Bulletin

Authors:
Springboard India Analyst Team

INDIA IT MARKET PREDICTIONS 2011

A Changing Vision

Date:
January 05, 2011

INTRODUCTION
This Springboard Research document analyzes the key trends in the India IT market in 2010, and previews the top trends that Springboard predicts will shape the local market in 2011. This analysis is based on Springboard Researchs continuous tracking of the major trends and developments in the India IT market over the year and includes ongoing primary research conducted throughout 2010 with CIOs and other IT and business decision makers, briefings with leading IT vendors, and analysis of publicly available information on IT companies, countries, products, technologies and services in the region.

INDIAN IT MARKET IT SPENDING AND USAGE ON UPWARD TREND

India is among the few economies that stood tall after the global financial crisis mainly due to the countrys healthy financial sector, favorable population demographics, greater domestic consumption, and inherent resilience. The Indian economy registered growth of 7.4% during 2009-2010, supported by several government initiatives that enabled development across various sectors. The contribution of agriculture to the overall Indian GDP has declined in recent years and that trend is expected to continue in the future. This highlights the transformation of the rural economy from agriculture-based to a more balanced mix of sectors. According to Springboard Research, this shift will generate further self-employment and empowerment of the rural population. This in turn will increase the technology requirements of the rural population, which will boost IT investment. Indias GDP is expected to grow more than 8% between 2010 and 2015 and the IT market will keep pace with a CAGR of 13.2% from 2010 to 2015, at a rate of 1.6X of GDP. The key

verticals that will contribute to the growth are banking, telecom, the public sector, transportation and logistics, and real estate. A decrease in governmental regulatory measures will provide further impetus to investment in India, which will lead to higher IT consumption. Furthermore, government IT spending has grown, driving increased domestic demand for IT services. Favorable policies designed to help IT companies increase their footprints in India will help increase investment as well. In addition, higher mobile and broadband penetration will lead to higher consumption of technology through real-time access, and mobility solution development will provide new revenue streams for IT companies. While the movement from CAPEX to OPEX clearly began years ago, its pace is accelerating quickly and reaching into more corners of Indian society, government and business. Springboard Research observed a shift in ITs role within companies from a business enabler to an innovation and profit center. As such, Springboard Research believes that CIOs must strike a balance between positioning their department as a cost center and strategic enabler. This shift in focus does not imply that CIOs are any less powerful moving forward. However, we strongly believe that CIOs have started to understand and follow this overall evolution and are applying it to their businesses and instead staying focused on underlying technologies only. On the connectivity side, Indias telecom market is undergoing a rapid technological change. As competition is expected to further increase between players, telcos will be forced to be innovative with content and application creation. For example, Aircel has already adopted managed value-added services (VAS) even before rolling out 3G services. Aircel has also tied up with Comviva to manage all its VAS content from various VAS providers. We will see similar interesting and innovative partnerships in the future, which will help telcos to be focused on business expansion, brand management, and innovative content development. This comes as good news for IT vendors as a large amount of spending by telcos will be on IT-related areas.

2010 PREDICTIONS: A REPORT CARD

Before we provide our key predictions for 2011, we like to remain accountable to last years predictions for 2010 as published in our 2010 India IT Market Predictions document (December 2009). Table 1 presents a report card of how we believe we fared in our predictions. Plus signs (+) represent predictions we believe proved themselves to be accurate, equal signs (=) reflect predictions that were neither fully right nor wrong and negative signs (-) represent predictions that we believe did not prove to be accurate.

Overall, market conditions and trends matched our expectations in 2010 relatively closely. One area that did not develop as quickly as we predicted last year was the growth of desktop virtualization. Although gains were made and more organizations tilted their client strategies toward virtualization, most organizations did not consider the business case compelling enough to prioritize this area for investment in 2010. For the most part, however, our predictions held up relatively well as the year unfolded.

