Indian organizations have increased spending on software more rapidly than any other emerging BRIC economy, research shows.
According to Garter, Indian organizations spent $4.765bn on software in 2013, a 10% increase. This was the biggest rise among the BRIC countries of Brazil, Russia, China and South Africa, as well as India.
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Russia's software spending was up 8.9%, Brazil 7.8%, China 7% and South Africa 6.3%.
Bhavish Sood, research director at Gartner, said: “The Indian software industry is in the middle of a multi-year cyclical transition as organizations are focusing investments on technologies to support existing system structure.
“Organizations are doing this to maintain competitiveness, while still taking advantage of cloud/subscription-based pricing where it makes sense to grow and advance the business.”
For the first time in Gartner's India software market share research, Oracle has ranked second in terms of total software revenue, achieving revenue of about $505m in 2013. The supplier had a 7.3% market share in India, a 21% increase over the previous year.
“Trends around business intelligence and analytics, with increasing customer investments in database management systems, helped to drive Oracle's top-line growth,” Sood said.
Microsoft recorded the highest sales of $957.3m, a 10% increase, while IBM sold $446.6m worth of software in India, 6.8% up on the previous year.
Gartner added: “Besides large enterprises, the Indian market also boasts a large potential small and mid-size business (SMB) segment that is playing a crucial role in changing the technology consumption patterns. SMBs are on the threshold of leveraging ICT, but they currently lack the scale, and in some cases the experience, to understand and handle technology-related issues.”