tech2 News StaffNov 16, 2016 17:49:08 IST
Gartner has released its latest report for the India market that reveals IT spending in the country is expected to reach $72.4 billion in 2017, which is up 6.9 percent from 2016 estimated spending of $67.7 billion. Discussing the key IT and business issues driving the evolution of digital business, analysts at the Gartner Symposium/ITxpo believe vertical segments such as communications, media and services, banking and securities, manufacturing and utilities markets are driving IT spending growth.
"'Make in India' is set to boost the manufacturing sector, as well as make it easier to attract investment, and ‘Digital India’ is focused on creating digital infrastructure, digital delivery of services and increased digital literacy,” said Partha Iyengar, Gartner Fellow and head of research at Gartner India. “Software and IT services spending is projected to have the highest growth rates as companies work towards creating digital applications on which enterprise organizations' digital business models are being built. Some leading edge organizations are already starting to extend that journey to the beginnings of algorithmic business.”
Software spending is projected to grow 7.3 percent in 2016, and by another 12.8 percent in 2017 to total $5 billion. IT services spending is said to be on pace to grow 8.5 percent in 2016 to reach $11 billion, and increase 13.5 percent in 2017 to reach $12.5 billion.
CIOs will participate in building a new digital platform with intelligence at the center that will enable ecosystems, connecting businesses and collapsing industries. The new digital platform, according to the report, will consist of five domains - traditional IT systems, customer experience, The Internet of Things (IoT), an ecosystem foundation and the intelligence platform that will bind all domains together.
“Each of these domains are interconnected and interdependent. All have a role, and all are required,” said Peter Sondergaard, senior vice president and global head of Research. “Your new digital platform will allow you to participate in the evolving world of business, government, and consumer ecosystems. Because ecosystems are the next evolution for digital. It’s how you compete at scale.”
Talking about these five elements, the report explains Traditional core IT systems is basically how CIOs run and scale operations. It means taking high performing traditional IT systems (such as the data centers and networks) and modernizing them to be part of the digital platform. “You now need to make cloud, mobile, social and data your core capabilities while investing in resilience, business continuity and disaster recover, insight and outside in a hybrid approach,” Sondergaard said.
The report talks about how digital customer experience and how the business engages in the digital world. The pioneers are exploring how new experiences such as virtual and augmented reality will change the way customers engage, adds the report. Talking about IoT, Gartner says IoT changes how CIOs should invest in analytics because decisions must move from days to minutes to instant. CIOs should plan to shift their investments in analytics to real-time.
The report explains that ecosystems go beyond the capability to decide, CIOs need to build the capability to interact with customers, partners, adjacent industries, even your competitors. The ecosystems allow for the transformation from traditional business with linear value supply chains to networked digital ecosystem businesses.
Further, it talks about the new type of intelligence driven by machine learning - artificial intelligence.“We are building machines that learn from experience and produce outcomes their designers did not explicitly envision. Systems that can experience and adapt to the world via the data they collect,” Mr. Sondergaard said. “Machine learning and artificial intelligence move at the speed of data, not at the speed of code releases. Information is the new code base.”
Many industry models will transform with digital ecosystems. Moving from simple relationships run by intermediaries toward distributed partnerships possibly managed by a shared distributed ledger system like blockchain,” Mr. Iyengar said. “Building a strong ecosystem will help you manage these dynamic interactions. Ecosystems are the future of digital.”
Gartner's IT spending forecast is a result of rigorous analysis of sales by thousands of vendors across the entire range of IT products and services. Gartner claims to utilise primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.
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