India-centric IT service companies will represent 20% of the leading cloud aggregators

By 2012, India-centric IT service companies will represent 20% of the leading cloud aggregators in the market

(through cloud service offerings).

Market Implications:

As cloud computing continues to emerge as a disruptive force, organizations will want to assess its potential for their organizations. This change in the market will help CIOs and business unit heads understand and delineate the vendors, IT services, software and infrastructure components.

Many Indian vendors have used transparency as a way to build the confidence of Western buyers in foreign IT service providers. Thus, if India-centric providers play a substantial role in developing cloud service offerings, CIOs and business unit leaders will embrace this transparency to an even greater extent.

The R&D efforts of Indian vendors will speed development of cloud-based solutions from all types of IT providers, which will create more choice and more competition in the market. Over time, it will result in deeper, higher-quality offerings. These new offerings, in turn, will accelerate the transition from traditional to industrial offerings and the growth of utility and cloud-based services.

Buyers—business unit teams and IT organizations—will be forced to separate unique business process areas that truly drive competitive advantage from those that simply deliver competitive parity. Organizations that can appropriately adopt newer utility and cloud-based offerings in select areas of their enterprises—with a heavy dose of strong risk management skills—will gain an important advantage within their industries.