The National Association of Software and Service Companies (Nasscom) and SapientNitro on Thursday released a research report, Marketing, Disrupted: Opportunities for the Indian technology industry, which assessed the emerging opportunities of the Indian technology industry with the continuous development of the digital technologies.
The report mainly analyses the disruption caused by the rise of digital technologies in marketing and its implications for the Indian technology industry. It states that marketing will play a key role and marketers will have to actively participate in decision making processes related to technology. It highlights how the industry should prepare itself and the changing role of the new stakeholder - the Chief Marketing Officer (CMO).
A significant 34 per cent of the marketers surveyed cited new tools/technology investment as one of the key concern areas. Technology share in the CMO's budget will increase. Over 70 per cent of CMOs, the report says, find that their role in IT-related spends is also growing.
R. Chandrashekhar, President of NASSCOM, said: "Digital technologies are creating disruption in areas beyond those under the purview of the CIO (chief information officer). Clearly, new opportunities for Indian technology players are opening up, opportunities that demand closer coordination with new stakeholders in businesses and modify their services to address new kinds of needs. Technology players must review and streamline their services and offer customised solutions for modern business to make the most of the new opportunity."
At present, 6 to 7% of the total marketing spend is devoted to digital marketing in the Indian market, which was around Rs 2,000 crore by end of 2013. The report stated in the coming future CMOs will have to re-prioritise their budgets, globally. For instance, CMO spends will go up for social media and data analytics.
The spend on digital marketing is expected to grow from the current 8 per cent to at least 35 per cent of the total CMO spend by 2020, the report mentioned. "The estimate is that more money will go into digital. In the next two years, the digital marketing spend is expected to hit upwards of 10-11 per cent in India," said Rajdeep Endow, Managing Director, Sapient, India.
The report has been researched by an independent advisory and research firm, Offshore Insights, that took feedback from more than 60 CMOs across North America and Europe. It has presented two scenarios.
The first one has a conservative estimate that pegs the opportunity for the Indian technology industry from marketing engagements at $18 billion. In Scenario 2, it is stated that there will be a $37 billion of CMO opportunity for the Indian technology industry by 2020. "We predict the size of the CMO opportunity to reach somewhere between the two scenarios by 2012," said Sudin Apte, CEO and Research Director, Offshore Insights.