Spending on enterprise applications in 2014 will grow faster than any other segment of the software market in India, with a 14.8% increase taking it to more than $1.52bn, according to Gartner.
Overall enterprise software spending in India will be $4.2bn in 2014, an increase of 13% from 2013, said the research firm. Most of the spending will be on infrastructure software, which will grow by 11.8% to reach $2.67bn.
Gartner said the increase is driven by the need for better customer services, as well as cost savings. Understanding customer behavior through analyzing data is a strategy by businesses eager to take advantage of the high volumes of data collected from consumers' online activity.
The foundations exist in India for businesses to harness enterprise applications and growth will continue, according to the analyst company. Gartner research director Bhavish Sood said India is helped by the rich presence of international software and hardware vendors, backed by a very strong ecosystem of system integrators, service providers and business partners.
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“The combination of sustainable domestic demand, presence of global vendors, entry of new small vendors and the Nexus of Forces – defined by Gartner as the convergence of new mobile, social, cloud and information computing environments – are the key drivers for high sustainable growth for India,” he said.
India is expected to be the fourth-largest enterprise software market in the Asia-Pacific region in 2014, and by 2018 the country's spending is expected to reach $6.8bn.
In June 2014, Gartner said – for the fourth year in a row – analytics ranked as the top priority in its CIO survey in India. “We see signs of the emerging importance of business intelligence (BI) in India as senior executives are increasingly exploring the different styles of analytics to resolve their business imperatives,” said Sood.
“In many industries, especially the regulated ones – such as telecom and financial services – clients are setting up dedicated competency centers focused on the use of information,” he added.