IT spending in India to reach $72 billion in 2017: Report

IT spending in India is forecast to grow by 6.9% in 2017 to reach $72.4 billion from $67.7 billion last year driven by the growth in software and IT services revenues.

Software spending is projected to grow 7.3% in 2016, and it will grow another 12.8% in 2017 to total $5 billion. IT services spending is on pace to grow 8.5% in 2016 to reach $11 billion, and increase 13.5% in 2017 to reach $12.5 billion, according the latest forecast by Gartner.

India IT Spending Forecast (Millions of US Dollars)

Source: Gartner (October 2016)

The key vertical segments driving IT spending growth include the communications, media and services, banking and securities, manufacturing and utilities markets.

The new digital platform consists of five domains: traditional IT systems, customer experience, The Internet of Things (IoT), an ecosystem foundation and the intelligence platform that ties all the domains together.

“Make in India is set to boost the manufacturing sector, as well as make it easier to attract investment, and ‘Digital India’ is focused on creating digital infrastructure, digital delivery of services and increased digital literacy,” said Partha Iyengar, Gartner Fellow and head of research at Gartner India.

“Software and IT services spending is projected to have the highest growth rates as companies work towards creating digital applications on which enterprise organizations' digital business models are being built. Some leading edge organizations are already starting to extend that journey to the beginnings of algorithmic business,” Iyengar added.