India Has the Potential to Become Application Economy Leader: CA Study


Achieves the largest market acceleration jump; leapfrogging seven places to market potential rank #2

Mumbai, February 24, 2016 – CA Technologies (NASDAQ: CA) today launched the inaugural edition of its Asia Pacific & Japan (APJ) Application Economy Index (AEI) 2016 designed to identify the readiness of 10 Asia Pacific & Japan (APJ) markets to thrive in the application economy. Today, applications are contributing heavily to technology adoption and businesses are increasingly embracing digital transformation. This also means that the pace of innovation must match the pace of disruption, and forward-looking, pro-active strategies for managing risks and capitalizing on opportunities must be put in place to succeed and thrive in the application economy.

The results of the study – developed and commissioned by CA Technologies and carried out by research consulting firm TRPC indicated India’s position as a leading accelerator in application economy potential. The following index gives a snapshot of where Asia’s economies are today, in terms of how conducive their market environments are for app development and market entry. Disruptions to market conditions often change the digital economy very quickly. In the following figure, India is ranked #9 and is part of the Mainstream economies including Thailand and Indonesia. This group of Asian countries may need more focused attention putting forth an agenda for developing business-conducive application economy conditions, in the current scenario.

Figure 1 The CA Technologies APJ Application Economy Index 2016 evaluates three main pillars that are critical for a vibrant application economy.

 

“Regardless of whether they are in the Disruptors, Challengers or Mainstream group, markets will still need to focus on creating conditions for businesses to thrive in the application economy. They can do so by continuing to do well in their key success characteristics, while mitigating current and potential weaknesses,” said Lim May-Ann, managing director, TRPC.

India ranked #9 in this index due to the three main pillars that are critical for a vibrant application economy, with each pillar comprising various parameters:

  1. Government Use and Support of Technology and Innovation: To develop sound technology policies and promote innovation, governments themselves should understand and use software applications.
  2. Internet and Mobile Infrastructure: Without the necessary infrastructure and enabled access to technology, an application economy cannot fully develop. Basic connectivity and network backbones must be in place, along with an environment which supports business growth and transformation.
  3. Business Agility: The ability to move nimbly and quickly in driving – and capturing – market disruption. For this to be possible, countries need to have an environment conducive for entrepreneurship and new forms of commerce to happen.

The country’s ever growing smartphone users, growth in mobile broadband, rise in usage of social networks and large youth demographic, contributed to its current application economy. If this trend continues, India has the potential to leapfrog and become a leader in the application economy.

The study (figure below) examined future leaders of the application economy through the use of Market Potential Accelerators (MPA). This index evaluates factors which have the ability to impact and accelerate market potential in the new application economy. They are: (i) the number of smartphone users in a market, (ii) the number of people who use mobile Internet on a daily basis, (iii) the use of virtual social networks, (iv) the daily use of mobile applications, and (v) the size of the youth demographic in the market.

Figure 2 The Market Potential Accelerators Index evaluates factors which have the ability to impact and accelerate market potential in the new application economy.

 

When MPA are taken into account, India jumps to market potential rank #2 as an Accelerator economy, effecting an overall ranking improvement of seven ranks – the largest market acceleration jump in this study. Factors such as increasing smartphone users in its marketplace, proportion of youth in its market, and the right talent are some of the critical factors to drive India to leading and capitalizing the economic opportunities in the application economy. If this trend continues, India has the potential to leapfrog and become a leader in the application economy.

“India is at the cusp of digital transformation and app is at the heart of this change. India’s leadership position in near future is unsurprising, especially as the number of smartphone users and mobile broadband keeps growing,” said Sunil Manglore, managing director, CA Technologies, India. “Digital India is creating further push for mobile enabled ecosystem like e-governance & e-services to common citizens. India’s app economy is already making its mark in the world with signs of success and global interest turning towards it.”

Methodology

The 10 parameters of the Application Economy Index (AEI2016) and five Market Potential Accelerators are sourced from publicly-available indices.

As indicators used had different units and scales, any indicator that did not use a 10-point scale was normalized to make the indicator values comparable, as well as to construct aggregate scores for each economy.

Read more about CA’s APJ Application Economy Index here.

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CA Technologies (NASDAQ:CA) creates software that fuels transformation for companies and enables them to seize the opportunities of the application economy. Software is at the heart of every business in every industry. From planning, to development, to management and security, CA is working with companies worldwide to change the way we live, transact, and communicate – across mobile, private and public cloud, distributed and mainframe environments. Learn more at www.ca.com.

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