India Third Largest IT Market In APAC by 2016

IT spending in India is projected to total $73.3 billion in 2015, a 9.4 percent increase from the $67.1 billion forecast for 2014, according to Gartner, Inc.

“India is forecast to be the third largest IT market within the Asia/Pacific region by the end of 2016 and will further progress to become the second largest market for IT by the end of 2018,” said Peter Sondergaard, senior vice president at Gartner and global head of Research. “Much of the growth from being the number four market in Asia/Pacific to number three is likely to happen in 2015.” 

Mr. Sondergaard discussed the latest outlook for the IT industry here today as he addressed an audience of more than 900 CIOs and IT leaders at the sold out Gartner Symposium/ITxpo.

IT services will record the strongest revenue growth at 15.7 percent in 2015; software will grow at 14 percent. Devices will continue to account for the second largest part of the market with 33 percent share of revenue and will grow 12.6 percent in 2015. The telecommunication services segment will account for 39.3 percent of the Indian ICT market and it is set to grow at 4.2 percent revenue growth in 2015. 

“IT spending in India is on pace to increase 2.9 percent this year, primarily on the back of strong growth within the IT services and software, which will grow 10.5 percent and 9.6 percent,” said Partha Iyengar, distinguished analyst and Gartner India head of research.

In 2014, mobile devices will grow 13.5 percent, and will dislodge mobile voice services to be the largest segment within the overall IT market in India. Mobile data services will be the fastest growing segment in India, growing 18.2 percent in 2014. Telecommunication services that will account for 41.4 percent of overall IT spend, and it will decline 0.7 percent in 2014.

“The impact that the digital business economy is having on the IT industry is dramatic. Since 2013 650 million new physical objects have come online. 3D printers became a billion dollar market; 10 percent of automobiles became connected; and the number of Chief Data Officers and Chief Digital Officer positions have doubled. In 2015, all of these things will double again,” said Mr. Sondergaard.

Gartner defines digital business as new business designs that blend the virtual world and the physical worlds, changing how processes and industries work through the Internet of Things.

“This year enterprises will spend over $40 billion designing, implementing and operating the Internet of Things,” Mr. Sondergaard said. “Every piece of equipment, anything of value, will have embedded sensors. This means leading asset-intensive enterprises will have over half a million IP addressable objects in 2020.”

Every Business Unit is a “Technology Startup”

There is a dramatic shift in IT spending power. Mr. Sondergaard said there is a shift of demand and control away from IT and toward digital business units closer to the customer.

“Thirty-eight percent of the total IT spend is outside of IT already, with a disproportionate amount in digital. By 2017, it will be over 50 percent,” Mr. Sondergaard said. “Digital startups sit inside your own organization, in your marketing department, in HR, in logistics and in sales. Your business units are acting as technology startups.”

Gartner estimates that 50 percent of all technology sales people are actively selling direct to business units, not IT departments. Millions of sales people and hundreds of thousands of resellers and channel partners are looking for new money flows in the fluid digital world, and they are finding eager buyers.

Become a Bimodal Organization

Bimodal IT fills the digital divide between what IT provides and what the enterprise really needs. Mode 1 is traditional, and the systems that support them must be reliable, predictable, and safe (like a great IT organization). Mode 2 is nonsequential, emphasizing agility and speed (like a startup) because disruption can occur at anytime. 

Sondergaard used the example of smart machines to highlight the disruption caused in digital business. Smart machines are an emerging “super class” of technologies that perform a wide variety of work, of both the physical and the intellectual kind. For example, school computers have been grading multiple tests for many years, and now they are grading essays, unstructured tests that require analysis.

“Not is the grading more accurate, but students actually worked harder on their essays when they are graded by a smart machine,” Mr. Sondergaard said. “Other professional tasks won’t be far behind: financial analysts, medical diagnostics, and data analytics jobs will be impacted. Knowledge work will be automated.

Smart robots will appear not just on the manufacturing floor, where they do physical work, but in the workplace and even in the home. Smart machines will automate decision making. Therefore, they will not only affect jobs based on physical labor, but they will also impact jobs based on complex knowledge worker tasks.

