Energy and BFSI are major verticals for PSUs: Zinnov

Zinnov has released its report on the Indian PSU landscape capturing interesting facts and figures on the growing PSU segment in India. 

The key finding of the report reveals that the Public Sector Units (PSUs) in the Indian economy account for US$383 billion of turnover in FY 12 with a revenue growth of 11% since 2009. The sector gives employment to 1.4 million with 40% of the PSU companies operating in the manufacturing sector. Energy and BFSI are the major PSU verticals for IT investments.

The report also highlights that the investment in technology is the key factor in the growth of the PSU sector. IT spend accounts for 2% of the total PSU revenues in India.

The report also reveals about some of the major challenges faced by the PSU sector such as productivity challenges and lack of quantitative benchmarks against domestic private companies or global equivalents.

Praveen Bhadada, Director – Market Expansion, Zinnov, said, “With their growing size and dominance, PSUs have started looking at IT to address the global competition. IT is viewed to be a major cost reduction enabler in many PSUs by automation of processes and integrated IT set-ups. Today, PSUs are looking at IT to analyze customer information efficiently and develop targeted and customized offerings for customers.”

The report concluded that the Indian PSUs are expected to witness a turnover of more than US$1 trillion by 2020 and a large part of the growth will be attributed to investments in modern forms of IT, including cloud, big data and mobility.