Five Key Sectors That Will See A Transformation With 5G Technology

 

By Mr. Preetham Uthaiah, EVP - Marketing and Strategy, Saankhya Labs

The Covid-19 pandemic has resulted in a long lockdown, which has spurred a digital transformation in the economy. Education has gone truly digital with the advent of online classes and exams, doctors are providing consultations online, meetings are being conducted via video conferencing platforms and even international trade exhibitions have shifted to online webinars and events. As a result of this digital transformation, internet usage has surged extensively putting immense pressure on existing communication networks. A reliable and robust 5G communication network can help industries maximize this digital transformation. The SLA’s (service level agreements) and QoS (quality of service) that need to be met for some of the time-critical applications can be accommodated using 5G technology with some of its advanced features such as ‘Slicing’ and low latency communication that ensures that real-time communication happens without getting affected by the traffic loads.

Here are some key sectors that are bound to benefit from a 5G driven digital transformation -

1. Healthcare

The healthcare industry will immensely benefit from 5G networks. With increasing use of online consultations and tele-medicine, a reliable and faster connection is critical to effectively deliver remote healthcare services. The low latency and faster speeds which are a main feature of 5G will help in time critical telemedicine applications such as remote surgery and remote patient monitoring etc. Hospitals also transmit large amounts of patient data including large files like CT Scans and MRIs. Some hospitals like King’s College Hospital, UK; Sinchuan University Hospital, China and Samsung Medical Centre, South Korea are installing private Enterprise 5G solutions to support their IT networks.

2. Agriculture

In this emerging technological world, scientific farming techniques are being used to boost productivity in farms. These include use of Agri-IoT sensors for soil monitoring, water management, smart irrigation, crop health monitoring, drone-based farm management etc. Deployment of 5G networks will provide added benefit to manage these drones and get real time data from the sensors by effectively using the 5G networks

3. Construction

The real estate sector, which has for long been known for its offline operations, is set to transform itself with the advent of 5G technology. In its new avatar, virtual property tours using AR/VR technologies, as well as 3D printed models of homes will be a reality in aiding digital marketing and sale of properties. Powered by stable and fast networks with lower latency, 5G will also ensure the smooth functioning of various stages of the design process to include 3D architectural visualization and collaborative meetings with various stakeholders.

4. Auto

5G brings with it unprecedented speed and connectivity to make autonomous, or self-driving cars a reality. An autonomous car is expected to produce up to 25 GB data per hour. Current networks will not be able to handle such large volumes of real-time data. 5G networks will allow faster-than-ever communication and real-time data processing between vehicles, networks, infrastructure and even pedestrians.

5. Manufacturing

The manufacturing sector is becoming more and more autonomous. High speed connectivity is needed to monitor and direct robots working on the factory floor. Additionally, many factories are becoming more “smart” with IoT sensors being installed across the factory, sharing real-time updates to a central server. 5G technologies can provide network characteristics that are vital for the manufacturing industry. This technology will allow for increased flexibility, lower costs, and smaller lead times for layout changes and alterations at the manufacturing units, factory floor production reconfiguration etc. Large organizations like Worchester Bosch, Siemens, Ford Motors etc. are deploying enterprise 5G networks to streamline their operations. 5G is poised to aid manufacturing/production operations, helping them become more efficient, while also refining security and reducing maintenance and operating costs.

Hailed as an upcoming tech revolution, 5G promises advantages that will touch every aspect of our lives, from healthcare to education to products and services we buy and beyond!

Healthcare IT Leader Supports Medical Communities and Migrant Labourers During COVID-19

emids, a leader in digital engineering and transformation solutions to the healthcare industry, donated essential equipment to healthcare professionals leading the charge against COVID-19 at the Bangalore Medical College and Research Center.

The company’s Bangalore-based teams provided 300 PPE (personal protective equipment) kits, 300 N95 masks, and food for nearly 60 members of the hospital’s COVID-19 response team for 30 days, through a contribution of INR 8 lakhs.