Impact of Digital Business on Jobs

Digital businesses will impact jobs in different ways. By 2018, digital businesses will require 50 percent fewer business process workers. However, by 2018 digital business will drive a 500 percent boost in digital jobs.

Hottest Skills in Digital Business

Right now, the hottest skills CIOs must hire or outsource for are:

• Mobile

• User Experience

• Data sciences

In the future, three years from now, the hottest skills will be:

• Smart Machines (including the Internet of Things)

• Robotics

• Automated Judgment

• Ethics

Over the next seven years, there will be a surge in new specialized jobs. The top jobs for digital will be:

• Integration Specialists

• Digital Business Architects

• Regulatory Analysts

• Risk Professionals

Mr. Iyengar explained to the CIOs in the audience, “The new digital startups in your business units are thirsting for data analysts, software developers and cloud vendor management staff, and they are often hiring them fast than IT. They may be experimenting with smart machines, seeking technology expertise IT often doesn't have. 

“You must build talent for the digital organization of 2020 now. Not just the digital technology organization, but the whole enterprise. Talent is the key to digital leadership. Build credibility and build the two-speed organization.” 

Baljit Dail New CEO of JDA Software

 JDA Software Group, Inc., the world’s leading supply chain and retail solutions provider, today announced that Baljit (Bal) Dail, a senior technology executive and JDA’s Chairman of the Board, has been named JDA chief executive officer after assuming the CEO position on an interim basis in May 2014.

“The potential for JDA now, and into the future, is tremendous and I am excited about the opportunity to continue leading this innovative company,” said Dail. “Our game-changing suite of solutions spanning retail and supply chain planning and execution, coupled with our deep expertise in many industries and regions, puts us in a perfect position to deliver real business value and results to leading companies around the world."

Dail has implemented a number of changes to JDA’s organization since assuming the interim position. He recently formed JDA’s Global Industries and Solutions business unit, responsible for developing the company’s solution suite vision, product portfolio strategies, and support and cloud operations. He also appointed a global sales leader to focus on establishing, growing and retaining strong customer relationships and building a progressive global alliances strategy and ecosystem. In addition, he established JDA’s Innovation Lab to focus on building transformational technology strategies that can propel JDA’s solutions by leveraging next generation platforms and emerging technologies.

Dail’s prior leadership experience includes previous roles as CEO of both Aon Hewitt and Aon Consulting, and as chief information officer of Aon Corporation. He also was a partner at McKinsey & Company focused on the high-tech sector, and is currently an operating partner at New Mountain Capital. His retail experience includes starting his career in the technology group at Marks & Spencer, a leading retailer in the United Kingdom.

Honours for Incheon Asian Games Medal Winners

Samsung Electronics Co. Ltd, a global leader in technology, today felicitated winners of the recently concluded Incheon Asian Games. M.C. Mary Kom was declared as the Most Valued Player (MVP), and awarded a cheque of Rs. 10 lakh by Samsung. The company also felicitated the Incheon Asian Games medal winners from different sports disciplines for their performance and dedication by presenting them with Samsung Galaxy S5. A token of acknowledgement for their sterling achievement, the Samsung Galaxy S5 is the ideal tool for athletes – equipped with state-of-the-art features like S Health, IP 67, Heart Rate Monitor, UPS etc. which the athletes can use frequently during their training and game schedule. The choice of selecting the Most Valued Player among all those who brought glory to the country was certainly not an easy one. Samsung India left the task to eminent sports journalists and general public on social media.

Speaking at the felicitation ceremony, R. Zutshi, Deputy Managing Director, Samsung India said: “On behalf of Samsung, I would like to congratulate the entire Indian contingent and the medal winners on their achievements. Representing India in the global arena is a special honor, and millions of Indians look up to you. It is a matter of great pride for us to recognize the medal winners for their passion and hard-work, and honor them for their spectacular performance. We are especially proud of the Samsung Sports Ratnas – Yogeshwar Dutt, Mary Kom, Abhinav Bindra, Vinesh Phogat and P.V. Sindhu – who won six medals for India. Samsung India truly values its association with the Indian contingent as ‘Official Partner – Asian Games 2014,’ and remains committed to nurture and enrich the sporting talent in the country.”

