Indian IT Spending Pegged At $71.3 Bln in 2014; IT Services Growth Strongest!
Although the current global economy situation is quite gloomy, Indian software majors should be quite happy with the latest Gartner report. According to them, IT spending in India is projected to reach $71.3 billion in 2014, a strong 5.9 percent increase from the $67.4 billion expected in 2013.
The most important aspect of this report for Indian software majors is that IT services is expected to record the strongest revenue growth at 12.1 percent.
Gartner’s SVP, Peter Sondergaard, made an interesting remark on the report findings, he said, “The digital world is here and this results in every budget being an IT budget; every company being a technology company; every business is becoming a digital leader; and every person is becoming a technology company. This is resulting in the beginning of an era: the Digital Industrial Economy. The Digital Industrial Economy will be built on the foundations of the Nexus of Forces (cloud, social collaboration, mobile and information) and the Internet of Everything by combining the physical world and the virtual”
The remark factually represents the situation we are in currently – Everything is going online, everything is going digital and it is clearly visible from the fact that every business is going online and every service offering is moving to internet.
Key Highlights of the Report
- The IT spending by Telecom companies that accounts for 42.1 percent of the Indian ICT market, is expected to grow at moderate rate of 2 percent in 2014.
- The devices market, which includes mobile phones, PCs, tablets and printers is expected to total $23.5 billion in 2014, a 6 percent increase from 2013.
- The Indian devices market is expected to have the largest segment of IT spend in India by 2017.
- Mobile devices revenue will total $26 billion in 2017 and will account for 76.4 percent of device revenue and 28 percent of overall IT spend in India in the year 2017
- By 2017, Gartner report forecasts that half of all first-time computer purchases will be a tablet.