India’s IT spending is projected to reach $87 billion in 2018, an increase of 9.2 percent from 2017 estimated spending of $79.7 billion according to Gartner.
Enterprise software and IT services continue to exhibit strong growth, with devices segment continuing to drive the majority of overall IT spending in India. Software spending is projected to grow 17.9 percent in 2017, and it will grow another 15.3 percent in 2018 to reach $5.7 billion. IT services spending is on pace to grow 15.7 percent in 2017 to reach $12.6 billion, and increase 13.8 percent in 2018 to reach $14.3 billion.
The devices segment is expected to register an increase of 23.2 percent in 2017 and 13 percent in 2018. Increased average selling prices for premium phones in mature markets, partially due to the introduction of the iPhone 8 and X, along with an underlying demand for PCs from businesses replacing their machines with Windows 10 PCs is driving the growth in this segment.
India’s IT Spending Forecast ($mn):
Communications Services – $32,426
Data Centre Systems – $3,181
Devices – $31,403
Enterprise Software – $5,749
IT Services – $14,308
Overall – $87,067
“The IT buying landscape is changing. Digital business transformation is creating connected platforms and new industry revenue streams,” said Ganesh Ramamoorthy, managing vice president, Gartner India.
“Organizations that are not creating new digital business models, or new ways to engage constituents or customers, are falling behind. Those vendors that do not move more quickly than their clients, will be left behind,” added Ramamoorthy.
“Indian CIOs must therefore urgently embrace digital transformation. They must build the momentum to scale and create value by amplifying the power of their people, their organization culture, and their technology platform to deliver breakthrough value,” commented Ramamoorthy.
“Scale is not just about size, it occurs up, across and out. Scaling Up allows for gaining efficiencies. Scaling Across quickly takes capabilities learned from one organization into another, while Scaling Out interconnects internal and external platforms and ecosystems,” said Val Sribar, senior vice president, Gartner.