Frost & Sullivans study on NASSCOM assesses digital transformation readiness and investment opportunities for Indian enterprises.
Indian enterprises are at par with their global peers in terms of digital capabilities and are catching up in areas of infrastructure and processes which will enable their digital transformation. While there is awareness of the need for digital roadmaps in these enterprises, more has to be done to bring this awareness into action. However, government-backed Digital India initiatives, such as Digilocker, eSampark, eLearning, AADHAR linking, and direct distribution system, will catalyze this transformation and improve infrastructure and solution platforms. Simultaneously, an increasing number of enterprises across the country are moving to the cloud, implementing Internet of Things (IoT) solutions, and trying to understand customers better through analytics and social media platforms. As a result, tremendous opportunities are emerging for information technology (IT) and IT-enabled services (ITeS) providers.
With the rapid evolution of technology, digital solutions are becoming an integral component of business operations for enterprises across sectors. This is further fuelled by an increase in digital-savvy customers along with the necessity to stay ahead in the market.
The studyanalyzes digital transformation strategies of Indian enterprises and assesses value propositions. Some of its insights across various verticals include:
- Banks invest 30 percent more in application for customer services over insurance companies, and the intracompany digital approach in banking is better than that of insurance companies. Retail banking can lose up to 55 percent of their business to fintech firms if they do not up the ante in terms of investment in digital transformation.
- In manufacturing, 87 percent of the companies with large and discrete manufacturing units use analytics to understand the distribution, demand, and supply factors. Around 70 percent of the companies that are leveraging open innovations (e.g., 3D printing) are small manufacturing units with revenues less than USD 100 million.
- Indian telecom companies are far behind global players with respect to automation. Investment in infrastructure, cloud, and managed services would aid to bridge the gap between Indian and global players.
- Retailers are motivated to invest in IT, and an 18 percent increase in budgets is expected in the next year. This will create great opportunities for service providers and solutions vendors.
- Hospitals are starting to use analytics more rigorously for clinical and nonclinical data in India: 43 percent of hospitals feel that integration and centralization are critical to create a platform to implement analytics.
The immediate challenges for digital initiatives in India are nonuniform connectivity, speed, and broadband infrastructure along with a scarcity of suitably skilled personnel in the market despite an abundance of engineers. To address these obstacles, the Government and telecom providers are laying out fiber optic cables to improve the overall speed, while enterprises are allocating budgets to train existing and new employees.