“As a healthcare IT leader, we understand how important it is for patients to access the right quality of care and at the right time. Doctors and medical professionals are working tirelessly to provide such care in the wake of COVID-19, while placing their own health at risk. Our contributions to Bangalore Medical College and Research Center are a way of thanking and empowering the healthcare community in their fight against this disease,” says Saurabh Sinha, Founder & CEO of emids.

emids also donated INR 20 lakhs to provide food and rations to 3,000 families of migrant labourers and daily wage workers, who were severely affected by the nation-wide lockdown. The company partnered with ‘Smiles for All’, an initiative by a group of volunteers to help the marginalized communities during the lockdown, and with Kaushalya Foundation, a non-profit working to empower the resource-poor in India, to reach out to those in dire need.

Sumit Gandhi, Chief Delivery Officer at emids, explains, “COVID-19 and the resulting lockdown in India created an unprecedented humanitarian crisis. It affected lakhs of members from economically vulnerable communities. As a responsible corporate citizen, emids decided to help them by supporting food relief programs organized by Smiles for All and Kaushalya Foundation.”

emids has consistently supported community welfare programs in the area of healthcare and education, while pursuing business goals. The company has witnessed rapid growth in the last two decades, fueled by technology investments that are driving digital change in healthcare. emids’ teams based out of Bangalore and Hyderabad solve some of the toughest problems in global healthcare IT and augment the company’s digital engineering capabilities.

About emids

emids is a leading provider of digital transformation solutions to the healthcare industry, serving payers, providers, life sciences, and technology firms. Headquartered in Nashville, emids helps bridge critical gaps in providing accessible, affordable, and high-quality healthcare by providing digital transformation services, custom application development, data engineering, business intelligence solutions, and specialized consulting services to all parts of the healthcare ecosystem. With over 2,200 professionals globally, emids leverages strong domain expertise in healthcare-specific platforms, regulations, and standards to provide tailored, cutting-edge solutions and services to its clients. 

Bengaluru’s Residential Prices Fell by Almost 3% in Last Quarter: Magicbricks Propindex Report Q2 2020

COVID-19 Effect

* Whitefield, Sarjapur Road, Bellary Road and Electronic City were the top 4 micromarkets in the city

* Strong demand for smaller size 2 & 3BHKs; together accounting for 88% of the property searches

* COVID-19 induced a price decline of 1-3% across most budget segment

Amidst COVID-19, Bengaluru’s residential prices have witnessed a QoQ decrease of approx. 3% in the second quarter of 2020, revealed the latest edition of Magicbricks’ PropIndex (Q2, 2020). Bengaluru residential market maintained a steady momentum in the last 5 years with 17.7% and 33.3% surges in ready to move and the under construction segment prices, respectively. However, the QoQ 2.8% price decline in the ready-to-move segment washed away the gains made during the previous six quarters.

The under-construction segment had a decent 33% growth in the last 5 years, but the recent pandemic brought a decline of 0.8% in Q2 2020.  Shortage of labour, supply chain disruption and extension in the RERA deadline by 3 months in Bengaluru is likely to shift delivery of some under construction projects by a few months.

According to the Propindex, Bengaluru thrives on a healthy mid-segment demand, with both 2 and 3 BHKs each accounting for more than 40% of the demand and supply. Together they account for 88% of the property searches and 92% of the supply. However the market is slowly shifting to the affordable segment, and a small demand-supply mismatch is emerging in the less than INR 5,000 per sqft price bucket. The demand for 1 BHK and 2 BHK configurations is likely to further increase due to the reduction of stamp duty between 3% to 5% for properties costing upto INR 35 lakh.

