Indian CIOs to invest 20% more in IT in FY2013-14
In FY 2012-13, global economic turbulence such as the US bond rating and European economic instability caused several enterprise IT leaders to reduce their IT spending. The negative global trends also impacted the Indian CIOs, with many of them compelled to operate on limited budget. The coming fiscal, FY 2013-14 looks a lot brighter for Indian CIOs who are looking to invest 20 percent more in IT from the previous year, reveals a recent Zinnov study.
The market advisory firm in its latest report “IT priorities of Indian CIOs for FY2013-14” highlights that verticals such as retail, healthcare, manufacturing and telecommunication will drive the IT budget growth this year.
The study notes that business analytical tools including big data, virtualization and cloud, mobility, application software and solutions and consolidation of legacy investments and process excellence, would take on priority in FY2013-14. It finds out that business intelligence and big data is of highest priority for over 60 percent CIOs while virtualization and cloud computing excites over 50 percent of the Indian CIOs, especially in verticals such as manufacturing, energy and utility, media and marketing.
CIOs also show increased preference towards virtualization and cloud - both private & public based on criticality of use case coupled with enterprise mobility, where over half of the respondents consider mobility indispensable and find it very relevant for customer facing roles and consumer applications.
Another area that is becoming a preferred choice for CIOs is application software, especially expanding ERP capabilities is high on most CIO agenda, followed by CRM and SCM in the next one year. CIOs are also planning on integration of existing enterprise application software, ERP solutions, and BI tools to derive business benefits from legacy IT investments.
In terms of industry verticals, manufacturing sector is expected to witness a rise of 29 percent in absolute IT budget for 2013- 14, followed by Telecom and Retail with an approximate increase of 26 percent and 18 percent respectively.
“With US$30 Billion already in IT investments in India, this is a very positive sentiment coming out from Indian IT decision makers. The last two years have been specifically tough for the domestic IT market and IT vendors would now be eagerly looking for a promising FY2013-14,” says Praveen Bhadada, Director-Market Expansion, Zinnov.
He believes that India is now starting to gain strategic importance as a market for IT solutions globally and we believe that IT vendors would be able to do better business in the country with the macro-economic environment slowly improving as well.
The study also reflects that IT outsourcing by Indian CIOs’ is on the rise as 59 percent of IT staff is outsourced to third party service providers currently. This phenomenon is increasing the demand penetration of third party system integrators. On the other hand, CIOs are embracing modern IT with two-third of the surveyed enterprises showing preference towards investing in some form of modern IT solutions including cloud, big data and mobility.
- Ten Trends Redefining Enterprise IT In 2018
- 5 Ways AI Can live Up To Its Promise In 2018
- 70% Indian Firms To Deploy AI By 2020: Intel
- Why Cloud Adopters Need Visibility Into Their Network
- Enterprise Networks: Things To Focus On In 2018
- What Makes Samsung Bullish On India Market?
- WB To Announce New IT Policy To Woo Investors: CM
- How CIOs Can Ensure A Seat At The Strategy Table
- CIO's Five-Point RPA Planning Success Formula
- Uber Data Breach: Accountability, Corporate Ethics In Question