Page 35 - DMGT522_SERVICES MANAGEMENT

Services Management

Notes will be built over the next two years. The Indian IT infrastructure market will reach US$ 2.05
billion in 2012, showing a growth of 10.3 per cent over the previous year. This market, comprising
servers, storage and networking equipment, will touch the US$ 3 billion mark by 2016, according
to technology research firm, Gartner.
The Indian internet economy is expected to touch ` 10.8 trillion (US$ 203.77 billion) by 2016, according
to a report titled ‘Connected World Series study’ by the Boston Consulting Group. India’s internet
economy’s growth rate of 23 per cent makes it the second fastest across the G-20 countries and ahead
of many other developing nations. The report ‘The $4.2 trillion Opportunity: The Internet Economy
in G-20’, further notes that if the internet were a sector, it would be the eighth largest in India. A study
has pegged Indian potential for wind energy at 3,000 gigawatt (GW). It claims that the potential for
wind energy utilization with the prevalent technologies is far in excess of earlier estimates by the
Centre for Wind Energy Technology (CWET). The Centre estimated Indian wind energy potential at
49,000 megawatt (MW) and increased to 100 GW subsequently. The Indian outbound meetings,
incentives, conventions and exhibitions (MICE) market is estimated to be around US$ 550 million-
US$ 600 million and expected to increase by 10-15 per cent in 2012. Spending by Indian Inc on
corporate travel is helping in the growth of the market.
The wealth of high net worth individuals (HNIs) in India, is set to grow by a compounded
annual growth rate (CAGR) of 23 per cent over the next four years and will touch a staggering
` 249 trillion (US$ 4.69 trillion), highlighted a report by Karvy Private Wealth, the wealth
management arm of the financial services firm Karvy Group. Nearly 50 per cent of people
surveyed in India believe that interacting with the Government is easy, as per Accenture. The
response is higher than the results from six other countries – Australia, France, Germany,
Singapore, the US and the UK –participating in the global pulse survey. Users in India are more
likely than those from all other countries to use digital services beyond websites and portals.
Social networking site LinkedIn’s user base in India has grown 300 per cent during the last three
years of its marketing presence in the country. The firm has about 14 million users from India,
which has quickly become its second-largest market globally, according to Jeff Weiner, LinkedIn’s
Chief Executive Officer.

2.2.3 Road Ahead

India continues to urbanize at a strong pace driven by a combination of up trending consumption,
robust job creation and growing financial penetration, according to Morgan Stanley’s proprietary
Alpha Wise City Vibrancy Index. The report reveals that Bengaluru, Chandigarh, Hyderabad,
Pune and Chennai are the top 5 vibrant cities. The Government had liberalised investments made
by registered foreign institutional investors (FIIs) under the Portfolio Investment Scheme (PIS)
from April 10, 2012. Earlier, these investments required Government approval. India will see the
largest number of merger and acquisitions (M&A) in the pharmaceutical and healthcare sector, as
per consulting firm, Grant Thornton. A survey conducted across 100 companies has revealed that
a fourth of the respondents were optimistic about acquisitions in the pharmaceutical sector.

Note Exchange rate used INR 1= US$ 0.018867 as on May 14, 2012

Self Assessment

State True or False:
1. The Government of India has approved 14 Foreign Direct Investment (FDI) proposals
amounting to US$ 288.05 million, based on the recommendations of Foreign Investment
Promotion Board (FIPB).

30 LOVELY PROFESSIONAL UNIVERSITY