Infotech Lead India: Sify Technologies is gearing up to tap the emerging IT revolution in Indian retail sector.
With the recent announcement in FDI in retail, Sify expects greater adoption of technology in this segment as local retail chains prepare to compete in a fast changing market.
Sify’s network services recently won a deal from a retail chain. The company’s network covers 970 cities Pan India with over 1795 base stations.
Indian enterprise IT spending across all industry markets is forecast to surpass $39 billion in 2012, a 10.3 percent increase from 2011 spending of $36 billion, according to Gartner.
The Indian retail industry is expected to achieve the strongest growth in percentage terms in 2012, where IT spending is forecast to grow 11.8 percent.
“Recent decisions to allow 100 percent foreign direct investment (FDI) in single brand retail, and up to 51percent in multi brand retail, are expected to provide the sector with a significant boost in terms of IT usage and adoption. Selection of partners with deep vertical expertise will be crucial to success,” said Derry Finkeldey, principal research analyst at Gartner.
Gartner recommends that vendors identify specific industry target markets, and prioritize these for the allocation of needed resources. This will drive greater project success and the creation of more value to those customers.
Sify Technologies is already strong in SMB market. Its strategy of focusing on the SME/SMB market and Tier 2/3 cities has started yielding results. The business growth in this segment is a major component of the overall data revenue growth rate for the company.
“On the business environment, we are pleased that the Government is opening up several sectors for FDI. The true effect of these measures will take some time to bear results, but we believe this would allow several sectors to aggressively ramp-up, thus opening up additional growth opportunity for us. We will continue in our endeavor to become a prominent solutions expert catering to large and emerging Enterprises, SMBs and the Government services,” said Raju Vegesna, chairman of Sify Technologies.
Sify Technologies is in a position to establish into a broad based IT Services and Solutions player by integrating the products, applications, professional services and managed services portfolio. Vertical Solutions and Cloud based Services model will be the two key propositions for the market.
“Our future growth will be primarily led by leveraging our Cloud Services model around both Infrastructure and Applications and with increased focus around Integration and Managed Services offerings,” said Kamal Nath, CEO, Sify.