Commenting on the PropIndex, Sudhir Pai, CEO, Magicbricks, said, “India’s real sector is gradually adopting to the new normalcy. The economy had almost come to a stand-still in March but now hopefully we are on the road to recovery. At a pan-India level, the price decline has been just 1.5% QoQ while repo rates have been lowered by more than 100 points. This augurs well for the industry. Our data also suggests that consumer interest has not tapered off and developers have to grab the attention of the home buyers through attractive deals and offers. There is a pent-up demand for ready-to-move in properties as our data suggests that the 80% of searches are happening in this segment and the rest for under-construction.”

Post COVID-19 pandemic, government has allowed partial sales of plots In the layouts to ease the liquidity situation of developers and accelerate the layout development process. State government allows the regularization of over 75,000 land parcels, which were initially a part of the BDA development scheme but were under unauthorized possession for more than 12 years, by payment of penalty.

Whitefield, Sarjapur Road, Bellary Road and Electronic City were the top 4 micromarkets in the city, supported by factors such as affordability, better access to IT hubs and sound connectivity to the airport. The extension of metro lines from Baiyappanahalli – Whitefield and RV Road – Bommasandra is likely to boost the demand for the economic hubs of Whitefield and Electronic City in the future

However, it will be interesting to see how these factors play out as the market recovers from the outbreak of COVID-19 and the ensuing national lockdown. Magicbricks data indicates that overall, consumers are back to the marketplace, albeit in lower numbers. Developers are running various schemes and promotions to entice home buyers and drive transactions. The next three to six months will remain key to determine any developing trend in prices and transaction volumes. It has become even more of a buyers’ market with the onus on sellers to make the right interventions to enable the real estate market bounce back.

About Magicbricks: India's no 1 property site

Magicbricks is India’s No.1 property site. With monthly traffic exceeding 20 million visits and with an active base of over 1.4 million+ property listings, Magicbricks provides the largest platform for buyers and sellers of property to connect with each other in a clear, transparent manner. With this in mind, Magicbricks has innovated several product features, content and research services, which have helped us, build the largest audience pool.

80,000 engineers to be absorbed in IT sector by 2010

Software industry body, Nasscom expects at least 70,000-80,000 engineering graduates who passed out in June 2009 and were offered jobs in their 5th and 6th semesters by TCS, Infosys and Accenture, among others, to get absorbed by March 2010. Not too long ago, there were apprehensions that the appointments of these tech grads could get deferred till 2011 in the aftermath of the global slowdown. However, the perception appears to have changed.

Speaking to the media, Nasscom Vice-President Sangeeta Gupta said, "There's some amount of pick-up in IT spending and clients have become active in the decision-making process. This augurs well for the IT industry and is likely to result in hiring by IT companies. Companies like TCS, Infosys and Accenture, among others, are expected to start honouring the offers they made. As a result, at least 70k-80k engineering graduates, who were issued offer letters, are expected to get absorbed by March 2010."

For instance, the country's biggest software firm Tata Consultancy Services (TCS) had made some 24,000 offers in 2008-09, according to its Q2 analyst call. The company had indicated that it would honour these offers this fiscal. In Q3, TCS is expected to absorb about 8,000-odd, and the balance, in the following quarter. Till Q2, the company had absorbed some 1,800 people.

Similarly, Infosys, in its Q2 earnings call, indicated that it would add 20,000 people instead of 18,000 indicated earlier. The additional 2,000 would be partly in BPO while the rest would make up laterals at Infosys Technologies.

Incidentally, Nasscom has urged member companies to recruit those who've completed their eighth semester to ensure that hiring is closer to the need of companies. For this fiscal, Nasscom has projected a mere 4-7 percent export growth. It is likely, that with IT sector showing signs of recovery, Nasscom will review the export target. "We can review the export target by end- December," she added.

McKinsey in its report titled 'Perspectives in the IT industry by 2020', has noted that with the current pace of reforms and expected constraints in talent and infrastructure supply, the exports component of the Indian IT industry is slated to reach $175 billion in revenues by 2020. The domestic component will contribute $50 billion in revenues by 2020, which is larger than the total export revenues for India now.

