Government projects to fuel Indian IT spending to grow at 14% to reach $20.3 billion in 2012


Infotech Lead India: Indian IT spending is expected to reach $20.3 billion in 2012, up 14 percent, with government IT procurements at state and federal level helping to generate spending.

Reliance Communications on Thursday said it bagged multiple orders worth Rs 150 crore to manage Central and State Government projects across the country. This reflects the demand among state and central governments. This is a significant development for Reliance Communications the leader in data center market with 550,000 sq.ft of space.

Another example is SAP’s India initiatives. SAP is planning to deploy Cloud based e-governance solution in 600,000 villages across India.SAP has deployed a Cloud based e-governance solution that will be deployed to improve citizen services and village administration in Shillong, India. To ensure transformation at the grassroots, SAP has tied up with the Rajiv Gandhi Indian Institute of Management-Shillong (RGIIM-S) for this project. Recently, SAP deployed similar solutions at the SODA village in Rajasthan.

According to a report from Research and Markets, despite a dip in Q411, due largely to exogenous factors, India’s IT market is will have a strong recovery in 2012 owing to a growing economy and healthy consumer sentiment.

Computer hardware sales will grow from $8.3 billion in 2011 to $9.3 billion in 2012, growing at 11 percent in US dollar terms. Forecast in US dollar terms downwardly revised due to weaker than expected sales in Q411 as a result of component shortages linked to the floods in Thailand.

According to Gartner, India application development (AD) software market is expected to grow 22.6 percent over 2011to reach more than $227 million in 2012.

Software sales will increase from $2.2 billion in 2011 to $2.5 billion in 2012, up 16 percent in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification and macroeconomic factors, but enterprise resource planning (ERP) spending will continue to trend upwards, with stronger demand for technology from the small and medium-sized enterprise (SME) segment.

Recently, Illucian strengthened its presence in India. Illucian feels that ICT applications can give institutions a competitive edge by streamlining processes and driving growth through effective engagement of all stakeholders.

IT services sales will grow 18 percent to $7.3 billion in 2011 to $8.5 billion in 2012. Forecast in US dollar terms downwardly revised due to analyst modification and macroeconomic factors, but a number of large projects are expected from the government and from other key verticals.

IBM is betting big on Indian SMB market. IBM is stepping up its presence among Indian small and medium enterprises. IBM’s core growth strategies revolve around geographic expansion in India. The growth strategy in the country is in line with the global strategy. IBM taps SMEs in China, Africa, South America, among other markets.

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