New Delhi: End-user spending on IT services in India is set to hit $15 billion in 2019 — an increase of 9.8% from 2018, a new release by Gartner said on Monday.
Spending on Business Process Outsourcing (BPO) is forecast to achieve the highest growth in 2019, at 14.4% year-over-year (YoY).
"In 2019, end-user spending on IT services in India will represent 59% of total end-user spending on IT services in emerging Asia/Pacific, and it is on track to reach 60% in 2020.
"High GDP growth rates are driving local organisations to increase their investment in infrastructure, applications and digital initiatives, which are increasingly moving to the Cloud," said Arup Roy, Research Vice President at Gartner.
Non-traditional sectors, such as logistics, transportation and manufacturing, are also experiencing healthy growth rates, and their business models are centred on investments in IT.
BPO is the segment where Indian end-user organisations will increase their IT services spending the most in 2019.
End-user spending on BPO is on course to reach $1.7 billion in 2019, and is forecast to reach $1.9 billion in 2020.
In 2019, managed services and Cloud infrastructure services remain the biggest segment in terms of spending on IT services in India, accounting for close to $6 billion.
The segment represents 40% of the end-user spending on IT services in India.
This story has been published from a wire agency feed without modifications to the text.