Infotech Lead India: The enterprise software market in India is likely to grow 13.7 percent to touch revenue $3.45 billion in 2012.
Gartner said India’s enterprise software market will increase at an estimated compound annual growth rate of 14.6 per cent from 2011 to 2016 – the highest growth rate in the world.
Growth drivers include the increasing globalization of the Indian economy; growing need for modern software; demand for latest features and improved functionality.
“With Indian enterprises continuing to embrace IT to improve productivity and growth, penetration of ICT infrastructure has been growing rapidly during the past decade. The drivers of growth have been domestic demand, the growing maturity of users and incremental enhancements in the technology,” said Asheesh Raina, principal research analyst at Gartner.
India has the presence of foreign software and hardware vendors, system integrators, service providers and business partners.
Sustainable domestic demand, presence of global vendors and entry of new small vendors with innovative products will contribute to the growth.
In 2012, India will be the fourth largest enterprise software market in Asia/Pacific.
The country will account for 11.4 per cent of the region’s total revenue of $30.30 billion in 2012.
The total worldwide software of market will be $278 billion.
By 2016, India’s share of the software market in Asia/Pacific is expected to reach 12.68 per cent, representing $5.98 billion in revenue, or 1.66 per cent of total worldwide software market revenue of $359 billion. In comparison to other countries in the Asia/Pacific region, such as China (with 26.34 per cent share of regional spending in 2011), the software market in India is still relatively small and evolving.
Priority areas of software spending include analytics and business intelligence, mobility solutions, cloud computing, collaboration technologies and social media. In the next five, the fastest-growing segments will be enterprise content management, web conferencing & social platforms, CRM, security and office suites. Indian enterprises are looking for cost effective use of technology before adoption of these tools, resulting in the fast growth of these markets.