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News >> Technology >>
Growing Indian market for `Business Intelligence`
By agencies
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Friday, 24 June 2005, 19:30 IST
BANGALORE: The market for “business intelligence” is growing in India, with multinational companies with captive units and large banks leading the spend, market research firm Frost and Sullivan said.
Business Intelligence (BI) can help businesses with critical decision-making. Companies that sell software tools to do this, or take on the task themselves in a services model earned revenues of $33 million in fiscal 2005, Alok Shende, “director of technology practice” at Frost and Sullivan said.
“By 2007, we expect this to be $70 million,” Shende said, “driven by IT, telecom, and the banking, financial services and insurance sector.”
A recent example of a large bank buying BI software was ICICI Bank, “which has bought a full suite of BI software in deal worth $3 million”. This year, the Indian market would be worth $43 million in sales, he said.
The 2005 revenues were split midway between multinational buyers and large Indian companies. The multinational firms included those with large captive business process outsourcing centers serving parent firms abroad. Similarly independent Indian BPO firms could buy BI software to provide that service to clients abroad.
In terms of the business model too, 47.5 percent of the revenues came from firms buying licenses from vendors, such as SAS, to use the software.
The rest came from a services model, where an independent business analytics provider would take on a companyÂ’s data and pull out relevant information using BI software, Shende said.
In terms of adoption, pharmaceutical companies were ahead of the pack. Public sector banks, like their private competitors, and telecom utilities, were waking up to the need for “churn management” and “customer segmentation.”
The contribution to revenues in 2005 was 26 percent from banking and financial services, 32 percent from IT and telecom, 7 percent from pharmaceutical firms, 14 percent from manufacturing and 21 percent others, a Frost and Sullivan release said.