Driven by growth in software and IT services revenue, IT spending in India is forecast to reach $72.4 billion in 2017, up 6.9 percent from 2016 estimated spending of $67.7 billion, according to the latest forecast by Gartner, Inc.
Gartner analysts said the key vertical segments driving IT spending growth include the communications, media and services, banking and securities, manufacturing and utilities markets.
"’Make in India’ is set to boost the manufacturing sector, as well as make it easier to attract investment, and ‘Digital India’ is focused on creating digital infrastructure, digital delivery of services and increased digital literacy," said Partha Iyengar, Gartner Fellow and head of research at Gartner India.
"Software and IT services spending is projected to have the highest growth rates as companies work towards creating digital applications on which enterprise organizations' digital business models are being built. Some leading edge organizations are already starting to extend that journey to the beginnings of algorithmic business."
Software spending is projected to grow 7.3 percent in 2016, and it will grow another 12.8 percent in 2017 to total $5 billion (see Table 1). IT services spending is on pace to grow 8.3 percent in 2016 to reach $11 billion, and increase 13.5 percent in 2017 to reach $12.5 billion.
CIOs will participate in the building of a new digital platform with intelligence at the center. That platform will enable ecosystems, connecting businesses and collapsing industries. Gartner analysts said it will change society itself, and the way people live.
The new digital platform consists of five domains: traditional IT systems, customer experience, The Internet of Things (IoT), an ecosystem foundation and the intelligence platform that ties all the domains together.
"Each of these domains are interconnected and interdependent. All have a role, and all are required," said Peter Sondergaard, senior vice president and global head of Research. "Your new digital platform will allow you to participate in the evolving world of business, government, and consumer ecosystems. Because ecosystems are the next evolution for digital. It’s how you compete at scale."