Newsroom

Press Releases

Goa, India, November 17, 2016

Gartner Says India Software Market to Grow 12.8 Percent in 2017

Analysts to Explore Industry Trends at Gartner Symposium/ITxpo 2016, November 15-18, in Goa, India

India software revenue is forecast to total $5.8 billion in 2017, a 12.8 percent increase from 2016 estimates of $5.2 billion, according to Gartner, Inc. This is in comparison to Gartner's forecast for 2017 global spending for enterprise software will be $357 billion in constant U.S. dollars, with growth of 7.2 percent over 2016.

"Emerging digital business strategies are changing enterprise organizations' buying behaviors in India and accelerating the demand for technology innovations and outcome-based solutions", said Bhavish Sood, research director at Gartner. "New ways of monetizing the value being delivered, such as revenue-sharing models, are also evolving."

The computer software and hardware vertical had a foreign direct investment (FDI) inflow of $5.9 billion during the period from April 2015 to March 2016. This is an increase of nearly 150 percent, compared to the same period last year. Gartner expects these investments to gather further momentum toward the end of 2016. "Make in India" is set to boost the manufacturing sector, as well as make it easier to attract investment, and "Digital India" is focused on creating digital infrastructure, digital delivery of services and increased digital literacy.

Infrastructure software spending in India is projected to surpass $3.4 billion in 2017 (see Table 1), a 10.2 percent increase from 2016. Enterprise application software spending is forecast to grow 16.8 percent in 2017.

Table 1

India Enterprise Software Spending Estimates (Millions of U.S. Dollars in Constant Currency)

Segment

2016

2017

Infrastructure Software

3,108.1

3,424.9

Enterprise Application Software

2,047.5

2,391.7

Total Revenue

5,155.6

5,816.6

Growth (%)

12.5

12.8

Source: Gartner (November 2016)

"Indian CEOs want IT to move from the back-office to driving revenue. Aggressive digital business strategies are putting pressure on CIOs to have a direct impact in business outcomes like growth, customer experience and profitability. CIOs are being asked to increase the business value that IT is able to deliver, and equally important, to quantify it," said Mr. Sood. "The CEO and business management wants IT to move from a predominantly back-office focus to become a front-office centric organization that directly impacts business outcomes like growth, customer experience and profitability. This is often in the context of an aggressive digital business strategy within a growing number of enterprises."

At Goa this is the year of the focus is on the execution or implementation of digital business strategy, along a journey that has been four years in the making. Starting with the Nexus of Forces at Symposium four years ago – the foundation for today’s digital business – we move to a strong focus on the ‘how’ of putting a digital business together in this year’s Symposium.

Key elements of enabling infrastructure like the digital business platform will be unveiled this year, which will enable CIOs to create the right foundation to support the business agility required in a rapidly evolving digital business environment.

More detailed analysis is available to Gartner clients in the report "Forecast: Enterprise Software Markets, Worldwide, 2013-2020, 3Q16 Update "

Key industry trends will be a main focus at Gartner Symposium/ITxpo 2016, November 15-18 in Goa, India. Members of the media can register for the event by contacting Sony Shetty at sony.shetty@gartner.com.

 

About Gartner Symposium/ITxpo

Gartner Symposium/ITxpo is the world's most important gathering of CIOs and senior IT leaders, uniting a global community of CIOs with the tools and strategies to help them lead the next generation of IT and achieve business outcomes. More than 23,000 CIOs, senior business and IT leaders worldwide will gather for the insights they need to ensure that their IT initiatives are key contributors to, and drivers of, their enterprise's success.

Follow news, photos and video coming from Gartner Symposium/ITxpo on Smarter With Gartner, on Twitter using #GartnerSYM, and on Facebook and LinkedIn.

Upcoming dates and locations for Gartner Symposium/ITxpo include:

28 February-2 March, Dubai, UAE

About Gartner

Gartner, Inc. (NYSE: IT), is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today and build the successful organizations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 15,000 organizations in more than 100 countries — across all major functions, in every industry and enterprise size.

To learn more about how we help decision makers fuel the future of business, visit gartner.com.

Contacts