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India will be spending $89.2 billion on information technology in 2019, showing a growth of 6.7 per cent over $83.6 billion that it expected to spend in 2018.
Research firm Gartner said the growth will come from digital business transformation initiatives in both the public and private organisations. There will be a huge push towards adoption of cloud next year, with the efforts of companies in the last two years coming to fruition.
"Both sectors have become adaptive to business model change and bring new practices, develop new capabilities and create new ways to succeed in the digital world," Gartner Research Vice-President and analyst Partner Partha Iyengar said.
Pay for use
“Spending on PCs, tablets and mobile phones is set to be at $33 billion in 2019, a growth of 7.4 per cent year over year,” Ganesh Ramamoorthy, Managing Vice-President of Gartner, said. “Instead of buying their own servers, organisations are turning to the cloud. As organisations continue their digital transformation efforts, shifting to ‘pay for use’ will continue," he said.
Talking on the key trends through a telecom from Goa where it is holding a symposium on Wednesday, he said the increasing demand for quality mobile phones had led to the rising average selling price of mobile phones in India. This, he said, makes India the third-fastest device market growth after Indonesia and South Africa.
SaaS market
The software-as-a-service market (SaaS) is driving growth in almost all software segments in the country, and the customer relationship management SaaS market here is among the fastest growing in the world. "Enterprise software spending is forecast to amount to $6.3 billion and grow by 12.9 per cent in 2019," he said.
Spending on IT services will record the highest growth with a 13.5 per cent increase year over year. In this segment, both the business process outsourcing (BPO) and consulting segments are driving the growth of IT services spending in India. The BPO segment will be at $1.7 billion by clocking a growth rate of 18.5 per cent growth.
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