Onus on CIOs to push innovation: Forrester

The $23 billion Indian IT market will surpass the 29 per cent growth rate seen in 2006 in the new year as chief information officers (CIOs) will invest more in technology to boost top line growth.

India is the second fastest growing IT market in the world, following China's 32 per cent, according to a recent report by Forrester.

"India is expected to grow at a faster rate than 29 per cent as the IT spending will increase phenomenally in the booming Indian economy," says Sudin Apte, country manager, Forrester.

To keep pace with the rapid growth, CIOs should embrace the partnership approach and look for technological innovations that will have a direct impact on their organisations' business model.

Which means, they should get rid of the mundane work related to IT, and adapt a new CIO mindset "" of a chief innovation officer. Besides, smart CIOs and prudent IT groups will also have to keep track of developments in the wider economy to anticipate and prepare for the challenges and opportunities their business partners will face.

Pointing out some of the economic trends that will have a big impact on most businesses over the next five years, Apte says, "As energy prices raise, CIOs will have an increased focus on energy conservation. Also important is ensuring business continuity in spite of the risk of disruption from natural disasters and terrorist attacks. Lastly, CIOs will also have to provide resources for accelerating technology globalisation and slowing trade globalisation."

Affirming with Apte on the changing role of CIOs, Akilesh Tuteja, executive director, KPMG says, "Earlier IT was used for automation of processes, but today it is used for driving compliance. Also the focus for use of IT is no longer limited to achieving cost reduction, but rather to gain an increase in revenues. Thus, IT is no longer a support function but an important strategic investment to drive top line growth."

A booming economy will also see an increase in the adoption of telecom services which includes data services, mobile services, managed services and fixed line services across various new verticals like manufacturing, retail besides the already heavy users like IT, IT Services and Banking, Financial Services and Insurance verticals requirements for telecom services increasing as the verticals grow.