Emerging digital business technologies will lead to increasing investments in software
The enterprise software market in India is projected to reach $4.2 billion in 2014, a 13 per cent increase over 2013 revenue of $3.7 billion, according to Gartner, Inc. The market is projected to total $4.7 billion in 2015.
Compounding the demand for enterprise software is the ongoing tendency for greater customer services along with the continued drive for IT cost savings.
The incorporation of emerging technologies into solutions, such as mobility, social, cloud and business process management is also driving growth. Gartner analysts said these new technologies, as well as the demand for agility, is bringing a sense of urgency, and demand, for IT investments.
“India enjoys the rich presence of international software and hardware vendors, backed by a very strong ecosystem of system integrators, service providers and business partners,” said Bhavish Sood, research director at Gartner. “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) are the key drivers for high sustainable growth for India.”
In 2014, India is expected to be the fourth largest enterprise software market in Asia/Pacific. By 2018, India’s share of the software market in Asia/Pacific is expected to reach $6.8 billion.
“The penetration of IT infrastructure has been growing rapidly during the past decade, fueled by the adoption of technology by a larger percentage of the domestic population, the growing maturity of users and incremental enhancements in technology,” said Sood.
High domestic demand comes from users who want affordable country-specific products because not all global solutions can be directly deployed, thus opening up an opportunity for local vendors to come up with innovative products.