Indian enterprise IT spending across all industry markets is forecast to reach 1,910 billion Rupees in 2012, a 16.4 percent increase from 2011 spending of 1,640 billion, according to Gartner, Inc. Some of this growth is attributable to the relative strength of the Rupee against a weakened US dollar, and growth is expected to be moderate through 2016 and settle in at the range of eight to nine percent.
“Indian IT providers continue to experience strong growth, and there are more Indian companies in general taking a place on the global stage,“ said Derry Finkeldey, principal research analyst at Gartner. “There are currently 25 Indian companies in the Fortune 500, and there is a corresponding uptake of information and communications (ICT) technologies in the domestic market, as organizations seek globally competitive practices. The ICT market continues to outpace most markets in Asia/Pacific.”
"Government investment in the revamp of education is driving high growth in the relatively small education ICT market," said Ms. Finkeldey. "The education segment is expected to achieve the strongest growth in percentage terms in 2012, where IT spending is forecast to grow 18 percent in local currency (see Table 1). The best growth opportunities in terms of actual total dollars will remain the government, financial services and large manufacturing sectors throughout the forecast period.”
Table 1. Enterprise IT Spending by Vertical Market in India (Billions of Indian Rupees)
Banking & Securities
Communications, Media & Services
Manufacturing & Natural Resources
Source: Gartner (May 2012)
Note: The total may not add up due to rounding. The numbers depicted in the table were converted from USD to Indian Rupee using the exchange rate as on date 11/05/2012
Gartner analysts said there is constant flux in terms of the industries leading growth in the Indian market.
“There are multiple, constantly changing factors impacting the industries, as global and local economic and political will is enacted, and regulation on specific industries in particular have enormous influence on cycles of investment and industry growth,” said Ms. Finkeldey.
Additional information is available in the report "Forecast: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2010-2016, 1Q12 Update" which is available on Gartner's website at http://www.gartner.com/resId=1833614
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