E- Magazine November 2016 XVIII | Page 52

SI SPECIAL System Integration Looking for Greener Pastures The system integration market in India is expected to reach $18.5 billion by 2020 from the present $2.6 billion. So integrators are gravitating towards new verticals like smart cities, digital enterprise, Digital India and cybersecurity A ccording to industry reports, the Indian system integration market is expected to reach $2.6 billion in FY201617 and it is forecasted to reach $18.5 billion by 2020, contributing around 5 per cent of the global market as the global system integration market is expected to reach $393.1 billion by 2020. According to Raj Malik, Chief Delivery Officer, HCL Infotech (a wholly-owned subsidiary of HCL Infosystems), “The expected market size by 2020 for different sectors is likely to be defence and telecom – $4.2 billion, BFSI – $4.5 billion, government – $2.4 billion, and energy, utilities & S. Karthikeyan Managing Director, Bloom Electronics 52 November 2016 www.varindia.com manufacturing – $3.3 billion. "The system integration market in India for FY2016-17 is Rs 16,000 crore and the growth in FY2016-17 vis-a-vis FY2015-16 is 9 per cent," said Ranjan Chopra, Managing Director, Team Computers. Commenting on the system integration market trends, S. Karthikeyan, MD, Bloom Electronics, said, “Both states and central government are investing around 3–5 per cent of their yearly budget on ICT. Digital India is envisioned with one lakh crore in the first five years on the other hand Indian Railways and Defence are making huge investments as they need to integrate their Ranjan Chopra Managing Director, Team Computers existing live systems and provide additional services/security with new technologies. Even education and heath industries needs to work on various integration to provide better systems to the public.” “We believe the cloud is going to be the biggest market with annual growth of 30+ per cent. The expected revenue pie from smart city and IoT by 2020 is more than Rs.200 billion. Even security is going to be the prime area for government, education and healthcare sector which is expected to grow 1.5 times from the current market size of $2 billion,” added Karthikeyan. Commenting on the drivers, Anoop Pai Kshitij M. Kotak Chief Innovation Officer, Blackbox Data Safe