Government is likely to spend more on e-governance initiatives.
BANGALORE: Cautiously optimistic. Willing to bet on new technologies and business models to arrest the slowdown. Forecasts for 2009 from a section of the information technology sector, synonymous with Bangalore, reflected this trend.
Cadence Design Systems Vice-President Jaswinder Ahuja, who is the Chairman of India Semiconductor Association (ISA), said “Growth for the semiconductor companies will come from energy-related and low-power technologies that drive market share shifts.”
Power efficient design would be increasingly critical to semiconductor companies and those delivering ‘green technologies’ would be successful. This power saving aspect would extend to all electronic products and may challenge designers, he felt.
Naresh Wadhwa, President, India and SAARC of Cisco, said while the slowdown would affect technology spend, Indian companies could still look at growth, compared to the U.S. and Europe.
He expected that “The network and communications market will propel growth of routers and switches, the government is likely to emerge a big spender for its e-governance initiatives. Data Centre consolidation will become popular to cut costs and virtualisation will be important in the near future as IT organisations morph into a services management framework”.
Banking, financial services and insurance (BFSI) and telecom service providers would emerge key technology adopters.
Unisys India’s Vice-President Kumar Prabhas said, “Non-linear growth maybe what would take Indian IT industry to the next level and enable us differentiate in a highly competitive global environment.
This requires sustained effort and investment for driving innovation in relevant business areas.” Process reengineering, innovative tools and technology knowledge, should be used to offer customers better user experience and reduce costs. Offshoring consultants Zinnov said outsourcing contracts might need to be renegotiated now with better understanding of the cost structure and what the client company expected in terms of its future business plans.
International consultants Frost & Sullivan forecast a surge in IT services-related healthcare and life sciences. Opportunities like the e-Prescribing market in the U.S. were bound to grow.