India Enterprise Communications Spending $28.3 Billion in 2016

Communication services will continue to account for the largest share of information technology spending in India and will account for 39.2 percent of revenue in 2016, or about $28.3 billion, according to analysts at Gartner.

Communications arguably represents a smaller percentage of total enterprise IT spending in India, compared to many other countries. Globally, communications represents about 43 percent of enterprise IT spending.

That factoid illustrates the intimate relationship between information technology and communications services.

Communications revenue will grow about 2.1 percent in 2016, Gartner also predicts.

Total India IT spending is forecast to reach $72.3 billion in 2016, a 7.2 percent increase from 2015 levels.

“India will continue to be the fastest growing IT market for the second year in succession and will continue growing to total $87.67 billion by the end of 2019,” said Aman Munglani, research director at Gartner. “India is currently the third largest IT market in Asia/Pacific, and by 2019 India will become the second-largest IT market within the Asia/Pacific region, following China.”

Devices, which include mobile phones, PC’s and tablets, will account for almost 33 percent of the overall IT spend in India, and the devices  segment will grow 9.4 percent in 2016.

Mobile phones will continue to be the single largest technology sub segment in India and the third fastest-growing through 2019.

“Data center systems will grow 3.9 percent in 2016, with most of this growth coming from enterprise network equipment and servers that will grow at 5.9 percent and 5.3 percent, respectively.

IT services, which accounts for 18.1 percent of overall IT spend in India, will be the fastest growing segment in India in 2016 with 13.8 percent growth year on year. Within these segments, business IT services will grow 15.2 percent over 2015 figures,” said Munglani.

Software, which accounts for nearly seven percent of IT revenue in India, will grow 12.7 percent as a segment, but within this segment, enterprise application software will be the fastest growing sub segment in 2016, with revenue forecast to grow 16.2 percent over 2015.