7/29/2019 IDG Connect Dan Swinhoe (Asia)- Opportunities in
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Posted by Dan Swinhoe Company IDG Connect
Dan Swinhoe (Asia)- Opportunities in India: Spoilt For
Choice
India's economy is still growing despite global troubles, and
the electronics industry is expected to explode to
$400 billion by2020. Its ICT sector has risen from $5.7 bi llion
in 2000 to almost $100 bi llion today. But where is
there left to go for growth?
Having firmly established itself as the world leader in
outsourcing, the Indian BPO sector is still very strong, worth
around $63.2 billion in 2012. But China is on the rise, and set
to overtake the Philippines as the next b iggest
market, and may soon catch up with India. While China's BPO
market has made revenues of $53.8 bi llion this
year, growth for the last few years has been 43.5%, 63.6%, and
33%, compared to India's 25.4%, 23.6%, and
15.7%. While the top spot will be safe for now, companies should
start looking elsewhere for future revenue.
Investing in better education to address the country's IT skills
gap has proved effective in recent years, and further
investment there will no doubt be profitable in the long run.
The better quality of staff a company has, the
smoother and more efficient the outfit is.
India's smartphone market is set to boom . The country ranks 4th
in the world for its global smartphone market
share. IDC expects the market to grow by8.5% by 2016, helped b y
low-end models offering dual-SIM capabilityand local apps. Compared
to neighboringChina, India's market is yet to really take off,
while the People's
Republic is now the world's biggest. Though still expensive now,
3G in India will b ecoming increasingly affordable,
and eventually 4G will become more widespread as well, both
inevitable drivers of smartphone sales.
Tablets are gaining popularity, thought not at the same levels
as smartphones. Estimates that about 800,000
tablets sold in India last year (a rise of 749% jump
year-on-year) amount to a tiny fraction of the 65 mill ion
tablets
sold global ly. Predictions from Frost & Sullivan expect
23.38 million units to b e sold b y 2017, with sales doubli ng
every year starting 2011. According toABIResearch Apple
commanded a 51% share, but since then Samsung
has claimed they have grown to 56% at the iPad's expense, and
iseyeing further growth to 65% by the end of the
year. The swathe of low-cost tablets has yet to set the market
alight, even RIM's PlayBook holds a more
commanding share (5-10%) than any of the local brands.
Expertspredictthe cheaper devices may find their niche
in the rural areas, where they could be people's first taste of
using the internet. Though improving on quality and
adding more locally relevant apps rather than just driving down
costs will need to be looked at.
While tablets are growing solely, PC sales have seen year-on
year growth of over 15%, shifting 2.86 million units
for the quarter ended June 2012. And, according to IDC, cloud
computing is due to b oom, growing by70% this
year and maintaining 50% growth for the following three years,
but to help facilitate this providers need to assist
the companies in assessing cloud readiness, and suggest a cloud
adoption roadmap accordingly. Elsewhere, if
the biometrics project the government is undertaking succeeds,
there will no doubt b e growth in iris/thumbprint
scanners and hoards of software and equipment to help make the
most of such a huge database.
E-Commerce is on the rise, and had a total worth of$10 billion
last year, and has been growing steadily. Although
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7/29/2019 IDG Connect Dan Swinhoe (Asia)- Opportunities in
India_ Spoilt For Choice
2/22/2www.idgconnect.com/blog-abstract/617?preview=true®ion=idgconnect
lack of l ogistic networks and di strust of electronic
transactions may be holding b ack the m arket's expansion,
there
is a lot of potential. And as adoption of personal technology
expands out in the rural areas, sales of cheaper
roducts will no doubt increase, as will sales of mid-range
products as the exodus towards the cities continues.
ICT in India is in healthy shape, and still on the rise. With
the government's continued drive to embrace IT, there
are plenty ofopportunities for vendors. It's just up to
organizations and investors to pick the right ones.
By Dan Swinhoe, Editorial Assistant, IDG Connect
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