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| Friday, January 06, 2012 | |
| Hospitality Vertical Will Rise in 2012 | |
| Sourabh Chandra Pushp , , | |
| In the last year we see our customers more focused on greater value for the same technology spend, and we expect the trend to continue. With earnings becoming tight, customers are more careful about their technology spend. Being a service provider, we also help customers optimize use of their existing technology, through technology audits as we have witnessed the reluctance to add to their overheads. | |
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GS- In what areas (IT) would you expect budgetary cuts with your customers in 2012? How would these cuts impact IT outsourcing/services? Or is there a scope for increased spends? Where and why? Binu- The hospitality industry has experienced tumultuous growth this year, with economic fluctuations, it is difficult to predict which segment will receive budget cuts. However, the hospitality segment is becoming more careful and restrained with their technology budgets as hotels want to see clear ROI from their IT investments. On a different level, those hospitality properties that have extensive technology are trying to ensure that they are using it to the maximum. Some of them are leveraging bundle solutions like Hotel ERP to replace traditional PMS and hence reducing their total cost of ownership. GS- What are some of the shifts in the dynamics of global services (include global sourcing of services, outsourcing, offshoring, IT services, BPO) you would expect in 2012? Binu- In 2012 we foresee a growing use of IT services and leveraging of business outcome services in the hospitality segment. Taking an example, a growing number of hotels will use technology like GDS (global distribution systems) and IDS (internet distribution systems) to increase online visibility and enable guests to book online. In addition, hotels are looking at outsourcing non-core technology functions like managed services, internet marketing and loyalty management. GS- If you are an enterprise services buyer, how have your expectations from service providers changed? If you are a service provider, how have your customer’s expectations of you changed? Binu- In the last year we see our customers more focused on greater value for the same technology spend, and we expect the trend to continue. With earnings becoming tight, customers are more careful about their technology spend. Being a service provider, we also help customers optimize use of their existing technology, through technology audits as we have witnessed the reluctance to add to their overheads.
Binu- We foresee a great demand for infrastructure management and product customization and engineering, which will be outsourced even in the hospitality sector. With expectations increasing, customers no longer want just a service provider. They want to partner with a vendor with deep domain expertise, who can drill deep down and help them extract insights that give them a competitive edge. Customers want to work with reliable companies that have extensive industry experience and can help them access expertise at cost effective rates. GS- If you were to give three pointers for IT services industry in 2012, what would they be? How should service providers align themselves to these? How would enterprise buyers of services align themselves to these? Binu- An increasing number of hospitality software providers are developing applications for the changing needs of the hospitality industry. At IDS NEXT, we have been aligning our increasing portfolio of services not just in software, but total holistic hospitality technology solutions. We foresee the growing importance of user generated content through social media as a method of personalizing hospitality services. There is also a trend toward the use of smart phones and location based applications are becoming popular which guests can use to locate, book or order services. GS- Any specific comments on specific emerging areas, geos, practices, etc. related to outsourcing in 2012? Binu- The hospitality sector is going to flourish in developing countries, as growth in these segments are more promising than developed countries. The population has more disposable income now and are using it for travel thus contributing to the growth of the hospitality segment. |
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