Enterprise IT spending in India to touch Rs 1910 billion in 2012

Infotech LeadIndia: Indian enterprise IT spending across all industry markets is likely to reach Rs 1,910 billion in 2012, a 16.4 percent increase from Rs 1,640 billion in 2011.

Gartner said some of this growth is attributable to the relative strength of the Rupee against a weakened US dollar.

The growth is expected to be moderate through 2016 and settle in at the range of eight to nine percent.

“Indian IT providers continue to experience strong growth, and there are more Indian companies in general taking a place on the global stage. There are currently 25 Indian companies in the Fortune 500, and there is a corresponding uptake of information and communications (ICT) technologies in the domestic market, as organizations seek globally competitive practices. The ICT market continues to outpace most markets in Asia/Pacific,” said Derry Finkeldey, principal research analyst at Gartner.

Government investment in the revamp of education is driving high growth in the relatively small education ICT market. The education segment is expected to achieve the strongest growth in percentage terms in 2012, where IT spending is forecast to grow 18 percent in local currency. The best growth opportunities in terms of actual total dollars will remain the government, financial services and large manufacturing sectors throughout the forecast period.

 

Table 1.EnterpriseIT Spending by Vertical Market inIndia(Billions of Indian Rupees)

  2011 2012 2013 2014 2015 2016
Banking & Securities 253 298 326 353 386 427
Communications, Media & Services 307 361 390 419 453 493
Education 44 52 57 61 67 74
Government 302 349 381 413 452 504
Healthcare Providers 50 56 58 61 65 68
Insurance 69 79 86 92 98 107
Manufacturing & Natural Resources 334 386 419 450 488 534
Retail 86 101 112 122 134 149
Transportation 84 98 107 115 125 137
Utilities 64 76 82 90 98 107
Wholesale Trade 47 54 58 61 65 70
Grand Total 1,640 1,910 2,075 2,237 2,431 2,670

Source: Gartner (May 2012)

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