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India enterprise mobility to hit Rs.4,000 crore

Posted: 20 Sep 2011     Print Version  Bookmark and Share

Keywords:enterprise  mobility market  network 

According to a Zinnov study titled, "'The Enterprise Mobility Study—Indian Market Analysis," the enterprise mobility market in India, which encompasses hardware; network and data; and applications and associated services has grown exponentially over the past three years and is expected to touch Rs.4,484.30 crore ($1 billion) by mid-2015.

This is primarily on account of factors like increased maturity of industry verticals towards adoption, declining costs, increased start-up activity, and role of the ecosystem in market development, according to the study.

India already has 84 crore mobile phone subscriber base with 15 per cent smart phone penetration, and the tablet PC market in India sells about 1 lakh tablets per annum. The penetration of these devices added to a combination of demand side trends is further fuelling the growth of enterprise mobility, finds the study.

Industries leading the way in applying mobility services include banking, manufacturing, retail, hospitality and healthcare while upcoming adopters like automotive, logistics and consumer goods companies are increasingly using mobile supply chain systems to streamline inventory management, replenish stock, track demand, and manage shelf space and storage in an optimal manner. As more and more employees are getting exposed to next generation technologies and devices, the enterprises too are beginning to follow suite.

Also according to an interview with 150 key IT decision makers in India, as part of the study, the key reasons for enterprise mobility were push from management, collaboration among employees, getting more work time out of employees, pull from end users (customers or employees) and reduction in communication costs. And, the business drivers for enterprise mobility were better customer service, productivity advantage, employee satisfaction and competitive advantage in that order.

The study finds that there are about 84 crore active mobiles operational in India, 1.22 crore 3G user base and an average of about 1.5 crore mobile subscribers added every month. There is an installed base of 2.5 crore computers while the smart phone market share is about 15 per cent in India. PC penetration in urban households has reached 38 per cent and the laptop market is growing at a CAGR of 50 per cent.

Praveen Bhadada, director-Global Consulting, Zinnov Management Consulting says, "As enterprise mobility moves from being a concept to reality, a variety of innovative use cases are simultaneously emerging. It is also encouraging to see how the start-up ecosystem is evolving. Many tech companies such as RIM, Qualcomm, etc. are looking to provide seed funding and venture capital to start-ups working in the mobility space in India. Enterprise mobility in India certainly has a billion dollar potential in the next 5 years. We will see over 40 per cent y-o-y growth for the segment over the next 5 years."

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