Technology spending in India is expected to rise 9.2 percent to reach USD 87.1 billion in 2018, led by spending on expensive devices such as the iPhoneX and laptop upgrades, which continue to drive the majority of overall IT spending in India, according to research firm Gartner.
Enterprise software and IT services continue to exhibit strong growth, Gartner said.
The devices segment is expected to register an increase of 23.2 percent by the end of this year, and 13 percent in 2018.
“Increased average selling prices for premium phones in mature markets, partially due to the introduction of the iPhone 8 and X, along with an underlying demand for PCs from businesses replacing their machines with Windows 10 PCs is driving the growth in this segment,” said Gartner in a statement.
Software spending is expected to grow 17.9 percent in this year, and it will grow another 15.3 percent in 2018 to reach USD 5.7 billion.
IT services spending is set to grow 15.7 percent in 2017 to reach USD 12.6 billion, and increase 13.8 percent in 2018 to reach USD 14.3 billion.
“The IT buying landscape is changing. Digital business transformation is creating connected platforms and new industry revenue streams," said Ganesh Ramamoorthy, managing vice president at Gartner India.
"Organizations that are not creating new digital business models, or new ways to engage constituents or customers, are falling behind. Those vendors that do not move more quickly than their clients, will be left behind,” he added.
He stressed the need for chief information officers in enterprises to look at adopting digital transformation across industries. After massive digital transformations impacting industries like books, clothing, and it’s now set to impact other industries such as traditional grocery markets and consumer durables as well.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
