System Integration Looking for Greener Pastures
The system integration market in India is expected to reach $18.5 billion by 2020 from the present $2.6 billion. So integrators are gravitating towards new verticals like smart cities, digital enterprise, Digital India and cybersecurity
According to industry reports, the Indian system integration market is expected to reach $2.6 billion in FY2016-17 and it is forecasted to reach $18.5 billion by 2020, contributing around 5 per cent of the global market as the global system integration market is expected to reach $393.1 billion by 2020.
According to Raj Malik, Chief Delivery Officer, HCL Infotech (a wholly-owned subsidiary of HCL Infosystems), “The expected market size by 2020 for different sectors is likely to be defence and telecom – $4.2 billion, BFSI – $4.5 billion, government – $2.4 billion, and energy, utilities & manufacturing – $3.3 billion.
"The system integration market in India for FY2016-17 is Rs 16,000 crore and the growth in FY2016-17 vis-a-vis FY2015-16 is 9 per cent," said Ranjan Chopra, Managing Director, Team Computers.
Commenting on the system integration market trends, S. Karthikeyan, MD, Bloom Electronics, said, “Both states and central government are investing around 3–5 per cent of their yearly budget on ICT. Digital India is envisioned with one lakh crore in the first five years on the other hand Indian Railways and Defence are making huge investments as they need to integrate their existing live systems and provide additional services/security with new technologies. Even education and heath industries needs to work on various integration to provide better systems to the public.”
“We believe the cloud is going to be the biggest market with annual growth of 30+ per cent. The expected revenue pie from smart city and IoT by 2020 is more than Rs.200 billion. Even security is going to be the prime area for government, education and healthcare sector which is expected to grow 1.5 times from the current market size of $2 billion,” added Karthikeyan.
USP of System Integrators
HCL Infotech: HCL Infotech has strong and strategic relationships with major global OEMs and over 60,000+ man-years of System Integration experience. The company has successfully implemented large projects like Aadhaar, defence projects and power-sector projects like RAPDRP for a large number of customers. The company is also implementing the converged defence communication network, spanning across multiple services (Army, Navy and Air Force).
L&T Infotech: L&T Infotech not only focusses on system integration competencies because of the synergies which we derive from its parent company L&T. This leverage acts as a differentiating point, particularly on the aspects of execution capabilities on managing system integration projects on a turnkey and build, operate and transfer basis.
Additionally, they have the legacy of managing large size system integration projects for clients in India across verticals like energy & petrochemicals, manufacturing, finance, insurance, telecom, defence and railways
Sterlite Tech: The company focusses on Smart City, Digital India, Wi-Fi and telco vertical.
Fourth Dimension Solutions (FDS): Thought leadership, PMO and project management with efficient execution SLA-driven service deliveries
Bloom Electronics: Collaborates with partners of niche systems along with their own solutions to provide better solutions to clients
Galaxy Office Automation: Offers a wide range of solutions and services to customers unlike offering point solutions by competitors and also offers end-to-end solutions. For example, in the storage space the company also offers mobility or BI solutions.
Blackbox Data Safe: Has expertise in data safety with Blackbox Data Safe and integrates it with IT security and application control to deliver comprehensive business availability to Indian businesses
Bitscape Infotech: Focussing on cloud, collaboration and regulatory compliances
Magnamious Systems: Adapting to new technologies fast and proposing them to customers for early deployment
Inspira Enterprise: Positioned as an end-to-end integrator in verticals like government, BFSI, PSU, IT/ITeS, healthcare and large scale enterprises. Focusses on supply and implementation of security devices and solutions, the company also endeavours to educate and provides expertise on the best combinations of solutions available to suit customer needs.
Team Computers has a nationwide operational excellence, wide range of product & solution offering and deep understanding of business analytics, mobility and multi-location needs of customer.
Source: VARINDIA
Commenting on the drivers, Anoop Pai Dhungat, Chairman & MD, Galaxy Office Automation, said, “Mobility and cloud continue to be the strong drivers for the system integration market. In the current fiscal, adoption of the cloud is, in fact, a lot more visible this year than the previous years, as organizations are realizing the potential of this technology. We are also seeing a lot of interest towards SAP HANA in the recent times. Other than this, we are upbeat about a whole lot of opportunities around core infrastructure upgrades among enterprises of all sizes.”
“The market is still in its initial phase and not matured yet. The opportunities around smart cities will depend largely on how various states and Union Government put the projects on fast track,” added Dhungat.
“Vendors in the government are doing well. So we expect the benefits to flow across integrators. Cloud has not taken off, but the security market is booming, at an unprecedented scale. Ransomware has made enterprises proactive about data protection. SMEs are waking up to the need of protecting and securing their data. E-learning is developing well, but a clear-cut direction and benefits should be announced by the government so that it can really take off,” said Kshitij M. Kotak, Chief Innovation Officer, Blackbox Data Safe.
IoT is poised to make a quantum leap, but, at the moment, the opportunities for integration are few, barring home automation as real IoT has not reached Indian shores for integrators,” added Kotak.
Cloud computing is primary the enabler for growth as companies will not throw away what is already invested in on-premise. So they will go hybrid route in this transition which generates even more opportunities. Government, education and security offer the largest market for system integrator,” says Kartik Shah, CEO & MD, Bitscape Infotech.
