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A STUDY ON THE ACCEPTABILITY OF IT OUTSOURCING IN PHARMACEUTICAL SETOR ON BEHALF OF WIPRO INFOTECHSubmitted to Karunya School of Management in partial fulfillment of the requirement to the award of the degree of Master of Business Administration,DIVYA GRACE 09BA131 Under the guidance of Mrs. R.RUMA AGNES LECTURER

KARUNYA SCHOOL OF MANAGEMENT KARUNYA UNIVERSITY (Declared as Deemed University under Sec3 of the UGC Act 1956) JANUARY 2011

CERTIFICATEThis 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

DECLARATIONI, 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

ACKNOWLEDGEMENTWith 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.

CONTENTSCHAPTERSI

TITLE INTRODUCTION1.1THEORITICAL BACKGROUND 1.2STATEMENT OF THE PROBLEM 1.3NEED FOR THE STUDY

PAGE NO.1-4 5 5 6-14

II III

REVIEW OF LITERATURE INDUSTRIAL AND COMPANY PROFILE3.1 INDUSTRY PROFILE3.2 COMPANY PROFILE 3.3 PRODUCT PROFILE

15-18 19-28 29-31 32 32 33 33 34 35 35 36-39

IV

RESEARCH DESIGN AND METHODOLOGY4.1 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

V

ANALYSIS AND INTERPRETATION5.1 PERSONAL INFORMATION OF THE RESPONDENTS 5.2 ANALYSIS OF RESULT THROUGH TABLES AND GRAPHS 5.3 STATISTICAL ANALYSIS 40-51 52-53

VI

FINDINGS,SUGGESTIONS AND CONCLUSION6.1 FINDINGS 6.2 SUGGESTIONS 6.3 CONCLUSION 54-55 56 57 58

BIBILIOGRAPHY APPENDIX

59-60

LIST OF TABLES TABLE TITLE PAGE

NO5.1.1 5.1.2 5.1.3 5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.2.7 5.2.8 5.2.9 5.2.10 5.2.11 5.3.1 5.3.2 Table showing number of employees working in the company Table showing the annual turnover of the companies Table showing the number of the company locations Table showing the companies having outsourced and In-house IT infrastructure Table showing the number of companies outsource partial and fully Table showing the companies that have remote and onsite IT service Table showing the number of members in the IT support team Table showing the satisfaction level with the In-house IT facilities Table showing the major challenges faced by the In-house IT facilities Table showing the benefits companies want while they outsource to an external provider Table showing the acceptability level to outsourcing if benefits are given Table showing the opinion of IT heads about the option of IT outsourcing Table showing the reason of IT heads for not considering IT outsourcing as good option Table showing the reason of IT heads for considering IT outsourcing as good option Table showing the relationship between no of employees working and outsourcing Table showing the relationship between annual turnover of the company and the outsourcing

NO36 38 39 40 41 42 43 44 45 47 48 49 50 51 52 53

LIST OF CHARTS CHART NO2.1 2.2 5.1.1 5.1.2 5.1.3

TITLEIT adoption level in pharmaceutical companies Asian pharmaceutical IT market demand and potential Chart showing the number of employees working in the company Chart showing the annual turnover of the companies Chart showing the number of the company locations

PAGE NO13 14 37 38 39

5.2.1 5.2.2 5.2.3 5.2.4 5.2.5 5.2.6 5.2.7 5.2.8 5.2.9 5.2.10 5.2.11

Chart showing the companies having outsourced and In-house IT infrastructure Chart showing the number of companies outsource fully and partially Chart showing the companies that have remote and onsite IT service Chart showing the number of members in the IT support team. Chart showing the satisfaction level with the In-house IT facilities Chart showing the major challenges faced by the In-house IT team Chart showing the benefits the companies want while they outsource to an external provider Chart showing the acceptability level to outsourcing if benefits are given Chart showing the opinion of the IT heads about the option of IT outsourcing Chart showing the reason of the IT heads for not considering IT outsourcing as good option Chart showing the reason of the IT heads for considering IT outsourcing as good option

40 41 42 43 44 45 47 48 49 50 51

CHAPTER I

INTRODUCTION

CHAPTER II

REVIEW OF LITERATURECHAPTER III

INDUSTRIAL AND COMPANY PROFILECHAPTER IV

RESEARCH DESIGN AND METHODOLOGYCHAPTER V

ANALYSIS AND INTERPRETATIONCHAPTER VI

FINDINGS, SUGGESTIONS & CONCLUSION

BIBLIOGRAPHY

APPENDIX

ABSTRACTOutsourcing 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