Table 1: 2010 Predictions: Hits and Misses

What We Predicted for 2010
Analytics and the Advent of Intelligent Solutions will Drive New Business Value The Convergence of Computing Platforms Accelerates Rural India IT Solutions will Make Steady Headway Via Public and Private Sector Investments Virtualization Plays an Increasingly Critical Role on the Desktop Business Enhancement with Existing Vendors and Geographic Expansion will Drive Strong Focus from Indias IT Channel Community Government Projects will Fuel Smart Card Technologies A Wave of Innovative New Payment Technologies Emerge Online Developer Platforms and Communities Are the New Ecosystem Battleground and Epicenter of Application Innovation Mobile Social Networking Goes Mainstream

How We Fared

+ + + + + + + = +

Business Leaders will Drive the Proliferation of SaaS Applications

Source: Springboard Research, January 2011

2010 INDIA MARKET AWARDS

As we reviewed our predictions for 2011, our analysts also assigned awards for the key dynamics in the Indian IT industry they deemed most noteworthy. Results are highlighted in Table 2 below, followed by background on each selection.

Table 2: 2010 Market Awards Award

IT Buzzword of the Year IT Trend of the Year Indian IT Company of the Year Acquisition of the Year

2010
Private Clouds Everything-as-a-Service HCL Technologies IBM/Netezza
Source: Springboard Research, January 2011

Private Clouds IT Buzzword of the Year

Private clouds emerged in 2010 as the leading industry buzzword. Infrastructure vendors promoted private clouds as a means to steer cloud investments toward their existing offerings. Some pure-play SaaS vendors, on the other hand, have tried to suggest that private clouds are false clouds and some industry leaders have gone as far as referring to public clouds as sacred things. At the heart of the distinction is a battle between industry players for dominant market (and marketing) positions. Unfortunately, the shortterm impact of this debate has been an increase in the amount of confusion and uncertainty among IT decision makers. There is little doubt that both private and public clouds will coexist for a long time, as outlined in our predictions below.

Everything-as-a-Service IT Trend of the Year

As cloud computing continued to gain market prominence, vendor offerings are increasingly being packaged as a service to drive down CAPEX in favor of more variable OPEX. Vendors have revamped their offerings to package and position their solutions asa-service. This move has been driven across the industry: storage-as-a-service, testing-asa-service, security-as-a-service, business intelligence-as-a-service, software lifecycle-as-aservice and so on. Perhaps too easily dismissed as a cheap marketing ploy, this dynamic is really a reflection of client demands for far greater flexibility, predictability and time-tomarket when investing in information technology.

HCL Technologies Indian IT Company of the Year

HCL Technologies is among the few Indian IT companies who have performed remarkably well in the recent past. Springboard believes that the companys efforts to pursue continual growth outside the U.S. and Europe markets has started to pay off, especially in India - thanks to its timely focus on growth areas and increased attention to the domestic market. Springboard estimates that HCL Technologies revenue from the domestic market grew around 26% YTY in the last fiscal year. Although the revenue base from India is still small, its growing at a fast rate. The company has built a healthy pipeline across industry verticals by winning several deals in 2010, including the US$100 million contract to provide outsourcing services to an Indian power utility company and the supply of 100,000 tablet devices to the government for mass education purposes. Also, the company further strengthened its base in the BFSI sector with some major wins in banking and insurance. Springboard Researchs decision to choose HCL Technologies as the Indian IT company of the year is not only due to the companys increased focus on India and impressive revenue growth and client acquisitions, but also for the impetus shown to align its business model in-sync with the governments agenda of mass education through low-cost devices. Springboard appreciates HCLs efforts and believes that the prospects for the company in India are bright with visible opportunities in the BFSI, telecom, government, transportation, and other sectors. Springboard opines that strategic local partnerships and its inorganic route to growth can prove to be instrumental in driving the growth HCL is looking for. The acquisition of a mid-size domestic company could help HCL develop a strong foothold in India quickly. Springboard is confident that despite competition from prominent vendors, the company will show steady progress in the domestic market.

