According to Gartner Inc., challenging economic conditions notwithstanding, the Indian enterprise software market is projected to reach $3.92 billion in 2013. This will amount to a 13.9 per cent growth over revenue of $3.45 billion generated in 2012, according to Gartner, Inc.
The research firm opines that several factors will drive this growth in India. These include the presence of international software and hardware vendors in the country, backed by a strong ecosystem of system integrators, service providers and business partners. Also important is the combination of sustainable domestic demand, presence of global vendors, entry of new small vendors and the Nexus of Forces (as Gartner defines it as the convergence of new mobile, social, cloud and information computing environments).
In 2013, Gartner expects India to be the fourth largest enterprise software market in the Asia Pacific region. The country is forecast to account for 11.6 per cent of the region’s total revenue of $33.73 billion in 2013, the equivalent to 1.32 per cent of the total worldwide software market of $296 billion. By 2017, India’s share of the software market in the region is expected to reach 13.11 per cent, representing $6.7 billion in revenue, or 1.74 per cent of the total worldwide software market revenue of $383 billion. In comparison to other countries the software market in India is still relatively small and evolving.
Moreover, as per the firm, the end users in the Asia Pacific region are expecting to increase their spending on application and infrastructure software, with India and China being the most optimistic and leading the way. It is closely followed by Malaysia and Singapore. Increased budgets in India are expected because of the growing economy, increased globalisation, foreign direct investment (FDI) in retail, aviation, media and ongoing investment in India as a customer service-related outsourcing destination. Optimism regarding spending within Indian organisations reflects confidence in India’s regional economic performance, as well as the need to adopt better technology to effectively compete in a tougher global environment.
In the next five years, spending on software will focus on web conferencing; teaming platforms and social software suites; enterprise content management; customer relationship management (CRM) and security. Indian enterprises are looking for cost effective use of technology before adoption of these tools, resulting in the fast growth of these markets.
