$37 billion of CMO Opportunity for Indian Technology Industry: NASSCOM-SapientNitro Report

Introduction

In an assessment of opportunities for the Indian technology industry resulting from the emergence of digital technologies, National Associationof Software and Service Companies (NASSCOM) and SapientNitro today announced the launch of a research report titled 'Marketing, Disrupted: Opportunitiesfor the Indian technology industry'.

The report states that there will be a $37 billion of CMO opportunity for the Indian technology industry by 2020, 17% of which will be purely creative innature. Also, the spending on digital marketing is expected to grow from current 8 per cent to at least 35 per cent of the total CMO spend by 2020. Therising interest in outsourcing creative marketing work and digital marketing opportunity are contributing to the huge addressable CMO market.

R. Chandrashekhar, President, NASSCOM said, "Digital technologies are creating disruption in areas beyond those under the purview of the CIO. Clearly, newopportunities for Indian technology players are opening up, opportunities that demand closer coordination with new stakeholders in businesses and modifytheir services to address new kinds of needs. Technology players must review and streamline their services and offer customized solutions for modernbusiness to make the most of the new opportunity."

The report analyses the disruption caused by the rise of digital technologies in marketing and its implications for the Indian technology industry. Itattempts to prepare this industry to leverage this opportunity by delivering value to the new stakeholder - the Chief Marketing Officer. Marketers areactively participating in decision making related to technology. A significant 34 per cent of the marketers surveyed cited new tools/technology investmentas one of the key concern areas.

"Over the past few years, SapientNitro has been at the center of the massive transformation in the brand-consumer space, caused by the emergence of thedigitally empowered consumer. We are delighted to have partnered with NASSCOM in defining this new opportunity for the Indian technology industry. Webelieve this report will mark an inflection point in the evolution of the industry as it offers compelling insights into the current disruption in themarketplace as well as the way forward for industry participants," said Rajdeep Endow, Managing Director, Sapient, India.

According to the report, over 50% CMOs said that their spending on digital marketing and brand building will grow between 5 and 10% over the next 12months. Also, over 70% CMOs find that their role in the CIO spends is growing.

Source

India Brand Equity Foundation, March 28, 2014