Datamine

DQI Bureau

30 Dec 2006 00:00 IST

New Update

The year experiences third successive
year of growth in IT usage, exceeding last year's predictions

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Spending Pattern Across
Different Sectors

Infotech's
Megaspender Patterns

(Past, Present and Future...)

Verticals	2004-05	2005-06	Growth	2006-07	Growth
	(Rs crore)	(Rs crore)	(%)	(Rs crore)	(%)
BFSI	2,152	2,634	22	3,552	35
Process Manufacturing	173	203	17	241	18
Discrete Manufacturing	338	416	23	450	8
IT/BPO	673	878	30	1,013	15
Pharma & Biotech	23	33	43	37	13
Automobile & Auto Ancillaries	65	83	28	87	5
Oil & Petrochemical	639	750	17	938	25
Telecom	1,260	1,288	2	1,893	47
Others	283	327	16	335	2
DQ-IDC Megaspenders Survey 2006

While pharma and biotech recorded the
maximum growth this year, telecom is likely to do so next time, primarily
due to heavy spending planned by the BSNL/MTNL combo this year. BFSI
continues to show more than overall growth, and with most PSU banks yet to
complete core banking deployment across all their branches, the trend is
unlikely to change in 2006-07.

Overall
IT spend per employee (Rs
lakh) 0.2
IT spend as % of
Revenues 0.6

Megaspenders witness a major paradigm
shift as the combined total spend on packaged software and services exceed
the spending on hardware. IT, overall, still has some way to go before
becoming a core function, as only 0.6% of the company revenues goes on IT
spend. However, an IT spend of Rs. 20,000 per employee, though much less
than global standards, is still a promising trend.

Source: DQ-IDC Megaspenders Survey
2006

Based on the 196 large enterprises who
participated in the DQ-IDC Megaspenders Survey 2006

Patterns Across the Verticals

	BFSI	Mnfg process	Mnfg discrete	IT SW, & BPO	Pharma & Biotech	Automobile & Auto Parts	Oil and Petrochemicals	Telecom	Others
IT spend per employee (Rs lakh)	0.34	0.08	0.23	0.48	0.15	0.11	0.36	0.64	0.03
IT spend as % of Revenues	0.5	0.3	0.6	4.9	0.4	0.3	0.1	2.3	0.6



Source: DQ-IDC Megaspenders Survey 2006 Based on the 196 large enterprises who participated in the DQ-IDC Megaspenders Survey 2006


Oil & petrochemical and IT/BPO invested more on packaged software; services spending would show a healthy growth in oil & petrochemical as well automobiles & auto ancillaries. Telecom and IT/BPO, quite obviously, are spending the maximum per employee on IT; again, it is no surprise that these two sectors are spending the highest portions of their revenues on IT. Though IT is strategic to oil & petrochemical sector, the ratio of IT spend to overall revenues is still very low, probably because most oil companies are very big.