This report presents the findings from a survey of 165 Indian enterprises regarding their Information & Communication Technology (ICT) budgets and staff allocation. The survey investigates how Indian enterprises currently allocate their ICT budgets across the core areas of enterprise ICT spend, namely hardware, software, IT services, communications and consulting.
Introduction and Landscape
Why was the report written? In order to provide a depth of insight into ICT vendors’ and service providers’ potential customers
What is the current market landscape and what is changing? Enterprises are increasingly looking to IT to support different challenges in their business operations. Demand for emerging technologies such as cloud computing, virtualization, and mobility for enhanced operational efficiency are on the rise.
What are the key drivers behind recent market changes? Growing mobile subscriber base, as well as high smartphone penetration and usage of the mobile internet is driving the demand for enterprise mobility, whereas demand for cloud computing is fuelled by factors like cost reduction and ease of maintenance .
What makes this report unique and essential to read? Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their IT Budgets. Very few IT analyst houses will have interviewed 160+ ICT decision makers in India market in H2 2012.
Key Features and Benefits
Understand how ICT budgets are set to change in 2013 in terms of their overall size.
Appreciate how IT budgets are allocated across the core elements of IT spend, including hardware, software, services, communications and consulting.
Learn how IT Rupees are being spent in areas such as the data centre, applications, IT management and the network.
Establish how IT staff are typically allocated within Indian organizations.
Gain insight into with whom Indian enterprises plan to spend their ICT Rupees.
Key Market Issues
An overall moderate growth in IT budgets is expected in 2012-13. Businesses are likely to remain cautious, but this is hardly going to have any negative impact on IT investments.
Investment in data centres and network integration & management remained the primary area of focus for IT spending among Indian enterprises, which reveals the importance that enterprises place on supporting their core IT systems.
Kable expects the percentage of the telecommunications budget spent on converged voice and data networks to continue to remain low due to the unavailability of advanced network infrastructure to support the services.
The most interesting change in IT deployment trends in Indian enterprises is the planned increase in spending on IT security, which clearly provides a lot of encouragement for the providers of security services in India.
Indian enterprises reveal that IT consulting is an area of relatively low importance as it constitutes the smallest proportion of the total IT budget
Indian enterprises have continued to focus exclusively on their core ICT systems where, on average, respondents invested X% of their external IT budget on hardware, software and services combined.
Kable’s recent survey reveals that Indian enterprises are mostly willing to spend with third parties, which amounts to almost X% of the total IT budget, thereby creating huge scope for those vendors who impress with their technology.
According to the survey, the bulk of the software budget (X%) is being spent on software licenses driven by investments in core enterprise applications such as financial management, human resources management, ePurchasing, security, CRM and business intelligence.
The survey indicates that the largest proportion (X%) of IT staff members has been resourced on IT infrastructure followed by applications (X%).
Indian enterprises place high emphasis on client computing equipment with an average budget allocation of X%, as enterprises are trying to adopt media tablets and smartphones in their businesses to create more value and business agility.