PESTEL analysis and strategic group mapping in IT consulting

¶ … replies; each of these comments should be less than 100 words long. Q1-6 are about the eBook case this week (Infosys Consulting case, which starts on p. 669 in eBook); see Study Guide and/or Readings link).

Perform a (brief) PESTEL analysis of the IT consulting industry

Over the past 5 years, the IT Consulting industry has performed well in a challenging economic climate. Strong performance from major markets, such as financial services and insurance providers, enabled the IT Consulting industry to expand. As the economy continues to recover, improving business sentiment and corporate profit levels will further drive industry performance. Over the next five years, industry revenue is expected to continue growing. (IbisWorld 2016)

Political / Legal

U.S. government has declared that U.S. firm that outsource IT works outside the U.S. will not get tax benefits

Customer protection law

Terrorist attacks

Competetive regulations

Occupational Health & Safety act

6. Copyright act

Economic

1. Rising workforce pay

2. Global recession

3. Competition

4. Currency fluctuation

Socio-cultural

1. Employee rights

2. Language barrier (Indian)

Technological

1. Telephone tariffs lowest in the world (India)

2. Increasing dependance on the Internet

3. Developing software technologies

Ecological

1. Natural disasters

2. Pollution

3. Waste Disposal

4. Hazardous Chemicals

5. Hygiene and Cleanliness (Living Conditions)

Rothaermel (2015)

References:

IbisWorld, 2016, IT Consulting in the U.S.: Market Research report, IbisWorld, viewed 5th June,

Rothaermel, FT 2015 Strategic management (customised eBook), 2nd edn, McGraw-Hill, New York, NY.

Response: