India To Have Fastest Tech Spending Growth In APAC: Forrester
India’s technoloy spending will maintain the highest growth rate in Asia Pacific. In the next two years, technology spending will continue to grow faster in India than elsewhere in Asia Pacific, predicts Forrester. According to Forrester’s Asia Pacific 2017-2018 tech market outlook forecast, India’s total tech purchases will increase by 8 percent in 2017 and by 10 percent in 2018 in rupees (5 percent and 8 percent, respectively, in US dollars).
A robust economy, combined with government-led initiatives like Digital India and Make in India, will spur increased investment in the software, services, and outsourcing segments, the research agency said.
Although telecom will remain the largest segment in India, Forrester expects only modest growth in 2017 and 2018.Software and services will lead Asia Pacific tech market growth. While telecom services will remain the largest area of spending, it will be flat or grow by 2 percent to 4 percent in constant currency terms.
Computer equipment, the second-largest tech category, will grow by 5 percent and 6 percent in US dollars and 3 percent and 6 percent in constant currencies. While software and tech consulting services have become two of the largest and fastest-growing tech budget categories in the US and Europe, the APAC region has not reached this point yet, as many countries are still assembling the hardware infrastructure that underpins modern technology. But it is heading in that direction, with software becoming the third-largest tech market category in the region.
Few Asia Pacific markets have the maturity to embrace the business technology (BT) agenda to the same extent as the US. The BT agenda includes technologies that help firms win, serve, and retain customers. BT accounts for 14 percent of Asia Pacific tech spending, versus 32 percent in the US. BT spending will grow much faster than IT spending through 2018 as firms work to meet the changing expectations of empowered customers, the firm said.
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