In addition to technology and HR operations, Indian IT companies can now also look at outsourcing marketing functions for their clients due to the increasing role played by social media in marketing, a new report said.
The report, published by Nasscom in association with SapientNitro, finds that there will be USD 37 billion of CMO opportunity for the Indian technology industry by 2020, 17% of which will be purely creative in nature.
17% of the estimated USD 37 billion opportunity for the Indian Technology Industry will be creative in nature.
Creative services alone is estimated to create an impressive 1,00,000 job market by 2020.
The report analyses the disruption caused by the rise of digital technologies in marketing and its implications for the Indian technology industry. It attempts to prepare this industry to leverage this opportunity by delivering value to the new stakeholder – the Chief Marketing Officer. Marketers are actively participating in decision making related to technology.
Over 50% CMOs said spend on digital marketing and brand building will grow between 5 and 10% over the next 12 months
Over 70% CMOs find that their role in the CIO spends is growing.
8% of global CMOs surveyed have ventured into outsourcing and are already engaged with Indian technology providers for creative work, while an impressive 38% respondents are currently weighing the idea of outsourcing creative work.
A significant 34% of the marketers surveyed cited new tools/technology investment as one of the key concern areas.
Also, the spend on digital marketing is expected to grow from current 8% to at least 35% of the total CMO spend by 2020, the report said. The rising interest in outsourcing creative marketing work and digital marketing opportunity are contributing to the huge addressable CMO market.
“Digital technologies are creating disruption in areas beyond those under the purview of the CIO. Clearly, new opportunities for Indian technology players are opening up, opportunities that demand closer coordination with new stakeholders in businesses and modify their services to address new kinds of needs,” R. Chandrashekhar, President, NASSCOM said. “Technology players must review and streamline their services and offer customized solutions for modern business to make the most of the new opportunity.”
The report prescribes a strategic direction for Indian technology companies to streamline their services and products roadmap, in sync with the current requirements of CMOs. It asks IT companies to look at the holistic picture, building in-house capabilities and forging seamless and symbiotic relationships with marketing agencies. Further, the report also prescribes recommendations for global brands to remain relevant, connected and competitive in the new world.
Companies like Persistent Systems already do a lot of digital marketing for clients. It handled social media marketing for the movie Chennai Express.