Indian IT Spending To Hit $45 Billion in 2014: IDC

by Paul Joseph on June 11, 2013 · 0 comments

The Indian Information Technology market size is expected to grow despite tough economic conditions. The latest report from IDC states that the IT spending in India would grow to $44.8 billion in 2014 from $35.1 billion in 2012.  “We see rapid growth in three growth vectors: emerging Tier II and III cities, emerging segments such as the upper mid-market, and emerging verticals such as education and healthcare, ” said Jaideep Mehta, Country General Manager at IDC India. The report titled ‘Indian IT Market Overview, 2013-14′, stated that the IT spending in India is expanding by $10b between 2012 and 2014.  It said that the US showed signs of economic recovery and Europe continued its downward slide. This had a considerable though not substantial impact on Asia Pacific countries.  Weak investment environment, depreciating rupee and tight credit conditions are the factors causing companies to spend frugally thereby making the Indian economy unstable. Mehta added that high savings rates, rapid workforce growth and expanding middle class will continue to support brisk economic expansion in the mid- to long-term. However, the impact of economic reforms in early 2013 such as relaxation of FDI regimes in select industries is expected to drive inbound investments and have a broader positive impact going forward. India’s strong fundamentals—high savings rates, rapid workforce growth and expanding middle class—will continue to support brisk economic expansion in the mid to long term. The IDC report reveals touted that the infusion of new technologies such as the cloud and enterprise mobility, new devices such as Tablets and innovative service offerings from the industry are also triggering spend on IT programmes, both in the enterprise and consumer markets.About 41 percent of enterprise IT spending in 2012 was by SMEs. This proportion is expected to increase to 43 percent by 2016. Pavan Magge, Senior Analyst (Consulting Group) of IDC India, observed that,   “The increase in IT investments by Indian small and medium enterprises indicates constant progress in business maturity levels. Investments from the mid-market segment is expected to grow at a significant rate of 17.2 per cent. Government initiatives and public private partnerships are bridging infrastructure and research and development gaps that inhibited SME growth.” The impact of economic reforms in early 2013 such as relaxation of FDI regimes in select industries is expected to drive inbound investments and have a broader positive impact going forward. Finally, the report concludes saying that consumer spending on IT has been very strong and is expected to grow at around 26 percent. Shipments of Smart Connected Devices (SCD) in India are estimated to grow at an impressive rate of above 40 percent. Today with changing economic and market structures Indian companies are already investing heavily in IT and social networks. A recent BCG study revealed that IT sector in India is set to reach  Rs. 1.75 lakh crore by the year 2016. Image Courtesy |   livemint Looking For A Social Media Agency?? – Contact WATConsult – India’s Leading Social Media Agency

[via WATBlog.com - Web, Advertising and Technology Blog in India]

Follow us @technologyheat – lists / @sectorheat

Follow us @technologyheat - lists / @sectorheat

Leave a Comment

Previous post:

Next post: