Indian IT spending is expected to growby 16.3 percent in 2012, despite the economic volatility.
The total IT market is expected to grow to $43.57 billion in 2012, up from $37.46 billion in 2011.
In 2011, Retail & Wholesale, Energy & Utilities, and Healthcare IT spending grew 23 percent. IDC predicts that the momentum is expected to continue this year.
IDC said that sector driven policies in the areas of Infrastructure, Manufacturing and Retail have steered industry growth.
Traditional verticals such as BFSI, Communication & Media, Government, Manufacturing and IT/ITeS were the highest spenders in 2011 with a moderate CAGR (2010-2015) of 14 percent-18 percent.
In 2011, 38 percent of Enterprise IT spending was by the SME segment, which is expected to grow to 43 percent by 2015.
“Cautious optimism will continue to be the order of the day for most enterprises. However, this is not expected to reduce IT investments,” said Ravi Sharma, research manager, Consulting Group, IDC India.
Investments on emerging technologies such as Social Media, Cloud, Mobility and Big Data are on the rise.
IDC noted that India commands a high growth rate, next only to China among the BRIC countries and higher than several developing economies.
Rupee depreciation and high inflation have slowed down consumer spending but this is expected to be a temporary phenomenon.
“Although at a nascent stage of adoption, Indian enterprises have started leveraging social technologies externally for customer engagement and internally to promote team collaboration and knowledge sharing. There is large demand for SaaS based applications among large enterprises. Enterprise mobility is at the top in terms of organization focus and investments,” said Pavan Magge, senior analyst, Consulting Group, IDC India.
IT spending in India likely to reach $79.8 billion in 2012 : Gartner
Earlier, Gartner predicted that IT spending in India is likely to total $79.8 billion in 2012, a 9.1 percent increase from 2011 spending of $73.1 billion.