No. This time there isn’t going to be that year-end announcement of the “next big thing” in information technology. Most predictions by IT experts in the industry spoke about making the most of existing infrastructure. “Do you think the next big thing in technology will happen in the next 12 months?” was the question that Gartner asked a number of CIOs. And the answer, according to Jose Ruggero, vice president, Gartner: “We don’t see the next big thing happening. Why don’t you instead help us use what we already have?” Ruggero concludes that “the focus will be on refreshment and upgrades of existing infrastructure,” so that the infrastructure’s flexible and efficient. With the role of CIOs changing rapidly, Ruggero says that their priorities for 2004 will be to take business costs down, enable risk-managed innovation, provide business guidance, demonstrate business value, enhance security and integrate applications. (Has information technology reached a saturation point as far as development goes?) According to Gartner, the top global business concerns will include security/ business disruption, operating costs/ budgets, data protection/ privacy and need for revenue growth. The business concerns for Indian companies would include use of information in products and services, the need for revenue growth, and thirdly data protection and privacy. The key management priorities: demonstrating business value of information services (IS)/information technology(IT); developing leadership in the IS senior team and strengthening the IS/business linkage. In India the key management priorities would be to develop leadership in the IS senior team; make IS more service-oriented; strengthen the IS/business linkage. The technology priorities globally would be to develop efficient/flexible infrastructure; managing efficient/ flexible infrastructure; and security enhancement tools. In India the technology priorities, according to Gartner would be, to develop efficient/ flexible infrastructure; CRM; IT performance management, application integration, and managing an efficient/ flexible infrastructure. Sunish Sharma, engagement manager, McKinsey, also feels that there will be cost-cutting and that “enterprise budgets will be moving down”. However, IT talent, according to Sharma will be freely available, because of the series of lay-offs and companies will try to some of this talent inhouse. Sharma sees some aggressive offshoring happening despite all the furore in the US - “but mainly for non-strategic applications”. Other forecasts include the “clear industrialisation of software” and software development in OEMs such as IBM, HP. The other big trend will see big software players such as Oracle and SAP getting into niche areas, Sharma says. IDC also has come out with its “predictions for 2004”. It sees 2004 as a year of “tech resurrection” after a major setback in the last few years. IT spend, according to IDC is expected to be 6-8 per cent “or better”. And the reasons for the resurrection, IDC says, will be because of the significant strengthening in enterprise IT spending, consumer IT spending continuing to hold up, IT spending rebound remaining strong in the United States. IDC also sees “a shift among infrastructure hardware and software suppliers to standards-based product development and off-the-shelf sourcing strategies”. IDC analysts feels that utility computing is a good long-term bet. “The utility computing model will drive major changes in system architecture, system management, IT product/ service packaging, and pricing. However, in 2004, futility, rather than utility, will characterise the market.” IDC also predicts that aggressive offshore models are here to stay despite all the controversy that it will generate in 2004, which is election year. “In 2004, the value of IT services provided to US businesses through offshore labour will double to $16 billion. In the subsequent three years, it will almost triple to $46 billion, capturing almost one-quarter of the US opportunity.” In this regard, Shamini Dhana, director, Silicon Valley Bank, has an interesting viewpoint: “Offshoring’s here to stay. And, in fact, your funding agency might want to know how you expect to remain competitive if you are not offshoring to India — offshoring to India is no more about just cutting costs, it’s about staying competitive.” And all this is very good news indeed for India. *************************************************************************** Mailing list (sbinews@xxxxxxxxxxxxx) related information: News/articles about SBI and Banking related matters published in the print media, Internet etc will be circulated through this Mailing List. The messages in this list will help in improving awareness of SBI and its activities vis-a-vis the happenings in the Banking industry. This should be of help to all staff members of SBI, particularly those who are preparing for promotional written tests/interviews/group discussions. Subscription to this Mailing List is simple and FREE. Please check the procedure below. 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