IBM/Netezza Acquisition of the Year

It was more difficult this year to select the acquisition of the year than in previous yearend reports. After some internal review and debate, we selected IBM/Netezza as the acquisition of the year not because it was the largest, but because we believe it best epitomizes some of the key trends shaping the market as we look ahead: the convergence of hardware, software and services into single devices or appliances; smart computing and the need to bring analytics out of the board room exclusively and into the hands of the decision makers in the field.

2011: TOP PREDICTIONS

Domestic demand will be the key driver for healthy medium-term prospects in India. The infrastructure building thrust by the government will also attract large investments in IT. According to Springboard Research, a number of fundamental changes are expected in the not-too-distant future. Perhaps the clearest sign of the changes to come can be found in a recent Springboard survey, where end-users pointed toward the cloud, software-as-aservice and managed services as major shifts they expect to see within their organizations. The top 10 trends that we believe will shape enterprise IT in India in 2011 are outlined below.

#1) Mobile Reporting Services Transforms Business Intelligence

Previously bundled as business intelligence (BI), reporting and analytics will begin to diverge in 2011, largely as a result of increased demand from end-users for mobile reporting services. With a strong initial focus on role-based report delivery, easy navigation, simple drilldown and basic user-driven interactivity, mobility will begin to move BI out of IT and into the hands (literally) of business decision makers. BI vendors will initially differentiate their offerings through pre-packaged mobile reporting solutions. However, organizations will quickly discover that users require more contextually relevant reporting and analytics, including more social, collaborative and geo-location driven reporting. This will provide vendors an opportunity to separate BI functionality into various layers, including specific products optimized for particular mobile platforms. Customizable report generation at the mobile device level for example, will be a key feature or end-user requirement. This will have a significant architectural impact for the majority of enterprise IT organizations that span application delivery, application lifecycle management, security, data integration, data warehousing and telco services, among others. The majority of larger organizations will be forced to support ever increasing levels of reporting and analytic complexity at the mobile device level primarily as a result of demand from the most senior of business users. Collaborative analytics will also begin to emerge in 2011 but will fail to gain widespread acceptance through 2015. Collaborative analytics describes the process of users engaged in a collaborative and iterative goal seeking approaches to problem solving. It is a mesh of reporting, analytics, workflow and collaboration services that aid knowledge workers decision productivity. An early example is IBMs inclusion of Lotus Connections in Cognos 10. Increasingly, collaborative analytics will be tied to mobile devices and remote

workforces, though not exclusively. Collaborative analytics will further evolve beyond 2015 and become entrenched as part of the business intelligence solution portfolio. On the desktop, dynamic reporting capabilities will also be increasingly embedded into a wider range of applications, including non-transactional environments such as intranets and content-rich portals. As reporting becomes more contextually aware (and therefore more valuable and relevant) even higher end-user expectations and demand for richer functionality and greater mobility will begin to affect current reporting and analytics strategies.

#2) Cloud Computing From Silver Bullet to Just Another Sourcing Option
Throughout 2011, the cloud-related hype of 2009 and most of 2010 will steadily give way to a more sober, and realistic understanding of the relevance and applicability of cloud computing among CIOs and other senior IT decision makers. Springboard Research has long argued that at its core, cloud computing is nothing more than a sourcing option. More to the point, it is one of many valid sourcing options IT organizations must consider alongside traditional approaches, including both on-premise deployments and hosted solutions. Far from expecting cloud computing to replace all other approaches to application deployment/service delivery, IT decision makers must determine the optimal sourcing option for various services based on criteria including usage scenario, scalability requirements, IT skills availability, and types of workloads being enabled. The debate over public versus private versus hybrid approaches has led to further cloudrelated market confusion over the past 12 months. Ironically, however, through 2011 this debate will actually serve to help organizations better understand and therefore position cloud-based approaches relative to existing IT initiatives. As IT (and many business) decision makers educate themselves on the distinction between internal versus external service deployments, and between dedicated and shared access, they will better understand how the various cloud approaches compare with other, existing approaches within their organizations. Over the next 12 months, we expect cloud computing to increasingly be considered alongside (and often compared to) other, related sourcing approaches, including those offered by more traditional outsourcing vendors and hosted service providers. Per Springboard Research, Indian organizations are currently far more receptive to cloudrelated marketing messages than other organizations in APEJ region, with only 19% viewing the cloud as over-hyped. In terms of overall spending, the public cloud market in AP remains dominated by software-as-a-service (SaaS) solutions. Among Indian organizations, SaaS offerings, storage and enterprise applications (BI, CRM, ERP, etc.) are the most widely adopted. Springboard Research expects this adoption to evolve

