We Accelerate Growth.

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IT Technologies in 2009 and Beyond
Girish Trivedi Deputy Director ICT
Practice South Asia Middle East

• We Accelerate Growth.

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(No Transcript)
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Overview of the current global economy
The current global economic environment is indeed
bleak the ramifications are huge and widespread
in terms of geographies and industry sectors.
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Key Trends consequent to financial meltdown
Tightening Credit
Slow resumption of lending, at higher rates and
longer processing times
Uncertain investments
Slowing down of IPO activity with investors more
cautious
Spending Curtailment
Cut back on discretionary spending stress on
savings
Cautious Capex
Slower capex spending as both need to save cash
and lesser credit availability
Waves of retrenchment across industries
Retrenchment
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Overview of the current global economy
Expected impact on certain sectors
BFSI
ICT
Healthcare
Airlines
Government
Basic Foods
Entertainment
Automotive
Education
Most Commodities
Certain Advisory Serv
Media
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Potential scenarios for the global economy
There is disagreement about the extent of the
impact of the recent events.
Possible Scenarios
Driving Factors
Scenario 1 Quick recovery (1 year)

• Falling oil prices
• Capital infusion
• Lower interest rates
• Concerted bail-outs

Scenario 2 Med Term recovery (1-3 years)

• Consumer sentiments take longer to recover as a
  result of recent wealth destruction

Scenario 3 Prolonged Recovery (5-10 years)

• Geo-political uncertainty
• Faster contagion
• Supply constraint

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Evolving Business ICT Demographics
Changing economic times can act as a compelling
event for certain trends to accentuate
SOA
SaaS
Hosted IT
Services
Cloud Computing
Potential acceleration
Outsourcing
Application Optimization Delayed Refresh
cycles Virtualization
Optimization
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IT Opportunity Assessment
Changing economic times can act as a compelling
event for certain trends to accentuate

• Opex/Service business models
• Outsourcing upside
• Cloud Computing
• Unified Communications
• Data Centric model

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1 Opex/Service Business Model
The enterprise market is expected to see a higher
propensity to shift from capex based to opex
based business model
KSF
Offerings
Managed Service
Network, Security, Storage and Hosting
Customer Involvement
SaaS
Standalone Apps Business Integration Wokflow
enabled
Sales Model Customer centricity
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2 Outsourcing Upside
Outsourcing business model to pick up across the
enterprises newer business model emergence
Technology players are increasingly outsourcing
work in pieces to multiple players driving the
growth of multisourcing
Multisourcing already constitutes a quarter of
all large outsourcing deals in the United States
and is one of the fastest growing segments in the
outsourcing business
With the division of complex projects into
bite-sized portions, smaller players with niche
capabilities to participate in the enterprise
growth story offering more options to Enterprises
Greater adoption of ITIL standards is decreasing
complexity, improving management and providing
pricing visibility to customers
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3 Cloud Computing
US listed software firm sales

• Transformation of software into a portfolio of
  services
• Intelligent interactivity between clients and the
  computing warehouse
• Business economies will transform
• Adaptability, collaboration, specialized with the
  hallmarks
• Virtualization among top 3 CIO discussion points

Product Sales
age of revenues
Service Sales
Time
Source MIT
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Cloud Computing Hype or reality

• There are clear five down-to-earth reasons to get
  excited about the future of the Cloud.
• Scale and Scalability
• Utility Pricing
• Control
• Environmental Leadership
• Business Transforming Applications

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4 Unified Communications

• Trend towards Unified Com delivery on a pay-per
  use basis and Communications Enabled Business
  Processes (CEBP)

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5 Data Centric Models

• The data center market offers opportunities for a
  variety of players to compete, each with their
  own strengths and focus customer segments
• Evolution of data centers into service factories

Types of Players
Facilities pure plays
Carrier Neutral data center providers
Telcos/Carriers
Global SIs
Parameters
Level of services provided
Key strength
Facilities/ Real Estate
Services Bundling
Integration/ Process Knowledge
Focus
Customer Focus
Low to mid end
All
Mid to high
Higher end
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Responding to New Environment

• Business should continue to view IT as a critical
  tool in controlling overall costs and increasing
  productivity
• Enterprise should start experimenting with Hosted
  solutions if not yet started
• Limit on IT spending can be redirected but should
  not be stopped as customers are becoming
  proactive
• Use IT for Competitive Advantage as this
  environment will reward the nimble competitors
• Become a World Class Retailer this is a buyers
  market
• Turn every Service offered into products
• Transformation, Transformation, Transformation

Most of the Components of the Indian Industry
are, in many respect better positioned than other
countries to weather this storm
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• Thank You

Girish Trivedi Email girish.trivedi_at_frost.com
We Accelerate Growth.