IT spending in India is forecast to grow 6.7 percent to $89.2 billion in 2019 — driven by digital transformation initiatives from both private and public organizations, according to Gartner.
IT spending is expected to increase 4.5 percent to reach $83.6 billion in 2018, Gartner analysts announced this today at Gartner Symposium / ITxpo in Goa, India. The growth in IT spending in 2017 was 15.8 percent.
Spending on devices such as PCs, tablets and mobile phones will grow 7.4 percent to $33 billion in 2019 – driven by growth in mobile phones, said Ganesh Ramamoorthy, managing vice president at Gartner.
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. The customer relationship management SaaS market in India is among the fastest growing in the world.
Enterprise software spending in India is forecast to grow 12.9 percent to $6.3 billion in 2019.
Spending on IT services is forecast to grow 13.5 percent in 2019. BPO segment is projected to grow 18.5 percent to $1.7 billion. The consulting segment will grow at 15.9 percent to $4 billion.
“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.
Who will benefit?
Telecom operators such as Bharti Airtel, Vodafone, Tata Communications, Sify, among others, will benefit from the enterprise spending on their communication needs. in fact, communication spending will grow at 2.1 percent in 2019 as compared with 1.5 percent drop in 2018.
PC device makers such as Apple, Lenovo, Dell, HP, Acer, ASUS, among others, will benefit from the 7.4 percent increase in devices spending in India. Smartphone makers such as Samsung, OPPO, Huawei, Vivo, Nokia, Lenovo/Motorola will also gain from the growth in 2019. Device spending is expected to achieve 7 percent growth in 2018.
Networking technology companies such as Cisco, Juniper, Dell EMC, IBM, among others, will also look forward for 4.5 percent increase in data center systems market in 2019 as compared with 2.9 percent growth expected in 2018.
Microsoft, Salesforce, SAP, among others, will gain from the forecast growth of 12.9 percent in the India enterprise software spending in 2019 as compared with 14.3 percent increase anticipated for 2018.
TCS, Accenture, Cognizant, Wipro, HCL, Capgemini, among others, will be looking for more deals in India IT services market in 2019. India IT services spending will grow at 13.5 percent in 2019 vs 9.7 percent in 2018.