India is among the few economies that stood tall after the global financial crisis mainly due to the country’s healthy financial sector, favourable population demographics, greater domestic consumption, and inherent resilience. The Indian economy registered growth of 7.4% during 2009-2010, supported by several government initiatives that enabled development across various sectors. The contribution of agriculture to the overall Indian GDP has declined in recent years and that trend is expected to continue in the future. This highlights the transformation of the rural economy from agriculture-based to a more balanced mix of sectors. According to Springboard Research, this shift will generate further self-employment and empowerment of the rural population. This in turn will increase the technology requirements of the rural population, which will boost IT investment.
India’s GDP is expected to grow more than 8% between 2010 and 2015 and the IT market will keep pace with a CAGR of 13.2% from 2010 to 2015, at a rate of 1.6X of GDP. The key verticals that will contribute to the growth are banking, telecom, the public sector, transportation and logistics, and real estate. A decrease in governmental regulatory measures will provide further impetus to investment in India, which will lead to higher IT consumption. Furthermore, government IT spending has grown, driving increased domestic demand for IT services. Favourable policies designed to help IT companies increase their footprints in India will help increase investment as well. In addition, higher mobile and broadband penetration will lead to higher consumption of technology through real-time access, and mobility solution development will provide new revenue streams for IT companies.
According to Springboard Research, a number of fundamental changes are expected in the not-too-distant future. The top 10 trends that they believe will shape enterprise IT in India in 2011 #1) Mobile Reporting Services Transforms “Business Intelligence”
#2) Cloud Computing – From Silver Bullet to Just Another Sourcing Option
#3) Managed Services Providers Innovate to Drive Added Value
#4) Mobile Banking Triggers Technology Innovation in the Banking Sector
#5) IT Distribution Channel Partners Accelerate the Evolution of their Business Models
#6) “Single Window System for Integrated Services Delivery” to Gain Greater Attention from State Governments
#7) Telcos Embrace the Cloud but Are Forced to Prove Their Customer Orientation
#8) New Market Opportunities to Drive IT Investments from Enterprises
#9) Information Security Becomes a Key Priority for Government and Enterprises and Sparks Client Virtualization
#10) The Consumerization of IT Drives Major Changes in Usage Patterns and Expectations
Details available in a 16 page document that can be downloaded after registering at: http://springboardresearch.com/ResearchDetails.aspx?CID=1207
Jan 5 2011