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SERVICES

Indian IT Services Market to Soar

T

HE INDIAN IT

has slowed in the past year services market is because of global economic forecast to reach challenges, the growth $10.2 billion (about fundamentals are on relaRs 53,000 crore) in 2013, a tively solid footing, driven 12 percent increase from primarily by growing doan estimated $9.1 billion in mestic consumption. For 2012, according to Gartner. this reason, GDP growth is India’s IT services marexpected to remain steady ket offers significant opin the longer term. Serportunities for vices spending IT service proon transparency viders because and efficiencyof the increasing related projects The forecasted needs and wants from the governincrease in the IT services market of IT buyers. ment, such as for 2013 compared As companies e-governance to 2012. grow in size and projects, inscale, the market cluding Unique is likely to see larger IT Identification Authority services deals with more of India, and Accelerated sophisticated deal engagePower Development and ment practices. Reforms Programme, “Despite facing a sloware expected to drive serdown in the past two years, vice spending.” the rate of growth of India’s Government infrastrucIT services sector remains ture projects will strongly relatively high,” said Arup drive IT, in conjunction Roy, principal research anwith the expansion of the alyst, Gartner. He says, “Alfinancial services and manthough India’s GDP growth ufacturing sub-sectors.

12%

The Indian domestic IT services market is transitioning rapidly, with profound changes in buying needs and behavior. The number, size, and scale of IT services deals are increasing. Buyers are becoming more sophisticated in their sourcing practice and vendor management. Deals are transitioning from first to secondgeneration outsourcing. The Indian market of the future is likely to see efficiency and enhancement-based deals in energy and utilities, transportation, education, and parts of government bodies. “Service providers wishing to enter into the Indian market must factor in the rising infrastructure and IT labor rates, along with high attrition levels, in their planning exercise for their operations costs, as well as local regulations and bureaucratic challenges in establishing and operating businesses in India. Leveraging tier-2 and tier-3 cities for Indian business is a tactic that could be used in conjunction with the mainstream delivery from tier-1 locations,” said Roy

Is Cisco Filling the Gap?

8

left open the possibility of revisiting the ADC market. Oppenheimer believes that re-evaluation will result in an OEM deal with Citrix and a possible acquisition of the company’s NetScaler assets, according to this post in StreetInsider.com. “From a technology standpoint, NetScaler is a highquality solution relative to Cisco’s discontinued ACE and one that Cisco can sell as a standalone

INDIAN CHANNELWORLD NOVEMBER 2012

DellSonicWALL appointed Amit Singh as the new country head for India. A Dell executive for the past three years, Singh’s recent role was as regional sales manager for South India. He has more than 13 years of industry experience in various organizations such as Redington, Vitage Systems, and Nirmal Datacomm. Intel has announced the appointment of Kumud Srinivasan as president for Intel India. Kumud succeeds Praveen Vishakantaiah. Srinivasan has been with Intel for over 25 years, and has held several business and information systems positions within Intel’s manufacturing and information technology organizations. Red Hat announced the promotion of long-time Red Hat employee Arun Kumar from senior director of business development for APAC to general manager for Red Hat India.

— By Team ChannelWorld

ACQUISITION

Cisco could buy Citrix’s networking business if an expected OEM deal involving the latter’s application delivery controller product bears fruit, Oppenheimer analysts said. Oppenheimer & Co. issued bulletins stating that Cisco is expected to fill its recent ADC hole with Citrix’s NetScaler product under an OEM arrangement. Cisco killed its own Application Control Engine (ACE) product but

Short Takes

MIND THE GAP Cisco may fix its ADC void with a Citix product.

ADC to enterprise/SMBs,” the site quotes Oppenheimer as stating. “While OEM relationships are tough to execute, Cisco has a strong sales force and now a strong product to sell. We see little go-to-market conflict as we expect Cisco to focus on

standalone solutions while Citrix will focus on bundling with its own solutions.” Longer term, Oppenheimer believes Cisco could move to acquire NetScaler for $1.5 billion (about Rs 7,000 crore) to $2.1 billion, or five to seven times fiscal 2012 revenue. Such a deal would put pressure on market leader F5 and Radware. Citrix acquired NetScaler in 2005 for $300 million (about Rs 1,650 crore). Spinning it off would allow Citrix to focus on its core virtualization business, Oppenheimer notes. — By Jim Duffy

Channelworld Magazine November 2012 Issue  

Channelworld Magazine November 2012 Issue

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