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Deloitte TMT Predictions India 2012


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  • Indian cloud computing services market is projected to grow at a CAGR of 76% from 2010 to reach a potential market of $15-18bn by 2020
  • Medical technology providers to act as the anchor for collaboration
  • More regional newspapers to be launched as opposed to National dailies
  • Radio ad spends to grow around 20% annually
  • The $100 “Smartphone” to go mass market

 

Mumbai, 12 April, 2012 - The Technology, Media and Telecommunications (TMT) practice at Deloitte Touche Tohmatsu India Pvt Ltd, released its TMT Predictions India 2012 report. Deloitte believes that 2012 will see active interplay of TMT sectors to address gaps in social participation. At the same time, the evolution of the tier 2 and tier 3 cities is expected to provide the impetus for growth among TMT sectors.

The next wave of telecom growth will emerge from rural India and operators will increasingly use the voice platform as well as localised content to ensure relevance and widespread adoption in rural zones. Increased regionalisation, with focus on regional content is expected for the media sector. Deloitte feels that with the growth of the supporting ecosystem, the IT/ITeS industry in tier 2 cities will receive a further boost to their growth.

Now in its 11th year, Deloitte’s TMT Predictions is a highly anticipated annual series of global insights that showcase the emerging TMT trends which will significantly impact businesses and consumers in the coming year and beyond. Deloitte believes that developments in each sector are now so inter-linked and interdependent that TMT executives need to be cognizant of key trends across all the sectors.

Some of the significant TMT trends that will impact India in 2012 are:

Technology/IT

The Indian cloud computing services market is projected to grow at a CAGR of 76% from 2010 to reach a potential market of $15-18bn by 2020. Growth is expected to be

primarily driven by enterprises migrating workloads to virtualized cloud models. Adoption by SMB and individual users will also contribute to the growth of the cloud in India.

Mobile banking is set to gain momentum. Increased transaction limits, rationalizing of technology and security standards and easing of the disbursement procedure are creating a positive policy environment.

Theme-based specialists are expected to drive the next wave of Indian ecommerce. Coupon and deal sites would need to transform themselves to a more sustainable business model in the wake of untenable financials.

Medical technology providers will act as the anchor for collaboration.  As bulk of the population remains beyond the reach of basic medical care, there is significant market potential which can surge with relevant supply.  Medical devices and technology companies would act as the anchor for disruptive innovation by promoting frugal innovation and by acting as the anchor to collaborate with other stakeholders.

The first wave of work delivered out of Tier 2 cities were at the lower end of the value spectrum. However, with a growing pool of undergraduates who could be employed at a significantly lower cost, combined with the increasing availability of quality infrastructure to deliver these processes, has added to the attractiveness of these locations.

Media

In 2012, Deloitte predicts that the traditional print media in India will still hold strong. The newspaper business remains viable as readership is sustained and growth is based on brand and acceptance. What is expected is increased regionalization of this media, with focus on regional content and regional editions. There could be more regional newspapers being launched as opposed to National dailies. The digitization of daily news although evident is preferred only in niche pockets of the urban populace and the scenario is likely to remain the same until related devices like hardware and connectivity become more effective and affordable to provide an enriched experience.

As with the print medium, regional television channels are also on the upswing. Given our cultural and regional diversity, the content of these channels is just as diverse, ranging from news to music to general entertainment. The broadcasters will continue to be spoilt for content, with general entertainment and films taking the major portion of the schedules. Sports will be close behind and content in HD will be sought after. There may still be some more time to rethink the investments planned for the 3D segment as it is a wait-and-watch game here.

Deloitte predicts that regulatory reforms by way of replacement of fixed license fee regime with a revenue-sharing regime, transparency in allotment of licenses by way of auctions etc., will help in the resurgence of the radio. FM listenership averages more than 60% in the mega cities, and this phenomenon could well be repeated in the semi-urban areas. The ad spends using this medium will grow around 20% annually.

Telecom

Deloitte predicts that by year-end of 2012, over 500 million smartphones with a retail price of $100 or less will be in use worldwide and significantly high proportion of it will come from India. Growing sales of $100 smartphones are likely to cause downward pressure on prices for the whole supply chain.
Low-cost tablets war begins and accelerates in 2012. Consumer demand for tablets is forecast to be strong; however, enterprise demand is likely to grow even faster, albeit from a lower base. 3G enabled tablets might see a greater adoption in urban and semi-urban areas. Competition in the low-cost tablet space is set to intensify even further in the next few months, however new entrants in the tablet market will have to prove worth of the product quality over price value..

Low-cost devices and data plans will induce data explosion. Data consumption will go up substantially aided by competition, technological advancement and reduction in per gigabyte prices. The business driver for operators is the increased revenue expected from 3G services due to growing middle and upper class wireless customers who are willing to pay more for the new mobile services.

m-Health, m-Learning and m-Banking are no longer pipe dreams. In 2012, efforts from industry verticals like healthcare, banking, and education will intensify to adopt mobile as a service delivery mechanism in the remote areas. Leading IT companies, mobile device manufacturers, telecom service providers, government have acknowledged education, healthcare and banking as the priority sectors. It is the opportune time for partnership between telecom and “telecom dependent” industry sectors.

 

Notes to the editor

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK Private Company Limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity.  Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.

Deloitte provides audit, tax, consulting and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte’s more than 182,000 professionals are committed to becoming the standard of excellence.

In this press note “Deloitte” refers to Deloitte Touche Tohmatsu India Private Limited, which is a company established under the Indian Companies Act 1956.

This press release has been given by Deloitte Touche Tohmastu India Private Limited

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