BANGALORE, April 11, 2016 /PRNewswire/ --
- Persistent Systems, EPAM, GlobalLogic, Mindtree and Luxoft Make it to the Leadership Zone in Zinnov Zones for Digital Services Rankings of Service Providers
- Global Market for EDT Spend With Service Providers Estimated to be $2 Billion in 2015; Share of Indian Service Providers Estimated at $300-320 Million
Leading management consulting firm, Zinnov, today released a first-of-its-kind study conducted on the global digital transformation market, named 'Enterprise Digital Transformation - 2015'. Demystifying the term Enterprise Digital Transformation (EDT), the released Zinnov report defined it as an enterprise's journey encompassing newer possibilities to maximize customer experiences and operational efficiencies using modern data-driven technologies. Pegging the global EDT market at $29 billion in 2015, Zinnov estimates that greater than 30% compounded growth over the next 5 years would take the spending to $136 billion by 2020. BFSI, manufacturing and retail currently constitute more than 50% of the overall market for EDT.
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From the ~$29 billion current EDT market, the spend on externally-sourced digital services is estimated to be worth $2 billion in 2015. The same is expected to reach $10 billion by 2020. Indian service providers currently account for $300-320 million worth of such services and are expected to derive ~$1.5 billion from the same by 2020, the report added.
The report adds that the enterprise digital transformation market supports an additional $227 billion of digital spending in the form of digital enablement, thereby taking the overall digital-led spending to $256 billion in 2015. North America and Europe are currently the largest contributors to global digital spending, with the Asian market expected to overtake the European market to become the 2nd[ ]largest by 2020, claims Zinnov. The report also highlights that the overall digital spending is typically concentrated within the top enterprises, with Forbes 500 companies jointly accounting for 40% of the overall market.
In addition to laying down specifics of the Digital Landscape, Zinnov also conducted a unique ranking of service providers, where it analyzed 16 digital service providers on their digital prowess, scalability and comparatively positioned them in Zinnov Zones ('Nurture Zone', 'Breakout Zone', 'Execution Zone' and 'Leadership Zone'). Apart from an overall digital service provider rating, the report also provides a relative positioning of service providers across 5 key digital service lines of - digital consulting and transformation, design and experience, digital application engineering, digital platform integration and data management and analytics services.
Speaking about the report, Praveen Bhadada, Practice Head (Enterprise Digital Transformation) & Partner, Zinnov, said, "Digital transformation focus of enterprises is clearly evident from the tremendous growth in investments on digital capabilities. The number of Chief Digital Officers (CDOs) within large enterprises has increased more than 7 times in the last three years. Enterprises are aggressively investing in setting up digital labs to foster innovation and implement digital technologies. We have seen ~100% increase in the number of digital labs set up by large enterprises. There is also a clear focus towards leveraging the digital start up ecosystem which is growing at over 25% annually."
"Digital transformation-led new possibilities present a sizable business opportunity to service providers and accordingly global service providers are aggressively aligning and enhancing their capabilities to tap the potential. Given the strong customer relationships, ecosystem footprint and access to large base of digital talent, Indian service providers are uniquely positioned to tap into this opportunity," he added.
To view report, click on the following link:
http://www.slideshare.net/zinnov/zinnov-zones-for-digital-technology-services
About Zinnov Zones:
Zinnov Zones is an annual rating published by Zinnov which rates service providers based on their competencies and capabilities. Since 2009, Zinnov Zones (previously known as GSPR - Global Service Provider Ratings) has become one of the most trusted reports globally, for both enterprises and service providers to better understand the vendor eco-system in the product engineering and media & entertainment space.
Given the enterprises' demand for digital services and need for an evaluative view on the rapidly evolving digital vendor landscape, Zinnov has extended its Zinnov Zones methodology to digital services and has launched 'Zinnov Zones - Digital Services 2015'
About Zinnov:
Founded in 2002, Zinnov is headquartered in Silicon Valley and Bangalore. In over a decade they have built in-depth expertise in engineering and digital practice areas. They assist their customers in effectively leveraging global innovation and technology ecosystems to accelerate innovation and digital transformation. Zinnov helps their customers:
With Zinnov's team of experienced professionals, they serve clients in software, automotive, telecom & networking, semiconductor, consumer electronics, storage, healthcare, banking, financial services & retail verticals in US, Europe, Japan & India.
Media Contact:
Kinjal Chhetri Panwar
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Zinnov
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