DIRECTV

Companies // Information Technology

• Background

  This company is a constituent of the information technology sector. Information technology (IT) is playing a crucial role in the process of globalisation, helping businesses, business divisions and people interact across geographies. This sector includes the software and services segment, containing the dynamic companies that drive this business forward via a constant process of innovation. As a commercial segment it includes application and systems software as well as the developers of games and other home entertainment products. Security is the greatest challenge here, as crimes such as internet-related identity fraud and the ongoing manufacture of computer viruses never let up. In the hardware space, which comprises companies involved in the manufacturing of computers and related technology, developments do not happen quite as fast as on the software side. Even so, screens are getting thinner, components are shrinking, wireless is replacing cables, and laptops improve all the time. Emerging Asian economies have played a significant role in bringing down production costs and commensurate prices in the shops. Chipmakers are behind much of the innovation in the IT sector, driving as they do the capacity, speed and reliability of hardware products. Price-pressure has forced the semiconductor segment to push through new developments faster than ever. With more complex products and processes to manage, businesses increasingly require IT support and consulting services. Consulting projects usually need to be more hands-on than they used to, because clients want visible results rather than strategic information for boardroom discussions. Consultants, therefore, are often tasked with overseeing the implementation of their recommendations themselves. Business process outsourcing (BPO) and the relocation of production facilities to countries with a cheaper labour force has become eminently possible thanks to remote access to databases and project plans. Consequently, many products have become cheaper to deliver. The IT sector is now one of the top employers globally, and software companies have emerged amongst the largest companies in the world. Watch this space: One of Asia’s largest economies, India, owes much of its recent growth to the IT industry. India has become the location for call centres and database administration (business process outsourcing or BPO). Other countries are trying to mirror India’s success in this regard to boost their own economies. Egypt, for example, has already announced plans to become the new India in terms of BPO. The ingredients for success are a low-cost, educated workforce and a good standard of language skills.

• Influencing Factors

  Broadening application of information technology-related services in areas such as healthcare and machinery. Other factors include the technology requirements of emerging markets and the spread of mobile technologies.