India Application Software Spending to Grow 15% in 2022
According to Gartner, end-user spending on enterprise application software in India is expected to reach $4.7 billion in 2022, up 14.8 percent from 2021.
Neha Gupta, Vice President Analyst, Gartner, said in a statement that driven by the digital transformation agenda, Indian enterprises will continue to increase the share of their overall IT spending devoted to software. Companies are increasingly relying on software to run all aspects of their operations.
However, the growth in software spending will be lower in 2022 than in 2021. Gupta further stated that business uncertainty has grown as a result of the volatile global macroeconomic situation. Organizations will continue to selectively postpone new long-term projects and reduce the scope of high-cost projects in order to focus on ‘quick win’ projects that either has a shorter return on investment (ROI) or provide a competitive advantage.
Supply chain management (SCM), supply chain execution (SCE), and customer relationship management (CRM) applications, which are critical for maintaining customer service quality, will see increased spending as organizations look to address complex supply chains and volatile marketplaces, as well as more effectively adapt to change and disruption. CRM software spending is expected to rise 18.1 percent by 2022, while SCM software spending will rise 10.2 percent. Similarly, companies will spend more on core financial and planning tools as they seek to improve their ability to manage cash and ensure a stable financial foundation from which to grow.
Indian businesses will also increase their spending on email, authoring, and content services in order to continue to support collaboration and remote/hybrid work. A large portion of pandemic-related spending in these two markets occurred in 2020, resulting in a large peak that, while still growing, has slowed spending for the next few years.