Leading IT channels in Pakistan, Bangladesh and Sri Lanka – comprising of independent software vendors (ISVs) and system integrators (SIs) – have reached the ‘take-off’ stage and are all set to achieve higher growth in the coming years, says the latest research from Springboard Research.
These findings are based upon Springboard’s ‘South Asia Emerging Countries ISV/SI Databook’ released this month, which includes a detailed profiling of all major ISVs and SIs in these three South Asian countries. According to Springboard’s research – telecom, banking/financial services, and the public sector are the main focus verticals of IT channels in these markets, owing chiefly to the rise in local infrastructural investments and up-gradations.
Springboard also noted that a sizeable presence of IT channels – around 600 ISVs and SIs in the three nations – has had a significant impact on the local software industry in each country; the latter having registered an average annual growth of 20-30% during the past few years. According to Springboard, Pakistan has the largest share (~50%) of the IT channels market.
“High productivity as well as cheap and skilled labour are some of the main accelerators for the software market growth in these countries,” says Sameer Bhatnagar, Research Analyst at Springboard Research. “A large number of MNCs have also established their subsidiaries in these nations and are gaining the advantage of low-priced, skilled labor,” he continues.
Channel Trends
Springboard also revealed that IT channels are gradually consolidating their presence in emerging verticals like retail, healthcare and textiles, besides consolidating their presence in the financial and telecom sector. With increasing need for IT infrastructure across all verticals, South-Asian countries offer an increasing number of opportunities for multinational IT vendors. According to Springboard’s findings, IT channels are looking to join additional partner level programs and attain quality certifications like SEI-CMM to keep their existing customers happy and expand into foreign or new markets.
“In the wake of the global slowdown, competitive pressures are driving large companies to seek high-quality, cost-effective sources in the new and emerging markets. South Asian emerging nations are well placed to take advantage of these potential opportunities,” adds Bhatnagar.
Industry Challenges
Political, social and economic upheavals, combined with shortage of professionals with technical expertise and a poor image on the global map present the biggest challenge to IT channels in the three South Asian countries. In order to reach a mature stage, the industry will require large investments of time and money.
“The governments in these nations need to undertake major reforms such as improving education and industry coordination, increasing private initiatives and the establishment of a policy environment conducive for market growth,” notes Manish Bahl, Manager - Emerging Nations at Springboard Research.
He also adds that these nations need to promote their image as a niche player adding value in a particular area than merely stressing the image as a lower cost destination to India and other Asian countries.
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