Business Today

In 'Funds Save' Mode

twitter-logo Goutam Das        Print Edition: March 4, 2012

What will 2012 be like for Indian information technology services firms? Companies across the world have frozen or are currently finalising their budgets, and given the global gloom, allocations for IT are unlikely to bring cheer. Small vendors are likely to lose business. Across the board, spending on fancy technology will be restricted. The Indian IT sector waits with fingers crossed. All the Chief Information Officers and heads of IT spoken to say a spell of belt-tightening is in the offing:

V.C. Gopalratnam, CIO, Cisco Globalisation and VP Information Technology
V.C. Gopalratnam
Full interview with CIOs at www.businesstoday.in/cios
V.C. Gopalratnam,
CIO, Cisco Globalisation and VP Information Technology
IT budgets will stay flat compared with last year. They may even drop a couple of percentage points. The CIO is now expected to do more work with less money. We have outsourcing relationships with Wipro, Infosys, TCS, Satyam, HCL in India. We will continue to optimise on our services spend. We want to leverage offshore, get higher value for the same money. Service providers without scale could lose out if there is consolidation.
 
Eric Karsten, Manager, Enterprise Engineering, Ford Motor
Eric Karsten
Eric Karsten,
Manager, Enterprise Engineering, Ford Motor
While I do see small increases in IT budgets, we do not see that as the driver for any increase in IT services. The bigger driver is to become more effi cient with our maintenance and support dollars so that we can invest in new development projects that provide higher business value. The need is to evaluate which IT services provide the highest value to hold internally, and which IT services we want to increase our spend on.

Unnikrishnan Nair, CIO, Latin America, China, India at Philips
Unnikrishnan Nair
Unnikrishnan Nair,
CIO, Latin America, China, India at Philips
At Philips, we are looking at how to use some of the money we are spending on maintenance services on innovation and solutions for the future instead. We are holding discussions with our IT partners on how to optimise some of the spending. Essential work will continue but budgets will be fl at. We have relationships with IBM, Atos Origin, Capgemini, Wipro and Mahindra Satyam, among others.

Anders Brons Petersen, Head of IT, Novozymes
Anders Brons Petersen
Anders Brons Petersen,
Head of IT, Novozymes
Our IT budget for 2012 is expected to grow three per cent over 2011, as we will invest in new technologies like information security and mobile device management. There was a lid on investments in 2011 in our company as we were revamping our basic processes and putting the internal IT organisation in place. In India, we are engaged with TCS - the fi rm has an ongoing project to revitalise SAP's order management process.

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