The Indian enterprise software market is projected to reach USD 3.96 Bn in 2013, a 14.5 per cent growth over 2012 revenue of USD 3.46 Bn, according to Gartner. Also, in 2013 India will be the fourth largest enterprise software market in Asia/Pacific, excluding Japan.
The growth is mainly driven by the increasing demand for overall IT consumption due to fierce competition and sometimes volatile economic scenario. Additional drivers include the requirement of greater customer services, focus on cost savings and incorporation of emerging technologies into solutions, such as mobility, social, cloud and information management.
“Changes in business priorities are creating new opportunity areas for a variety of software products and services. The new technologies, and demand for agility, bring in additional urgency, and demand, for IT investments”, said Asheesh Raina, principal research analyst at Gartner.
Since past few years, the Indian enterprise software market has seen a much higher growth. Wherein, in 2012 the country was forecasted to account for 11 per cent of the region’s total revenue of 29.33 Bn, this year it is expected to account for 12.2 percent of the region’s total revenue of USD 32.58 Bn.
However, the share comes at a mere 1.3 per cent when compared to the total worldwide software market of USD 304 Bn. In 2012, this share was 1.15 per cent.
In the next five years, priority areas of software spending will include
– web conferencing
– teaming platforms and social software suites
– enterprise content management
– customer relationship management (CRM)
As per the Gartner analysts, Indian enterprises are looking for cost effective use of technology before adoption of these tools, resulting in the fast growth of these markets.
Also, it is expected that by 2017, India’s share of the software market in Asia-Pacific is expected to reach 13.11 per cent, representing USD 6.7 Bn in revenue or 1.74 per cent of the total global software market revenue of USD 383 Bn.
The report also highlights the fact that the India and China user organizations are among the most optimistic ones, closely followed by Malaysia and Singapore. Thus showing the possibility of continued high IT budgets.
To read the complete release, click here.
To contact author, email at email@example.com