Indian businesses for enterprise tech firms as demand for digitization, cloud-based solutions remains high

 

Indian business units of global technology firms have registered steady growth in business over the past one year despite concerns about declining demand for technology globally due to macroeconomic headwinds.

As Indian enterprises continue to invest in digitization and move to the cloud, firms such as Accenture, Oracle, SAP and Nutanix have posted high double-digit growth in India revenue over the past year.

None of these companies provide country-wise details of revenue numbers.

The COVID-19 pandemic has driven digital transformation and cloud adoption, and this has translated into higher demand across the board.

Cloud computing has seen a boom in the past two years and as the world has become digital so rapidly, organizations have also consumed more digital data, said Piyush N Singh, Lead - India Business, Accenture.

"So, when you connect those two points, you start getting to the place that is driving the technological revolution," he said.


He said that Accenture is rapidly gaining market share in India.

“The business is in a very healthy state for Accenture today and that is because it is not just technological demand, we are in a phase where the technological revolution is underway. There are very clear, concrete efficiencies or events that are driving it. , "They said.

This is adding up to a significant amount of money for anyone working in the cloud space.

While hyper-scalers like Azure, AWS and Google Cloud are doubling their India investments and growing their presence, the companies helping customers make this transition are also seeing rapid growth.

Oracle said its cloud business in India is growing in the triple digits due to strong demand from private and public sector enterprises.

"...we are seeing tremendous momentum for the cloud in India," said Kapil Makhija, Vice President - Technology Cloud Business, Oracle India.

The company is performing well in the Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) markets, he added.

"Cloud technology has performed extremely well, and Oracle's India business has been a strong growth engine for the company - the OCI unit has seen growth of over 100% for the third year in a row," he said.

Globally, companies have deferred technology spending or re-allocated budgets to focus on higher priority areas. So far in India, companies are reporting that demand remains strong as companies move to digitize a larger portion of their workloads and core processes.

For most companies, growth comes from both expanding the scope of work from existing clients as well as adding new clients.

Customer Success Executive Board member Scott Russell recently told ET that around 13% of German technology firm SAP's global customers are now from India, one of the fastest growing markets for the company.

"(Indian firms) are trying to expand their business to other parts of the world, and we have been able to take advantage of that," he said. The enterprise software maker saw triple-digit growth in India for three out of four quarters in 2021.

Most companies are confident that even if demand is down in geographies like Europe or North America, India is likely to grow at a similar pace over the next several quarters.

Hyperconverged infrastructure provider Nutanix said there may be concerns about an impending recession, but there was no shortage of money to invest in ways to optimize an organization's infrastructure.

Aaron White, Vice President and General Manager, APJ Sales at Nutanix, said, "We don't see any signs of slowing down (in India).

“On the contrary, we think customers, customers are really looking at how they use multi-cloud, hybrid-cloud as opposed to being a participant in a cloud identity and going out and spending on what they are going to spend on a multi-cloud. Let's look at the cloud strategy and I think there's a lot of opportunity for Nutanix right here," White said.

Over the past year, the company has seen its annual contract value increase by 64% year-on-year, beating other geographies.