significantly over the next 12 to 18 months as demand in other areas, including cloudbased web conferencing and email, increases. However, we expect infrastructure-as-aservice (IaaS) offerings from both cloud providers as well as more traditional telco providers to grow rapidly. For scenarios like app dev/test and sourcing of excess computing capacity, cloud computing is typically far more flexible and cost effective than traditional sourcing options. For CIOs and IT decision makers, cloud-related security concerns will subside slowly throughout 2011 as the approach is more fully understood. Instead, concerns will center around interoperability and integration of systems, data and processes likely to be accessed across multiple internal and external deployment scenarios.

#3) Managed Services Providers Innovate to Drive Added Value

The managed services market has transformed from body shopping contracts or facility management services to a process-oriented delivery model. One of the most important milestones in 2011 will be the expansion of managed services beyond basic infrastructure management to include more application-related services. As more organizations seek to reap the benefits of a better integrated approach to managed services, there will be a clear move toward application outsourcing that combines infrastructure and application management to yield better application performance at a lower cost. As this trend continues to gain strength, the lines between SaaS and managed services will increasingly blur. Managed services providers (MSPs) will be forced to innovate with new business and delivery models based on reliable, standardized and scalable platforms and develop specific SLAs for the management of these extended environments. We will see more risk and reward deals with tighter SLAs and clients that are not afraid to enforce the contracts penalty clauses. IT automation and non-linearity will fuel efficiency, productivity and higher margins for MSPs. Service providers will continue to adopt integrated and open platforms for remote monitoring and management of both infrastructure and applications. Managed services will continue to be influenced by cloud computing throughout 2011. We expect to see further consolidation and commoditization of IT managed services with services like monitoring, tracking, patching, and performance reporting increasingly delivered via the cloud. As these dynamics take hold, traditional IT managed services will morph toward the cloud and we will see a new set of market conditions. The Indian services market is relationship-based and requires a high touch point. Building the right

ecosystem and partnerships will be the key for IT vendors when it comes to winning large, complex engagements. There will be a more noted shift from cost arbitrage to next-gen cost optimization. In the new environment, CIOs will ask for more performance optimization, integrated management and productivity improvements instead of simply cost savings. This will again require a pivotal change in the way current services are being delivered by service providers and in the way clients interact with and manage their service providers.

#4) Mobile Banking Triggers Technology Innovation in the Banking Sector

The key driver for technology innovation in the banking sector in the next few years will be modernizing payment systems to connect every part of society through mobile banking. With mobile and smart phones quickly becoming feature-rich for an increased number of users, mobile banking is fast becoming an essential part of the Indian economy. Realizing this, almost all major banks are adding more features to their mobile banking services to facilitate banking transactions at the touch of a button. They are also providing various utility services through mobile devices and are increasingly tying up with the mobile companies to enable service delivery. In addition, last-mile connectivity, which is more difficult in rural areas (maybe due to technological limitations like wire length of not more than 2.5 kms from the telephone exchange to a consumer), means the mobile channel for banking will offer better reach to rural consumers. By reducing transaction costs, the use of technology has also provided new avenues to banks to expand their outreach, especially in remote and rural areas. The countrys wireless telecommunications infrastructure covers remote rural areas and appears to be a robust platform to deliver financial services to the geographically divided masses. The central government has been contemplating non-bank-account-based mobile banking for rural penetration of Indias citizens who do not currently use a bank. Recently, the Finance Ministry of India announced it would allow UID numbers to open a bank account or conduct any other financial transaction in the country. The move will help banks meet their mandate of covering all villages with a population of at least 2,000 by March 2012. This will increase usage of mobile banking in far distant places. On the private sector side, Safaricoms parent company, Vodafone, has launched M-PESA (a mobile-to-mobile money transfer platform) in Tanzania and Afghanistan, and plans to introduce it in India soon. As the rural economy continues to grow, banks will use technology to further strengthen their presence in rural India, which will lead to greater technology consumption. However, IT vendors need to follow a more holistic approach to this opportunity: Partnering with governments as well as with regional rural and cooperative banks to build a more

