IT Technologies in 2009 and Beyond… presented by Mr Girish ...
16
1 We Accelerate Growth. IT Technologies in 2009 and Beyond… Girish Trivedi Deputy Director –ICT Practice South Asia Middle East
Transcript of IT Technologies in 2009 and Beyond… presented by Mr Girish ...
1
We Accelerate Growth.
IT Technologies in 2009 and Beyond…
Girish TrivediDeputy Director –ICT PracticeSouth Asia Middle East
2
www.frost.com
3
www.frost.com
Overview of the current global economy
The current global economic environment is indeed bleak: the ramifications are huge and widespread in terms of geographies and industry sectors.
Expected writedown of assets by banks:
$10 trillion
Enormous repercussions
Volvo order book (Trucks and HCVs):
3Q 2007: 41,970
3Q 2008: 115
Impact across industries
MSCI Emerging market index:
Impact across geographies
4
www.frost.com
Key Trends consequent to financial meltdown
Tightening Credit
Uncertain investments
Spending Curtailment
Cautious Capex
Slow resumption of lending, at higher rates and longer processing times
Slowing down of IPO activity with investors more cautious
Cut back on discretionary spending; stress on savings
Slower capex spending as both need to save cash and lesser credit availability
Retrenchment
Waves of retrenchment across industries
5
www.frost.com
Overview of the current global economy
Expected impact on certain sectors
BFSI
Airlines
Automotive
ICT
Government
Entertainment
Healthcare
Basic Foods
Education
Most Commodities Certain Advisory ServMedia
6
www.frost.com
Potential scenarios for the global economy
There is disagreement about the extent of the impact of the recent events.
Scenario 1: Quick
recovery (1 year)
Scenario 2: Med Term
recovery (1-3 years)
Scenario 3: Prolonged Recovery (5-10 years)
• Falling oil prices• Capital infusion• Lower interest rates• Concerted bail-outs
• Consumer sentiments take longer to recover as a result of recent wealth destruction
• Geo-political uncertainty • Faster contagion• Supply constraint
Possible Scenarios
Driving Factors
7
www.frost.com
Evolving Business ICT Demographics
Changing economic times can act as a “compelling event” for certain trends to accentuate
SOA SaaS Hosted IT ServicesCloud Computing
Outsourcing
Optimization
Potential acceleration
Application OptimizationDelayed Refresh cycles
Virtualization
8
www.frost.com
IT Opportunity Assessment
1. Opex/Service business models
2. Outsourcing upside
3. Cloud Computing
4. Unified Communications
5. Data Centric model
Changing economic times can act as a “compelling event” for certain trends to accentuate
9
www.frost.com
#1 Opex/Service Business Model
Network, Security, Storage and Hosting
Customer Involvement
Offerings KSF
Managed Service
Standalone AppsBusiness Integration
Wokflow enabled
Sales ModelCustomer centricitySaaS
The enterprise market is expected to see a higher propensity to shift from capex based to opex based business model;
10
www.frost.com
#2 Outsourcing Upside
Technology players are increasingly outsourcing work in pieces to multiple players – driving the growth of multisourcing
Multisourcing already constitutes a quarter of all large outsourcing deals in the United States and is one of the fastest growing segments in the
outsourcing business
With the division of complex projects into bite-sized portions, smaller players with niche capabilities to participate in the enterprise growth story
offering more options to Enterprises
Greater adoption of ITIL standards is decreasing complexity, improving management and providing pricing visibility to customers
Outsourcing business model to pick up across the enterprises: newer business model emergence
11
www.frost.com
#3 Cloud Computing
Transformation of software into a portfolio of services
Intelligent interactivity between clients and the computing warehouse
Business economies will transform
Adaptability, collaboration, specialized with the hallmarks
Virtualization among top 3 CIO discussion points
Product Sales
Service Sales
Source; MIT
US listed software firm sales
Time%
age o
f re
ven
ues
12
www.frost.com
Cloud Computing –Hype or reality
There are clear five down-to-earth reasons to get excited about the future of the Cloud.
– Scale and Scalability
– Utility Pricing
– Control
– Environmental Leadership
– Business Transforming Applications
13
www.frost.com
#4 Unified Communications
Trend towards Unified Com delivery on a pay-per use basis and Communications Enabled Business Processes (CEBP)
Changing Commspreferences
Rising Competition
Mobile Workforce
Collaboration
Rising Customer Expectations
Demand Side Supply SideUnified Communications
Presence
Presence
Pre
sen
ce
Pre
sence
Telephony Email
IM
Mobile
UM
Conferencing
CRM SCM Communications related Business
Process ApplicationsContact Center
Un
ifie
dC
om
mu
nic
atio
ns
Ho
rizo
nta
l B
usi
nes
s P
roce
ss A
pp
s
Enterprise UserCommunications Tools
ERP
Presence
Presence
Pre
sen
ce
Pre
sence
TelephonyTelephony EmailEmail
IMIM
MobileMobile
UMUM
ConferencingConferencing
CRM SCM Communications related Business
Process ApplicationsContact Center
Un
ifie
dC
om
mu
nic
atio
ns
Ho
rizo
nta
l B
usi
nes
s P
roce
ss A
pp
s
Enterprise UserCommunications Tools
ERP
Improve Productivity
Deliver Business Impact
Embed Communicationsin BusinessProcesses
VoIP/IPT becoming
mainstream
Strong Market Competition
Additional revenue stream through
applications
14
www.frost.com
#5 Data Centric Models
Facilities pure plays
Carrier Neutral data center providers
Parameters
Types of Players
Key strength
Customer Focus
Level of services provided
Facilities/ Real Estate
Low to mid end
Telcos/Carriers Global SIs
Focus Services Bundling
Integration/Process
Knowledge
All Mid to high Higher end
The data center market offers opportunities for a variety of players to compete, each with their own strengths and focus customer segments
Evolution of data centers into service factories
15
www.frost.com
Responding to New Environment
Business should continue to view IT as a critical tool in controlling overall costs and increasing productivity
Enterprise should start experimenting with Hosted solutions if not yet started
Limit on IT spending can be redirected but should not be stopped as customers are becoming proactive
Use IT for Competitive Advantage as this environment will reward the nimble competitors
Become a World Class Retailer – this is a buyer’s market
Turn every Service offered into products
Transformation, Transformation, Transformation
Most of the Components of the Indian Industry are, in many respect better positioned than other countries to weather this storm
