'IT spend in India to cross $49 bn'

Indian enterprises holding back investment plans for information technology (IT) products and services are expected to implement those in 2013.

But a cautionary stance is expected to continue in 2013, which will make them prioritise their business requirements, according to research and analyst firm, IDC. This would add pressure on IT vendors and suppliers to identify key areas of opportunities.

“In 2013, ICT vendors need to invest in changing the mindset of the enterprises to focus more on strategic investments. This will not only drive greater ICT investments, but will also ensure stronger investments in broader business value delivering solutions,” said Venu Reddy, research director, IDC India.

According to IDC’s annual predictions for 2013, the overall IT market in India is expected to reach $49.28 billion (Rs 2,68,502 crore), a growth of 17.5 per cent over the previous year. This includes spending on hardware, software and IT services.

Banking, financial services and insurance (BFSI) will continue to be the prime driver of growth, followed by manufacturing, IT/ITeS and telecom. In the BFSI space, the focus of the banks and financial institutions would be on deriving value by harnessing the power of ‘Big Data’.

The banks are also expected to move to cloud technology, the focus being primarily on private and hybrid cloud, said Shalil Gupta, director, financial insights and consulting, IDC India.

“Fraud detection and risk management requirements would force the banks and financial institutions to focus on ‘Big Data’ analytics. They are also realizing the importance of cloud computing for greater agility and flexibility,” he added.

The manufacturing sector which had focused more on ‘cost’ optimization in 2012 would be seen focusing more on productivity in 2013. This would trigger more standardization of IT platforms and automation among the manufacturing companies, the research firm said.