BENGALURU: IT spending in India is expected to grow over 9% to $87.1billion in 2018, a slower pace of growth than in 2017, research firm Gartner said on Tuesday.
IT spending this year is expected to end at $79.8 billion, up 14.2% from 2016. Next year will see slower growth on all the segments the research firm tracks – communication services, data centre systems, devices, enterprise software and IT services. Enterprise software will grow 15.3% in 2018 to $5.7 billion. IT services will grow 13.8% to $14.3 billion. The devices segment, which is expected to grow over 23% in 2017, will grow 13% to $31.4 billion.
“Increased average selling prices for premium phones in mature markets, partially due to the introduction of the iPhone 8 and X, along with an underlying demand for PCs from businesses replacing their machines with Windows 10 PCs is driving the growth in this segment,” the research firm said in a statement. Indian corporates are increasingly looking at spending on transformational technology as they deal with the burgeoning startup ecosystem in the country.
“About 15% of the total IT spend is now on transformational activities. Companies are making those investments,” Ganesh Ramamoorthy, managing VP, Gartner, said in a press conference.
He added Indian companies were also making investments in technologies such as the IoT, but the early stage of projects made it hard to peg a market size. “Currently in IoT, companies are investing in pilot projects. It is hard to size up the market based on pilots. The scale is still out there,” Ramamoorthy said.
Source: Economic Times