Samsung’s month-long digital campaign – ‘Our Games, Our Pride’ – which was rolled out to inspire fans and encourage broader participation from diverse audiences received a phenomenal response. Our digital campaign delivered 188 million impressions and the campaign hash tag – #OurGamesOurPride trended on twitter. Not just that, over 59,000 selfies were posted on our microsite, as people wished luck to Indian athletes reflecting a wave of energy and passion that ran through this campaign till the successful conclusion of Incheon Asian games.

Anil Khanna, Treasurer, Indian Olympic Association said, “The achievement of the athletes is the result of all the hard work they have put in. They have brought laurels to the country. I would like to congratulate the entire Indian contingent and the medal winners on their achievements."

Samsung’s long association with Indian Olympic Association started with the 1998 Asian Games in Bangkok by supporting the Indian contingent. Thereafter, the company has continued to support Indian contingents to the Olympic and the Asian Games. Samsung started supporting the Indian contingent to the Olympic games from 2000 Sydney Olympic games onwards. The company has supported over 40 players under the Samsung Ratna programme for Olympics and Asian games till date.

The Samsung Sports Ratna supported select athletes with their training expenses as they prepared for the Asian Games. Consistent with the program values, the Samsung Sports Ratnas were selected not only for their sporting accomplishments, but also for dedication and commitment towards the games.  

NIELIT Takes Forward National Digital Literacy & Digital India Campaigns

Taking forward the National Digital Literacy Mission and Digital India Campaign of the Government of India, the National Institute of Electronics and Information Technology (NIELIT), a body with the Department of Electronics and Information Technology (DeitY), Ministry of Communications & IT, Government of India has entered into an MOU with Intel India to jointly conduct courses and online examinations on digital literacy as well as vet NIELIT’s courses on Electronic System Design and Manufacturing (ESDM). Intel will develop the software for assessment of candidates under the National Digital Literacy Mission to make the courses more industry oriented to endeavor to make one member of each house hold digitally literate in India. The MOU was signed by Dr. Ashwini Kumar Sharma, Managing Director, NIELIT with Debjani Ghosh, Managing Director, Intel South Asia in the presence of Chief Guest Ravi Shankar Prasad, Minister for Communications & Information Technology and Law & Justice at NIELIT’s national level workshop 2014 for its accredited partners (900 Nos.) and facilitation centres (5000 Nos.).  31 NIELIT centres are located across the country from Leh in the North to Chennai in the South.

The annual workshop on Supporting Digital India by Skilling, Scaling and Speeding Operations through Public Private Partnerships explored possible avenues to facilitate the Skill Development and Capacity Building initiatives of the Government of India. NIELIT also entered into an MOU with the Indira Gandhi Delhi Technical University for Women (IGDTUW) on the occasion. Also present were R.S. Sharma, Secretary, DeitY, Tapan Ray, Additional Secretary, DeitY and Dr. Ajay Kumar, Joint Secretary, DeitY. 

Delivering the inaugural address, Ravi Shankar Prasad, Minister for Communications & Information Technology and Law & Justice said, “ With the launch of the National Digital Literacy Mission and Digital India Campaign, a digital revolution is beginning. The Digital India program of the Government of India encompasses a time when the common man would be easily able to access and track the Government schemes and services even through his mobile phone.  To address these needs I am happy to notice that NIELIT has stepped up its efforts in skill development in the Electronic System and Design Manufacturing sector and has entered into many MoUs to leverage its capacity and create synergy in the area of training and support services.”

Speaking on the occasion, R.S. Sharma, Secretary, DeitY said, “ Among the 9 pillars of Digital India, while it is important that citizens of this country are issued a cradle to grave digital identity for which the UIDAI network can be utilized effectively, it is equally important to address the skill development issues which is another significant pillar under the Digital India program. In this regard, I am happy to note that NIELIT has initiated the process for linking its students database with Aadhaar.”

Shri Tapan Ray, Additional Secretary, DeitY expressed his pleasure that NIELIT in recent times has diversified its activities in niche technological areas like cloud computing, GIS, ESDM etc.

