Greater agility, competition to drive enterprise software spending

by CXOtoday News Desk    Oct 28, 2013

customer demand

Despite challenging economic conditions, the enterprise software market in India is projected to reach $3.96 billion in 2013, a 14.5% growth over 2012 revenue of $ 3.46 billion, says research firm Gartner.

According to Asheesh Raina, principal research analyst at Gartner, what’s driving the demand for overall IT consumption among enterprise users in India is the highly dynamic business environment where they are expected to constantly remain profitable and competitive. Besides, the need for greater customer services, focus on cost savings and rising demand of emerging technologies into solutions, such as mobility, social, cloud and information management are fuelling the growth in this market.

“These new technologies, and demand for agility, bring in additional urgency, and demand, for IT investments,” he says.

In 2013, India will be the fourth largest enterprise software market in Asia/Pacific, excluding Japan. The country is forecast to account for 12.2% of the region’s total revenue of $32.58 billion in by the end of this year. Gartner, the top business priorities for Indian users are: increasing enterprise growth, delivering operational results, improving profitability and margins, improving IT applications, infrastructure and legacy as well as consolidating business operations.

IT spending is expected to remain high with India and China user organizations being most optimistic, closely followed by Malaysia and Singapore, informs Raina.

According to Gartner, in the next five years, priority areas of software spending will include web conferencing; teaming platforms and social software suites; enterprise content management; customer relationship management (CRM) and security. Indian enterprises are looking for cost effective use of technology before adoption of these tools, resulting in the fast growth of these markets.