According to Gartner
Inc., IT spending in India is expected to total USD 71.5 billion in 2013, a 7.7
per cent increase from the USD 66.4 billion forecasted for 2012 and expected to
touch USD 95.9 billion in 2016. Gartner
forecasts the telecommunications market is the largest IT segment in India with
spending forecast to reach USD 47.8 billion in 2013 and USD 59.5 billion in
2016 from USD 44.7 billion in 2012, growing at a CAGR of 3.6 per cent. The IT
services market is poised to grow from USD 9.2 billion in 2012 to USD 10.3
billion in 2013 and then touch USD 16.1 billion in 2016. The Software market is
expected to grow at a CAGR of 11.4 per cent from USD 3.5 billion in 2012 to USD
6 billion in 2016. The hardware market in India, with CAGR of 7.5 per cent is
estimated to grow from USD 9.1 billion in 2012 to USD 14.3 billion in 2016. “India like other emerging markets continues exercising
strong momentum despite inflationary pressures and appreciation of local
currencies, which are expected in rising economies,” Peter Sondergaard, senior
vice-president and global head of research at Gartner said.
India IT spending is
expected to grow as businesses are looking to IT to help support the
challenges of improving customer support, supply chain management, provide their
products and services online, optimize business processes and drive innovation
in the business. Not only the businesses but government of India and state
governments too are spending heavily on building and improving the IT
infrastructure so that they can automate the various processes and provide
services to citizens on line there by reducing waiting times, eliminating
unnecessary paper works and making governance more transparent. Bids were
called for some of the major projects by Governments at the center and state
levels which were won by both Indian and Multi National players and work is
going on a frantic pace. Indian IT industry is also expected to generate more
than 4.5 million jobs and it is one of the critical parts of the Indian
economy. There has been a major transformation where in IT is no longer a back
office function but a front line function with significant business impact for
both businesses and governments.
