EAI: Major Opportunity For Indian Software Firms

Hyderabad: | Updated: May 23 2003, 05:30am hrs
Enterprise applications integration (EAI) hold immense opportunities for Indian software companies. As most of the larger companies in the US and Europe are looking at better return on investments (RoI) on different applications, the Indian IT companies have a fair chance to garner a share of the potential EAI services market.

Given the expertise, domain knowledge and skilled manpower coupled with the low-cost labour, the Indian companies have a fair chance to gobble up the huge potential. It is for the Indian companies to take a clear and dedicated initiative, says Mr Joga Ryali, chief technology officer and senior vice-president, Sierra Atlantic, a speacialised EAI operator in the US.

Speaking to EFE, Mr Ryali, who was on a personal visit to Hyderabad, said with the downturn in the IT sector, most of the big companies have started looking at integrating all the applications to increase their RoI.

General Motors, General Electric, DMC Stratex, Solectron, Train, Cisco, Best Buy are among the big companies that could show higher RoIs due to the integration of different applications such as HR, manufacturing, financials, ERP, supply chain management and customer relationship management. And there is a rush among other major companies in the US and Europe to look out for such service providers.

It is believed that these companies could save upto a maximum of 60 per cent in their investments over a period of time while integrating all the applications, thereby becoming cost-effective and customer-centric.

Mergers and acquisitions, traditional business demands and existing trends across the globe have forced many big companies to have integrated applications network rather separate applications.

With the EAI service market expected to touch $21 billion by 2005, the Indian companies, particularly the big ones, will have to adopt a clear-cut strategy to woo these companies with packaged integrated solutions.

I can see that some of the Indian majors are already familiar with individual applications and some of them are working on middleware path, some of them know product strategy, consultancy and support services. he said.

Keeping in mind the changing scenario, vendors such as Oracle, SAP, PeopleSoft, Siebel, Agil and middleware providers such as TIBCO, Web Methods, BEA are also upgrading their offerings, he claimed.

Companies with a revenue of over $1 billion are expected to spend an average of $6.5 million on EAI annually. A Forrester Research study points out that 28 of them are integrating up to three applications, Mr Ryali said.