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MarketResearchReports.com: Indian IT Spending Will Increase 12.4% to INR1.21bn in 2014, Predicts New Report

In the risk reward rating India's score is 50.90 out of 100.0 and compared with 48.60 in Q114.

 
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Lewes, DE -- (SBWIRE) -- 03/27/2014 -- India's IT market continues to perform well and remains one of the leading emerging markets. We forecast Indian IT spending will increase 12.4% to INR1.21bn in 2014 with strong growth across the board. Hardware is a particular opportunity, with regionally low PC penetration, declining device costs, rising incomes and government procurement initiatives combining to promote sales growth. IT services continue to outperform in terms of growth rates as has been the case traditionally in India's IT market. Outsourcing firms are innovating and acquiring to expand product portfolios and generate non-linear growth, which should sustain the segment as a whole despite competition from other low-cost locations.

Research maintains a positive outlook for growth in India's IT market. We forecast total spending will increase by 12.4% in local currency terms in 2014 to reach a total value of INR1,215bn, marginally lower overall growth than 2013. Report expects robust growth will continue over the medium term, with compound annual growth rate (CAGR) of 12.1% over our five-year forecast period to 2018. Increased sales of tablets and notebooks will be the key growth driver in the hardware market. However, there are also factors limiting growth in the market including inflation, the weakness of the rupee and persistently high software piracy rates.

Key findings:
Computer Hardware Sales: INR528.6bn in 2013 to INR590.7bn in 2014, +11.75% in local currency terms. The wider availability of low-cost tablets and laptops, rising incomes, increasing connectivity and government procurement for education are key drivers behind spending growth.

Software Sales: INR112.3bn in 2013 to INR116.1bn in 2014, +3.4% in local currency terms. Solid but unspectacular uptake of Windows 8 and the continuing high incidence of piracy mean growth is less than its potential.

IT Services Sales: INR440bn in 2013 to INR508bn in 2014, +15.5% in local currency terms. Large projects are expected from the government, including its push to developing a private government cloud, as well as from other key verticals that are implementing cloud solutions. The outsourcing market will remain strong as vendors transition to non-linear growth strategies in the face of global competition.

For report pricing and TOC please visit: http://www.marketresearchreports.com/business-monitor-international/india-information-technology-report-q2-2014

Browse reports belongs to Indian geography: http://www.marketresearchreports.com/countries/india

Browse more detailed reports in our IT services section at: http://www.marketresearchreports.com/it-services

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