IT deals in India is expected to grow by 30% in 2012 as compared to 2011 with the Indian companies spending more on software and solutions than hardware.
Manufacturing, BFSI, Government, IT-ITeS and Education featured as top five verticals accounting for 80% of the total IT deals between Q1 2011 to Q3 2012. Verticals such as retail, travel & logistics and Energy saw rapid growth, while telecom companies continued to invest into total outsourcing, said the Zinnov’s Quarterly IT deal tracker for Indian market.
The study also stated that Indian customers increased their focus on IT solution purchase as 44% of all deals during this period were structured as software & solutions deals. Services deals accounted for 44% of share, whereas Hardware specific deals accounted for a small 12% share in the total number of deals
“With 30% growth in the number of IT deals every year, India has become a key market of focus for most of the IT companies worldwide. India currently has over 3,500 public listed companies, and about 10 million SMBs which can potentially consume technology which is a very big opportunity to tap into,” said Praveen Bhadada, Director-Market Expansion, Zinnov.
Accordingly, IT vendors are now focusing on account mining for large enterprises and channel restructuring for better penetration in the SMB space, said Bhadada. The next few quarters will witness lot of companies design new IT solutions and validate fitment of existing solutions for India market.
The tracker captured 500 IT deals in the enterprise and SME segment and highlighted key trends which have shaped the domestic IT spending across industry verticals like Manufacturing, BFSI, Government, Telecom, IT- ITeS, Education, Retail, Travel & Logistics and Energy & Utilities.
The small and medium enterprises are also becoming active in their IT consumption. SME formed around 31% of all deals. Nearly 50% of all SME deals were also structured as solution deals.
Interestingly, foreign multinationals dominated the IT deals market in the last seven quarters. Oracle, SAP, IBM and Microsoft featured as top principal vendors with 33% share in all enterprise deals and 36% share in all SME deals.