Strategic Case - Indian Information Technology (it) Industry

The scope of the topic involves researching the accounting frauds conducted by the chairman of the company, and how the chairman managed to keep the fraud under wraps for many years. The scope of the topic also includes the audit procedures and the role of the statutory auditors in the fraud as the audit was never able to unearth the scam. The scope of the topic will also include the internal control systems present in a company with global investors and how such incidents could be avoided in the future. The role of the regulatory authorities and the way they have reacted is also included in the scope of study. The role of the scam in development of reporting and accounting standards is also included in the scope of this research paper. The scope of the topic will also include recommendation to the management as well as the auditors of the company, so as to ensure smooth running of the operations of the company, and avoidance of any such incidence in the future.

Overview of the Company and Industry

Company

The company is a leading player in consulting and IT services and is present across the value chain. It has earned a very good reputation for itself in the implementation of Information Technology solution implementation for its clients. The company was formed by Ramalinga Raju and had delivered consistently very good results under the leadership of Mr. Raju. The salient features of the company were

• Network across 55 countries spread across 6 continents

• About 40000 skilled and trained IT Professionals.

• Catering to industries like Automobiles, Banking, Mining, Insurance, Telecom, Healthcare.

• The company had dedicated service centres in India, Australia, United States of America, United Kingdom, Canada, Hungary, Malaysia, China and Japan.

• The company has an elite clientele of about 558 global companies of which 163 of them are included in the list of Fortune 500 company list.

Industry

The Indian Information Technology (IT) industry has played a key role in putting India on the global map. Thanks to the success of the IT industry, India is now a power to reckon with. According to the National Association of Software and Service Companies (NASSCOM), the apex body for software services in India, the revenue of the information technology sector has risen from 1.2 per cent of the gross domestic product (GDP) in FY 1997-98 to an estimated 5.8 per cent in FY 2008-09.

India's IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, Software testing, and Web services.

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