nasscom ceo survey: a brief top technology priorities for global businesses in 2019. source: nasscom...
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NASSCOM CEO Survey: A Brief
NASSCOM CEO Survey Methodology
Profile Participation
Definitions:
Somewhat lower than 2018: - (0-2%)Somewhat better than 2018: + (0-2%)
Over 100 CEOs were surveyed over the period of 2-3 months (Dec-18 to Feb 2019)
Global Economic and Business Outlook 2019
44%Somewhat lower than 2018
25%
19%
6%
6%
As per World Bank Global economy expected to
slowdown to 2.9% in 2019
International Trade and manufacturing activities to
soften
Advanced economies growth forecasted to drop by 2% predicted by World
Bank
Trade tensions and rising US interest rates
Source: NASSCOM CEO Survey, World Bank, IMFSource: NASSCOM Survey of 100 CEOs
Uncertainties Prevail
US growth constrained by diminishing fiscal stimulus and higher interest rates
Tighter monetary policy
Same as the year 2018
Somewhat better than 2018
Significantly better than 2018
Significantly lower than 2018
34%
53%
13%
Grow by 4-6% Grow by 1-3% No growth / decline over2018
Global Technology and BPM Spending in 2019
Source: NASSCOM Survey of 100 CEOs
As per IDC, Worldwide ICT spending to reach USD 5000 bn by 2019
Worldwide spending on devices: PCs, tablets and mobile phones to grow 2.4% in 2019
SaaS to drive the major growth with CRM to be the focus
Tech Spending expected to grow, less impacted by global uncertainties
Source: IDC, Gartner, NASSCOM Strategic Review 2018, NASSCOM Analysis
Gartner Says Global IT Spending to Grow 3.2
Percent in 2019
Cloud software expected to grow at
more than 22% in 2019
Increased focus towards customer experience to
drive customer relationship management (CRM)
5%
4%
26%
17%
54%
12%
28%
29%
34%
13%
12%
17%
26%
19%
19%
28%
34%
15%
14%
6%
43%
17%
4%
16%
8%
Blockchain
Devices and IOT
Cybersecurity
Hybrid Cloud
Advanced Analytics and AI Priority 1
Priority 2
Priority 3
Priority 4
Priority 5
Top Technology priorities for global businesses in 2019
Source: NASSCOM Survey of 100 CEOs
AI and Data analytics is the game changer for business
Data management market to reach USD 950 mn in 2018 with a growth of over 13% YoY
Security software market expected to grow at CAGR of 15.7% till 2022
Spending on Artificial Intelligence to reach USD 47 billion by 2020
AI will increase economic growth an average of 1.7% across 16 industries by 2035
Source: Forbes, IDC, Markets and markets
Hybrid cloud market to reach USD 98 bn by 2023, driven by growing need for overcoming complexities
Key growth drivers for global businesses for Technology and BPM spending in 2019
Source: CLSA, Economic Times, Forbes, ISG
9%
23%
19%
20%
29%
10%
19%
21%
35%
17%
18%
21%
24%
15%
28%
19%
24%
22%
14%
12%
43%
13%
14%
15%
14%
Cost optimization
Enhanced efficiency and modernisation
Unlock growth with new revenue opportunities
Build customer value through enhanced customerexperience
Digitise the core and build a truly digital organizationPriority 1
Priority 2
Priority 3
Priority 4
Priority 5
CX and Digital: The value levers
Spending on devices (PCs, tablets and mobile
phones) is set to total $33 billion in 2019, a growth of 7.4% year over year as
per Gartner
Enterprise software spending forecasted to reach $6.3 billion and grow 12.9 % in 2019
According to Forbes, Digital transformation to
add USD 154 billion to India’s GDP by 2021
Business process outsourcing (BPO) and
consulting segments are expected to grow at
18.5% and 15.9% respectively in 2019
IT-BPM Industry in India 2019: Outlook
Source: NASSCOM Survey of 100 CEOs
Sentiment for 2019 dividedDigital transformation businesses to grow at CAGR of 18.5% over next 5 years
Source: BAML, CLSA, Economic Times
Government identified IT as one of the 12 champion sectors, INR 5,000 crore fund allocated for these sectors
Acceleration expected inCC YY growth acrossmajor Indian IT companies in FY20
Demand revival from commoditization of digital, hybrid cloud adoption, automation adoption
Digital the key growth driver, forms ~30% of revenue for Top 5 Indian tech firms
As per Bank of America Merrill Lynch, IT services demand expected to be very strong in US
