Indian enterprise IT spending across all industry markets is forecast to surpass $39 billion in 2012, a 10.3 percent increase from 2011 spending of $36 billion, according to Gartner, Inc. The growth of IT in India is expected to continue, with an annual increase to exceed this level through to 2015.
“The pace of economic growth in India, with a mild, by global standards, dip during the worldwide recession in late 2008 and 2009 — has brought the role of IT into sharp focus within many enterprises, “said Derry Finkeldey, principal research analyst at Gartner. “Business is increasingly looking to IT to help support the challenges of rapid growth for customer support, supply chain management, optimizing business processes or helping to drive innovation in the business. These demands are being placed while the IT infrastructure within many enterprises may not be entirely in place. IT is also in transition from being viewed as a back-office support function to a frontline business-focused function.”
"The Indian enterprise market is quite distinct from other markets in Asia/Pacific," said Ms. Finkeldey. "The retail industry is expected to achieve the strongest growth in percentage terms in 2012, where IT spending is forecast to grow 11.8 percent (see Table 1). Recent decisions to allow 100 percent foreign direct investment (FDI) in single brand retail, and up to 51percent in multi brand retail, are expected to provide the sector with a significant boost in terms of IT usage and adoption. Selection of partners with deep vertical expertise will be crucial to success.”
The best growth opportunities in terms of actual dollars will remain within the large manufacturing, government- and state-owned enterprises, communications and financial services sectors.
Table 1. Enterprise IT Spending by Vertical Market in India (Billions of U.S. Dollars)
2010-2015 CAGR (%)
Banking & Securities
Communications, Media & Services
Manufacturing & Natural Resources
Source: Gartner (January 2012)Gartner recommends that vendors identify specific industry target markets, and prioritize these for the allocation of needed resources. - This will drive greater project success and the creation of more value to those customers.
“Given the emergence of IT as an enabler in industries beyond manufacturing, government and financial services, now is a good time for IT providers to invest more in their channel partners. Convert them from ‘generalists’ to ‘specific industry product specialists,’ with beyond Tier 1 city capabilities. Software and hardware vendors need to engage with the Indian Big Four (TCS, Infosys, WiPRO and HCL) and eventually build deep go-to-market strategies with them,” said Ms. Finkeldey.
Further information on vertical industry IT spending is available in the Gartner report: ”Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2009-2015, 4Q11 Update”, at http://www.gartner.com/resId=1894417. This vertical industries forecast provides total enterprise IT spending, including internal spending and multiple lines of detail for spending on hardware, software, IT services, and telecommunications for vertical industries and 43 countries within seven geographies. Additional information is available in the report " Emerging Market Analysis: BRIC, Setting Course for Steady Growth" which is available on Gartner's website at http://www.gartner.com/resId=1833614
Gartner, Inc. (NYSE: IT) is the world's leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior information technology (IT) leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to supply chain professionals, digital marketing professionals and technology investors, Gartner is the valuable partner to clients in more than 11,000 distinct enterprises. Gartner works with clients to research, analyze and interpret the business of IT within the context of their individual roles. Gartner is headquartered in Stamford, Connecticut, U.S.A., and has almost 9,000 associates, including 1,900 research analysts and consultants, operating in more than 90 countries. For more information, visit www.gartner.com.
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.