|
NASSCOM is India’s National Association of Software and Service Companies, the premier trade body and the chamber of commerce for the IT software and services industry in India.
NASSCOM is a truly global trade body with around 850 members, of which nearly 150 are global companies from the US, UK, EU, Japan and China. NASSCOM’s member companies are in the business of software development, software services, and IT-enabled/BPO services.
On 31 August 2004, NASSCOM announced its findings of the ‘IT User Industry Survey’ to assess IT usage among key business verticals in India. The survey, which was conducted in association with India Media Research Bureau covered verticals such as Banking & Financial Services Institutions (BFSI), Healthcare, NGO, Manufacturing, Energy & Utilities, Automotive, Consumer Goods, ICT and Education. The parameters on which the businesses were assessed include IT preparedness, Policy, IT infrastructure, People, Processes and IT implementation benefits.
Speaking on the IT User survey, Mr. Kiran Karnik, President, NASSCOM said, “Domestic IT spending in India is at an inflexion point and there are numerous opportunities in the domestic sector, which can help accelerate growth in the next 2-3 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 specialised 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 the US$2.8 billion in 2002-03,” added Mr. Karnik.
Principal Survey Findings
On 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 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
On People
User organizations in the country currently (2004) employ around 280,000 IT professionals as against 260,000 in 2003. 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 their 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.
On Benefits of IT Implementation
Impact of IT on ROI (Return of Investment) - 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 that that 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
On IT Infrastructure
Security continues to be the prime concern among the user organizations in the country. However, 90 percent of the organizations still only spend on basic security infra-structure. User organizations are still spending largely on antivirus software, firewalls, etc. and thus need to be more proactive and consider adopting advanced security policies like disaster recovery management and business continuity planning.
About 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
On Processes
It was found that approximately 53 percent of the organ-izations have almost all the processes well automated and integrated to the central system while only 2 percent 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; 54 percent stated that they did not have documentation but impact was apparent.
|
