Biz intel applications to boom

The business intelligence applications in India is poised to grow to $70 million by 2007, registering a compounded annual growth of 29.4 per cent, a report by Frost and Sullivan, a global growth consulting company said.

The demand from the IT, Telecom, Banking, Financial Services and Insurance (particularly the PSU banks) verticals will drive the growth for BI applications, Alok Shende, director, Technology, Frost and Sullivan said on Thursday in Bangalore.

"The BI market in India has grown tremendously over the last few years. With 2005 revenues expected to touch $43 million, we are seeing an unprecedented growth rate", he said.

Data warehousing and reporting tools proved to be the most sought after applications by clients seeking business intelligence solutions. These tools contributed to about 70 per cent of the overall revenues generated by BI vendors in India in 2004, according to the report.

The key market drivers for adoption of BI solutions include maturing of transaction systems such as ERP, competitive market pressures, increased product functionalities available with vendors and the need to comply with emerging standards such as Basel II and Sarbanes-Oxley.

"One interesting aspect highlighted by the report is the preference of prospective clients to implement BI solutions from a single vendor instead of using different BI vendors for specific tools," Shende said.