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Gartner moots strategy for 50% IT growth

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CIOL Bureau
New Update

BANGALORE: A set of recommendations pertaining to the strategies to sustain

the 50 per cent growth in the Indian IT industry, was presented by Gartner

analysts at the Gartner Summit 2001 in New Delhi.

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While identifying applications development integration as a core competency,

that accounts for almost 75 per cent of the total IT Services revenues, Gartner

analysts prescribed 'demonstrated capability' in product application development

and business process outsourcing as key imperatives to drive India's IT services

growth engine.

Gartner Dataquest (Asia Pacific) group vice president, Craig Baty said

"It is indeed surprising that while Indian IT&T firms have been

successful in developing indigenous applications to run their own companies,

India is yet to produce a single successful branded product. The challenge for

Indian IT companies is to combine their core competency in the area of

application development with a sustained marketing initiative targeted at both

the domestic and international markets to create additional value."

Sujay Chohan, Head of Research, India, said, "Inevitably high value and

credible brands always emerge on top following an economic downtrend. The

'India' brand has made its mark in the US IT markets as a reliable and credible

source of high quality IT services at significantly attractive costs. This will

continue to stand us in good stead as the US economy improves."

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The strategy recommendations for the Indian IT vendors are:

  1. Use more sophisticated segmentation techniques - focus on psychographic

    not demographic details.
  2. Adjust marketing communications content to the changed economy - Focus on

    tangible benefits in the short term.
  3. Invest in relationships with CEOs and CXOs as this will help translate

    into higher value and greater stability.
  4. Focus on projects with short-term payback.
  5. Extend your market in Europe and Asia Pacific.

Gartner Dataquest (IT Services) Asia Pacific regional director and chief

analyst Rolf Jester said: "Indian IT Services firms selling into the US

market should recognize that the opportunity is significant but buying behavior

has changed. This is because US enterprises are more likely to deal with

providers they are familiar with and those with proven record and vertical

domain expertise in business process outsourcing."

What is imperative for India is the need to build on its existing

infrastructure for call centers and data centers to provide value added services

such as accounting and other business services that are both IT-enabled and also

require English speaking trained personnel, he said.

"In this period of transition in the global IT scenario, the composition

of the Indian IT services revenue is slated to evolve. The markets we serve will

change, as will the end products and services that we offer customers. Indian

companies will need to remain agile so as to make the most of this opportunity

and continue to dominate the global IT professional services market,"

stated country manager (sales), India Partha Iyengar.

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