incremental sustainable business model through technology will help them reap long-term benefits through the development of the rural banking market.

#5) IT Distribution Channel Partners Accelerate the Evolution of their Business Models
Distribution channel partners are in a particularly vulnerable position as the IT market moves quickly toward cloud computing. The days of surviving on business models dependent on distributing generalized IT products with razor-thin margins and living dayto-day on cash turns supported by vendor-provided credit are quickly coming to a close. To make matters worse, the traditional large-scale SI deals that supported channel partners for years are increasingly disappearing or are being won and delivered by vendors directly. In 2011, regional system integrators (SIs), value-added resellers (VARs) and distributors will be forced to better develop specialties by vertical industry and business solution to deliver the customer value required to survive in a cloud-enabled market. Already being pushed by their vendor suppliers to invest in skills around high growth solutions, channel partners will need to elevate their customer intimacy and ability to deliver clear business value. Springboard Research believes that channel partners will continue to play an important but not a dominant role in helping customers procure SaaS and cloud-based solutions. A recent Springboard survey revealed that Indian organizations place the highest value on cloud-related channel partners in the region, well above the regional average, as 59% of Indian organizations believe channel partners are helpful when buying cloud computing services/solutions. This trend is likely to accelerate in the coming years as a cloud channel further develops and SaaS vendors reach a ceiling on how much their direct sales force and the web can achieve. Areas where distribution channel partners will play an important cloud role are outlined below: Advisors and Integrators: Local partners with intimate customer relationships will need to play the role of an integrator, combining existing platforms at customer sites and newer cloud offerings. In a recent Springboard study, 43% of SaaS users integrated their SaaS application with another on-demand or on-premise application. In a hybrid model, customers who have made substantial investments in existing IT assets will require integration work when a cloud-based application is added. Customization: A recent Springboard Research survey found that 52% of SaaS users in 2010 customized their on-demand application in some way, which provides a considerable opportunity for channel partners familiar with local market conditions and regulatory requirements.

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Training: Partners can also play a role in training the end customers on how to optimally use the various cloud-based applications. Springboard recently found that 21% of respondents currently believe cloud computing is more complex than deploying and managing in-house infrastructure, data, and applications.

#6) Single Window System for Integrated Services Delivery to Gain Greater Attention from State Governments
The single window concept for government-related services is not new as the central government initiated the State Service Delivery Gateway project few years ago. However, due to poor coordination between state-level departments and lack of vision, the concept gained only limited attention across a few states. With emerging needs and the innovative citizen-centric services that government user departments are launching or developing, we will see increased interest by state-level governments to cooperate, collaborate and integrate information across different departments. State-level governments have started understanding that easy anywhere and anytime access through a single window platform can help them transform government/citizen relationships, enhance efficiency, and bring greater revenues for their states. The government of Kerala recently rolled out an RFP to short list the system integrator selected for the end-to-end implementation of SSDG. Springboard believes that a vibrant single window citizen-services delivery platform with a win-win for all the stakeholders in the ecosystem will gain much more attention from state-level governments in 2011. This will result in greater spending on new hardware and other areas to meet compliance and integration standards. Nevertheless, in order to tap opportunities, IT vendors will have to be more innovative so that they can become an integral part of the state government initiatives to boost the economy. IT vendors who can successfully align their business goals with state as well as national priorities are more likely to gain from government spending than those who fail to do so.

