Companies to slash IT budgets by 12 percent
According to experts, IBM is leading the domestic outsourcing market. CIOs from various companies are now focusing on making more profit by cutting down on the amount spent on IT services. Hero Honda aimed at converting customer records and other data from manual to digital form and bring down costs, through their project called 'Good Life'. "At the end of the day, it is about creating value for our customers. We cannot do that if the internal costs are so high. This is where technology helps," said Vijay Sethi, CIO, Hero Honda.
Many Indian companies shelved their plans of adopting upgrades of their business IT systems after the global economic downturn. According to experts such as Praveen Bhadada, an analyst with research firm Zinnov Management, customers from the telecom segment spent nearly $1.68 billion on IT, accounting for eight percent of the total spend. Automakers and manufacturing companies, which invest around two to four percent of their revenues on IT, integrating supplier networks and increasing their supply chain efficiencies will be their first agenda.