|
IT
Scan
September
8, 2004
IT
implementation helps user organizations maximize productivity
and profits
NEW
DELHI -- While the domestic software market is estimated
to reach US$ 3.4 billion, the IT spending in the country
still accounts for less than 1 percent of the annual
turnover of companies. User organizations are increasingly
using IT as a tool for customer satisfaction Security
continues to be the prime concern among the user organizations
in the country. These were the findings of the 'IT user
industry survey' recently conducted by NASSCOM, in association
with IMRB, to assess the IT usage among key business
verticals in India. The survey covered verticals such
as BFSI, healthcare, NGO, manufacturing, energy and
utilities, automotive, consumer goods, ICT and education.
The parameters on which the businesses were assessed
included IT preparedness, policy, IT infrastructure,
people, processes and IT implementation benefits.
Commenting on the survey, Kiran Karnik, president, NASSCOM
said: "The domestic IT spending in India is at
an inflexion point and there are numerous opportunities
in the domestic sector that can help accelerate growth
in the next two to three years. Deregulation and increased
competition in user industries is driving the race for
higher productivity, and thus, higher IT spending. This
creates a win-win situation for both, the IT industry
and user industry.
"Indian IT vendors are increasingly turning their
attention to the domestic market. The Indian user industries
are outsourcing parts or entire IT infrastructure to
specialized vendors. Recognizing the growing importance
of the domestic software market, NASSCOM has focused
a lot of effort on this segment, which was US$ 3.4 billion
during 2003-04, up from US$ 2.8 billion in 2002-03."
Principal findings of the NASSCOM IT User survey are:
IT spending
- IT
spending as a percentage of annual turnover of user
organizations is still low in the country.
- Around
16 percent of user organizations are spending more
than 1 percent of the annual turnover on IT while
approximately 50 percent still spend less than 1 percent
of their annual turnover on IT.
- The
BFSI segment, with a share of 24 percent continues
to the single largest contributor to the overall IT
spending in India followed by telecom, and government,
respectively.
People
- User
organizations in the country employ around 280,000
IT professionals in 2003-04 as against 260,000 in
2002-03. This represents an increase of 7 percent
over last year.
- Over
60 percent of the user organizations have between
1-2 percent of their employees in the IT department.
Of this 32 percent of the organizations have more
than 2 percent of their employees in the IT department.
- Approximately
20 percent of the user organizations have more than
40 percent of their IT employees having specialized
training.
Benefits
of IT Implementation
- Impact
of IT on RoI: It was found that 30 percent of companies
surveyed had well defined and documented proof on
RoI for implementing IT in processes while 54 percent
stated they did not have documentation but RoI for
implementing IT was apparent.
- Impact
of IT on productivity: Around 30 percent of the user
organizations have clearly defined and documented
proof on productivity for implementing IT in processes
while 56 percent stated that they did not have documentation
but increase in productivity on implementing IT is
apparent.
- Impact
of IT on customer satisfaction: Around 25 percent
of the user organizations have clearly defined and
documented proof of impact on customer satisfaction
for implementing IT in processes while 56 percent
stated that they did not have documentation but increase
in customer satisfaction on implementing IT is apparent.
IT
infrastructure
- Security
continues to be the prime concern among the user organizations
in the country. However, 90 percent of the organizations
still spend on basic security infrastructure.
- User
organizations are still spending largely on anti-virus
software, firewalls, etc., and thus need to be more
pro-active and consider adopting advanced security
policies like disaster recovery management and business
continuity planning.
- 38
percent of the user organizations have more than 60
percent of their PCs connected to the Internet.
- Around
80 percent of the user organizations have more than
50 percent of their PCs connected to LAN.
Processes
It was found that approximately 53 percent of the organizations
have almost all the processes well automated and integrated
to the central system while only 2% of the organizations
use IT for basic office applications. In terms of impact
of IT on alignment and integration of processes in the
organization, it was found that around 25 percent of
the organizations have clearly defined and documented
proof of better alignment and integration of processes
by implementing IT in processes while 54 percent stated
that they did not have documentation but impact was
apparent.
Contact:
NASSCOM
Tel: +91-11-98180-22019
shweta@nasscom.org
|