Despite challenging economic conditions, the enterprise software market in India is projected to reach $3.96 billion (in constant currency) in 2013, a 14.5 per cent growth over 2012 revenue of $3.46 billion, according to Gartner, Inc.
Gartner analysts discussed key industry trends during Gartner Symposium/ITxpo, being held here through October 24.
“As enterprise users in India increasingly compete in the business environment that is constantly changing – the need to stay competitive and profitable in such a fast paced, dynamic and sometimes volatile economic scenario is driving the demand for overall IT consumption,” said Asheesh Raina, principal research analyst at Gartner. “Changes in business priorities are also creating new opportunity areas for a variety of software products and services.”
Additional drivers include the requirement of greater customer services, focus on cost savings and incorporation of emerging technologies into solutions, such as mobility, social, cloud and information management,“ said Mr. Raina said. “These new technologies, and demand for agility, bring in additional urgency, and demand, for IT investments.”
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 percent of the region’s total revenue of $32.58 billion in 2013, the equivalent to 1.3 percent of the total worldwide software market of $304 billion. In comparison to other countries, the software market in India is still relatively small and evolving.
“The top 5 business priorities for Indian users are: increasing enterprise growth; delivering operational results; improving profitability and margins; improving IT applications, infrastructure, legacy; and 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,” said Mr. Raina.
Increased IT budgets in India are expected because of the several government initiatives involving public private partnerships (PPP), increased globalization, foreign direct investment (FDI) in retail, aviation, media and ongoing investment in India as a customer service-related outsourcing destination. Optimism regarding spending within Indian organizations reflects confidence in India’s regional economic performance, as well as the need to adopt better technology to effectively compete in a tougher global environment.
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.
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