India’s Tech Spending To Surge By 12% in 2018: Forrester
Followed by a steep rise in software spending, technology spending in India will grow by 12 percent in 2018, states a Forrester’s latest India tech market outlook.
Software spending likely to be about 11 percent of the country’s tech spending in 2018.
Although, it is usually 20 percent or more in developed economies, software will continue to rise at a significantly higher rate than the compounded Indian tech growth in the coming years.
“While demonetisation and the fast-tracked implementation of GST slowed growth in 2017, the government is now in a better position to drive reforms and the Indian economy is expected to recover its lost momentum and do progressively better in 2018 and 2019,” said the Vice President, Research Director and author of the report, Ashutosh Sharma.
Hardware expenditure will continue to plummet due to growing interest in public cloud adoption.
Aggressive digitization of the economy and growing numbers of digital consumers will continue to boost spending on mobility, followed by analytics, Cloud and Internet of Things (IoT), the report highlighted.
“The Indian enterprises are finally entering the age of analytics — a trend that we observe across sectors. Most industries will increase their business technology (defined as technology, systems, and processes to win, serve, and retain customers) spending,” added Sharma.
Forrester indicated that Telecom services will revive this year.
“We have revised our 2018 growth forecast for telecom services slightly upward, from 5.6 per cent to 6 per cent. We expect the downward spiral of mobile service prices to come to an end as telecom service providers touch bottom and stabilize prices,” the report noted.
Reliance Jio’s IPO plans will further reduce the chances of further didruption from telcos. Digital actions of the enterprises- providing better connectivity to remote offices, implementing more software and moving workloads to the cloud-will drive the demand for data services.
Providers including Orange Business Services, Tata Communications and Verizon Business will see a surge in demand. Sharma however affirms, “we expect enterprises to become cautious in 2019, which will pull back the growth rate.”
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