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ICT to India

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(Last updated: 18 Jul 2011)

Trends and opportunities

ICT business opportunities

Healthcare

  • Developing devices that support telemedicine and its integration with hospitals
  • Moving Indian medical device manufacturers into more sophisticated devices
  • Improving patient throughput, particularly in outpatients through applications like RFID
  • Establishment of central patient data – within and between hospitals and organisations ex. EMR

Banking, Financial Services and Insurance (BFSI)

  • Software for banking security; anti-money laundering; fraud management; funds management; risk management; lending and mortgage management
  • Centralised banking systems and Nostro reconciliation
  • ICT systems for retail banking – core systems and channels; e-Banking; customer management
  • SMART card and EFTPOS / point of sale equipment and systems

Education

  • Investments in IT by the education sector is concentrated around networking, basic infrastructure and implementing IT security solutions. Wireless LAN (WLAN), storage area network (SAN) and ERP are the three most popular IT solutions adopted by education institutes in India.
  • Australia’s expertise and excellence in IT enabling its universities and educational institutions will be a good benchmark for Indian educational institutions to emulate translating into opportunities for Australian ICT firms in providing education-related technologies and solutions.

Public services

  • e-passport program
  • Shift towards smart cards driving license
  • Unique identification number for every citizen
  • Smart card modules to State Government projects
  • Smart ticketing technologies for railways – contact-less smart cards for automatic fare collection using Automatic Ticket Vending Machines (ATVMs) across various cities

Telecommunication

  • Carrier equipment; enterprise equipment; switching equipment; transmission equipment; VSAT for telecom service providers
  • Embedded software
  • 3G and convergence technologies (WiMAX) + applications on IPv6
  • Value added services software for mobile telecommunication
  • IT solutions for telecom service providers – integrated billing; customer management, others
  • Equipment and software for wireless broadband; radio / cable and satellite television broadcasting; IPTV; TV on mobile; DTH; CAS
  • Renewable/green technology for telecom infrastructure in both urban and rural areas

Animation and gaming

  • Custom content development
  • Multimedia/web design
  • Animation entertainment
  • Animation education
  • VFX

Automotive

  • Software application (eg. CAD/CAM) for designing automobiles, components and equipment.
  • Applications for MRP, ERP systems, supply-chain, management (EDI, e-collaboration, e-markets), car service history, customer profiling/service and intelligent service management.
  • Application for aftermarket ie. navigational software, Bluetooth, RFID etc.

Building and construction

  • ICT products and technologies for aesthetics, safety, security (biometrics, building automation systems, etc.) – shopping malls, hotels, commercial and residential buildings
  • Software and tools for the design and architecture of modern, energy efficient buildings
  • Software for the development of infrastructure – roads, ports, etc.

Aviation/Airport infrastructure

  • Software & ICT tools for passenger and cargo management; airline operations and air port management (new air port development + expansion of existing airports)
  • Automation of ATC services, ground based communications, navigation and surveillance, satellite communication, etc.
  • ICT systems and software for MRO operations

Retail

  • Modern and organised retail is emerging rapidly (currently pegged at US$6 billion), growing at 5 per cent per annum
  • Expected IT spending ~ US$1.07 billion by 2010
  • ICT systems for supply chain management (SCM); inventory management; enterprise resource planning (ERP) systems
  • ICT tools for expanding business into Tier II, Tier III and rural areas

Resources/Mining

  • Mining technology and services for new mines including washeries
  • Mining exploration and surveying technologies
  • ICT systems for remote monitoring and mine management

IT enabled services

  • Call centre project consultancy; systems and software for automatic call distribution, IVR, CTI, Helpdesk management and employee training.

Why is this market attractive for Australian companies?

  • In 2011, India’s potentially vast IT market should consolidate the strong recovery made in 2010 thanks to an improving economy and consumer sentiment. Top tier IT companies registering growth over 20 per cent y-o-y in 2011.
  • According to a research report published by National Association of Software and Service Companies (NASSCOM), ‘IT-BPO Sector in India: Strategic Review 2011,’ the sector is estimated to aggregate revenues of US$88.1 billion in FY2011, with the IT software and services sector (excluding hardware) accounting for US$76.1 billion of revenues.
  • The report estimates export revenues to gross US$59 billion in FY2011 and contribute 26 per cent as its share in total Indian exports (merchandise plus services), employing around 2 million employees.
  • India will see its number of Internet users triple to 237 million by 2015, from 81 million registered in September 2010, according to a report titled 'Internet's New bn', by the Boston Consulting Group (BCG). BCG said Internet penetration rate in India is expected to reach 19 per cent by 2015, up from the current seven per cent.
  • Government sector is a key catalyst for increased IT adoption- through sectors reforms that encourage IT acceptance, National eGovernance Programs (NeGP) , and the Unique Identification Development Authority of India (UIDAI) program that creates large scale IT infrastructure and promotes corporate participation.
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Marketing your products and services

Market entry

Top tips to be successful in India

  • A number of high-level Australian IT-related missions have made representations in India. Likewise, Indian IT-related missions have visited Australia. Australian companies are advised to build on this awareness and profile, and importantly, maintain personal and business relationships, visiting the market regularly to keep abreast of the rapid changes.
  • Setting up a local office is a useful way of keeping contact with the customer base and showing long-term commitment to the market.
  • Indian customers place importance on the production-quality of company literature. Australian companies should produce both colour printed and Portable Document Format (PDF) literature. Local players seek specific technical and application details. Providing prospective customers and partners with a reference list of major clients and projects will be helpful.

How does doing business in India differ from Australia and what do Australian companies need to do in approaching this market?

  • Conscious of India’s success in exporting software development, Australian business should consider targeting niche areas in the software and hardware segments – marketing products and services complementary to India’s strengths in IT.
  • India has a well-established network of specialist consumer IT product and service channels that service both retailers and valued-added resellers across the country. Australian companies can tap into these channels, either directly or by appointing an agent or distributor. It’s advisable to appoint regional or city-specific distributors if a preferred distributor doesn’t have sales infrastructure across a number of the major city markets.
  • The market is very price sensitive, be prepared on what is acceptable in the market, especially with intense competition with home grown companies and USA as the leader in this market.

Key ICT events in India

NASSCOM India Leadership Forum 2012
IBEX India 2011

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Links and industry contacts

Information technology-related resources

IDC India – www.idcindia.com
Manufacturers’ Association for Information Technology – www.mait.com
Ministry of Information Technology – www.mit.gov.in
National Association of Software and Service Companies (NASSCOM) – www.nasscom.org
Software Technology Parks of India – www.stpmum.soft.net
Telecom Regulatory Authority of India – www.trai.gov.in

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Contact details

The Australian Trade Commission – Austrade – is the Australian Government’s trade and investment development agency.

Through Austrade’s network of offices in over 50 countries, we assist Australian companies to succeed in international business, attract productive foreign direct investment into Australia and promote Australia's education sector internationally.

For more information on how Austrade can assist you, contact us on:

Australia ph: 13 28 78 | Email: info@austrade.gov.au

A list of Austrade offices (in alphabetical order of country) is also available.

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