Conferring on the Web catches on

Web conferencing is the latest addition to the menu of communication tools. With the additional advantage of data transfer, it is slowly making its mark as a preferred option among large enterprises, says SUSHMA NAIK

YUGAL SHARMA points out that not all Indian organisations are equipped with optimum bandwidth

HIMANSHU Mehta, a lawyer, watches curiously as his 25-year-old son sets up a Web conference with partners in three Indian cities and two clients in the US. During Mehta’s time, meetings were always conducted face to face. Then the telephone replaced physical meetings. Now just as video conferencing seems set to take over corporate boardrooms, Web conferencing is emerging to threaten it.

The reasons are simple. One, bandwidth and set-up costs are a fraction of the investment required for video conferencing. Additionally, both voice and data can be shared, making physical meetings superfluous. Mehta’s son’s firm is not the only organisation using Web conferencing tools. Known names like Wipro, Polaris, TCS, Johnson & Johnson, L&T and even state-owned firms like MKCL are using Web conferencing extensively. While it is still a nascent market, Web conferencing is increasingly becoming the norm for meetings spanning regions.

“The conferencing market in India is worth around Rs 40-50 crore, and Web conferencing is the fastest-growing segment…we are seeing over 100 percent growth year-on-year,” says Kiran Datar, chief operating officer, Cyberbazaar. With regulatory organisations such as TRAI highlighting the importance of bandwidth availability, market players believe that the industry is bound to grow at a fast clip. The potential of the Indian Web conferencing market was underlined when California-based WebEx Communications, a giant in the space, signed an agreement to acquire its Indian solutions partner, CyberBazaar, in a $4 million cash deal. The acquisition was seen as a strategy to provide services to the increasing number of MNC customers who are expanding their operations in the country. Currently, the Indian market is dominated by players such as Polycom, WebEx and GurukulOnline.

We also carry data

KIRAN DATAR says that the conferencing market in India is worth around Rs 40-50 crore, and Web conferencing is its fastest-growing segment

“With the increasing number of IT and IT-enabled service companies in India, the ability of Web conferencing to carry voice, video and data has made it an obvious choice for end-users,” says Alok Shende, industry manager, IT practice, Frost & Sullivan. He feels that geo-political disturbances are partly responsible for the use of Web conferencing tools in India. In an era of increasing competition, it enables companies to take quick decisions. For example, they can share their plans instantly through ‘Webinars’ (seminars over the Web). Market players estimate that most customers recover the investment they make in Web conferencing tools in a span of just 3-4 months.

Web conferencing is also superior to video conferencing in several ways. Video is expensive, requires higher bandwidth, and is available only at fixed locations—usually conference or meeting rooms—whereas Web conferencing can be made available anywhere. Besides, video conferencing is hardware-based (Web conferencing is software-based), does not have features such as application sharing, and is less interactive than Web conferencing. For example, using the record and playback facility, it is possible for those who are unable to attend a meeting to stay informed. The same data can also be used for reference in the future.

The benefits of Web conferencing are noticeable at two levels. At the first level, the measurable advantage would be reduction in travel expenses and associated costs such as lodging. According to a survey conducted by CyberBazaar, companies save up to 70-80 percent in terms of direct expenses by using this technology. At the second level are intangible benefits such as an increase in productivity since the time spent on travel is reduced considerably.

Another big factor pushing the market for Web conferencing tools is the availability of affordable bandwidth. In addition to private players, public sector enterprises such as MTNL and BSNL are promoting the broadband cause with attractively-priced packages.

Smart applications

While the most common use of Web conferencing tools is discussion, they are also actively used for conducting training programmes, sales and marketing conferences, software demonstrations, product launches and business development meetings.

“The sales department has to be in constant touch with their colleagues who are spread geographically. It also needs to motivate and guide them, and Web conferencing comes in handy here. Besides, in a dynamic environment, the need for changes in strategy is constant,” remarks Shailesh Mehta of GurukulOnline. Web conferencing is also used for dealer sales meetings and product demo sessions. Some companies use it for holding virtual classes. Content creation is another interesting development. Companies in the e-learning space are using Web conferencing tools to develop interactive presentations and learning content.

Who uses it?

Any company with dispersed marketing or production teams is a potential user of this tool. Service sector companies in the ITES and BPO space have been early adopters. Other sectors such as automobile component manufacturers and pharmaceuticals are also showing signs of adopting Web conferencing. Vendors believe that the growth of Web conferencing in India will accelerate as the price of bandwidth falls.

Web gaps

Most deployments are in large enterprises as the small and medium segment adopts a wait-and-watch attitude. “Not all Indian organisations are equipped with optimum bandwidth,” explains Yugal Sharma, country manager, Polycom.

Apart from bandwidth, data security is a major concern. Most companies are hesitant to discuss confidential plans because of security issues. Availability of free messaging software such as MSN and Yahoo is also limiting the use of Web conferencing in small and medium businesses. While the availability of broadband is improving, its penetration is restricted to metropolitan areas. B and C towns still do not have access to sufficient bandwidth. Besides, the prices of bandwidth are still relatively high. Till these gaps are plugged, Web conferencing will remain confined to a few companies.

Web conferencing applications
Function	Usage
IT	Application Deployment Vendor Communication Problem Resolution
Marketing	Product Launches Web Event Marketing Analyst Presentations
HR	New Employee Training Corporate Communication Programmes for e-Learning
Sales	Training Planning Customer Meetings & Demos
Client Services	Beta Programmes Crisis Intervention Customer Training

sushma@expresscomputeronline.com