Mumbai, May 22 (UNI) Emerging markets like India are adopting innovation and technology at a much faster rate compared to the mature markets and in future the innovation in technology will be driven by developed countries, pointed out a survey by Gartner, a technology research and advisory company.
Gartner analysts examined the increasing global importance of innovation in emerging markets and looked at how this disruption from the bottom of the pyramid can benefit more mature markets.
Survey also listed out the strong points of a emerging market.
Firstly, emerging markets have fewer legacies enabling them to leapfrog technology and commercialise it faster, making them ideal test beds.
Secondly, in highly constrained environments, which might include poor infrastructure and low affordability, there is an acute need for products that can serve the local market better, rather than products designed for the developed world.
For example, mobile phones which require less power and have built-in connectivity are more suitable for emerging markets than PCs.
Finally, emerging countries such as China and India who have the ambition to lead the IT industry in the global market can only do so through innovation.
In hyper competitive global business environment, chief executive officers (CEOs) are placing innovation at the top of their agenda but are not able to produce the desired results. Conversely, organisations operating in highly constrained environments in emerging nations such as China and India are innovating at a faster rate than ever before.
The populations of China and India are moving from below poverty line to creating a whole new consumer population of equivalent size to the European middle-class in purchasing power parity (PPP) terms.
For instance mobile banking. SMS money transfer was first introduced in emerging markets because it was not otherwise cost effective to reach people in remote areas. This solution is now being adopted globally by leading carriers and financial institutions to address the inefficiencies of international money transmission.
Gartner analysts also pointed out India also appears on the way to becoming an IT services powerhouse with the help of established leading Indian IT companies such as Wipro, Infosys and Tata Consulting Services. IT services account for around half of India's services exports and the IT services market is growing at more than 30 percent per year.