Indian economy is going through a challenging phase with high inflation and a slowing growth. This coupled with the upcoming national elections has created a temporary slow-down of the broader economy.
Despite these challenges in the government segment, the broader market in India has shown resilience and has stabilized when compared to tumultuous phases in 2012 and 1H 2013. Companies have been spending (albeit with caution) on upgrading their IT and communications (ICT) infrastructure in order to deliver stronger value to the business. Many organizations are using the tight budgets to review and rethink the areas of investment and the modes of engagement with their technology vendors and partners.
Jaideep Mehta, Vice President & Country General Manager, IDC India said, “2014 will finally see the India IT eco-system begin a serious transition to the 3rd platform technologies of cloud and mobility, and to a lesser extent big data, and social.IDC predicts the influx of cloud and enterprise mobility technologies along with the associated changes in architecture and IT management processes”. He added, “From a vendor perspective, it will continue to be a challenging environment as the general elections put a stop to government procurement, and the enterprise sectors remain cautious in their spending.”
Despite the fact that 2014 will be a challenging year; there will be pockets of investments across multiple industry segments. These segments/pockets can be primarily defined by the maturity of the organization and willingness to strategically embed IT in the business processes. Time invested to identify these segments and the dynamics associated with each of the segments will ensure success for technology vendors and service providers.