Agencies

Check out the best IT employer: Dataquest-IDC survey

The average salary increase in the IT sector during 2009 was down at 1.4%, according to a Dataquest-IDC survey.

Employees under two years of experience earned a 2% increase in salary, while those between 2.1 to 5 years had their salaries cut by 7%. Those between 5.1 to 10 years got an average salary hike of 5% and those with over 10 years experience earned a 4% salary increase.

In the survey, HCL Infosystems emerged as the best employer in the IT industry, followed by iGate, Rolta, RMSI and SAS Institute. HCL jumped up two positions from last year, while iGate slipped one notch to No. 2.

The survey covered 200 IT companies of which 31 companies were short-listed for the final round. For the first time, India’s top four IT companies declined to take part “as layoffs and salary re-alignment leads to dip in IT employee morale”, the survey said. The top four IT firms employ about 40% of the IT professionals in the country.

Seven new entrants — R Systems (6), Perot Systems (7), Ingram Micro (11), Sify Technologies (13), Infogain (17), Unisys (18) and Novell (19) — made it to the Top 20 Best Employers in IT list.

The employee attrition rate came down to an average of 15%, from 18% last year. A majority of IT employees said they changed job for better salaries and compensation (53%), overseas postings (38%), better job security (18%), flexible working hours (18%) and training and development (9%). While the average retention rate, defined as percentage of employees retained out of the total employees as on March 31, 2008, improved to 85%, from 79% in 2008, Hexaware Technologies showed a remarkable retention score of 100.

The study also reveals that companies have become more transparent in their communication with employees giving them a sense of belonging. They have also gone ahead and adopted a higher degree of professionalism in their dealings with employees as well as customers or suppliers.

Another key finding is that more employees are satisfied with the interest shown by their companies as well as their immediate seniors in helping them strike a worklife balance compared to last year. The study reveals that there is a drastic fall in the number of people who feel that their job is secure within their company.

Agencies

Indian IT sector may be significantly hurt by global crisis

The Indian IT industry is likely to be impacted significantly by the global financial crisis due to the loss of overseas markets as well as protectionist trends, according to PM's special envoy Shyam Saran.

Saran further said that the sector has been focused on the export market so far. It has not looked at the domestic market as a significant business opportunity.

"Now could be the time to do this. More competitive conditions in both domestic as well as external markets require Indian industry to be more efficient and productive," he told at a seminar on 'GeoPolitical Consequences of Current Financial and Economic Crisis: Implications for India'.

This is where the country's IT industry can play a significant role, but this will require the dynamic sectors of economy, the services and the manufacturing sector, to come together to deliver a major punch, once the global economy settles down into a new and altered landscape, he said.

He suggested that there should be a willingness in business and industry to think through and come up with an ambitious and potentially winning strategy.

They should seek government support for delivering on such a strategy rather than looking only for short-term relief, added Saran.

Agencies

VCs bullish on Indian IT Sector

The year 2009 is slated to be an interesting year for entrepreneurs and venture capitalists (VCs) alike. Even as the global recession continues to haunt industries, many VCs are very bullish on India. A global venture capital firm has invested a sum of Rs 20 crore in Appnomic Systems, an infrastructure management services (IMS) company.

Pramod Haque, managing partner at NVP, a global venture capital fund said, I know this time the recession is different and may take longer time to recover than earlier. But we see tremendous opportunities as an outcome of the recession.

I feel is it is good time to invest in growth equity sectors as the valuations are down. I see more opportunities due to slowdown. But it is true that certain VCs are following a certain trend in the US and fewer companies are getting funded today. I see that trend to continue till end of 2009 or early 2010, he said.

The Bangalore-based Appnomic with operations in India, Middle East and Africa will use the funds to strengthen its existing market presence, expand into the US market and further build out its innovative product and service offerings.

The managed services market is already a mature industry however, the offshoring of infrastructure management services (IMS) to India is still in its infancy. The market opportunities for IMS in India is predicted to be as large as the application development and maintenance sector, said Haque.