#7) Telcos Embrace the Cloud but Are Forced to Prove Their Customer Orientation
In 2011, telecommunications companies (telcos) of all sizes will formally embrace cloud computing. However, Springboard Research believes that not all telcos will be as equally committed to or capable of delivering the full range of cloud services demanded by customers. Infrastructure hosting will be targeted at larger enterprise clients, with SaaS offerings targeted at small-to-medium sized business (SMB) customers during 2011. However, cloud pure-play vendors will also continue to grow, often by partnering with telcos to provide more complete and packaged solutions (e.g., offsite backup and more

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flexible capacity and performance options). Also, telcos plan to roll out location-based services and real-time solutions in India. Compared to cloud computing pure-plays, telcos have a significant advantage because they have existing relationships with a substantial customer base. Even a small percentage of existing telco customers adopting cloud-based value-added services would be significant compared to the marketing momentum (and investments) required by startups. The goal for any cloud service provider during 2011 however, will be to prove assumptions about exploiting efficiencies, cost advantages and the ability to productize for a mass market on a cost-effective basis. These are generally key differentiators for telcos offering cloud-based services versus more traditional IT players, including enterprise application vendors, infrastructure vendors and more traditional hosted service providers. Nonetheless, telcos are significantly constrained by their own marketing vision, their ability to communicate that vision and the ability to execute it. This next year will be the time when these assumptions are tested in reality. Given the key characteristics of the cloud (network-based access, usage-based pricing, shared resources leveraging, automated provisioning), telcos appear to be extremely wellpositioned to benefit from the massive market opportunities that cloud computing will likely provide. However, significant challenges and barriers still exist that will be difficult, even for the larger telcos, to overcome. The upcoming year will test telco infrastructure and support services, including responsiveness to customer requests/issues, the ability to adequately address unique scenarios or requirements that fall outside standard offerings, and an overall ability to recognize and respond to the changing demands of small and medium-sized businesses in a timely manner. Springboard Research believes that 2011 will see telcos increasingly provide cloud-based services whether based on infrastructure or applications. However, by 2012-2013, only a limited range of services will ultimately be offered. This will bring some market instability with enterprise customers unclear and unconvinced on which services will be maintained long term. Organizations should therefore carefully assess their risk when short-listing telco providers whether small or large for sourcing cloud-based solutions and/or services.

#8) New Market Opportunities to Drive IT Investments from Enterprises

As the Indian economy continues to grow, enterprises will use technology to further strengthen their presence in tier 2 and 3 cities in a bid to target new market opportunities in the country. This will lead to greater technology consumption. The increased enterprise focus on expanding their presence in smaller cities is due to a number of reasons,

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including lower cost of operation, and increased competition in metros and tier 1 cities. In addition, increasing mobile and broadband penetration in tier 2 and 3 cities will lead to greater consumption of technology through real-time access and mobility solution development. From the SMB standpoint, cloud computing with its asset-light model, could become a priority in terms of investment to expand geographically. The segment will be more interested in IT investment using an OPEX model as it will help them focus on new market opportunities in tier 2 and 3 cities, while leveraging technology to gain first-mover advantage. Enterprises will continue to expand their presence in smaller cities for business growth and they will leverage technology to increase reach and to provide value-added benefits for Indian consumers. In 2011, vendors will heavily promote vertically integrated stacks as a means of differentiation and in an attempt to address the requirement for simplification of the technology environment. Springboard Research believes that IT companies need a multi-dimensional customer-oriented approach that aims to identify new markets, enabling market penetration and increasing engagement with present customers. However, to achieve this multi-pronged goal, vendors need to understand the strategic value drivers that businesses look at while investing in IT.

