Indian Construction Sector ( AEC) Witness Progress with Adoption of Technology
Guest Post by Mr. Nirmalya Chatterjee
With the recent thrust from the Indian Government in their Union Budget 2017-18 for the construction sector, the spending on IT solutions by the AEC segment , particularly the construction houses are expected to increase from the present 0.5 % to at least 1 % of the their turnover, closing the gap with developed countries’ counterpart’s spending 2-3% on the same need. India become more attractive future investment destination with further liberalization of FDI policy, new propose Foreign Investment Promotion Board scrapping to ease FDI can be consider as major boost for the Indian infrastructure.
Domestic & global construction technology innovators keeping an watchful eye on the growing market scenario in India, as most likely we will witness the highest ever sustainable growth in building & the construction segment in next few years time.
The AEC segment within Indian subcontinent is still lagging in terms of IT adoption for several reasons. Construction companies’ association with IT is still at a grass-root level. The lack of awareness in this segment is a major drawback. This, however, is expected to evolve like the way it did in the western countries. With the upsurge in infrastructure investment in India , construction and infrastructure companies are realizing the important role technology can play in increasing quality & profitability. Therefore, there is an evolving trend towards adopting relevant technology solutions which address the construction management systems that delivers in-depth workflows and configures to the work processes of the construction companies perfectly. Adopting best practices are getting appreciations from every stakeholders.
The one big advantage for the 2nd generation ownership holder of ambitious Indian construction companies is that, as newcomer of technology adopters, they are not burdened with legacy IT investments. They can leapfrog into the latest feature-rich, easy-to-use, standard global solutions available at a cost that is a fraction of what it was a decade ago. In addition, the availability of better technology now mostly on cloud based, will enhance the connectivity and remove additional liability. Apart from use of 3D BIM workflow link with digitally enable field hardware technology, the same Indian construction companies may prefer towards an integrated platform which expand the usage to include other functions such as Project cost monitoring, supply chain management and inventory management. A Cloud based approach which offers flexibility and security with optional on-premise deployment certainly will address this practical need of the hour.
Below statistics do indicate important risk area & progressive side of the technology influence within the construction space.
As a conclusion , It may be wise to say that, even India remain as price sensitive market, the AEC industry in India can reap benefit from the availability of tested and proven right fit IT solutions along with skill resources trained in global SMART construction technology solutions which certainly will transform this industry. After enough pauses, we are finally in the midst of a sustained recovery. Fundamentals are strong. Growth has been ever steady, and momentum assuredly recovers . We are on the growth path where the institutional sector is no longer pulling down the other construction sectors. Less corruption environment & a promising days ahead.
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