Domestic IT Spend To Grow Over 2 Lakh Cr In 2017: Report
India domestic IT spending is estimated to grow at 12.9% in 2017 and reach a size of Rs. 2,14,012 Crores. The spending grew at 12.3% in 2016 as against a start of year prediction of 13.5%. This was revealed by Coeus Age Consulting in its annual research report Enterprise Business Priorities and IT Plans, India, 2017.
The research report is based on inputs from 100 + CIOs/ IT Heads of very large, large and medium sized Indian enterprises regarding their business priorities and IT plans for 2017.
“The domestic IT spend has been gradually picking up since its lowest in 2013. This is supported by the emerging strength of fundamentals in the Indian economy, despite the global challenges. With the new tax regime becoming a reality and a massive push by the government on digital, the growth shall pick pace by 2018″, Dr. Kapil Dev Singh, Founder and CEO, Coeus Age Consulting said in a press statement.
The performance in 2016 has been below the estimates given the delays in GST implementation and passing of other key economic legislations. The stage now seems to be set for their implementation and emergence of a supportive business environment. The passing of Aadhaar Act, 2016 to spur eGovernance initiatives and the massive push by the government on digital economy, the IT and digital spend will receive a major boost in 2017 and beyond.
The spending on digital (SMAC+) (by the enterprise and government sectors) will grow at 43% to touch 38, 522 INR Crores in 2017. This will be 18% of the overall IT spend.
The study also revealed that 67% of the responding CIOs see digital technologies as one of the top 2 IT priorities for 2017, up from 53% in 2016 and 40 % in 2015.
This is further complimented by 33% and 26% of the CIOs putting architectural or applications overhaul respectively as one of the two priorities for 2017. It shows that majority of CIOs are planning to upgrade their underlying infrastructure and applications for allowing a deeper play of the digital technologies in 2017.
“The initial flirting with digital technologies in a piecemeal manner is giving way to serious building of digital and converging it with the underlying IT infrastructure and applications. The transformation journey for many Indian enterprises shall begin in 2017, which shall spread to become main stream in the coming years. Today, the boards of many enterprises are asking difficult questions and their CEOs are very seriously contemplating as to how digital can be leveraged to build value”, commented Dr. Kapil Dev Singh.
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