The system and application software markets witnessed an impressive growth during 2010. This growth was led by significant investments by enterprises in ERM, CRM, SCM and collaborative applications. The focus of these investments was to reduce inefficiencies in back-office processes. Banks and Telecom Service Providers (TSPs) invested in asset management, financial accounting, financial performance and strategy management and payroll applications. Another major driver for the investments in these applications was the need to comply withgovernment regulations like KYC, IFRS etc. Large manufacturing firms, riding on the healthy growth in the sector due to a strong domestic demand, went in for automating their supply chain networks. They also invested in advanced production planning and manufacturing applications to ensure most efficient utilization of resources. The worldwide economic slowdown proved to be beneficial for vendors in the collaborative applications space. Most of enterprises showed a keen interest towards investing in conferencing, and messaging tools. Large-scale digitization of land records, municipal records, and other government documents drove the growth in the content management applications market. The social media bug has bitten the consumer market! This is beginning to percolate into the enterprise space as well. Most enterprises already have a presence on major social networking channels, and plan to invest in enterprise portals and social interaction sites for their employees.
The contribution of mid-sized and small enterprises in the overall revenues of the ERM CRM, and collaborative software markets are increasing. Many SMB enterprises intend to expand their operations globally, and have realized the importance of IT as an enabler to achieve this goal. Large enterprises continued to invest in content management, SCM, Operations and Manufacturing, and engineering applications. Enterprises were seen deploying cloud-based CRM, BI/BA and collaborative applications. This was a heartening development for those software vendors who intend to roll out cloud-based applications. Although there were some deployments of cloud-based mission-critical applications like ERM, and SCM, most enterprise managements expressed doubts over the adoption of these applications in the immediate future, as they were still reviewing business concerns about the security, and privacy of their data.
The system infrastructure software market achieved a healthy growth due to a positive response from business enterprises as well as the government sector. The major contributors to growth were security and storage software segments. Large and mid-sized enterprises continue to spend on the secure content and threat management software. With increased adoption and usage of e-commerce, banks and financial services companies invested in secure content and threat management and DLP software. As many banks focused on deploying core-banking solutions in their regional and rural branches, security and system and network management software found a healthy uptake.
India IT Services Market: Key Drivers for Adoption
Rising costs are driving companies to scout for and avail specialist IT services and adopt alternate models of delivery. New, emerging trends like cloud computing, SOA and virtualization are creating a way for consolidation and standardization of IT infrastructure. More and more outsourcing contracts have been signed up in recent years because CIOs want to reduce spend on IT infrastructure and manage existing resources better in order to maximize business productivity and profitability. In this scenario, even Government / Public Sector organizations have become more receptive to employing remote delivery models.
Business critical applications are crucial for any enterprise and a minor error or down time can cause unpredictable losses. Hence, the need for running these applications and integrating them with the network seamlessly has fueled the growth for data and network integration services.
The major drivers behind the growth in adoption of IT services are reduced operational costs coupled with improved business productivity. With management of IT in-house becoming more complex, organizations are opting for end-to-end outsourcing services. The verticals that contribute the bulk of revenues in this segment are BFSI, Telecom, Manufacturing and Government. Other verticals like Healthcare, Media and Entertainment are increasingly being looked upon as new avenues for growth.
CMR Infotech Practice Expertise Areas – Software and IT Services
- Domestic Proprietary and OpenSource Software Market
- Cloud Computing (Saas, Paas and Iaas)
- Server, Storage and Apps Virtualization
- Datacenter Market
- Domestic IT Services Market
- Managed IT Services
- Green IT
