India IT spending to reach $71.5 bn in 2013

by CXOtoday News Desk    Oct 11, 2012

IT SpendingIT spending in India is projected to total $71.5 billion in 2013, a 7.7 percent increase from the $66.4 billion forecasted for 2012, according to Gartner. The telecommunications market is the largest IT segment in India with IT spending forecast to reach $47.8 billion in 2013, followed by the IT services market with spending of $10.3billion. The computing hardware market in India is projected to reach $9.5 billion in 2013, and software spending will total nearly $4.0 billion. Software will record the strongest revenue growth at 15 percent, IT services will grow at 12 percent. The telecom segment, which accounts for 67 percent of the Indian ICT market, is set to grow at 7 percent revenue growth in 2013.

“India like other emerging markets continues exercising strong momentum despite inflationary pressures and appreciation of local currencies, which are expected in rising economies,“ said Peter Sondergaard, SVP and global head of research at Gartner.

While IT is the primary driver of business growth, concerns around the economic slowdown are gathering strength and are a matter of concern. In Gartner’s latest CEO survey, 85 percent of CEOs believe they will be negatively impacted by the global economic slowdown. However, IT will remain well supported by CEOs compared with other areas of investment. Two-thirds of CEOs believe IT will make a greater contribution in their industries in the next 10 years than in any prior decade. Despite the troubled global economy, 40 percent of CEOs intend to raise their investment in IT.

“We live and work in an age of incredible promise. An age unleashed by a nexus of forces; social, mobile, information and cloud. While there is economic uncertainty there is also enormous opportunity. IT is at the center of every business, every government agency from the backend and the edge, directly to the customer. These forces are innovative and disruptive just taken on their own, but brought together, they are revolutionizing business and society,” Sondergaard said. “This nexus defines the next age of computing. To understand this change, you must appreciate each of the forces.”