Are enterprises clamping on their IT budgets

BANGALORE, INDIA: Will IT spend be casualty in wake of global recession and weakening dollar? Are CIO’s cutting down on their IT budgets for the current fiscal?  Do enterprise consider spending money on latest IT implementations as a burden on expenditure or an investment that is mandatory for any enterprise?

A CIOL CIO round table gives us an insight to thinking of some of the top Indian CIO’s.

Will IT spend be casualty in wake of global recession and weakening dollar? Are CIO’s cutting down on their IT budgets for the current fiscal?  Do enterprise consider spending money on latest IT implementations as a burden on expenditure or an investment that is mandatory for any enterprise?

A CIOL CIO round table gives us an insight to thinking of some of the top Indian CIO’s.

The discussion also looks into IT and business challenges that CIO’s foresee in near future and also shares CIO’s worries about convincing the top management to outlay budgets for security investments

The talk also gives pointers to vendors as to what new products and solutions the CIO’s expect vendors to roll out during the next fiscal and also the significance of people in the stack of CIO's challenges also discussed

Excerpts

Part 1

Amount of the Budget have you set aside for IT in 2008?

"We are not constrained with regards to budget. The mandate for me is clear. Prioritize IT deployment for the effective business use and maximize profitability,'' says Jawed Khan, Head IT, Allana Group.

"A sum of Rs 20 crores,'' says Rajat Sharma, Shree Cements

"As our investments are on need based,  budget allocation is  secondary, though we do plan for it," says Mohan HR,  AVP- Systems of The Hindu

"The budgeting process is underway for coming financial year. But roughly about Rs 18 crore would be estimated for various IT related expenses," Pradip Lele, VP-IT(CIO) of SKNL

"Amount of about Rs 15 crores," says Ramesh Wahi,  Gr.CIO, HOPFL       

"Depends on the business solution we opt for. ..," says Sudesh Agarwal, VP-IT, Lifestyle International Pvt. Ltd.

"Confidential," says Nikhil Gujar, SGM I.T., Mafatlal Industries Limited

"About Rs 250 million," Virendra Kumar Bansal, Chief Of IT, Jubilant Organosys

Part 2

Is spending money on latest IT implementations a burden on your expenditure or an Investment mandatory for your enterprise?

Of course the IT investment for maximizing bottom line for our enterprise is an investment not a burden.

It is off course investment and mandatory for our organization. 

Jawed Khan, Head IT, Allana Group

I feel that it is mandatory

Rajat Sharma, Shree Cements

Expenditure on IT is considered as an Investment for meeting the changing demands

Mohan HR         AVP- Systems    The Hindu

Spending on latest technology is generally done after properly weighing out cost benefit to the company. Hence these expenditures become sort of mandatory.

Pradip Lele        VP-IT(CIO)        SKNL

Honestly a necessary evil.

Ramesh Wahi,  Gr.CIO, HOPFL       

We’re global company and continuous growing in retail in India. As to catch up the organization growth investment need to made, this is mandate not the burden.

Sudesh Agarwal, VP-IT, Lifestyle International Pvt. Ltd.

In manufacturing enterprise like ours IT so far has been a productivity improvement tool leading to reduction of costs. Spending money with ROI is an investment.

Nikhil Gujar, SGM I.T., Mafatlal Industries Limited

Definetly is an investment

Virendra Kumar Bansal, Chief Of IT, Jubilant Organosys



Part 3

Part of IT implementations that plays a more prominent role: Software or hardware or networking.

Ideally speaking both areas are equally important.  If I talk about my enterprise IT Infrastructure, software, hardware and networking equally play a vital role.  To run any IT application, we need to have solid infra backbone with backup and redundancy.  However application part is not necessarily needed to be developed, but can be procured in form of an ERP application.

Jawed Khan HEAD IT Allana Group

All the three components are on equal weight age, as far as any IT implementation is concerned.

Rajat Sharma GM IT Shree Cement

With the networked & distributed environment, equal importance to be given for all.

Mohan HR         AVP - Systems    The Hindu

The Software and Hardware plays more prominent currently as Legacy systems are major part of solutions currently. Going forward networking would be equally crucial after Implementing ERP systems.

Pradip Lele        VP-IT(CIO)        SKNL   

Software. Software is the soul and hardware is the body.

Ramesh Wahi        Gr.CIO            HOPFL       

IT implementation is incomplete without any of these three. All three goes hand to hand. We can only assign them in correct order of Networking, Hardware & Software. As Networking is backbone/ foundation of any system, it must be strong.

Sudesh Agarwal, VP-IT, Lifestyle International Pvt. Ltd.

The question is irrelevant and is like asking that in a child's future who plays an important part the mother of the father.The answer is all play an important part

Nikhil Gujar        SGM I.T.        Mafatlal Industries Limited

Software

Virendra Kumar Bansal    Chief Of IT        Jubilant Organosys

Part 44

Specific areas where IT has come up as an accomplishment in your stint as a CIO?

Building our own data center of 1000 sq. feet areas in South Mumbai. Successfully accomplished implementation of Blackberry instant messaging system such as SMS, MMS, VMS and email system.

Jawed Khan HEAD IT Allana Group

The Business area expansion in terms of new Cement Production lines as well as "new brand launches" has been a resultant of the IT implementation in our enterprise. The same could've not been envisioned in absence of the IT infra & application software.

Rajat Sharma GM IT Shree Cement

Going onto to Web

Mohan HR         AVP - Systems    The Hindu

Starting SAP Implementation with three footprints textile, apparel and retail simultaneously.

Pradip Lele        VP-IT(CIO)        SKNL   

Introduction of Video Conferencing and VOIP has made life very comfortable and has saved cost in a big way.We are in the midst of SAP implementation, it can only be an accomplishment after the roll out.

Ramesh Wahi        Gr.CIO            HOPFL       

There is couple of examples but the major is mobile commerce, which help sales force to know stock/reserve stock through SMS, which drastically reduced the work load on back office staff. Another one is automate few internal processes, which lead to cut the time for reports with accurate data.

Sudesh Agarwal, VP-IT, Lifestyle International Pvt. Ltd.

In 1984-85, we implemented Materials Management system where for the company materials constituted 80% of the cost of finished product. When the system was done we saved 6 millions over one year period on increased turnover of 20%.

Nikhil Gujar        SGM I.T.        Mafatlal Industries Limited

Software

Virendra Kumar Bansal    Chief Of IT        Jubilant Organosys

Strategic IT implementations that you have  undertaken over the last year?

Implementation of Oracle Apps e-Business Suite 11i to provide a business + IT application blueprint for the enterprise.

Rajat Sharma GM IT Shree Cement

Last year, implementation of Oracle Apps in one of the leading organization overseas in given time frame. Enterprise IT Services established in a large organization.

Sudesh Agarwal, VP-IT, Lifestyle International Pvt. Ltd.

The question is irrelevant and is like asking that in a child's future who plays an important part the mother of the father.The answer is all play an important part

Nikhil Gujar        SGM I.T.        Mafatlal Industries Limited

Software

Virendra Kumar Bansal    Chief Of IT        Jubilant Organosys