Indian GIS Market: On an Upswing
Posted by manojmisra on June 15, 2009
Indian GIS market will grow much faster than any other market in world! The die is cast!!
Indian GIS market is witnessing a major transformation**. Central Government (Federal Government) has spent several hundred crore Indian rupees (Several 100 million $s) under APRDP-R and National Land Records Modernization Programme (NLRMP) and planning to spend much more in future. Sample this – Rs 473 cores was allocation in NLRMP last year – that mean almost 100 million USD at the start of the projects!!!
If we put together all the budgeted numbers that are planned for GIS related expenditure by Indian government, it will be a substantial percentage of the “total world GIS market size” estimated by Daratech report!! Actually, Daratech report of past years has given a complete slip to the Indian market (and none of the Indian companies figure in the list of Daratech)!!! All that should change for good now!!! And BTW, in addition to the government planning, some serious money in being spent in private sector as well!!!
http://timesofindia.indiatimes.com/India-Business/Finmin-to-web-monitor-infra-projects/articleshow/4655913.cms . This GIS based process is $800K project. And you will hear many more in coming days.
For last few days, I started doing some research to re-assess and re-evaluate the Indian market. It will take me few more weeks to put together a market size evaluation and document the new dynamics in market (yes, its changing fast). Those of you who are interesting may send a request for the copy of report to me.
But there are several big question: Where is all the money going? Are these big budget projects getting successfully implemented? Are companies making money on these projects? Are Indian companies/government seeking out expertise from countries like Canada and USA to learn from the experience and mistakes committed by the countries who have invested heavily on GIS based systems?
Is Indian GIS market mature? More on this in future but I am keen to share an Incident that is almost 10 years old! There was a tender by Municipal Corporation of an IT savvy Indian state for a GIS project. Who’s who of Indian GIS industry participated in the pre-bid meeting. At least 30 executives of top companies converged in the city. Several thousand $ must have been spent by companies on preparation for the bid! Finally the project was awarded for USD200, yes there is no K in that – Rs 10,000 only!!! And all big companies lost out. Chairman of that company is a good friend and his logic was very interesting – he said my objective was to beat you(RMSI), Infotech & Rolta and I have done it!!! Cheers.
How different is situation now? Let’s discuss in coming days!!!
Manoj Misra
PS: ** I am fascinated by the word “Transformation”! My favorite questions, when I used to interview staff for technical positions used to be – what’s the difference between “Projection” and “Transformation”!!! The big question about Indian market is – is this “Projection” of market or true “Transformation”?
Rajesh Kumar Manam said
are they come up with private partnership? if yes, it may be possible to establish world-class Multipurpose GIS data and Web Applications by using the advanced technologies.
Even though Government has sanctioned the budget, i don't think that Government utilizes it in correct manner. Higher officials may not have clear vision and it may take two more generation for actual implementations.
But defiantly people like you can guide them in right directions by creating the advisory group..etc,
i don't know much !!
Manoj Misra said
Rajesh – Can we?
Well, while you have a point that budget utilization is an issue, I tend to differ on the vision part a bit. Many of the senior folks may not have vision but few who have, have been able to bring about a change. And that's what we see in budgetory allocation. And there are now cases of good implemenation and use of budget as well (very limited though)!!!
Saurav said
Manoj, a point to add is that in many of the government sector's GIS related tenders the specifications are not only ambiguous but at times almost absent. This not only leads to high quotation by reputed companies (as they deliver a high data quality involving higher cost)but also leaves scope for delay in acceptance of the deliveries resulting to wrong practices. Therefore the appropraite central/ state bodies must set some guidelines for such technical tenders depending upon the value it involves.
Manoj Misra said
Saurav – Interesting point! "specifications are not only ambiguous but at times almost absen".. scope for manipulation at any stage!!! Fully agree on the need for some guidelies on such cases. Very soon I will be writing in more detail on the blog about my take! Cheers