Labor costs and productivity in the economy.Skill level of workforce in Information Technology Services industry.Comparative advantages of host country and Technology sector in the particular country.Infrastructure quality in Information Technology Services industry.Efficiency of financial markets – Does DXC Technology Company needs to raise capital in local market?.Exchange rates & stability of host country currency.
#PESTLE ANALYSIS OF INFORMATION TECHNOLOGY INDUSTRY OF UAE FREE#
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Type of economic system in countries of operation – what type of economic system there is and how stable it is.Economic factors that DXC Technology Company should consider while conducting PESTEL analysis are. DXC Technology Company can use country’s economic factor such as growth rate, inflation & industry’s economic indicators such as Information Technology Services industry growth rate, consumer spending etc to forecast the growth trajectory of not only -sectoryname- sector but also that of the organization. While micro environment factors such as competition norms impact the competitive advantage of the firm. The Macro environment factors such as – inflation rate, savings rate, interest rate, foreign exchange rate and economic cycle determine the aggregate demand and aggregate investment in an economy. Product labeling and other requirements in Information Technology ServicesĮconomic Factors that Impact DXC Technology Company.Industrial safety regulations in the Technology sector.Work week regulations in Information Technology Services.Wage legislation - minimum wage and overtime.Pricing regulations – Are there any pricing regulatory mechanism for Technology.Anti-trust laws related to Information Technology Services.Trade regulations & tariffs related to Technology.Legal framework for contract enforcement.Bureaucracy and interference in Information Technology Services industry by government.Level of corruption - especially levels of regulation in Technology sector.Political stability and importance of Information Technology Services sector in the country's economy.DXC Technology Company can closely analyze the following factors before entering or investing in a certain market. The achieve success in such a dynamic Information Technology Services industry across various countries is to diversify the systematic risks of political environment.
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DXC Technology Company is operating in Information Technology Services in more than dozen countries and expose itself to different types of political environment and political system risks. Political factors play a significant role in determining the factors that can impact DXC Technology Company's long term profitability in a certain country or market. Order Now - DXC Technology Company PESTEL / PEST Analysis Order Now - DXC Technology Company Porter 5 Forces Analysis & Industry Analysis Political Factors that Impact DXC Technology Company So the decade long profits didn’t materialize in the end. But the business was later expropriated by the Left Wing government. It started an above average profitability operations in Argentina and made strong returns in 5-7 years. Spanish oil giant Repsol had to face a similar instance. For example an Industry may be highly profitable with a strong growth trajectory but it won't be any good for DXC Technology Company if it is situated in unstable political environment. PESTEL analysis provides great detail about operating challenges DXC Technology Company will face in prevalent macro environment other than competitive forces. They can impact individual firm’s competitive advantage or overall profitability levels of the Technology industry. That shape strategy and competitive landscape.
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The macro-environment factors can impact the PESTEL stands for - Political, Economic, Social, Technological, Environmental & Legal factors that impact the macro environment of DXC Technology Company.Ĭhanges in the macro-environment factors can have a direct impact on not only the DXC Technology Company but also can impact other players in the Information Technology Services. Strategic Management Essays, Term Papers & PresentationsĭXC Technology Company PESTEL analysis is a strategic tool to analyze the macro environment of the organization.