Information technology (IT) outsourcing by Indian chief information officers (CIOs) is on the rise as 59 per cent of IT staff is outsourced to third-party service providers right now.
This phenomenon is increasing the demand penetration of third-party system integrators, said a study done by market expansion and globalisation advisory firm Zinnov.
According to the study, CIOs in India are also expected to increase their IT investments at an average of 20 per cent in the financial year 2013-14 as compared to a few percentages in 2012-13.
Verticals such as manufacturing, telecom, retail, healthcare and pharmaceutical will be the key verticals in terms of IT investments in the next financial year, it said.
The manufacturing sector is expected to witness a 29 per cent rise in its absolute IT budget for 2013-14, followed by telecom and retail with an increase of around 26 per cent and 18 per cent respectively (see table).
The report titled —- IT priorities of Indian CIOs for financial year 2013-14 — highlighted insights from over 50 key IT decision-makers from across industries such as banking, financial services, insurance, manufacturing, healthcare and pharmaceuticals, retail, and travel and logistics.
“With $30 billion already in IT investments in India, this is a positive sentiment coming out from Indian IT decision makers. The last two years have been specifically tough for the domestic IT market and IT vendors would now be eagerly looking forward to a promising financial year,” Praveen Bhadada, Director- market expansion, Zinnov said.
He said India is now starting to gain strategic importance as a market for IT solutions globally and, therefore, IT vendors would be able to do better business in the country with the macro-economic environment slowly improving as well.