Market expansion and globalisation advisory firm, Zinnov has released a study titled, ?Quarterly IT Deal Tracker for India Market.?
The study provides aggregated insights on IT deals in India between the first quarter of 2011 to the third quarter of 2012. The study tracked 500 IT deals in the enterprise and the small and medium business (SMB) segment.
IT Deal Tracker focuses on the key trends which have shaped the domestic IT spending across industry verticals like manufacturing, banking, financial services and insurance (BFSI), government, telecom, IT- ITeS, education, retail, travel and logistics and energy and utilities.
The key findings of the Quarterly IT Deal Tracker for the Indian market are:
? Manufacturing, BFSI, government, IT-ITeS and education are the top five verticals accounting for 80 per cent of the total IT deals between the first quarter of 2011 and the third quarter of 2012. Verticals such as retail, travel and logistics, and energy witnessed rapid growth, while telecom companies continued to invest into outsourcing.
? Indian customers increased their focus on IT solution purchase as 44 per cent of all the deals during the period under consideration were structured as software and solutions deals. Out of the total deals, services deals were pegged at 44 per cent while hardware specific deals stood at 12 per cent.
? Accounting for 31 per cent of deals, SMB market is evolving in the country from an IT consumption standpoint. About 50 per cent of all SMB deals were structured as solution deals.
? Unlike the hype surrounding modern IT solutions including cloud, big data, social and mobility, the adoption of these services/technologies is slow in the country. However, the uptake of these services/technologies is improving slowly. While cloud and managed services deals witnessed traction, other areas of IT registered a slow response over the last seven quarters.
? Foreign multinationals dominated the IT deals market in the last seven quarters. Oracle, SAP, IBM and Microsoft featured as top principal vendors with 33 per cent share in all enterprise deals and 36 per cent share in all SMB deals.
? IT services deals were largely driven by systems integration, infrastructure management and managed services as new requirements in verticals like BFSI, telecom, energy/utilities continued to emerge.
Commenting on the findings, Praveen Bhadada, director, market expansion, Zinnov, says, ?With 30 per cent growth in the number of IT deals every year, India has become a key market 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. And this 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 a lot of companies design new IT solutions and validate fitment of existing solutions for India market?
He adds, ?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 emerging as a big market for the testing hub 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 moving towards rapid IT consumption.?
The study further discovered following trends in deals across industries:
Manufacturing: Enterprise resource planning (ERP), customer relationship management (CRM) and supply chain management (SCM) related deals accounted for 39 per cent of all solutions deals in manufacturing. SMBs accounted for 38 per cent of all deals which was higher than the industry average of 31 per cent. SAP, Microsoft and IBM demonstrated leadership in the space with 49 per cent of deal share among foreign multi national companies (MNCs).
BFSI: BFSI deals were largely driven by banking solutions enhancements across the board. Modern IT deals formed a significant share in the BFSI segment, and accounted for 44 per cent of the total deals witnessed by the industry. Cloud and managed services accounted for 35 per cent of all deals in BFSI. IBM, Oracle and VMware demonstrated leadership in this space with nearly 30 per cent share among foreign MNCs
Government: IT adoption push in the government is currently driven through large ministries and government bodies, which contribute to around 87 per cent of all deals. Managed services in data center setup, large government projects led by Unique Identification Authority of India etc. dominated modern IT consumption. Hardware firms such as Acer and Lenovo were key vendors in the government departments, while Oracle and IBM had a larger share of IT infrastructure deals in this space.
IT-ITeS: IT/ITeS was another key vertical for modern IT consumption, with 46 per cent of all deals being modern IT deals. Majority of new applications and solutions adopted by IT/ITeS have been on the cloud with CRM, e-Mail solution being the fast movers. contact center solutions, CRM/ ERP, human resource (HR) and testing solutions were some of the other fast moving categories. Microsoft and Oracle emerged as key leaders in the IT-ITeS industry with a share of 54 per cent in the total deals carried out by MNCs.
Education: Both the K-12 Education sector as well as higher education, witnessed a good number of deals. While school management/e-classroom solutions were the most prevalent deals in the K-12 sector, cloud offerings saw traction in the higher education segment. Microsoft, Oracle and Educomp emerged as clear leaders in the education space controlling more than two-third of all the deals.
Retail: Modern IT was key IT consumption area for retail firms, constituting almost 45 per cent of all retail deals. Cloud-based customer experience solutions emerged as the key theme of investments. HR solutions, business process management and ERP/CRM were the other popular solution categories in retail. Oracle, Microsoft and Kronos emerged as key leaders in this space.
Energy and utilities: A large share of all solution deals was focused on ERP/CRM/SCM related solutions. Interestingly, business analytics also was a popular solution segment in this vertical. SAP, IBM and Dassault Systems emerged as key MNC players, while Newgen featured as the key Indian independent software vendor in this space.
Travel and logistics: Significant thrust was observed from midsized logistics firms for business management solutions such as ERP/CRM and also niche logistics and freight management software. On the infrastructure side, ports and airports also modernised IT systems in security, business process streamlining and customer handling. Softlink Global along with SAP and IBM emerged as key leaders in this space.