Dr. Ajay Kumar, Joint Secretary, DeitY said that NIELIT Centres have close links with the industry and are capable of bringing absolute synergy with industry to design courses under ESDM Scheme.

Dr. Ashwini Kumar Sharma, MD, NIELIT said “The new mantra of ‘3S’ that is ‘Skill’, ‘Scale’ and Speed’ defines the developmental approach of NIELIT in line with National Policy on Information Technology aiming to make at least one individual in every household e-literate, thus helping India become a global IT hub. It is great to see technology leaders like Intel come forward and support the cause. We are sure that through MoUs like this we will be able to work together to realize the vision of a Digital India.”

Debjani Ghosh, Managing Director, Intel South Asia said, “Intel has always been committed to realizing the dream of a Digital India. Through our efforts in accelerating digital literacy in the country, we’ve already reached out to over 3 million citizens till date. We are proud to work with NIELIT in assessing the impact of digital literacy in the country as well as contributing to the ESDM course creation. This collaboration is a true demonstration of the government’s vision of fostering strong public private partnerships under the ‘Sabka Saath Sabka Vikas’ philosophy to realize the dream of a Digital India.”

More than 9 lakh candidates have been skilled by NIELIT in 2013-14  as against about 4 lakh in the previous year (2012-13). Due to high quality of standards, many Universities have accorded recognition to NIELIT’s non-formal  courses, for lateral entry to formal courses, such as MCA, MBA etc.

Indian Govt IT Spending to Reach $7.2 billion in 2015

Government IT spending in India will total $7.2 billion  in 2015, a 5 percent increase over 2014, according to Gartner, Inc. Government IT spending is on pace to total $ 6.6 billion in 2014.

This forecast includes spending by the government sector (government is composed of state and regional government and central government agencies) on internal IT (including personnel), hardware, software, external IT services and telecommunications.

“IT services, which includes consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall IT government spending category through 2018, “ said Anurag Gupta, research director at Gartner. “IT services are expected to grow 10.9 percent in 2014 to reach $1.8 billion in 2015, up from $1.6 billion in 2014 – with the business process outsourcing segment growing 22 percent during 2014.”

Internal services will achieve a growth rate of 9.9 percent in 2014. Internal services refer to salaries and benefits paid to the information services staff of an organization. The information services staff includes all company employees that plan, develop, implement and maintain information systems. The software market will achieve the highest growth rate within spending categories. Government spending on software will total $788 million in 2014, and it will grow to $910 million in 2015. Software spending will be led by growth in vertical specific software (software applications that are unique to a vertical industry. These are stand-alone applications that are not modules or extensions of horizontal applications).

“India has a new government in power with the underlying promise of ‘Less Government & More Governance’. The delivery of a citizen-centric and transparent government is only possible through the extensive use of technology and by leveraging digital government,” said Gupta.” We expect a focus on expanding broadband penetration, accelerating digitization of core government processes, leveraging mobility to engage the citizens, cloud initiatives and public private partnership. India has ambitious plans to build several smart cities, and this will create new opportunities.”

Sixth Accelerator Batch of MS Ventures Now Open

Microsoft has announced the opening of applications for the sixth batch for the Accelerator Program of Microsoft Ventures in India. Starting October 10, 2014 till November 30, 2014, Microsoft will receive online applications from technology startups. The names of shortlisted companies will be announced in a few weeks after applications close and they will be invited for a face-to-face session with a jury panel. The final list of startups will constitute the summer batch of calendar year 2015 and will begin the four-month acceleration program at Microsoft’s office in downtown Bangalore in end January, 2015. Their graduation day will coincide with Think Next event in June 2015, where the startups will get an opportunity to showcase their ideas to key industry influential, eminent investors, mentors from India and abroad as well as the leadership team of Microsoft Ventures.

