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Indian business scenario set for more outsourcing

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CIOL Bureau
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BANGALORE: Key industries are increasing their IT spending by 30% and 85% as they want to outsource non-core functions; majority of companies are looking for allocating budgets towards web services; IT infrastructure and IT outsourcing; ICT maturity is above 70% across Indian industries: These are few of the outcomes of the recently concluded Business Technology Forum, C Change, in Cairo.

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Technology heads of over 100 companies from the Banking & Financial Sector, Pharmaceuticals, Manufacturing, Information & Technology verticals participated in this CTO forum. The discussions were aimed at finding solutions on issues facing CEO's and businesses on the need for greater synergy between business drivers and technology enablers. The main concern facing any business or top management is - How to accelerate Return on Investment? How to achieve business profits by smarter, intelligent and efficient technology deployment?

IT focus is more on core banking which estimates to be 55% of the total IT spend by BFSI. Twenty-five percent would be on CRM/database management and 20% for security, storage and networking. Seventy-five percent in this industry would outsource IT where 60% will be on enterprise application, 25% on networking/maintenance/support systems and 15% on mobile/highendID/BI. Whereas in manufacturing industry the IT spend is more on web services and Internet that constitutes to 45%. Twenty-five percent on ERP, 10% on CRM/Security and 20% on DB/Sales/RFID and storage.

The total IT outsourcing in this industry will be 70% where 55% will outsource on networking/infrastructure, 30% on enterprise application/security and 15% on support/hardware maintenance/DB. Pharma industry has IT spend of 65% on ERP, 25% on Sales force management and 10% on Network/storage/security. 80% are going to outsource IT in this industry where 50% would be on maintenance, 25% on enterprise application, 20% on networking and 5% on sales force.

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CIOL conceptualized C Change in 2003 as an annual event to bring together CIOs on a single platform to learn, share and network with peers and industry, and become catalysts of change in their organizations. The endeavor of C Change is to enable CIOs to grasp the nuances of business and look at the big picture to help them achieve the twin goals of growth and profit.

Businesses are now focusing a greater share of their IT investment on leveraging emerging technologies to create competitive advantage. And fittingly, CIOs have bet on new technologies to drive innovation, both in the creation and delivery of products and services, to reach a global market place. Hence the theme, Leading Through Technology Driven Innovation was successful to enable CIOs drive innovation in their companies," said E Abraham Mathew, president, CIOL

The companies that participated in C Change were Apollo Tyres Ltd., Bank of Maharashtra, Britannia Industries Limited, Cholamandalam Investment and Finance Company Ltd, Colgate-Palmolive India Ltd, Elder Pharmaceuticals Ltd, Federal Bank, Glenmark Pharma, Finolex Cables Ltd. Gillette India, HDFC Ltd., IDBI Bank Ltd., Indian Overseas Bank, Gujarat Ambuja Cements Ltd, Maruti Udyog Ltd, Pfizer Ltd, State Bank of India, Securities and Exchange board of India (SEBI), Tata Motors Ltd. Torrent Pharmaceuticals Ltd., Sundaram Clayton, Union Bank of India, Vimta Labs, YES Bank to name a few .

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