The National Association of Software and Services Companies (NASSCOM) members is expected to sell more IT services and business process outsourcing to Indian businesses than export them in the next 12 months, but what is driving the demand?
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According to NASSCOM, sales within India will grow at between 13% and 15% to reach Rs 1.18 to Rs 1.20 lakh crore. This compares to an expected growth rate of between 12% and 14% for exports, mainly to Europe and the U.S. Exports will be worth up to $87 billion.
Manish Bahl, vice president and country manager India, at Forrester says according to the firm's "Forrsights Budget and Priorities Survey"for the final quarter of 2012, IT technical consulting is expected to be the highest growing part of the services market in in India. This is above the overall Asia Pacific average.
"The rapid rise of cloud computing, as well as social media and mobility in India has started to affect how organizations do business in the country and organizations will take help from vendors assess their current IT infrastructure, and develop technology road map to address consumerization of IT," Bahl said.
Cloud computing, for example, will engender consulting relationships, according to Bahl. He said that application portfolio rationalisation, application modernisation and cloud source assessments are three ways organisations could use consultants.
But according to Forrester's latest research, "Systems Integrators Are Failing To Meet The expectations Of Indian CIO," CIOs don’t think they get much business value from their service providers.
According to the report, "CIOs feel that SIs [systems integrators] are overly focused on technology projects and do not understand changing business requirements." The authors continue, "CIOs want service providers to align their sales, delivery, and client service teams to the organization’s business objectives to respond quickly to the changing business environment."