Would any E-Commerce Company dealing with Non-IT Products/Services be considered to be from IT or ITES sector??
We are looking out to purchase an Office Space and discovered that the Prices are cheaper for a Commercial Space for IT / ITES sector as compared to a regular Commercial office space. Now since we are an E-Commerce company dealing with Non-IT products, we would like to have a clarity that whether or not we fall in that category. Hence the question 🙂
Alok Rodinhood Kejriwal
Your question makes me ask a question:
What is your question?!
Explain with an example please!
Suman Dash
We are looking out to purchase an Office Space and discovered that the Prices are cheaper for a Commercial Space for IT / ITES sector as compared to a regular Commercial office space. Now since we are an E-Commerce company dealing with Non-IT products, we would like to have a clarity that whether or not we fall in that category. Hence the question 🙂
asha chaudhry
suman,
pls edit your post and add this bit there as well as a backgrounder.
Suman Dash
Sure Asha 🙂 Done !
Darshan Bhambiru
Hello Suman,
If it is only to categorize the Office Space agreement that would be very much in line with your Company Procedure that has been followed during its formation (Since that information is unavailable) Your Company Agreement (MOU) between the Partners should have the same Defined already as to what Industry you would be Working under and can also include other industries if applicable likewise. Moving ahead to the query that you have posed. A Shared space cannot be a Place where you can Register your Concern (Owned and Sole rented places might have some Options)
Breaking it into the 3 major Components below for understanding better ITES, eCommerce and IT
ITES – BPO
Business process outsourcing (BPO) is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. Originally, this was associated with manufacturing firms, such as Coca Cola that outsourced large segments of its supply chain.
ITES stands for information technology enabled services. It refers to the outsourcing of numerous processes in which the provider utilizes telecommunication technologies and the Internet to provide those services, mainly for companies in non-information technology (IT) fields. It covers a wide range of areas such as manufacturing, healthcare, banking, insurance, telecommunications and finance. Some of the services provided are call center services, payroll, medical transcription, bio-tech research, insurance claims and credit card processing. Other services include customer care, human resources administration, web marketing, back-office data processing and accounting.
Hence a Business might use some of the components of IT to get things done in the connected world, it may necessarily may not be Related to Products which are Directly related to IT in nature. So in a way if you are doing a third party outsourcing it may fall under ITES for a part since use of IT Enabled Services would be a part of the business which could be On shore (If not In house) Near shore or Offshore as per requirements. It may also involve some parts related to Finance or Transaction exchange either Domestic or International too as per Business Geographical requirements, which is the ultimate end result or expected result for the Business so established for the purpose. It could be in the B2B (One Business to another) or the B2C (Business to direct End User, Customer) Point to Point. Consumers like to access to products and services on a 24-by-7 basis, and the easiest way to provide that is to move operations online.
Electronic commerce, or e-Commerce, refers to economic activity that occurs online. E-commerce includes all types of business activity, such as retail shopping, banking, investing and rentals. Even small businesses that provide personal services, such as hair and nail salons, can benefit from e-commerce by providing a website for the sale of related health and beauty products that normally are available only to their local customers. Much similar to the Brick and Mortar Setup, only using the Internet and other IT based components for a better and Wider reach for the Target Audience it caters to.
As Internet commerce continues to grow, the ecommerce model will become vital for any new company. Along with traditional sales models, companies will have to put a plan in place to capture the huge and rapidly growing market of ecommerce business in order to remain competitive. Consultants specializing in putting together an ecommerce model for new or existing companies already see a good amount of business coming their way, and this market is likely to continue to grow.
E-commerce not necessarily mean conducting commerce through the Internet alone, but also mean other forms of electronic communication. Actually, the roots of e-commerce lie not in the Internet, but in other forms of electronic communication. Technologies like Electronic Data Interchange (EDI) and Electronic Funds Transfer (EFT) predate the advent of e-commerce using the Internet and put the foundations for the growth of e-commerce we see today. The point here is that these older and high-powered technologies have been used to connect one business house to one another business. The protocols used for communication between the business houses were point-to-point. But the recent advances accomplished in e-commerce allows for a one-to many or many-to-many approach and thus help to expand greatly any single business to any number of businesses throughout the world. What makes it interesting and exciting is that as the platforms, the medium, the technologies, and the bandwidth change, we will also see a dramatic change in the way in which we approach commerce and the expectations that we have about it.
Electronic commerce is generally considered to be the sales aspect of e-business. It also consists of the exchange of data to facilitate the financing and payment aspects of business transactions. This is an effective and efficient way of communicating within an organization and one of the most effective and useful ways of conducting business. It is a Market entry strategy where the company may or may not have a physical presence.
Electronic commerce, commonly known as E-commerce or eCommerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks.
Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction’s life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices, social media, and telephones as well.
E-business Models
The emergence of e-commerce and its related technologies had lead to the creation of many different robust applications that are typically grouped into several categories of e-commerce.
