Indian enterprise IT spending will grow 10.3 percent in 2012

By SMBWorld Asia Editors | Jan 31, 2012

0 comments

 

 

 

Digg

 Email

Print

Thumbnail: 

Indian enterprise IT spending across all industry markets is forecast to surpass $39 billion in 2012, a 10.3 percent increase from 2011 spending of $36 billion, according to Gartner, Inc.

The growth of IT in India is expected to continue, with an annual increase to exceed this level through to 2015.

“The pace of economic growth in India, with a mild, by global standards, dip during the worldwide recession in late 2008 and 2009 — has brought the role of IT into sharp focus within many enterprises," says Derry Finkeldey, principal research analyst at Gartner.

Finkeldey adds that business is increasingly looking to IT to help support the challenges of rapid growth for customer support, supply chain management, optimising business processes or helping to drive innovation in the business.

These demands are being placed while the IT infrastructure within many enterprises may not be entirely in place. IT is also in transition from being viewed as a back-office support function to a frontline business-focused function.

"The Indian enterprise market is quite distinct from other markets in Asia/Pacific," notes Finkeldey.  According to Finkedey, the retail industry is expected to achieve the strongest growth in percentage terms in 2012, where IT spending is forecast to grow 11.8 percent.

Recent decisions to allow 100 percent foreign direct investment (FDI) in single brand retail, and up to 51 percent in multi brand retail, are expected to provide the sector with a significant boost in terms of IT usage and adoption.

The best growth opportunities in terms of actual dollars will remain within the large manufacturing, government- and state-owned enterprises, communications and financial services sectors.