IT channels to achieve higher growth

New Delhi: The leading IT channels in Pakistan, Bangladesh and Sri Lanka comprising independent software vendors (ISVs) and system integrators (SIs)-have reached the 'take-off' stage and are all set to achieve higher growth in the coming years, says the latest research from Springboard Research, an IT market research and advisory firm.

The findings are based upon Springboard's 'South Asia Emerging Countries ISV/SI Databook', which includes a detailed profiling of all major ISVs and SIs in these three South Asian countries, said a press release.

The research report states that telecom, banking/financial services, and the public sector are the main focus verticals of IT channels in these markets, owing chiefly to the rise in local infrastructural investments and up-gradations.

Springboard also noted that a sizeable presence of IT channels-around 600 ISVs and SIs in the three nations-has had a significant impact on the local software industry in each country; the latter having registered an average annual growth of 20-30 per cent during the past few years.

According to Springboard, Pakistan has the largest share (~50 percent) of the IT channels market.

“High productivity as well as cheap and skilled labor are some of the main accelerators for the software market growth in these countries,” said Sameer Bhatnagar, Research Analyst at Springboard Research.

He added that a large number of MNCs have also established their subsidiaries in these nations and are gaining the advantage of low-priced, skilled labor.

Springboard also revealed that IT channels are gradually consolidating their presence in emerging verticals like retail, healthcare and textiles, besides consolidating their presence in the financial and telecom sector.

With increasing need for IT infrastructure across all verticals, South-Asian countries offer an increasing number of opportunities for multinational IT vendors, the release added.

“In the wake of global slowdown, competitive pressures are driving large companies to seek high-quality, cost-effective sources in the new and emerging markets. South Asian emerging nations are well placed to take advantage of these potential opportunities,” said Bhatnagar.

“The governments in these nations need to undertake major reforms such as improving education and industry coordination, increasing private initiatives and the establishment of a policy environment conducive for market growth,” said Manish Bahl, Manager-Emerging Nations at Springboard Research.

He added that these nations need to promote their image as a niche player adding value in a particular area than merely stressing the image as a lower cost destination to India and other Asian countries.