Business to Consumer (B2C) are applications that provide an interface from businesses directly to their consumers. The most common example of a B2C application is a retail web site featuring the business’s products or services that can be directly purchased by the consumer. The importance of B2C varies dramatically from company to company. For some companies, reaching consumers has been the critical aspect of their business. For some companies that run a chain of retail stores, B2C should be one of the most important pieces of their Internet strategy. Even some companies that already have third parties to distribute, market, and sell their products are not much concerned about B2C. Many companies that never have sold directly to consumers, having realized it is clearly much more cost efficient to open a B2C site than to open a physical store, have begun to lean towards B2C. In this case, it becomes necessary for them to address a whole lot of small and big issues. But still B2C applications remains on top of the applications of the Internet as this is directed related to the masses.
Business to Business (B2B) – Forging new relationships between businesses is becoming critical for businesses to survive and blossom in this increasingly fast paced world. B2B applications provide new opportunities for businesses to leverage emerging technologies to build their businesses. Examples of B2B applications include facilitating transactions for goods/services between companies, selling goods/services on the Internet to businesses, and supply chain integration. Another example is online procurement of goods from one company to another. Legacy integration is a huge issue in B2B applications. If existing applications such as EDI or EFT are extended to help the B2B process, then the existing legacy applications can be a big help in moving forward. On the other hand, if two companies want to trade data, but have dramatically different legacy systems, legacy integration can be a challenge to overcome. There are other issues such as security, speed, and flexibility, in B2B applications.
Business to Business to Consumer (B2B2C) is one of the emerging models of e-commerce. B2B2C is basically defined as using B2B to help support and rejuvenate companies attempting B2C. This is due to the fact that B2B has been an overwhelming financial success and B2C has not performed upto the expectations. This model is poised to do well as it capitalizes the success of B2B and the potential demand of B2C. B2B provides a way for B2C companies to reduce costs and improve their B2C services. An example of B2B2C is developing products to help B2C companies increase profit by integrating inventory from the manufacturer to the distributor. An application that links one online catalog to another would be considered a B2B2C application as it capitalizes on both B2B and B2C.
Consumer to Consumer (C2C) – C2C is an interesting relatively new piece of the e-commerce world. C2C applications involve consumers conducting commerce directly with other consumers. This obviously means that the company facilitating the transaction must find some non-traditional revenge stream. This could be a small cut of the transaction, a service fee, advertising, or some combination of these. E-bay is an excellent example of a C2C application that is extremely popular with consumers.
Customer to Business to Consumer (C2B2C) involves consumers conducting transactions with other consumers using a business as an intermediary. http://www.autotrader.com is the best example for this sort of application. This site facilitates the transactions of selling used cars between consumers, but also contains an inventory of used cars to sell to the consumer.
Apart from above categorized e-commerce applications, there are several specific models of businesses operating on the Web. Here comes a brief of each model.
Auction Model – The Web offers many different kinds of auction sites.Auction sites act as forums through which Internet users can log-on and assume the role of either bidder or seller. As a seller, one can post an item to sell, the minimum price he requires to sell his item and a deadline to close the auction. As a bidder, one can search the site for availability of the item he is seeking, view the current bidding activity and place a bid. Also there are sites designed to search existing auction sites in order to pinpoint the lowest prices on an available item. Although auction sites usually require a commission on sales, these sites are only a forum for online buying and selling. They get the commission from both parties once the deal is over.
Portal Model – Portal sites give visitors the chance to find almost everything they are looking for in one place. They often offer news, sports, and weather, as well as the ability to search the Web. Portals are subdivided into two kinds: horizontal portals and vertical portals. Horizontal portals aggregate information on a broad range of topics. Vertical portals are more specific, offering a great deal of information pertaining to a single area of interest. Online shopping is a popular addition to the major portals. Portals linking consumers to online merchants, online shopping malls and auction sites provide several advantages.
Dynamic Pricing Models – The Web has changed the way business is done and the way products are priced. There are companies which enable customers to name their prices for travel, homes, automobiles and consumer goods. Buying in bulk has always driven prices down and there are now Web sites that allow one to lower the price by joining with other buyers to purchase products in large quantities to get price reduction. There are a number of variety of models here. They are Name-Your-Price Model, Comparison pricing model, Demand-sensitive pricing model, and Bartering model. E-business allows companies to follow a variety of ways to keep prices down on the Internet, such as rebates and offering free products and services.
Online Trading and Lending Models – Another fast-growing area of e-commerce is online securities trading. Many brokerage houses have established a presence on the Web. Trading sites allow one to research securities, buy, and sell and manage all of his investments from his desktop. Online trading often costs less than conventional brokerage.
The Web offers a quite number of exciting services including getting a loan online, recruitment through the Web, online News services, online travel services, online entertainment, online automotive sites, energy online, selling brain-power, online art dealers, e-learning and e-banking.
Information technology (IT) is the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data, often in the context of a business or other enterprise.
The term is commonly used as a synonym for computers and computer networks, but it also encompasses other information distribution technologies such as television and telephones.
Several industries are associated with Information Technology (IT),including computer hardware, software, electronics, semiconductors, internet, telecom equipment,
E-COMMERCE and Computer Services.
Hope this Helps answer your Query to the best 🙂