The enterprise software market in India, despite the challenging economic conditions, is projected to grow 13.7 per cent in 2012 and posting $3.45 billion in revenues.
The country’s enterprise software market is forecast to maintain its strong performance, with an estimated annual growth of 14.6 per cent from 2011-2016. This would be the highest growth rate in the world, according to study by research and analyst firm Gartner.
In 2012, India will be the fourth largest enterprise software market in Asia-Pacific (APAC) region. The country is forecast to account for 11.4 per cent of the region’s total revenue of $30.30 billion this year, the equivalent to 1.24 per cent of the total worldwide software of market share of $278 billion.
“With Indian enterprises continuing to embrace IT to improve productivity and drive growth, penetration of information communication technology (ICT) infrastructure has been growing rapidly during the past decade. The primary drivers of growth have been domestic demand, the growing maturity of users and incremental enhancements in the technology,” Gartner Principal Research Analyst Asheesh Raina said.
“India also enjoys a rich presence of international software and hardware vendors, backed by a strong ecosystem of system integrators, service providers and business partners. A combination of sustainable domestic demand, presence of global vendors and entry of new small vendors with innovative products have made the overall ecosystem apt for robust growth,” Asheesh Raina added.
The increasing globalisation of the Indian economy is leading to a growing need for modern software with the latest features and improved functionality.
By 2016, India’s share of the software market in APAC is expected to reach 12.68 per cent, representing $5.98 billion in revenue, or 1.66 per cent of total worldwide software market revenue of $359 billion.
“End users in APAC are expecting to increase their spending on application and infrastructure software, with China and India being the most optimistic and leading the way for budget increases, followed closely by Indonesia and Singapore,“ said Asheesh Raina.
In comparison to other countries in the APAC region, such as China (with 26.34 per cent share of regional spending in 2011), the software market in India is still relatively small and evolving.