Indian Economy will Witness Healthy Growth in 2010

by Princy Bhatnagar    Jan 25, 2010

As we start the year 2010, it is important that we relook at 2009; on how had businesses shaped up and what are the key takeaways. 2009 has been a year of major changes in the IT landscape. It has re-defined how business will happen in the years to come. Most of the changes are permanent and good for the health of business, customers and channel partners.

The shift of Indian IT growth from equipment to services was expected to drive momentum in 2012 onwards. This cycle has come forward to 2009 and in that sense it has been a landmark year. Finally corporate India is warming up to Green technologies for business competitiveness and cost efficiency and we have seen significant steps towards this primarily driven by cost reduction needs in all segment of companies. Vendors who have enabled genuine cost efficiency solutions to customers have gained momentum in the market.

Economic Outlook
Indian Economy will witness healthy growth trajectory in 2010 and there is no doubt that Indian economy will grow faster than most other economies. There are clear factors that will drive the GDP in India. The inclusion of the next 70Mn (the first wave 2003-2008 benefited the first 70mn people) through better rural governance and development schemes by the government will be instrumental in driving new demand.

Market Outlook
IT market will see the biggest swing in Domestic services contracts. Turnkey projects and services will drive the growth in both Government and Private enterprise. The bottom of the pyramid of all IT hardware sales (PC, Laptops, printers, MFP, OS, peripherals) will continue to be stagnant at best or might even decline 5-10 percent. IT distribution will be strengthened by the role of Telecom products, Security solutions and digital consumer products.

Overall the revenue stream will grow 8-10 percent for the IT industry but with a much higher mix of Domestic services revenue. Services revenue will grow by over 50 percent and will account for majority of the growth in 2010. Customers are clearly going to make buying decision on three key criteria: TCO, Business efficiency, Green technologies. This means that the hardware specification in itself will become less relevant in all purchase decisions.

Key trends in technologies in 2010
Green Technologies with better cost efficiency and less of carbon deposits will rule the roost in 2010. More and more companies and customers are looking ahead towards products that consume less power and are easy to recycle at end of life. This not only adds on to their productivity but also builds on their responsibility towards the environment and sustainability. Security solutions are also likely to create a buzz in 2010 and are the single biggest opportunity in the market today.

India will invest heavily both on the consumer and commercial side to build an online/Digital security solution. Business Efficiency Solutions and Asset & Infrastructure consolidation will make business more competitive and would be other important areas for businesses to thrive in 2010.

Key trends in IT channels in 2010
We at Xerox India have always shared a great rapport and relationship with our partners. The growth has been mutual; we have grown and expanded in India and have helped them grow in their businesses. However in this process there has been one key element that has been consistent- Solutions delivered to customers need at all times.

The only way partners have grown is by meeting customers and solving their business critical problems and in this process redefines the boundaries of what they will do or not do for their customers. We expect 98 percent of our revenues to come through partner in 2010.