Communications, media and services, banking and securities, manufacturing and utilities markets will drive the demand.
Driven by growth in software and IT services revenue, IT spending in India is forecast to reach $72.4 billion in 2017, up 6.9% from 2016 estimated spending of $67.7 billion, according to the latest forecast by research firm Gartner.
According to analysts at Gartner, the key vertical segments driving IT spending growth include the communications, media and services, banking and securities, manufacturing and utilities markets among others.
“Software and IT services spending is projected to have the highest growth rates as companies work towards creating digital applications on which enterprise organisations’ digital business models are being built. Some leading edge organisations are already starting to extend that journey to the beginnings of algorithmic business,” said Partha Iyengar, Gartner Fellow and head of research at Gartner India.
Software spending is projected to grow 7.3% in 2016, and it will grow another 12.8% in 2017 to total $5 billion. IT services spending is on pace to grow 8.5% in 2016 to reach $11 billion, and increase 13.5% in 2017 to reach $12.5 billion.
India IT spending forecast (Millions of U.S. Dollars)
| 2016 Spending | 2016 Growth (%) | 2017 Spending | 2017 Growth (%) | |
| Data Center Systems | 2,888 | -0.7 | 3,027 | 4.8 |
| Software | 4,493 | 7.3 | 5,070 | 12.8 |
| Devices | 19,748 | -9.5 | 21,417 | 8.5 |
| IT Services | 10,994 | 8.5 | 12,477 | 13.5 |
| Communications Services | 29,620 | -0.6 | 30,444 | 2.8 |
| Overall IT | 67,744 | -1.6 | 72,436 | 6.9 |
Source: Gartner (October 2016)