International Journal For Multidisciplinary Research

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Profitability Analysis Of Selected IT Companies In India Using Data Envelopment Analysis (DEA): A Comprehensive Study

Author(s) Rathindra Nath Jana, R. K. Patil, Sunil Kumar Yadav
Country India
Abstract The IT sector in India plays a vital role in driving the country's economy, contributing significantly to its growth and employment landscape. As of 2023, it constitutes around 8% of India's total GDP, employing over 4.5 million professionals directly and supporting an estimated 10 million indirect jobs. With export revenue reaching approximately $194 billion, the IT sector stands as one of the largest contributors to India's foreign exchange reserves.
This sector has experienced robust growth, with a projected annual growth rate of 7-9%. This growth can be attributed to its relentless focus on digitalization, innovation, and technology-driven solutions, enabling it to foster economic development, attract investments, and drive digital transformation across various industries.
Conducting a profitability analysis of IT companies in India holds significant importance. It provides valuable insights into their financial performance and viability, assisting stakeholders in making informed decisions. Investors and policymakers can assess the efficiency and effectiveness of these companies in generating profits and maximizing returns on investments. Profitability analysis also aids in resource allocation, risk management, and policy formulation to create an enabling environment for IT sector growth.
Additionally, profitability analysis allows companies to benchmark their performance, identify areas for improvement, and enhance competitiveness. By evaluating financial indicators, stakeholders can make informed decisions regarding expansion, diversification, and strategic partnerships. Ultimately, profitability analysis serves as a crucial tool for decision-making, resource allocation, and sustainable growth within the IT sector.
Therefore, this study aims to analyze the profitability of six selected IT companies in India from 2008-09 to 2021-22 using the Data Envelopment Analysis (DEA) technique. By employing DEA, the study aims to provide valuable insights into the financial performance of these companies and contribute to the existing understanding of profitability dynamics within the Indian IT sector.
Keywords Profitability analysis, efficiency, Performance evaluation, financial data, inputs.
Field Business Administration
Published In Volume 5, Issue 5, September-October 2023
Published On 2023-10-22
Cite This Profitability Analysis Of Selected IT Companies In India Using Data Envelopment Analysis (DEA): A Comprehensive Study - Rathindra Nath Jana, R. K. Patil, Sunil Kumar Yadav - IJFMR Volume 5, Issue 5, September-October 2023. DOI 10.36948/ijfmr.2023.v05i05.7779
DOI https://doi.org/10.36948/ijfmr.2023.v05i05.7779
Short DOI https://doi.org/gszvmj

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