Enterprise mobility market to touch $140 billion by 2020
The Enterprise Mobility (EM) market is growing astoundingly in recent times and is opening up newer opportunities for businesses. According to a recent report by Nasscom in association with Deloitte, the EM market opportunity is expected to be $140 billion by 2020, growing at a CAGR of 15 per cent. The existing spend by enterprises on mobility is also expected to grow to 10-12 per cent of the total IT spend by 2020, as compared to less than 5 per cent at present.
The report titled ‘Enterprise Mobility: Building Tomorrow’s Enterprise’ states that factors such as IT consumerization and availability of the abundance of smart devices at affordable prices are the key reasons for the increased adoption of enterprise mobility across industry sectors. The Bring Your Own Device (BYOD) trend will continue to drive the EM market with more and more employees bringing their personal devices to work. Apart from this, more businesses are using mobile solutions for better internal efficiency and customer satisfaction.
The report further highlights that while North America is expected to remain the largest market, APAC would be the fastest growing market by geography growing at a CAGR of 21 per cent. Talking specifically about the Indian market, Som Mittal, President, Nasscom notes that organizations in India are quickly tapping the enterprise mobility opportunity, transforming business process strategies from an enterprise focus to a consumer focus.
The opportunity for service providers in the North American market lies in the development of enterprise application stores as well as BYOD and related solutions. The EU market will continue its demand for development of apps for smart phones and tablets while APAC will offer opportunities in developing vertical specific apps and integration of consumer and business apps.
“With more businesses building innovative solutions around mobility, the enterprise apps market will be highly mature,” says Kasturi Bhattacharjee, Director and Vertical Head – OSS, Ericsson India Global Services. According to her at present, video collaboration and social media are the most prevalent emerging enterprise apps, but the demand for industry-specific apps will increase tremendously in the coming days.
The report reveals that the adoption of EM services will be much higher in industries having a high level of customer transactions, such as the banking, insurance and retail. However, going forward, government, healthcare and media are expected to show significant adoption.
In India, banking, telecom and IT/ITES are the early adopters of enterprise mobility. Going forward every other vertical both in the large enterprise segment as well as in the SMBs will adopt mobility for greater operational efficiency and speed, according to the report.
Mittal specifically emphasized on the SMB segment where he sees a lot of scope for mobile innovation. “In the current ecosystem, smaller players are key contributors to this opportunity area, fuelling growth and innovation,” Mittal says.
According to the report, the industry would move away from the traditional fixed price or subscription-based models towards commercial models based on revenue share, number of transactions undertaken, hybrid usage and output linked and pay-per-use models.
It is also expected that areas such as mobility strategy and consulting, packaged application customization on mobile platforms, testing and security services are other emerging areas in enterprise mobility that will experience a phenomenal growth.
“With the phenomenal growth of EM, it is essential for enterprises to build a long term sustainable mobile strategy to manage areas such as compliance, security and privacy,” says Samit Ray, Director and CIO, PricewaterhouseCoopers.
The rise in EM will also change the role of the CIO or IT leaders going forward, as they are expected to become for agile and responsive to these changes. However, he points out that creating a strong mobile strategy is not necessarily IT’s job alone. It demands organizational transformations at each level of the business if enterprises are looking to drive innovation through mobility.
- How Collaboration Tools Can Boost Enterprise Engagement
- Voice Biometrics To Offer New, Exciting Opportunities To Enterprise
- Creating Smarter Cities With Smart Technologies
- How To Involve Stakeholders In Selecting Enterprise Software
- C-Suite Lessons: How To Secure Enterprise Network
- How Cisco Is Speeding Up Network Innovation
- Five Roadblocks In Enterprise Security Automation
- Putting More Intelligence In Business Intelligence
- Cyber GCCs In India At The Cusp Of Transformation
- Adoption of Social Business Models Growing, Says ISG