India to be 3rd largest IT market in Asia Pacific by 2016: Gartner

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Goa: IT spending in India is projected to total $73.3 billion in 2015, a 9.4 percent increase from the $67.1 billion forecast for 2014, according to Gartner, Inc.

“India is forecast to be the third largest IT market within the Asia/Pacific region by the end of 2016 and will further progress to become the second largest market for IT by the end of 2018,” said Peter Sondergaard, Sr. VP at Gartner & Global Head of Research. “Much of the growth from being the number four market in Asia/Pacific to number three is likely to happen in 2015.”

IT services will record the strongest revenue growth at 15.7 percent in 2015; software will grow at 14 percent. Devices will continue to account for the second largest part of the market with 33 percent share of revenue and will grow 12.6 percent in 2015. The telecommunication services segment will account for 39.3 percent of the Indian ICT market and it is set to grow at 4.2 percent revenue growth in 2015.

“IT spending in India is on pace to increase 2.9 percent this year, primarily on the back of strong growth within the IT services and software, which will grow 10.5 percent and 9.6 percent,” said Partha Iyengar, Analyst & Gartner India Head of Research.

In 2014, mobile devices will grow 13.5 percent, and will dislodge mobile voice services to be the largest segment within the overall IT market in India. Mobile data services will be the fastest growing segment in India, growing 18.2 percent in 2014. Telecommunication services that will account for 41.4 percent of overall IT spend, and it will decline 0.7 percent in 2014.

Gartner defines digital business as new business designs that blend the virtual world and the physical worlds, changing how processes and industries work through the Internet of Things.

“Thirty-eight percent of the total IT spend is outside of IT already, with a disproportionate amount in digital. By 2017, it will be over 50 percent,” Sondergaard added. “Digital startups sit inside your own organization, in your marketing department, in HR, in logistics and in sales. Your business units are acting as technology startups.”

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