Economy does not lie in sparing money, but in spending
- Thomas Henry Huxley (1825-95)
year we do a survey to find out what the IT heads of India Inc. are planning
with regard to IT budgets and this year's no different except that the scope
of the survey has broadened. This time we polled 340 respondents of whom a third
were the final authority on IT investments with the rest being key members of
the team that called the shots on how the IT rupee is spent.
More than half the respondents see their role as being responsible for ensuring
reliable and cost-effective IT services. The companies polled ranged from those
with less than 500 employees (30%) to the giants with over 2,500 employees (29%).
In terms of PC penetration, the average survey respondent had over a thousand
machines. The average turnover was a not inconsiderable Rs 1,801 crore up from
Rs 1,697 crore in the previous edition of this survey. Along with swelling revenues,
India Inc. is also spending more on IT this fiscal. The average annual IT budget
for 2005-06 is Rs 8.07 crore. That's up from Rs 5.94 crore in 2004-05.
So, what else has changed? For one, we are tracking technologies such as RFID
for the first time in IS. Last year, we evaluated the CIO's changing role; this
time around we look at how the IT department as a whole has evolved.
In terms of technology, some interesting things did turn up. For one, India
Inc. is piloting cutting edge stuff such as SOA with the intention of redoing
its IT architecture. For another, RFID's picking up. That said, ERP remains
the bread and butter application for more than half the respondents. Outsourcing
is cooling, but only because almost everybody who wants to do it already is.
Until next year, this issue is going to be the authoritative word on IT spending
in India. So hang on to your copy.
Prashant L Rao
Head of Editorial Operations