2%
47%
32%
19%
Significantly betterthan 2018
Somewhat betterthan 2018
Same as the year2018
Somewhat lowerthan 2018
Technology Skills and Hiring: Outlook 2019
Tech Talent with right skills will continue to be in high demand
Source: AICTE, Mercer, Robert Walters
As per AICTE, Indian tech companies expect 15-20% increase in hiring compared to 2018
BFSI, Software / Hardware, Manufacturing sectors in India to be the hiring focus in 2019
Jobs in Analytics, Design, AI, R&D and Robotics to attract high demand
Engineers, graduates, and management equivalents to be the hiring intent
Top hiring sourcing channels expected to be Job portals, internal referrals and consultants
5%
45%43%
7%
Significantly betterthan 2018
Somewhat betterthan 2018
Same as the year2018
Somewhat lowerthan 2018
Top focus segments for Digital Capabilities in 2019
Innovation – Build, Buy and Partner key focus
Source: Gartner, Economic Times
4%
16%
31%
15%
35%
8%
23%
19%
27%
26%
19%
23%
21%
23%
19%
21%
26%
17%
21%
8%
48%
12%
12%
15%
12%
Mergers and Acquisitions
New Business Models (Risk Reward, Onshore)
Reskilling and building the right talent pool
Partnerships and Co-Innovation
Products and Platforms
Priority 1Priority 2Priority 3Priority 4Priority 5
90% of Cloud System Integrators investing in Cloud
Management Platforms
As per World Economic Forum, Collaboration is a
strategic imperative as industries become
increasingly digital
Fintech firms to partner with non
traditional financial services to scale
innovation
Gartner predicts shift in “Platform-itization”
of emerging technologies like
Blockchain, AR/VR, IoT, AI etc.
Growth drivers for IT-BPM Industry in India in 2019
Digital @ Scale to grow in 2019
Source: Economic Times, Ibef, Indiaretailing
4%
28%
7%
19%
36%
15%
11%
23%
26%
31%
15%
19%
32%
26%
13%
17%
30%
23%
19%
11%
50%
13%
16%
9%
9%
Increased spending on non-discretionary spending
Increased discretionary spending on technology
Enhanced business opportunities in Europe, APAC
Growth in key verticals – BFSI, Retail, Manufacturing
Large deals for digitalizationPriority 1
Priority 2
Priority 3
Priority 4
Priority 5
Source: NASSCOM Survey of 100 CEOs
ER&D companies are bagging big digital
transformation deals
Indian retail industry expected to increase by 60% and reach USD 1.1
trillion by 2020
GoI to increase share of manufacturing sector to
GDP to 25% by 2022
Increasing FDI and more merger & acquisition
deals expected in 2019
Key risks that can hinder the growth of Indian IT BPM industry
Globalization in transition and skills shortage can hamper industry growth
Source: Business Standard, Economic Times, Livemint, NASSCOM
13%
10%
6%
27%
40%
23%
12%
15%
31%
23%
23%
20%
31%
19%
15%
15%
23%
35%
17%
12%
25%
35%
13%
6%
10%
Increased competition from emerging markets or smallplayers
Threat from advanced technologies like unethical AI,automation
Cyber risks
Lack of digital capabilities & skills
Increased protectionist policies against India
Priority 1
Priority 2
Priority 3
Priority 4
Priority 5
US complaint against certain export-subsidy
measures by India
Indian companies with the most exposure to the US are in the technology and pharma
sectors.
Goldman Sachs cuts the US economic growth forecast for
the first half of 2019 to 2% from 2.4%
Industry will face a shortage of 230,000 skilled techies as jobs
in AI and Big Data are estimated to be 780,000 by 2021
NASSCOM is the industry association for the IT-BPM sector in India. A not-for-profit organization funded by the industry, its objective is to build agrowth led and sustainable technology and business services sector in the country. Established in 1988, NASSCOM’s membership has grown over theyears and currently stands at over 2,500. These companies represent 95 percent of industry revenues and have enabled the association to spearheadinitiatives and programs to build the sector in the country and globally. NASSCOM members are active participants in the new global economy and areadmired for their innovative business practices, social initiatives, and thrust on emerging opportunities.
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