Indian IT predictions for 2011

January 4th, 2011 by Rahul Jain Leave a reply »

The $60 billion plus Indian information technology (IT) and business process outsourcing(BPO) industry after a fairly good growth in 2010 is likely to witness a phase of consolidation in 2011. As IT requirements change rapidly due to an increasingly complex threat landscape and new usage models, including clouds and numerous Consumer Electronics devices connecting to the Internet, security will remain one of the highest priorities for the IT industry.

The ISA-Frost and Sullivan report 2010-11 estimates that the total market revenues generated in the Indian semiconductor market were $5.39 billion and it is expected to reach $8.04 billion in 2011. The segments that will continue to govern the growth of the industry will be consumer, computing and communications.

“The rapid penetration of mobile telephony and wireless has played an influential role in the growth of the Indian semiconductor industry. These sectors are mutually beneficial and growth in one sector drives growth in the other,” said Jaswinder Ahuja Corporate Vice President and Managing Director Cadence Design Systems.

The increase in the demand for 3G consumer technology has resulted in an accelerated growth of the industry. In the coming two years, the growth is expected to be fuelled by the increased consumption of electronic gadgets like wireless handsets, gaming devices, 3G networks, WiMax, netbooks, set-top-boxes and smart cards.

“Globally, Cisco is leading the transition to a network-centric technology environment. We believe that the network is ideal for creating a powerful communications platform that will serve as the basis for the convergence of data, voice, video and mobile systems on a secure, integrated architecture. The key technology areas of focus for us include: video, Borderless Network, collaboration and virtualization,” said Naresh Wadhwa, President and Country Manager, India and SAARC, Cisco.

When it comes to security part, hacking activities will continue to innovate and evolve to take advantage of loopholes within applications, infrastructures, or even taking advantage of users’ ignorance. There is a need for organizations to continue their employee awareness vigilance and to evolve their security capability to ensure that they can very quickly respond to such malicious activities.

“In 2011 we must defend against the potentially catastrophic danger of Advanced Persistent Threats perpetrated by non-state actors and terrorists. By manipulating control systems in critical infrastructure facilities, Stuxnet was the first Trojan to cross the chasm from the digital realm into the physical world. Stuxnet foreshadows what the future of cyber warfare or terrorism might hold and is the reason that next generation infrastructure initiatives like smart grid must have security embedded,” said Kartik Shahani, Country Manager – India & SAARC, RSA.




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  2. Smithadam220 says:

    THE ITES sector has matured considerably with its expansion into varied verticals, well differentiated service offerings and increasing geographic penetration. India’s importance among emerging economies, both as a supply and demand centre is fuelling further growth of the sector. The IT / ITES industry continues to be one of the fastest growing industries in India, while India maintains its position as a strategic off-shoring destination for MNCs worldwide.

    Key growth drivers of Indian ITES-BPO exports:

    Abundant talent- India’s young demographic profile is an inherent advantage complemented by an academic infrastructure that generates a large pool of English speaking talent. Talent suitability concerns are being addressed through a combination of government, academia and industry led initiatives. These initiatives include national roll out of skill, setting up finishing schools to supplement graduate education with training in specific technology areas and soft skills and memorandums of understanding (MoUs) with education agencies to facilitate industry inputs on curriculum and teaching and develop faculty development programme.

    Sustained cost competitiveness- India has a strong track record of delivering a significant cost advantage, with outsourcing organisations regularly reporting savings of 25-50 per cent over the original cost base. The ability to achieve such high levels of cost advantage by sourcing services from India is driven primarily by the ability to access highly skilled talent at significantly lower wage costs and the resultant productivity gains derived from having a very competent employee base. This is further complemented by relative advantages in other elements of the cost structure (eg telecom) that contribute to India’s cost competitiveness – even when compared to other low-cost destinations.

    Continued focus on quality- Demonstrated process quality and expertise in service delivery has been a key factor driving India’s sustained leadership in global service delivery. Since the inception of the industry in India, players within the country have been focusing on quality initiatives, to align themselves with international standards. Over the years, the industry has built robust processes and procedures to offer world class IT software and technology related services.

    World class information security environment- Stakeholders of the Indian BPO companies recognise security as an indispensable element of global service delivery. Individual firm level efforts are complemented by a comprehensive policy framework established by the Indian authorities, which has built a strong foundation for an ‘info-secure’ environment in the country.
    Business infrastructure- Rapid growth in key business infrastructure has ensured unhindered growth and expansion of this sector. The BPO sector has been a key beneficiary with the cost of international connectivity declining rapidly and service level improving significantly. The growth is taking place not only in existing urban centres but increasingly in satellite towns and smaller cities as well. Critical business infrastructure such as telecom and commercial real estate is well in place, improving other supporting infrastructure a key priority for the government. STPI (software technology parks of India) infrastructure available across the country and magnitude of investments shows government support to the industry.

    Enabling Business policy and Regulatory environment- The enabling policy environment in India was instrumental in catalysing the early phases of growth in this sector. Policy makers in India have laid special emphasis on encouraging foreign participation in most sectors of the economy, recognising its importance not only as a source of financial capital but also as a facilitator of knowledge and technology transfer.

    The Indian ITES-BPO sector has benefited from this approach, with participating firms enjoying minimal regulatory and policy restrictions along with a broad range of fiscal and procedural incentives. Outsourcing brings substantial benefits to the global economy, and the lion’s share will likely go to the US economy.

    Businesses can dramatically reduce costs and improve their competitive position and the economy can generate more output. As a result, outsourcing is likely to increase in volume by 30 to 40 per cent over the next five years. This will mean a loss of some 200,000 jobs a year in services over the next decade. Rather than shrink from this, the US policy and businesses need to reinforce the flexibility of the economy and soften the impact to those workers, who are likely to be affected by outsourcing. Given the large surplus generated from outsourcing activities, doing so is highly feasible. By doing so, they will help ensure their own competitive interests and America’s and will create a win-win situation for the global economy.

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