Gartner Says IT Spending in India will Reach $87.1 Billion in 2018

India IT spending is projected to total $87.1 billion in 2018, an increase of 9.2 percent from 2017 estimated spending of $79.7 billion, according to the latest forecast by Gartner, Inc.

Enterprise software and IT services continue to exhibit strong growth, with devices segment continuing to drive the majority of overall IT spending in India. Software spending is projected to grow 17.9 percent in 2017, and it will grow another 15.3 percent in 2018 to reach $5.7 billion (see Table 1). IT services spending is on pace to grow 15.7 percent in 2017 to reach $12.6 billion, and increase 13.8 percent in 2018 to reach $14.3 billion.

The devices segment is expected to register an increase of 23.2 percent in 2017 and 13 percent in 2018. 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.

Table 1. India IT Spending Forecast (Millions of U.S. Dollars):


2017 Spending
2017 Growth (%)
2018 Spending
2018 Growth (%)
Communications Services
31,320
7.0
32,426
3.5
Data Center Systems
3,086
5.6
3,181
3.1
Devices
27,795
23.2
31,403
13.0
Enterprise Software
4,988
17.9
5,749
15.3
IT Services
12,571
15.7
14,308
13.8
Overall
 79,761
14.2
87,067
9.2
Source: Gartner (October 2017)


"The IT buying landscape is changing. Digital business transformation is creating connected platforms and new industry revenue streams," said Ganesh Ramamoorthy, managing vice president at Gartner India. "Organizations that are not creating new digital business models, or new ways to engage constituents or customers, are falling behind. Those vendors that do not move more quickly than their clients, will be left behind."

“Digital disruptors are emerging in all industries. We have seen this in books, clothing, and now it’s happening in other industries such as traditional grocery markets and consumer durables as well,” said Mr. Ramamoorthy. “Indian CIOs must therefore urgently embrace digital transformation. They must build the momentum to scale and create value by amplifying the power of their people, their organization culture, and their technology platform to deliver breakthrough value.”

Gartner analysts are discussing the key IT and business issues that are driving digital business transformation this week during Gartner Symposium/ITxpo here through Thursday. CIOs trying to lead digital transformation at the speed needed to succeed need a mix of three scale accelerators: digital dexterity, network effect technologies, and an industrialized digital platform.

“Scale is not just about size, it occurs up, across and out. Scaling Up allows for gaining efficiencies. Scaling Across quickly takes capabilities learned from one organization into another, while Scaling Out interconnects internal and external platforms and ecosystems,” said Val Sribar, senior vice president at Gartner Inc.