India emerged tops in the world in the API (Application Programming Interface) Capability Index, a segmentation created based on feedback by IT respondents who participated in a global study commissioned by CA Technologies (NASDAQ
The study titled "APIs and the Digital Enterprise: From Operational Efficiency to Digital Disruption" reveals widespread use of APIs by Indian companies in an effort to support essential elements for success in the application economy.
The survey participants were asked if they had 10 API-enabling capabilities in place, which were grouped into four categories: Lifecycle Support, Core Security, Run-time Environment and Operational Management.
The responses were assigned a numeric value, scored accordingly and broken into three groups based on how well they were prepared to support APIs - Advanced, Basic and Limited. The global responses were evenly split with 34 percent Advanced, 33 percent Basic and 33 percent Limited.
India topped the index with 56 percent Advanced, 26 percent Basic and 18 percent Limited.
Respondents from India to the study reported having a managed/coordinated approach to using APIs to integrate back-office systems (60 percent), build web and mobile applications (56 percent and 53 percent respectively), enable third-party developers (53 percent) and incorporate third-party services (45 percent).
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They also cited delivery of new / better customer experience (67 percent), extending digital reach (62 percent), exploration of new business models (62 percent) and faster delivery of new apps (60 percent) as the top current drivers for using APIs. These elements all contribute towards succeeding in the application economy.
"Based on the study, companies that are leveraging APIs for internal development and using APIs to enable third-party apps - they are the ones that are realizing higher revenue growth, higher profit growth and more new business-based revenue," said Kenneth Arredondo, President and General Manager, Asia Pacific and Japan, CA Technologies.
Sunil Manglore, Managing Director India, CA Technologies, said "Businesses in India are adopting digitization to stay relevant and ahead of the competition. In the application economy, CIOs need to deliver better customer experiences faster and capitalize on new opportunities."
"Apart from this, CIOs also need to ensure exceptional customer experience, connect the entire ecosystem comprising of employees, partners, apps and devices to data-anytime, anywhere. API Management helps companies to bring systems together, secure these integrations, deliver better customer experiences faster and capitalize on new opportunities," added Sunil Manglore.
"One of the most striking findings from this research is the strong correlation between the level of API-enabling capability and the benefits achieved from API-related investments. On average, advanced adopters are two to three times more likely to be citing significant benefits than their peers at the other extreme with limited capability," said Tony Lock, Distinguished Analyst, Freeform Dynamics, the firm that conducted the study.
"It's not just about whether you use APIs, but how you implement and manage them," added Tony.
"As the leader in API management, CA proudly helps customers maximize the use of APIs by providing them with a secure, developer-friendly environment that can address today's large scale mobile and IoT initiatives," Arredondo added.
Opportunities to enhance API capabilities
While India leads the pack in having the capabilities critical to API success, fully developing and instituting a strategic API program is still a work in progress for many of the respondents. The study shows that 96 percent of firms in India agree on the importance of having the right infrastructure in place, only 45 percent have completed this, and it is work in progress for 44 percent; 90 percent agree that they need to recruit a critical mass of developers, but only 35 percent have implemented this and it is work in progress for 42 percent; 88 percent agree that finding the right suppliers is crucial, but only 36 percent indicated that they have achieved this and it is work in progress for 47 percent.
The study surveyed 1,442 respondents from 16 countries across nine industry sectors. The API Capability Index is a segmentation created based on feedback from 920 IT respondents who participated in this study. Results from the study found that increased investment in APIs yielded significant benefits across the entire spectrum, from increasing operational efficiency and competitive advantage, to digital disruption.
Resources
Research Paper: "APIs and the Digital Enterprise: From Operational Efficiency to Digital Disruption."
Infographic: "Building the App Economy with APIs"
API Management Playbook: Master the API Lifecycle
Survey Methodology
The global online survey of 1,442 senior IT and business executives was sponsored by CA Technologies and conducted by industry analyst firm Freeform Dynamics in July 2015. It was augmented by in-depth telephone interviews with key industry executives. For full survey methodology details, see the report "APIs and the Digital Enterprise: From Operational Efficiency to Digital Disruption.