13 years, 5 months ago

India Travel Diary – Indian Share of Outsourcing Grows, Adobe India Strategy, Cloud Reliability Concerns

Link: http://eamitabh.blogspot.com/2011/02/india-travel-diary-indian-share-of.html

Continuing in my series of posts from India, here is the third installment which briefly covers latest NASSCOM report on outsourcing revenue stats, Adobe India Strategy and Cloud Reliability concerns from majority of Indian Execs. Past two posts can be accessed on Post 1 and Post 2.

Indian companies tighten grip on outsourcingIndia continues to lead the global outsourcing market with the overall share increasing from 51%in 2009 to 55% in 2010. As a proportion of national GDP, the sector revenues are estimated at 6.4% for the current fiscal. The software industry apex body National Association of Software & Services Companies (Nasscom) forecasts the IT-BPO industry (excluding hardware) revenues to grow 19% to $76 billion. Som Mittal, president, Nasscom, said the pent-up demand for IT-BPO services, return of discretionary spending, new business models that encouraged first-time buyers and re-invented value proposition for existing ones were the key drivers for the industry performance. ”As we step further, this decade heralds a new transformation for the industry. Transformative service delivery is always business focused, delivers confidence and manages risks, using modern business re-alignment; at the same time enabling sustained savings and value”, said Mittal. (See below Nasscom reference to read more from the source)

NASSCOM Report Highlights
  • The banking, financial services and insurance vertical and US region accounted for the largest revenue growth.  
  • Exports estimated to grow by 18.7 per cent in FY 2011 and reach USD 59.0 billion
  • India – leader in global sourcing with 55 percent market
  • Core market – US and BFSI – growth drivers
  • Growth in emerging verticals and geographies 1-3 – 1.5x of average per month
  • Domestic market grew by 16 per cent in FY11, to reach INR 787 billion
  • Direct employment within the IT-BPO sector to grow by 10.4 per cent reaching 2.54 million, with over 240,000 jobs being added in FY 2011
  • Export revenues to grow by 16-18 per cent in FY 2012
  • Domestic revenues to grow by 15-17 per cent in FY 2012

Adobe Growth Opportunities and India Strategy – The TOI recently interviewed Shantanu Narayen, Adobe president & CEO, who grew up in Hyderabad and later moved to the US. Narayen is currently on a visit to India to meet with employees and customers. Spelling out his growth opportunities he said, “Our mission has been, how do we create a better digital experience, and we have three big opportunities.” 
  • Content management – Adobe typically did all the content creation such as converting documents into PDF, animation interactivity through flash, now they are anticipating content management as growth opportunity.
  • Online marketing and analytics – With so much being spent on online marketing, you have to start telling customers about traffic, demographics, why people are coming to their website, how to make them transact business. Hence Adobe has bought company called Omniture, which is the leader in online marketing and Web analytics. 
  • Enterprise software for customer experience management – If the customer expects a certain kind of experience when they visit consumer-based sites like Amazon of Facebook, they are going to demand the same when they get into the workforce with HR systems etc. This trend is picked by leading analysts such as Forrester as well.

India remains a key focus region for Adobe not just for sales but for global R&D and business unit functions. Adobe decided not to do just maintenance. Instead they built full components and then full products in India. Adobe has filed a couple of hundred patents from India and do full products like Illustrator. A fair amount of stuff for the Android is done here. They have also done a lot of PDF work here for readers and multiple devices.  Adobe is now building on next step and has created a business unit based in India. Adobe runs global business of print and publishing from India. It’s a P&L (profit & loss) centre. It has products and manages global customers and is involved in global marketing. (See below Adobe reference to read more from the source)

Reliability Concerns Block Move to Cloud Computing – Seventy-five percent of C-level executives surveyed in India cite reliability concerns as a significant reason they are not adopting cloud computing, according to the fourth Global Status Report on the Governance of Enterprise IT (GEIT)—2011, conducted by the nonprofit, IT Governance Institute (ITGI), ISACA’s research affiliate. While more than 45 percent of respondents use or are planning to use cloud computing for mission-critical IT services, those who do not plan to use cloud computing list reliability concerns, followed closely by security and privacy  concerns, and existing IT investments as barriers to adoption. Over 50% of respondents said their practices related to IT governance have led to improved management of IT-related risk. Other key benefits included improved business competitiveness (over 44% of respondents) and improved return on IT investment (over 34% of respondents). (See below India Infoline reference to read more from the source)