Manufacturing, telecom, retail to set next phase

BANGALORE, INDIA:  Zinnov Management Consulting, a management consulting firm, released the findings of a study on the next phase of growth for the Indian IT industry and brought to light that industry verticals like manufacturing, telecom and retail would bring in that subsequent growth in years to come.

The report highlighted that Indian IT industry had been growing at a healthy rate of thirty four percent year-on-year and hence considering this precedence, a reasonable growth of about 16 to17 percent during the current tough times shouldn't be a surprise.  

Chandramouli, Director-Advisory Services, Zinnov Management Consulting Pvt. Ltd., said: “Due to our strong fundamentals and as a derivative of the value we add to our global customers, the Indian industry will continue to grow in spite of the global slowdown. Businesses across the world will strive to reduce burn rate and manage cash flow effectively. Also cost of onsite contractors have been reduced drastically in the last 2-3 quarters, which helps offshoring in general and in times like these it’s imperative for companies due to varied reasons."

The study, very strongly said that deriving maximum value per dollar spend, is only possible by having an executable globalization strategy as part of the overall growth trajectory for global players. This aspect is what would drive the growth of IT offshoring and in-turn boost the economy. And steps like cost optimization, contract re-negotiation, productivity improvement and rapid transitioning of projects are already being adopted by clients in the wake of the current economic downturn. 

Enterprises would continue to spend on technology (Hardware and Software) which are essentials to scale and sustain the core business. In addition to this, technologies such as virtualization and low energy computing will be the spend areas.  Also software-as-a-service (SaaS) will gain traction in the market and areas like virtualization, green technology, mobile computing, netbooks, cloud computing would be high growth areas in next few years.

It additionally, said that times were indeed good for Indian service providers to move up the value chain and align themselves with goals of their global clients. This is the time for internal changes and service delivery innovations, which would enable Indian companies to replace the top league of IT services companies and become true value partners to clients.

The Indian domestic market was at the brink of a major explosion and it’s important for service providers today to get their act right.  The vast SMB opportunity (over 35 million SMBs) in Indian market is a mammoth market which cannot be ignored at any given point and time, highlights the study. 

Additionally, the current Indian market was also very strategic to many companies and if Indian service providers were able to demonstrate quality at a lower price, then it would truly set a trend to tap other emerging markets world over.