Start-ups Emerge As Key Partners for Established Firms: IDC

by CXOtoday News Desk    Jan 30, 2017

startup

Startups have captured half of the market when digital transformation projects are outsourced. Information technology industry is entering the most critical period yet it is in the 3rd Platform era- the “Innovation Stage,” defined by an explosion of innovation and value creation which is above the 3rd Platform’s foundation, according to an IDC study.

“The most striking aspect of the study was the preponderance of digital technologies relative to previous years. 50 percent of projects were executed using third platform technology. It is therefore not surprising that we also saw the emergence of start-ups as key partners for established companies. When projects were outsourced, startups were chosen at least 50 percent of the time as preferred partners.” according to Jaideep Mehta, Managing Director – India and South Asia, IDC.

“Equally, defying conventional wisdom, it is noteworthy that established players also played a big role in helping customers drive disruptive projects.”

The innovation stage will be driven by a new wave of core technologies consisting innovation accelerators that radically extend the 3rd Platform’s capabilities and applications.

In a span of a few decades, information technology (IT) has embedded itself into nearly every aspect of business and personal lives, significantly fuelled by 3rd Platform technologies namely mobile, social business, cloud, and big data and analytics (BDA).

The study observed an 11 percent increase in cloud deployment cases from the previous year, in addition, the pervasion of mobile technologies increased, with a further 3 percent jump. 

“IDC believes that companies that recognize the real impact of going digital will gain real advantages of being future ready,” said, Shalil Gupta, Associate Vice President – Insights and Consulting, IDC.

In corresponding measure, IDC observed a decline in Traditional IT deployment from the previous year by almost 6 percent, reflecting the fact that organizations are travelling the Digital Transformation journey in good measure.

The research process covers a significant percentage of the large and very large enterprises in the country, and provides a comprehensive view of digital transformation “on the ground”.

There was participation from large and mid-size enterprises across verticals such as Manufacturing & Logistics, BFSI, Health & Lifesciences, Conglomerate, Energy, Telecom, Media & Technology and Retail. 

Tags: Retail, BFSI, IDC, Cloud