SMB market evolving with high tech consumption

NEW DELHI, INDIA: IT-ITes and BFSI are among the toop five verticals that have accounted for 80 pc of the total IT deals in India between Q12011 to Q32012. With 31 pc of all deals, SMB market is starting to evolve in India from an IT consumption standpoint. Nearly 50 pc of all SMB deals were also structured as solution deals.

Releasing the Quarterly IT Deal Tracker for India Market, Zinnov, a leading Market Expansion and Globalization Advisory firm, said the tracker captured 500 IT deals in the enterprise and SMB segment and highlighted key trends which have shaped the domestic IT spending across industry verticals like Manufacturing, BFSI, Government, Telecom, IT- ITeS, Education, Retail, Travel & Logistics and Energy & Utilities.

Speaking about the findings, Praveen Bhadada, Director-Market Expansion, Zinnov, said, "With 30 pc growth in the number of IT deals every year, India has become a key market of focus for most of the IT companies worldwide. India currently has over 3,500 public listed companies, and about 10 million SMBs which can potentially consume technology which is a very big opportunity to tap into. Accordingly, IT companies are now focusing on account mining for large enterprises and channel restructuring for better penetration in the SMB space. The next few quarters will witness lot of companies design new IT solutions and validate fitment of existing solutions for India market"

Manufacturing, BFSI, Government, IT-ITeS and Education featured as top 5 verticals accounting for 80 pc of the total IT deals. Verticals such as retail, travel & logistics and Energy saw rapid growth, while telecom companies continued to invest into total outsourcing

Indian customers increased their focus on IT solution purchase as 44 pc of all deals during this period were structured as software & solutions deals. Services deals accounted for 44% of share, whereas Hardware specific deals accounted for a small 12 pc share in the total number of deals

Unlike the hype created on modern IT solutions including cloud, big data, social and mobility, the adoption is only slowly improving in the country. While cloud & managed services deals saw some traction, other forms of modern IT saw a slow response in the last 7 quarters

Foreign multinationals dominated the IT deals market in the last 7 quarters. Oracle, SAP, IBM and Microsoft featured as top principal vendors with 33 pc share in all enterprise deals and 36% share in all SMB deals

IT services deals were largely driven by systems integration, infrastructure management and managed services as new use cases in verticals like BFSI, telecom, energy/utilities continued to emerge

"Modern IT and in particular cloud, big data and mobility is increasingly gaining traction with Indian customers. Newer verticals such as travel, retail, and education are also waking up to the potential of technology to transform their business. India is also becoming the test bed for other emerging markets that many of these IT companies are looking to penetrate. The ecosystem is now coming together and indeed India is at an inflection point towards rapid IT consumption," he added.