Use of Five point Du Pont Model and Regression Tools to Study Information Technology Sector of India

This paper specifically concentrates on 5-point Du Pont analysis of tine Indian IT software industry Step by step development of 5-point model from the initial 2-point model is discussed. Trend of the industry over the past eight years is analysed and the effect of recession is studied using the time series analysis. Cross sectional analysis has been performed to discuss the significant focus points of different companies and these have been benchmarked with industry standards. Also, regression analysis has been performed to comprehend the relative impact of the five ratios on return on equity Finally using regression analysis, Indian IT industry is compared with IT industry of the USA and the differentiating factors are examined.