As India emerges as a global hub for generating IT human resources to cater to the requirement of various advanced countries in the world, the increasing pace of change is rapidly driving customer, businesses and technology firms altogether.
A recent KPMG report titled ‘The SMAC Code—Embracing New Technologies for future business’ notes that the introduction of various technologies such as social media, mobility, analytics and cloud computing, businesses are becoming extremely swift to give a free rein of unlimited opportunities for everyone involved.
These technologies collectively referred to as SMAC will be the leading business-technology enablers of the next decade.
Most enterprises these days — be it banks, retailers or the government, are adopting social media strategies for efficient communication. Organisations are using social media for their customer service function, and also for their sales and marketing functions. With over one billion individuals logged on to various social networks, people are now using social media for advice on what products to buy, where to shop and even what firms they want to work with.
KK Raman, partner of KPMG in India, said, “IT-BPO firms will have to reinvent themselves in order to be aligned with SMAC and follow a four-step roadmap which consists of creating a safe environment, enabling organisational agility and broadening their horizons. SMAC collectively is considered to be a multi-billion dollar opportunity globally for IT-BPO vendors.”
Mobility being one of the most integral part of social media has changed the way people access digital content.
Smartphones and tablets have brought rich, digital content to the fingertips of consumers. Mobile banking has emerged as one of the most innovative products in the financial services industry.
One of the key trends in mobility is Bring Your Own Device (BYOD) policy which is playing an important role in enhancing productivity, agility, employee satisfaction and retention in the enterprise.
KPMG in India has identified three key challenges holding back the spread of mobility: device fragmentation, data security and cost. In 2012, SMAC contributed to approximately 20 percent of the total ICT spending and they are collectively growing at about 18 percent year-on-year – that is around six times the rate of the rest of the IT industry. At this rate it is expected that these technologies will comprise 80 percent of the total spending by 2020.
Every year, companies and individuals generate billions of gigabytes of data, which when properly analysed and used in time, can emerge as an unbeatable competitive advantage.
Enterprises should adapt their IT strategy to capture opportunities by using the prospect of analytics, predictive analytics and big data. Analytics mainly consists of the ‘3 Vs of analytics’: volume, velocity and variety.
The usage of analytics is still at a nascent stage as far as Indian businesses are concerned. While some industries like banking and telecom have started adopting analytics to get ahead of the competition, several factors have inhibited its growth.
The past two decades have seen the Indian IT-BPO industry grow from strength to strength. The report highlights, with the emergence of SMAC, IT-BPO firms need to look at changing their traditional business models, which is a mix of onsite and offshore delivery resources.
Going forward, technology vendors should seek to work closely with their customers to stay abreast of the latest technological developments, and come up with solutions that can take advantage of SMAC. As the enterprises globally adopt new technology formats for operational efficiency, cost optimisation and for additional business advantages, to address this and growth issues, Indian IT-BPO vendors can develop their SMAC strategies.