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GOA, India, November 14, 2018

Gartner Says IT Spending in India to Grow 6.7 Percent in 2019

Analysts Provide the Latest IT Trends and Spending Outlook for India During Gartner Symposium/ITxpo 2018, November 13-16, in Goa, India

India’s IT spending is projected to total $89.2 billion in 2019, an increase of 6.7 percent from estimated spending of $83.6 billion in 2018, according to the latest forecast by Gartner, Inc.

IT spending in India continues to be driven by digital business transformation initiatives from both private and public organizations. Both sectors have become adaptive to business model change and bring new practices, develop new capabilities and create new ways to succeed in the digital world.

Gartner analysts are discussing the key IT and business issues that are driving digital business this week during Gartner Symposium/ITxpo which is taking place here until Friday.

In particular, three segments are on pace to bolster IT spending levels in India in 2019 (see Table 1). “Spending on devices (PCs, tablets and mobile phones) is set to total $33 billion in 2019, a growth of 7.4 percent year over year,” said Ganesh Ramamoorthy, managing vice president at Gartner. “Mobile phones are contributing to the growth in the segment, and their growth is led by the continued shift from feature phones to smartphones. The increasing demand for quality mobile phones has led to the rising average selling price of mobile phones in India, positioning India as having the third-fastest device market growth — behind Indonesia and South Africa.”

“An increased focus on providing a better customer experience is increasing spending on enterprise application software,” said John Lovelock, research vice president at Gartner. “The software as a service market is driving growth in almost all software segments in India, and the customer relationship management SaaS market in India is among the fastest growing in the world. Overall, enterprise software spending is forecast to amount to $6.3 billion and grow 12.9 percent in 2019.”

Table 1. India IT Spending Forecast (Millions of U.S. Dollars)

Segments

2017 Spending

2017

Growth (%)

2018 Spending

2018

Growth (%)

2019 Spending

2019

Growth (%)

Communications Services

30,419

7.0

29,970

-1.5

30,585

2.1

Datacenter Systems

3,370

14.9

3,467

2.9

3,624

4.5

Devices

28,726

27.4

30,737

7.0

33,014

7.4

Enterprise Software

4,884

13

5,584

14.3

6,306

12.9

IT Services

12,611

16

13,840

9.7

15,706

13.5

Overall IT

80,010

15.8

83,599

4.5

89,235

6.7

Source: Gartner (November 2018)

Spending on IT services is forecast to experience the highest growth in 2019 with a 13.5 percent increase year over year. In this segment, both the business process outsourcing (BPO) and consulting segments are bolstering the growth of IT services spending in India. The BPO segment is projected to reach $1.7 billion and is on pace to achieve 18.5 percent growth, the highest 2019 growth rate of the IT services segment. The consulting segment is ranked second, totaling $4 billion — a 15.9 percent increase in 2019.

“The IT buying pattern in India signals the increased use of cloud services by organizations,” said Partha Iyengar, research vice president and distinguished analyst at Gartner. “Instead of buying their own servers, organizations are turning to the cloud. As organizations continue their digital transformation efforts, shifting to ‘pay for use’ will continue. This sets organizations up to deal with the sustained and rapid change that underscores digital business.”

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Upcoming dates and locations for Gartner Symposium/ITxpo include:

March 4-6, 2019, Dubai

June 3-6, 2019; Toronto, Canada

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.

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