‘Indian Large Enterprises' Spending On Digital Transformation To Cross $360 Million by 2020’
Indian large enterprises are undergoing digital transformation with a focus on enhancing operational efficiencies and delivering an unparalleled customer experience, said a recent report released by management consulting firm Zinnov on Monday (31 July).
As per Zinnov, a large enterprise denotes a business entity operating in India with headquarters in India / outside India, and having a headcount of 1,000+ employees.
Public-listed large enterprises generate revenues equivalent to nearly 40 per cent of India's gross domestic product (GDP). Consistent performance over the years has led these enterprises clocking revenues of over $1 billion in FY17, said the Zinnov report.
It also mentioned that billion dollar public-listed large enterprises' Spending on digital transformation to cross $360 million by 2020.
Praveen Bhadada, Partner & Global Head - Digital Transformation, Zinnov said, "We are witnessing a wave of digital transformation in billion dollar public-listed large enterprises, particularly on five tenets of talent, processes, infrastructure, business models, and innovation. The billion dollar public-listed large enterprises are expected to spend in excess of $360 million towards digital transformation by 2020, growing year-on-year at a staggering rate of 45 per cent.”
“We also expect a direct impact, not just on the workforce within these billion dollar public-listed large enterprises, but also on adoption of digital technologies by the entire business ecosystem."
The report has also envisaged certain challenges to the enterprises -
1. Rising input costs, lack of skilled workforce, customer acquisition, managing operational issues, legislative and environmental barriers
2. Competition from fast-growing domestic enterprises such as Patanjali, Jio etc., as well as from leading multi-national corporations quickly building their presence in the Indian market
3. Digital native enterprises are solving the use-cases, earlier catered to by only the traditional verticals, with the use of digital technologies
However, there lies some opportunities:
1. Initiatives like Digital India, Smart City, Make-in-India among others, are expected to create a plethora of cross-industry opportunities
2. With over 60 per cent of working age population, India is one of the largest consumer markets in the world and this demographic dividend will boost consumerism over the next couple of decades
3. Growing trade and investment relations with nations, rise as an export hub as well as inorganic growth and diversification opportunities are driving more enterprises to look beyond the nation's borders.
