Published On: Wed, Mar 12th, 2014

2014 will stand testimony to pockets of technology investment

IDCNEW DELHI: The Indian economy is wading through challenging waters thanks to high inflation and a slow growth. These fiscal trends coupled with the upcoming national elections has certainly added to create a temporary slow-down of the broader economy.

Notwithstanding these dares as regards the government segment, the broader market in India has shown resilience and has stabilized when compared to tumultuous phases in 2012 and 1H 2013. Companies have been spending (albeit with caution) on upgrading their IT and communications (ICT) infrastructure in order to afford stronger value to the business.

Quite a lot of organizations are using the tight budgets to review and reconsider the areas of investment and the modes of engagement with their technology vendors and partners.

Jaideep Mehta, VP and country GM, IDC India alleged that- “2014 will finally see the India IT eco-system begin a serious transition to the third platform technologies of cloud and mobility, and to a lesser extent big data, and social. IDC predicts the influx of cloud and enterprise mobility technologies along with the associated changes in architecture and IT management processes.”

Supplementing that – “From a vendor perspective, it will continue to be a challenging environment as the general elections put a stop to government procurement, and the enterprise sectors remain cautious in their spending.”

Founded on these broad tendencies and the ongoing interaction with the market, IDC has identified the top 10 predictions for Indian ICT marketplace which reads in the order as, viz-

Integrated solutions – Solutions (ranging from applications to silicon) will start becoming an integral part of discussions and strategy of all key hardware vendors, initial implementations and case studies will go on to define the value proposition.

Automation – The automation of hardware management will endure to torque differentiation between hardware vendors. This will from its quarter facilitate true ROI discussions.

Mobility – Snowballing business process enabling and vertical aligned applications will drive the mobility wave.

Cloud - Espousal of cloud services will witness a new life and greater momentum in the context of application/feature upgrade and application modernization. The influence of the business managers can be expected both in the selection of the solution and to ensure impending alignment en route for business.

Security- With wider group effort outside the enterprise, secure sharing of information and being prepared for susceptibilities will gain more attention.

Smarter channel partners – OEMs and channel partners will get “Smart” to be able to supplement shrinking IT hardware revenue.

Blurring of Lines Lines that are sandwiched between SIs, VARs and ISVs partner types will get progressively blurred as these enterprises try to expand their value proposition.

Modernization – As increasing focus of business managers falls on applications (to torque efficiency, and industry specific compliance) there will be resilient but selective investments in application modernization.

Repeatable Solutions – Many of the large services vendors that have customarily focused on the very large (1000+ employee) segment will instead start building repeatable solutions for mid-size companies.

Sourcing - Smaller services partners and/or smaller services engagement will drive the mindset of organizational sourcing strategies as many services contract come-up for renewals.

Granting the fact that fiscal 2014 will be a challenging year; there will be pockets of investments across multiple industry segments. These segments/pockets can be principally defined by the maturity of the organization and willingness to strategically embed IT in the business processes. Time invested to identify these segments and the dynamics associated with each of the segments will go on to ensure success on behalf of technology vendors and service providers.

About the Author

Jawed Akhtar

- A Journalist by interest and a Music Enthusiast by passion. Wedded to Mother Nature, Jawed indulges his aesthetics in travelling and reading books of varied genres. Having covered News stories for top Dailies in his formative years, that is, he is game for tryst with Technology at Techmagnifier.

2014 will stand testimony to pockets of technology investment