#9) Information Security Becomes a Key Priority for Government and Enterprises and Sparks Client Virtualization
WikiLeaks most recently demonstrated the damage that can be caused when information assets are not properly protected. When rumors surfaced in late November that WikiLeaks would release confidential information about Bank of America, the companys shares dropped 3%. The risks to organizations when unprotected information is released can include reputation damage, competitive losses and even criminal charges, which is coming into greater focus with every new leaked document. In addition, sophisticated and targeted attacks on government systems have added significant security concerns. As such, government spending on Internet security will get a boost in India. In 2011, governments and large enterprises will invest far more in technologies, services and business processes to protect sensitive information assets. The increase in the sophistication of information threats in the country will propel adoption of advanced network security solutions Improved information security measures will bump up against and be challenged by a number of the strongest trends driving the IT industry in 2011:

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Providing Analytics for Mobile Workers: As previously noted, growing numbers of organizations will extend analytics content outside of boardrooms to a broader audience of decision makers, which will place a greater premium on effective information security.

Pervasive Network Access: Growing numbers of users and devices accessing the network and its assets will raise the bar for organizations seeking better information security.

New Social Media: As companies and employees increasingly embrace new social media channels such as Facebook and Twitter, the risk of the wrong information being released virally increase.

We believe that when organizations evaluate how best to improve information security, many will embark on strategies to fundamentally modernize their entire infrastructure management strategies. One of the key benefactors is likely to be client virtualization. Although a pure cost evaluation may not provide the impetus required for mainstream adoption, information security reviews may be the tipping point.

#10) The Consumerization of IT Drives Major Changes in Usage Patterns and Expectations
Rapid growth in the usage of mobile devices, (e.g., smart phones, iPads, etc.) combined with an explosion in social computing (e.g., Facebook, Twitter, etc.) has already impacted the way end-users view IT. Over the next 12 months, this ongoing consumerization of IT will have increasingly dramatic impact on the ways in which end-users access enterprise applications and data. While employees continue to access sensitive applications and data from secured, corporate networks, they are increasingly using web-based offerings and mobility devices for both work and personal reasons. This represents growing complexity for IT teams that are already wrestling with the need to embrace new technologies but struggling to maintain management and control over older ones. CIOs will face everincreasing pressure to allow more consumer/personal devices into corporate networks, manage the influx of social computing habits of their employees and handle the increasing mobile security issues they present. While CIOs continue to grapple with this situation, not all organizations are embracing the mobile device route. Many in the Asia Pacific region will continue to operate in a traditional, internally focused IT environment and leave its employees with little or no choice about how they access their information in the workplace. However, Springboard Research believes it will be a growing challenge to function effectively with traditional IT systems and policies. IT teams will be forced to embrace more consumer-friendly computing habits and environments.

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With a variety of form factors existing in the marketplace, there is a critical need for applications to be offered in a platform-and-device-agnostic manner that provide users with a seamless experience across various form factors. However, IT organizations must avoid the temptation to support mobile access by developing even more complex, multilayered applications. Instead, IT organizations should use this opportunity to embrace the basic Internet standards they have likely been trying to standardize for the past decade (i.e., standards-based HTML over HTPP on SSL). Throughout 2011, it is this ability to avoid over-complicating the mobile application environment that will separate leaders from followers.

CONCLUSION
Although business confidence is high in India, financing costs and inflation rates are soaring. Nonetheless, the government has indicated its commitment to help ease inflationary pressures and lower import duties on non-food commodities. Higher economic growth and enhanced corporate spending will provide an impetus to IT expenditures. A potential for overheating has become an increasing concern for emerging countries, but our outlook assumes that the economy will remain generally stable in 2011. As the world continues to recover from the global financial crisis in 2011, the IT industry will undergo fundamental shifts in technology adoption and usage. A critical driver behind these changes will be cloud computing, which will move further along its transition from hype to specific implementations and organizations looking to take definitive steps along clearer and better understood multi-year adoption roadmaps. Other driving forces pushing industry change will be mobility, analytics, IT democratization, IT abstraction and convergence. The degree of change and evolution shaping the market in 2011 will place a greater premium on agility and rethinking old assumptions and computing models. Winners and losers will be separated by an ability to quickly identify the shifts underway, to see (and accept) things in different ways and mobilize their organizations or teams to respond as quickly and effectively as possible.

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