Security is the growth driver and probably newer technologies as majority customers are in the consolidation phase and are looking for cloud migration. Smart city, Indian Railways and Defence expansion are a very big market for system integrators,” says Jiten Mehta, Director, Magnanimous Systems.
Commenting on the system integration market, Manoj Kanodia, CEO, Inspira Enterprise, said, “Cloud implementation and big data solutions implementation are the new trend in the information technology systems market and companies are adopting the integration, thereby providing added advantages to the companies implementing solutions.”
“Development in the automation sector is driving system integration market, as the adoption of system integration technologies is high in the automation sector. Developments in technologies such as Building Energy Management Systems (BEMS), Clinical Integration, Cloud Service Brokerage (CSB), and Cyber Physical System (CPS) integration are expected to provide new avenues for market growth,” commented Kanojia.
“The growth drivers are e-commerce, digital India, smart cities and cybersecurity, etc,” said Amalendu Mukherjee, MD, Fourth Dimension Solutions
Future Focus
With the market opening up, all system integrators are focussing on different industry verticals or technology verticals for increasing their enterprise reach.
Galaxy Office Automation is majorly focussing on SMAC (social, mobile, analytics, and cloud) this year and we are also expecting to get deals around mobility, hyperconvergence, virtualization, SAP HANA and storage for the remaining quarters in this financial year.
Blackbox Data Safe is focussing on at least 16 new projects on high availability and business continuity in the balance of this financial year, mainly with banks, financial institutions, software and ITeS companies.
Bitscape Infotech is focussing on cloud, collaboration and compliance expertise in the pharmaceutical, manufacturing, BFSI and government verticals.
Magnamious Systems is focussing on cloud migration mainly and of course BYOD and VDI.
System integrators need to focus on emerging technologies and verticals and keep on designing innovative applications so that they can increase their market share as they move forward.
Pravin Prashant
pravin@varindia.com
Deals Backed by System Integrators
Bloom Electronics: Bagged projects for smart recruitment for the police, data center built for the state in the North East. The company has also provided the IT hardware and establishment of networking for police and judicial establishments in the North Eastern states.
Galaxy Office Automation: SAP HANA deals for a large FMCG customer, mobility deal for a large bank, mobile device business for a popular e-learning company and DC-DR and near DR project for a reputed NBFC (non-banking financial company).
Blackbox Data Safe: SME deals and two deals with small banks, mainly for high availability and business continuity with disaster recovery.
Bitscape Infotech: Bagged large pharmaceutical cloud, collaboration and regulatory compliances on Office 365, Microsoft technology-based government workflow management system for the US government county and close-to 15 more.
Magnamoius Systems: Bagged two large deals on MDM and MAM from large corporates to roll out BYOD.
Inspire Enterprise: Bagged Dial 100 Service, the largest centralized police control call centre for the entire Uttar Pradesh state in India created for maintaining the law and order. Inspira is one of their premier partners in providing computer-aided dispatch software solution along with data center networking and security infrastructure.
MCGM wanted to improve the quality and responsiveness of healthcare services by implementing Hospital Management Information System at MCGM's network which comprises of three major hospitals, one dental hospital, 18 peripheral hospitals, five speciality hospitals, 28 maternity homes, 161 dispensaries and 183 health posts. The projects aims at integrating patient care, clinical services, non-clinical support administration, diagnostic services, drug inventory management, epidemic control and other ancillary services which will interconnect all MCGM-managed hospitals in the city, maintain electronic records of all patients across MCGM health facilities, eliminate data redundancy and provide accurate and reliable data.
State Bank Group intends to improve cross-selling and cross-servicing across the group by leveraging its vast network. The objective of IMPACT is to enable any authorized employee, business partner, agent or associate (group representative henceforth) of any of SBG to sell any product of the Group and service any request, complaint of any group entity. Implementation of Customer Relationship Management (CRM) solution at SBI (domestic, foreign branches / subsidiaries), Associate Banks, SBI Life Insurance Company Limited (SBI Life) and SBICAP Securities Limited (SSL). Implementation of IMPACT User Interface and Master Data Management (MDM) Solution within State Bank Group.
HCL Infosystems: Managed Service Provider for the world’s largest Identity Management Project – Aadhaar. Apart from the sheer scale and complexity, one of the most significant innovations of the project is that the solution is entirely developed on Open Source platforms. It has deep expertise in implementing IT infrastructure in Power Distribution System, one of the largest implementation of RAPDRP in India, with total 1.32 crore consumers billed by the system. HCL is implementing the converged Defence Communication Network, spanning across multiple services (Army, Navy and Air Force).
Fourth Dimension Solutions: Backed RailTel Wi-Fi, Ernet Data Center and Department of Post deals.
L&T has entered into a large deal with the Income Tax Department under the Ministry Of Finance for deepening and widening the tax base with real-time statistics. It also includes a comprehensive fraud detection framework using network analytics, collaborative intelligence, web/text mining, entity search and geospatial analysis. The company has also been entrusted by the Ministry Of Defence for large projects involving modernization of logistics.
Source: VARINDIA
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