Indian enterprise software market to grow 13% to $3.22 billion in 2012

Telecom Lead India: The enterprise software market in
India is likely to grow 13 percent to $3.22 billion in 2012.

 

India’s enterprise software market will achieve a compound
annual growth rate of 13.6 percent from 2009 to 2016. This will be the third
highest growth rate in the world due to the increasing globalization of the
Indian economy.

 

In 2012, India will be the fourth largest enterprise
software market in Asia/Pacific. India will account for 11 percent of the
region’s total revenue of 29.33 billion for Asia/Pacific this year, the
equivalent to 1.15 per cent of the total worldwide software of market share of
280 billion.

 

By 2016, India’s share of the software market in
Asia/Pacific is expected to reach 12.1 percent, representing $5.4 billion in
revenue. China has 27 percent share of regional spending in 2011.

 

Priority areas of software spending include operating
systems, DBMS, AIM and Application Development. In the next five, the
fastest-growing segments will be Web conferencing and team collaboration,
enterprise content management, CRM and ERP.

 

According to Gartner, Indian enterprises are lagging behind
in terms of adoption of these tools, resulting in the fast growth of these
markets.

 

With Indian enterprises continuing to embrace IT to improve
productivity and drive growth, penetration of ICT infrastructure has been
growing rapidly during the past decade. The primary drivers of growth have been
domestic demand, the growing maturity of users and incremental enhancements in
the technology,”¬Ě said Asheesh Raina, principal research analyst at Gartner.

 

India has presence of international software and hardware
vendors, strong ecosystem of system integrators, service providers and business
partners. Domestic demand, presence of global vendors and entry of new small
vendors have made the overall ecosystem apt for robust growth.

 

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