Mobile data services is expected to be the fastest growing segment in India, growing 18.2$ in 2014
Buoyed by increased spending on cloud, mobile, social and Big Data technologies, IT spending in India is expected to grow 9.4% to touch $73.3 billion in 2015, according to research firm Gartner.
While India will be the third largest IT market within the Asia Pacific region by 2016-end, strong growth is expected to propel India to the second spot by the end of 2018. IT spending in India is expected to be about $67.1 billion (forecast) for 2014. “While the global IT services market is growing at about 1%, the market in India is quite robust and is expected to grow at about 10%,” Gartner senior vice president and global head (research) Peter Sondergaard told reporters in a conference call. This is primarily on the back of strong growth within the IT services and software, which will grow 10.5% and 9.6%, he added.
IT services is forecast to record the strongest revenue growth at 15.7% in 2015, software at 14%, devices at 12.6% and telecommunication services segment at 4.2%. In 2014, mobile devices is forecast to grow at 13.5%, dislodging mobile voice services as the largest segment within the overall IT market in India. Mobile data services is expected to be the fastest growing segment in India, growing 18.2$ in 2014. Telecommunication services, that is expected to account for 41.4% of overall IT spend, is forecast to decline 0.7% in 2014.
Talking about the nexus of forces — social, mobile, cloud and information, he said new business models are emerging with the merger of virtual and physical worlds. “The impact that the digital business economy is having on the IT industry is dramatic. It is changing how processes and industries work through the Internet of Things,” he added. This is also resulting in a shift of demand and control away from IT and toward digital business units closer to the customer. “38% of the total IT spend is outside of IT already, with a disproportionate amount in digital. By 2017, it will be over 50%,” Sondergaard said.
Business units are acting as technology startups, he added. Gartner estimates that in 50% of all technology sales, people are actively selling direct to business units, not IT departments. Digital businesses is also impacting jobs. “By 2018, digital businesses will require 50% fewer business process workers. However, by 2018 digital business will drive a 500% boost in digital jobs,” Sondergaard said. Gartner India head of research Partha Iyengar said the hottest skills CIOs must hire or outsource for are mobile, user experience and data sciences. “In the future, three years from now, the hottest skills will be smart machines (including the Internet of Things), robotics and automated judgement,” he added. He said sectors close to technology such as financial services, media and entertainment may lead in adoption of these new technologies, but segments like agriculture may also find interesting ways to adopt them. “You must build talent for the digital organisation of 2020 now. Not just the digital technology organisation, but the whole enterprise. Talent is the key to digital leadership. Build credibility and build the two-speed organisation,” he added.
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