|
India Inc Wont Spend IT Much |
|
Thursday, 29 November 2012 |
Indian enterprises are cautious about their information technology (IT) budgets for 2013, which they do not see rising much, but are keen to spend on emerging technologies such as mobility, data analytics and cloud computing to improve their core businesses. At least 10 chief information officers (CIOs), including those from Future Group that owns the Big Bazaar retail chain, Indias largest carmaker Maruti, the Manipal Group and Honda Motor, said their IT spends in 2013 would remain mostly unchanged from this year. Others like Marico see a marginal rise. We do not plan to trim IT budgets in 2013.In fact, we may see an increase, said Milind Sarwate, group chief financial officer at consumer goods company Marico, which owns brands like Parachute and Saffola. In the coming year, our focus area will be (data) analytics, Sarwate added. Typically, enterprises spend between 2% and 5% of sales on IT. We will make investments in technology that is beneficial to our customers, said Parakh Dave, CIO of Future Group. Earlier this year, the group, founded by the Mumbai-based Biyani family, invested in a large IT automation project to improve the efficiency with which it delivers merchandise to its retail outlets spread over 17 million square feet across 90 cities and 67 towns. Market watchers also see technology spend continuing to grow in 2013, but at a slower pace compared with 2012.Gartner estimates the Indian IT services market to touch $10.2 billion (.56,814 crore) in 2013,a 12% increase from 2012,when it grew at a much faster pace of 18%.Unlike in the past, when IT was counted as a support service, companies are increasingly looking at IT spending as a means of improving their core operations. – Economic Times
|
