IT spending in India to touch $72.4 billion in 2017: Gartner study

MUMBAI: Driven by growth in software and IT services revenue, IT spending in India is forecast to reach $72.4 billion in 2017, up 6.9 percent from 2016 estimated spending of $67.7 billion, according to the latest forecast by Gartner.

Gartner analysts are discussing the key IT and business issues that are driving the evolution of digital business this week during Gartner Symposium/ITxpo here through Friday, Nov 18, 2016. Analysts said the key vertical segments driving IT spending growth include the communications, media and services, banking and securities, manufacturing and utilities markets.

“Make in India is set to boost the manufacturing sector, as well as make it easier to attract investment, and ‘Digital India’ is focused on creating digital infrastructure, digital delivery of services and increased digital literacy,” said Partha Iyengar , Gartner Fellow and head of research at Gartner India. “Software and IT services spending is projected to have the highest growth rates as companies work towards creating digital applications on which enterprise organizations' digital business models are being built. Some leading-edge organizations are already starting to extend that journey to the beginnings of a logarithmic business.”

Software spending is projected to grow 7.3 percent in 2016, and it will grow another 12.8 percent in 2017 to total $5 billion (see Table 1). IT services spending is on pace to grow 8.5 percent in 2016 to reach $11 billion, and increase 13.5 percent in 2017 to reach $12.5 billion.