Case Analysis of Infosys Consulting The market for the IT industry was huge and expanding rapidly. However, the market leaders were Accenture and IBM, which held negligible market share, with the rest being captured by small businesses. Indian companies have also ventured into the sector and due to competition, multinational IT giants have had to increase their base in India. Due to high opportunities, attrition rate was also high in this industry. As a result, Indian companies like Wipro and Infosys have increased their base salaries. During this phase, the Indian economy was transforming towards an era of information and knowledge. This can be seen from the fact that the contribution of services to the economy's GDP was 18% higher in 2001 than in 1980. No other sector had managed to withstand global competition better. Annual exports have always been above 50% over a decade. The US share accounts for the highest share at 61%, and about a third of Fortune 500 companies outsource their software work to India. To aid development, the Indian government has taken a number of measures such as liberalizing policies and providing the necessary capital and infrastructure to foster growth. Therefore the Indian environment has been conducive to growth. (Ref: Indian Embassy.org) Competitive Analysis: The IT industry market was quite competitive with IBM and Accenture as the global leaders while the rest of the market was quite spread out. IBM and Accenture had a strong brand and global presence with a large customer base. They also offered a range of services viz. technology implementation, business consultancy, offshore services, customer relationship management, etc. Both offered breadth and depth of service. The IT market in India offered technical and business consultancy with Tata Consultancy Services being the market leader in IT exports while Wipro Technologies and Infosys were other major players in the market. TCS offered consultancy services, IT services, asset based solutions etc. Wipro was the third largest IT provider with offerings of IT consultancy services, software solutions, BPO etc. Both had a strong global presence. Intensity of Rivalry: The rivalry between competitors has been quite intense, as it can be seen that Indian competition has pushed IBM to increase its presence in India. However, leaders like IBM and Accenture had a wide range of service offerings, so competition was only between a few industries. The rivalry was to hire the best talent as human capital is the most important thing in the IT industry. This is why churn leads to increased compensation packages.