Inviting applications for the new batch, Ravi Narayan, Director, Microsoft Ventures in India, said: “The continued success of our Accelerator Program reiterates India’s strength as a potential hub for startups and as an ecosystem of global importance. Along with the access to Microsoft technology, mentors and investors, we also provide opportunities to our startups to connect with customers, partners and world class entrepreneurs. Conducting sessions with top entrepreneurs and alumni batches to help them build top line products in an accelerated fashion is also on the agenda. The progress these startups achieve during their stint at the Accelerator is phenomenal, which proves why the number of applications have been increasing exponentially batch on batch. Around 82% of the companies from our first four batches received funding within a year; and three got acquired, including the recent acquisition of Bookpad.”

Commenting on the initiative, Santosh Panda, an alumni from the Accelerator batch two and Founder and CEO, Explara, said: “Microsoft Ventures is a great entrepreneurial hub that brings together industry and functional experts to create an excellent support system for startups. Apart from the acceleration, the program provides them with insights that help ensure a more effective method of tackling the ecosystem. The biggest advantage of the Accelerator program is that it is not time-bound, because one can always keep coming back after the batch concludes and will continue to be provided with a lot of support in terms of technology, architecture and investor relations.”

Venkatesan Seshadri, Founder and CEO, FlatPebble, a startup from the current batch, said: “Microsoft Ventures has really pushed us hard and that has put us on a solid growth trajectory. In the past two months, the team has helped us hone our customer base. We have grown four times of what we were when we came in. We are now looking at expanding our supplier base to similar levels and are confident that we will get all the required support and guidance.”

For the sixth batch, Microsoft Ventures is again looking for a mix of Indian and international companies—Indian startups which are ready for the next stage of accelerated growth and want to have access to global markets as well as international companies that are interested in Asian markets. Young companies, which are at the ideation stage and have extremely high potential, will also gain from the program.

The application process is quite simple:

* All that startups need to do is apply online. And in case they have queries, just read up the FAQs.

* Attend a Microsoft workshop in their city (Microsoft expert will conduct a series of workshops and coffee meet-ups in various Indian cities to meet startups and startup aspirants and answer their questions. 

Schneider Electric Gears Up for Challenges of Indian Smart Cities

Schneider Electric Infrastructure is gearing up to take on the challenges in handling Prime Ministers’s pet project of 100 smart cities in India.

At a seminar on ‘Changing India: A Smart City Revolution’, held in Bangalore on October 9, 2014, Schneider Electric President and Managing Director for India Anil Choudhry said it affords an opportunity for integrating technologies.

“Schneider is well positioned to contribute to the government’s vision of creating 100 Smart Cities." We  are already working on smart projects and is serious about the fact that smart infrastructure will form the backbone of any smart city.“Schneider’s experience as a developer of Smart Cities is impeccable. We can integrate technologies in brownfield surroundings and enmesh loopholes to achieve energy efficiency,” Chaudhry said.  

For Schneider it is necessary to identify the building blocks for making the government’s ‘Smart Cities’ project a reality. Such a city should weigh the socio-economic necessities, inadequacies of the country’s infrastructure and administrative mechanisms, and the skills that will guide the city planners, administrators and proponents to build and manage Smart Cities. The seminar saw the participation of speakers from a plethora of fields who put forward their views regarding building a successful smart city model for future India. 

The seminar saw the participation of speakers from a plethora of fields who put forward their views regarding building a successful smart city model for future India. In the course of the discussion, Nilesh Purey, Vice President, ICT, Gujarat International Finance Tec-City shared his views on the skill sets that will enable city planners drive a Smart City project. 

He said, “We need to develop good skills sets and learn from the West, especially in the areas of administration and municipality. This is something that we have successfully implemented at GIFT. Every employee at GIFT has visited at least two countries to understand and learn best practices in this area.” 

The smart city discussion also throw light upon the importance of PPP model in determining the success of Smart Cities, Manish Agarwal, Executive Director, Infrastructure Advisory, PWC India said, “PPP model is imperative for Smart City development and it should not be viewed just as a financing option. PPP brings in certain level of service commitment and offers immense scope for innovation.”

 
The panelist also put the spotlight on the socio-economic necessities that drive the Smart City objective, turning the table on the inadequacies of our country’s infrastructure and administrative mechanisms, and the skills that will guide the city planners, administrators and proponents to build and manage Smart Cities.