The growing pressure on corporations to better handle the complex IT requirements demanded by internal and external regulators is accelerating the need for simplification and efficient management of IT at a low cost, and we believe that about 75% of infrastructure management opportunities can be offshored, said D Padmanabhan, MD & CEO of Appnomic Systems P Ltd. Appnomic has the next generation technology, proven customer traction and seasoned team necessary to capitalize on the growing market needs.

The company started 2.5 years ago has 390 employees and experiencing a 100% growth. The company has about 23 customers in banking, Internet portal sites, BPO and remote management.

I don t feel why the Satyam (SATYAM) incident must dampen our investment plans since even in the US, the Bernard Madoff incident has seen a $50 billion fraud case in the US recently. So incidents like these keep happening but don t affect us in any way.

NVP has made significant investments in India over the years. In fact, we have made about seven or eight direct investments and about 20 cross based operations in India.

Recently the company has invested in three companies Persistent, Adventity and Yatra.

IT sector likely to grow 31.4 percent in '09

The domestic IT- ITeS market is likely to grow 13.4% in 2009, the slowest since 2003, as per market research firm IDC India. The market which includes hardware, software and services, grew 17.3% in 2008 to generate revenue worth Rs 1,01,031 crore.

India is likely to witness a slower growth in the coming five years, IDC said. The domestic IT-ITeS market is expected to record an average growth rate of 16.4% in 2009-13, against 24.3% during 2003-08. The slower growth will see enhanced competition, leading to a change in strategy and continuous market re-alignment on the part of players, it said.

"The issues in the short run, more pronounced throughout 2009, will be productivity, cost savings and customer retention. This would eventually pave way for innovative services by leveraging the existing infrastructure and aligning it with emerging opportunities," IDC India country manager Kapil Dev Singh.

The research firm said global IT-ITeS market is expected to grow only 2.6% in 2009, against 5% in 2008 and much slower than 7% in 2007. Despite a lower growth rate, India will continue to be the fastest-growing IT market in Asia Pacific, followed by China, Vietnam, Thailand and Philippines.

In the domestic market, the product categories expected to grow faster than the average include collaborative applications, storage software, system and network management software. Within IT services, segments likely to outgrow the average include desktop management, information systems outsourcing, network management and application management. Solutions such as virtualisation, unified communications and business continuity services will also grow faster on account of enterprises' focus on cost savings.

Among emerging technologies, cloud computing services such as software as a service (SaaS) will be tested and adopted on a larger scale and will perform even better than in 2008. IDC said the economic slowdown will further increase and accelerate the adoption of outsourcing services by the Indian enterprises, while consumer spending on IT will moderate. There will also be increased consolidation among outsourcing vendors.

Source: Economic Times

Women power in IT on the rise

The number of women in the IT sector is on the rise. There are 2 million employees in this sector, out of which 28% are women (2007-08) up from 24% in 2005-06. Also the intake of women at the entry level this year was 46% up from 38% last year. Considering the next 10 years, India has a unique role to play for which contribution of women cannot be ignored, said NASSCOM president Som Mittal.

Moreover, NASSCOM conducted a survey of 50 companies and found that 11% of leaders in the industry were women. These roles were in senior management mostly for decision-making. Also two year’s back, three or four companies formally followed gender diversity programmes, but now there are about 80 companies that have some initiative to handle issues for women and take care of gender diversity and inclusiveness.

IT industry in India safe, says Nasscom chief

We need not worry about the slowdown in the US economy. It is all a temporary phase and very soon, the US dollar will reach a stable position, said Ganesh Natarajan, chairman of Nasscom.

India's IT industry does not need to worry about the current economic downturn as 'we have a strong knowledge base' and the established market players here would not be affected, a top industry body official said. "We need not worry about the slowdown in the US economy. It is all a temporary phase and very soon, the US dollar will reach a stable position," said Ganesh Natarajan, chairman of the National Association of Software and Services Companies (Nasscom).

