Mumbai: Public sector units (PSUs) spent $8.5 billion in FY12 on IT, more than 2 per cent of their total revenues. It was higher compared with other verticals and mainly for the energy and banking, financial services and insurance (BFSI) verticals, according to a study by market research firm Zinnov.
“IT is viewed to be a major cost reduction enabler in many PSUs, given the automation of processes and integrated IT set-ups. Today, PSUs are looking at IT to analyse customer information efficiently and develop targeted and customised offerings for customers,” said Praveen Bhadada, Director (Market Expansion) at Zinnov.
The PSUs, with revenue growths of 11 per cent since 2009, posted a total turnover of $383 billion in FY12 and employ 1.4 million personnel. About 40 per cent of the PSUs are in the manufacturing sector.
The investment in technology is shaping the growth of the PSUs. Government companies are investing in technology to help address the challenges they faced in the early years of transition towards establishing a transparent and accountable organisation, reducing cost of production and enhancing productivity and customer reach.
“India is a hub of 225 PSUs operating across verticals, with 16 of these companies featuring in the global list of top 2,000 companies. With their growing size and dominance, PSUs have started looking at IT to address global competition,” added Bhadada. Examples include that of State Bank of India and the public sector oil marketing company Bharat Petroleum Corporation Ltd (BPCL). SBI, the country’s largest banker, implemented a global core banking solution, while BPCL made early investments in big data.
The PSUs will post a turnover of more than $1 trillion by 2020. A large part of this will be invested in IT including cloud, big data and mobility.
No comments:
Post a Comment