BFSI sector leaders in IT spend in 2006
Business Continuity and Risk Mitigation key priority areas for CIOs
Nasscom released on 25th June 2007, key findings of the ‘Tracking of the IT adoption study 2006’, conducted among IT heads and senior IT managers from about 292 companies in India, across multiple verticals. Survey showed that the growth of IT adoption was on an incline, with both large and SME companies buying more IT. The Study also indicated the following:
i) The highest average IT spending for 2006 was for the BFSI vertical followed by for the Energy and Utility segment.
ii) The rate of increase in the average spending in each of these verticals was expected to be in the range of 12-27 percent, making them the most likely highest spending sectors in 2007 as well.
iii) The third sector which was projected to witness a considerable hike in its IT spend was the Tourism and Hospitality industry.
The sector’s Rs. 18 crore of IT spend was projected to grow by 13 percent, placing it among the highest tech-spenders in India in 2007.
iv) Interestingly, one out of four companies in both large scale and medium scale organizations indicated that their IT budgets would increase by around 10-19 percent during the current year.
NASSCOM’s “Tracking of IT adoption study 2006” also revealed the following:
1. Business Continuity and Risk Mitigation were the key priority areas for CIOs
2. Increasing efficiency and process productivity was the business goal achieved through IT adoption in 2006
3. The match between Business Goals and IT spends was not evident
4. The CIO’s role as the “business leader” and then as a “technologist” was not the current Prototype
5. IT spends were driven by Hardware followed by application and network software
The NASSCOM Study made it clear that CIOs would need to ensure that the business value of IT was proven and delivered.
According to the Study, the business benefit would have to be proved up-front and the means of measuring benefits of IT arrived at by perhaps using an overlay IT-business balanced scorecard approach or by mapping the benefits perceived and by pre-empting outcome scenarios.
This in fact, was stated to be a major CIO challenge, which required them to be more business oriented. The effort of mapping business benefits was immense, even though some CIOs had already started measuring IT advantages, juxtapositioning them as trusted business advisors.
Talking about the findings of the survey, Mr. Kiran Karnik, NASSCOM said “The year 2006 was a great year for the domestic IT market which saw balanced growth across hardware, software and services segment. The findings of the IT User survey interestingly indicate that the average spending is on the rise and the sectors leading this are BFSI, Energy & Utility and Tourism & Hospitality sector. What we also see is that from the supply side, more and more Indian IT companies have now realised the growth potential in the domestic market and are targeting this space with customised products and solutions”.
Banknet India's "Third International Bank Tech Summit" on 10th October, 2007 at Mumbai will focus on Business Continuity and Risk Mitigation efforts in the financial sector... Click here
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