End-user spending on IT services in India is on track to total nearly $15 billion in 2019, an increase of 9.8% from 2018, according to Gartner, Inc. Spending on business process outsourcing (BPO) is forecast to achieve the highest growth in 2019, at 14.4% year over year.
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. Nontraditional sectors, such as logistics and transportation and manufacturing, are also experiencing healthy growth rates, and their business models are centred on investments in IT,” said Arup Roy, research vice president at Gartner.
BPO is the segment where Indian end-user organizations 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.