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Given that Indias armed force is one of the largest forces in the world and the fact that Indias defence budget is expected to cross $50 billion mark by 2015, the modernisation programme for Indian armed forces will create both long-term and large-scale opportunities for Indian IT sector. Although there is a lack of large system integrators in the country, Indian companies are moving up the value chain via tie-ups with foreign defence firms by leveraging offset obligations, said a recent research report by Frost & Sullivan.
Modernisation of Indian armed forces aims to equip the futuristic individual soldier with hand-held computing devices, encrypted communication, thermal sensors and night vision devices, as well as to integrate these devices with the control, communications, computers and intelligence (C4I) systems at command level for improved tactical decision-making. This in turn will throw up great opportunities, Frost & Sullivan research associate Aditya Desai said.
It may be mentioned that between 2011 and 2015, Indias defence budget is expected to grow at more than 8 per cent year-on-year. India is projected to spend approximately $54 billion on foreign arms and equipment procurements, which will also generate offset opportunities worth $18 billion.
Desai said, All modern weapons and equipment are IT-intensive. And this trend, along with their afterlife management, requires complex enterprise resource planning (ERP) and EAM suites customised to requirements of the Indian defence forces. There is a degree of scepticism in the Frost & Sullivan report as well. It apprehended that bureaucratic and procedural delays, as well as high customisation requirements might restrain the rate of market growth.
The report also mentioned lack of expertise in combat systems. Indian IT firms do not possess knowledge base and expertise necessary to independently develop critical combat systems such as tactical communications systems or battlefield management systems. They should immediately start working on that, it said.
Modernisation of Indian armed forces aims to equip the futuristic individual soldier with hand-held computing devices, encrypted communication, thermal sensors and night vision devices, as well as to integrate these devices with the control, communications, computers and intelligence (C4I) systems at command level for improved tactical decision-making. This in turn will throw up great opportunities, Frost & Sullivan research associate Aditya Desai said.
It may be mentioned that between 2011 and 2015, Indias defence budget is expected to grow at more than 8 per cent year-on-year. India is projected to spend approximately $54 billion on foreign arms and equipment procurements, which will also generate offset opportunities worth $18 billion.
Desai said, All modern weapons and equipment are IT-intensive. And this trend, along with their afterlife management, requires complex enterprise resource planning (ERP) and EAM suites customised to requirements of the Indian defence forces. There is a degree of scepticism in the Frost & Sullivan report as well. It apprehended that bureaucratic and procedural delays, as well as high customisation requirements might restrain the rate of market growth.
The report also mentioned lack of expertise in combat systems. Indian IT firms do not possess knowledge base and expertise necessary to independently develop critical combat systems such as tactical communications systems or battlefield management systems. They should immediately start working on that, it said.
