IT spending by Indian enterprises is anticipated to grow 13.5 percent to Rs 1.91 lakh crore in 2016 against Rs 1.68 lakh crore in 2015, said market research firm Core Quadrant.
The report is based on inputs from 107 CIOs / IT heads of large and medium-sized Indian enterprises regarding their business priorities and IT plans for this year.
“After a very sluggish growth in 2013, the lowest since 2002, and a muted recovery in 2014, it was widely expected that a full recovery shall begin in 2015. The domestic IT market performance in 2015 has however been below expectations,” said Core Quadrant co-founder and principal analyst Kapil Dev Singh.
The poor growth in IT spending in India can be attributed mainly to the slow improvement in the business environment.
The growth in IT spending in 2016 will be driven by a broader set of digital initiatives, beyond the limited focus on mobility, cloud, and social media in 2015.
Analytics / Big Data and Internet of Things are also likely to be in focus this year. Overhauling of the underlying core applications and infrastructure to support the breadth of digital initiatives will help boost domestic spending on technology.
“Though the pressure on IT spend growth shall continue, the increasing breadth of digital initiatives and the overhaul of applications and infrastructure to support those initiatives shall result in a better performance in 2016,” Singh said.