New Delhi, Dec 17: Manufacturing and financial services sectors accounted for over 45 per cent of total IT contracts awarded in the country between January 2011 and December 2012, a report has said.
In its report ‘Domestic IT Deals in India — Q1 2011 to Q3 2012 in Review', research firm Zinnov said, “Manufacturing and BFSI (Banking and Financial Services and Insurance) continue to be the largest verticals in terms of deal size, accounting for 26 per cent and 20 per cent of total IT deals, respectively.”
Zinnov expects the number of IT deals in India to grow by 30 per cent in 2012 compared to 2011 with the Indian companies spending more on software and solutions than hardware.
The report is based on a random sample of 500 recent IT deals in the domestic market in India.
Verticals such as retail (4 per cent), travel & logistics (4 per cent) and energy (3 per cent) saw rapid growth, while “not many new deals were seen in the telecom sector“.
“With 30 per cent growth in the number of IT deals every year, India has become a key market of focus for most of the IT companies worldwide,” Zinnov Director—Market Expansion Praveen Bhadada told reporters in a conference call.
The deals in the government vertical accounted for about 15 per cent of the total deals, mainly due to government's focus on e-governance.
Further, the report stated that the small and medium enterprises are becoming active in their IT consumption. SMEs formed around 31 per cent of all deals, while large enterprises accounted for remaining 69 per cent deals.
Foreign multinationals dominated the IT deals market in the last seven quarters, Zinnov said.
Oracle, SAP, IBM and Microsoft featured as top principal vendors with 33 per cent share in all enterprise deals and 36 per cent share in all SME deals.
“India has over 3,500 listed companies now, and about 10 million SMBs which can potentially consume technology which is a very big opportunity to tap into. Accordingly, IT companies are now focusing on account mining for large enterprises and channel restructuring for better penetration in the SMB space,” Bhadada added.