIFICATE

CERTIFICATE FROM THE COMPANY

DECLARATION

ACKNOWLEDGEMENT

ABSTRACT

CONTENTS