ICT spending to cross $36 bn by 2009: Gartner
India's Information and Communication Technology (ICT) spending is growing at a five-year compound annual growth rate of 14.8 per cent, the highest in Asia Pacific to exceed $36 billion by 2009, Gartner a leading IT research firm on Monday said.
By PTI |
MUMBAI: India's Information and Communication Technology (ICT) spending is growing at a five-year compound annual growth rate of 14.8 per cent, the highest in Asia Pacific to exceed $36 billion by 2009, Gartner a leading IT research firm on Monday said.
This increase is backed by rising expectations from businesses for IT to play a larger role in growth, efficiency and competitive advantage, said the advisory firm before its India CIO Summit to be held later this month. The Summit will focus on the strategies and tactics that successful businesses leverage to maximise the effectiveness of their IT organisation in order to deliver growth and results to the business.
According to Terry Waters, global head of Gartner Executive Programs, the world's largest community of chief information officers (CIOs), Business leaders expect IT to support and drive enterprise growth plans. The increase in IT pending is driven by business priorities such as supporting competitive advantage, attracting and growing customer relationships and improving business processes.
Vertical industries like communications, financial segment and services industries are driving the India market, especially with their need for telecommunication equipment and services followed by hardware.
With competition and Indian companies going global, the Indian CIO's role has evolved and their priorities, according to a recent Gartner survey, are similar to those of global CIOs. India's economy continues to experience strong growth, and consumer demand is growing even faster. This increase in demand and the industry expansion raises issues concerning the availability of talent and ramping up of IT adoption by domestic businesses, he said.
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Partha Iyengar, research vice president, Gartner and Chairperson for the Gartner CIO Summit said, as the globalisation of the Indian economy continues, most industries are not only faced with inflated consumer expectations, but also increasing competition both foreign and local.Multinational corporations bring with them the best practices and technologies, which allows them to provide a high level of customer service and offer better products, he said. The Indian CIO would compete with global companies that have a history of leveraging IT to support their business needs. This leads to challenges for the CIO in areas like customer support, capacity planning and integration.
Indian companies are relatively new in IT and therefore, Indian CIOs have years of IT backbone to catch-up on. This is further adding pressure on the CIOs to meet the IT requirements of domestic companies going global. Most Indian IT services companies are primarily focused on outsourcing deals from foreign markets while global IT services companies operating in India focus on large deals from domestic companies.
Finding the right IT vendor to partner with is losing a major challenge for Indian SMBs with most IT players ignoring the local market opportunity, Gartner said.
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