Addressing a chief executives' meeting here, he said despite the global meltdown, the Indian software business is growing at the rate of 21-24 percent every year. He, however, urged the IT industry leaders to look beyond the US market. "Plenty of opportunities are available in Latin America, Japan, China, Europe and also in some African nations," Natarajan said.

"By 2020, India can alone fulfil the need of technical talent of the whole world. By that time the whole world would need 43 billion technocrats while India will have 47 billion surplus technocrats," he said.

He added that huge investments have to be made to train the available talent. According to Natarajan, the estate and retail business would feel the heat of the economic downturn. "But our IT sector is safe and would continue to grow," he said.

Mexico emerges great destination for Indian BPO firms

The Latino country is eyeing for $8 billion revenue from information technology services by 2030 For most people, Mexico doesn't equate with a home for high-tech companies. However, with a likely shift in the world economic superpowers in the future, the 'Latino' country is eyeing for $8 billion revenue frominformation technology services by 2030.

The global markets for IT services and business process outsourcing (BPO) is posing strong growth despite challenging conditions worldwide. According to Gartner, the revenues of $748 billion in 2007, is set to grow 9.5 percent in 2008, while the Everest Group estimates the present BPO market to be values at $28 billion is expected to grow up to $280 billion by 2012.

In this context, Mexico is set to fully take advantage of the growth prospects for these markets. Talking to CIOL at the BangaloreIT.biz 2008, Ricardo Alvarez, executive director of International Promotion, Mexico says, "Mexico is has already signed free trade agreements with 44 countries and is the second largest NAFTA country. India has always been the key strategic partner in many industrial sectors and would like it to expand in the IT front as well."

Alvarez says, "Goldman Sachs report indicates India and Mexico are likely to emerge big as world's economic superpowers and so need to work together in this regard. We can do so much together with India in IT despite the present financial crisis."

As per the report, China will top the list as the 'Economic Superpowers' by 2030, followed by USA, India, Brazil, Mexico and Russia.

With a privileged geographic location right next to the world's largest IT market, Mexico offers abundant qualified human resources and strong support. "These are among the many reasons why the government estimates that these sectors will export $8 billion by 2030," adds Alvarez.

Now with US economy tottering and President-elect Barack Ombama posturing against outsourcing, Mexico sees itself as alternative destination Indian IT Inc can explore for furthering their business.

With more than 1,200 software, BPO and IT services firms, Mexico generated revenues of $4 billion in 2007 growing at 36 percent annually (including IT oursourcing) of which $3.1 billion were exports, he adds.

Home to ten Indian IT firms, Mexico is rolling the red carpet for more Indian IT firms to set up shop there. Sasken, Mphasis, Sutherland, Hexware, Infosys, TCS, Wipro, Aricent, iGate and Mindtree have logged their presence in Mexico from 2005. "Our purpose in participating at IT.biz is to diversify our markets and establish better IT ties with India, he says.

Mexico's need of IT service professionals is expected to double from 41,000 in 2007 to 89,000 in 2013 and BPO professionals triple from 50,000 in 2007 to 155,000 in 2013, he said, adding it has 23 regional IT clusters in 20 states. For promoting IT in the country, Mexico First initiative is being rolled out with $100 million spend over the next five years, Alvarez adds.

Mexico, he said, was pushing Mexico City, State of Mexico, Jalisco, Nuevo Leon, Puebla, Sonora, Sinaloa and Veracruz, as fast-growing IT industry destinations for nearshore outsouring with advantages like time-zone alignment, lower costs, fast and simple visa regime, ease of software and hardware procurement, and legal and IP protection.

Recognizing the importance and economic potential of the software, IT services and BPO industries, the country has set up Prosoft — federal flasghip programme for the IT sector to provide financial assistance to IT investment and development. TechBA — business incubator and Mexico IT to provide information and advice to foreign firms keen on doing business in Mexico.