Infotech Lead Asia: Several factors are driving Indian enterprise software market.
Growing maturity of Indian users is an important driver for overall growth, Gartner says.
As per Gartner’s forecast, India’s enterprise software market is expected to reach $3.92 billion this year, up 13.9 percent growth over 2012 revenue of $3.45 billion.
In the next five years, priority areas of software spending will include web conferencing; teaming platforms and social software suites; enterprise content management; customer relationship management (CRM) and security, according to Gartner.
IDC, in a April 2013 research note, said that globally there are faster growing market segments, such as Data Access, Analysis and Delivery, Collaborative Applications, CRM Applications, Security Software, and System and Network Management Software. In 2012, every one of these markets grew in the 6-7 percent range, about double the rate for enterprise software as a whole.
For 2012, according to IDC, the worldwide software market grew 3.6 percent year over year reaching a total market size of $342 billion.
Gartner says the ongoing tendency for greater customer services along with the continued drive for IT cost savings, as well as the incorporation of emerging technologies into solutions, such as mobility, social, cloud and business process management will also be the growth drivers in 2013.
In 2013, India will be the fourth largest enterprise software market in Asia/Pacific. 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 Asia/Pacific 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.
“Increased budgets in India are expected because of the growing economy, increased globalization, 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 organizations 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,” said Asheesh Raina, principal research analyst at Gartner.
Mobile, IDC says, while not a direct enterprise applications driver, is however a contributing factor and driver for businesses moving to newer and more mobile device agnostic enterprise software. Big data and analytics are also closely tied to the fast growth social business software markets, where the combination of contextual data and the “right” expertise is becoming critical for supporting enterprise decision making and data driven customer experience solutions.
Enterprise social collaboration software, which offer Facebook and Twitter-like capabilities adapted for workplaces, will grow strongly in the coming years, eclipsing demand for more traditional communications and collaboration products, according to a new study from Forrester Research.
Organizations will increase their spending on enterprise social collaboration software at a compound annual growth rate of 61 percent through 2016, a year in which the market for these products will reach $6.4 billion, compared with $600 million last year.