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Forget downturn, Enterprise software grows at searing pace in India: Gartner

Mumbai, April 3, 2012 –The enterprise software market in India is poised to grow 13 per cent in 2012, as revenue reaches $3.22 billion in 2012, finds a Gartner study, chalking up the third highest growth rate in the world. The increasing globalization of the Indian economy is leading to a growing need for modern software with the latest features and improved functionality.
 
In 2012, India will be the fourth largest enterprise software market in Asia/Pacific. The country is forecast to account for 11 per cent of the region’s total revenue of $29.33 billion for Asia/Pacific this year, the equivalent to 1.15 per cent of the total worldwide software of market share of$280 billion billion
By 2016, India’s share of the software market in Asia/Pacific is expected to reach 12.1per cent, representing $5.4 billion in revenue, or 1.5 per cent of total worldwide software market revenue of $361 billion. In comparison to other countries in the Asia/Pacific region, such as China (with 27 per cent share of regional spending in 2011), the software market in India is still relatively small and evolving. 

“With Indian enterprises continuing to embrace IT to improve productivity and drive growth, penetration of ICT infrastructure has been growing rapidly during the past decade. The primary drivers of growth have been domestic demand, the growing maturity of users and incremental enhancements in the technology,“ says Asheesh Raina, principal research analyst at Gartner. “India also enjoys a rich presence of all international software and hardware vendors, backed by a very strong ecosystem of system integrators, service providers and business partners. A combination of high domestic demand, presence of global vendors and entry of new small vendors with innovative products have made the overall ecosystem apt for robust growth.”
Priority areas of software spending include operating systems, DBMS, AIM and Application Development. In the next five, the fastest-growing segments will be Web conferencing and team collaboration, enterprise content management, CRM and ERP. According to Gartner, Indian enterprises are lagging behind in terms of adoption of these tools, resulting in the fast growth of these markets.
Source: Gartner Forecast: Enterprise Software Markets, Worldwide, 2009-2016, 1Q12 Update and User Survey Analysis: Outlook Remains Optimistic for Asia/Pacific Software Spending, 2012.
The first Gartner IT Infrastructure Operations & Data Center Summit is to be held in Mumbai on May 14 and 15 2012 at the Grand Hyatt




    


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Forget downturn, Enterprise software grows at searing pace in India: Gartner
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