IT Spend in India to Scale New Heights!
Gartner reports that India is slated to register an astounding growth of 7.7% from $66.4 bn projected in 2012 to $71.5 bn in 2013 even though overall global IT spend is expected to remain stagnant. Other emerging economies like Africa, Brazil and China are also expected to follow suit.
The Indian IT market, for the first time in its history, is likely to register tremendous increase in the services and software sectors in the coming year. The overall services spend in the country which is expected to touch $9.2 bn by the end of 2012 may touch $16 bn by 2016, says Gartner.
What do these figures imply? IT outsourcing is on a roll! MNCs are becoming increasingly receptive to outsourcing!
The Information and Communication Technology (ICT) market of India has always seen more growth in the hardware and telecom segments. The latter enjoys 67% of the overall Indian ICT market and is anticipated to grow by 7% in 2013.
Peter Sondergaard, Gartner’s Senior VP and global head of research remarks: “India, like other emerging markets, continues exercising strong momentum despite inflationary pressures and appreciation of local currencies, which are expected in rising economies.”
Partha Iyengar who heads research for the Indian operations of Gartner expects Indian IT sector to exceed the 11%-12% growth predicted by National Association of Software and Services Companies (NASSCOM). He further advises the Indian IT companies to focus on their sales and marketing efforts.
Analyzing the cases of the US and Western Europe, Gartner says that globally IT budgets are either flat or growing at a very slow pace. Even then the IT spends are moving towards newer technology options like cloud, mobile and social collaboration. In spite of the flat budgets, technology continues to be the main activity for business as spends branch out.
It is good news for the Indian IT sector although it’s been a roller-coaster ride for the country’s economy amidst inflation and Rupee depreciation.
Yes, India has emerged as the favorite IT outsourcing destination for MNC’s globally.
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