Abstract
This IDC study shows the emergence of a number of small systems integrators
(SIs) with huge success in the India IT software industry. IBM and TCS are big
names as SIs, but there are many small regional SIs that perform well. Software
vendors collaborate with the big SIs to cater to the large customer segment,
but in order to penetrate further and acquire tier 2 customers they require
collaborations with small SIs.
"With small and medium-sized businesses (SMBs) investing heartily in improving
their IT infrastructure due to increasing security issues, expansion plans, and
so forth, while having limited IT budgets, these small SIs emerge as the most
appropriate choice for them. Thus, offering medium budget helps small SIs win
SMB deals against large SIs. In terms of cost, no doubt SMB creates low value
businesses, but the volume is huge. With such scattered and voluminous presence
of SMBs across India, small SIs also work on their expansion in the country.
This will help them have presence locally in various geographies and tap more
number of clients. Also, currently these small SIs work on building their
expertise around a specific solution area rather than offering a variety of
solution areas. For example, SIs that currently offer networking solutions and
services have plans to venture into related solution areas such as security or
vice versa, and some are sole service providers (SPs) of ERP applications.
This may change later as small integrators expand," says Prateek Tokas,
analyst, Software and Services Research, IDC India.
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