Indian software market grew 9.9% to $ 3.78 bn in CY 2013, according to the latest report by IDC. The market research firm said that growth slowed compared to previous year due to the elections, delayed payments, lower profits from government sector and depreciation of the rupee.
The report said that Banking, Communication and Media, and Manufacturing sectors continued as the top software spenders.
Manufacturing sector is set for an impressive growth in terms of IT adoption due to continued efforts by the government to revive the collapsing sector owing to ever rising costs, high inflationary pressures and changing government policies. The market is moving towards cloud based applications.
Here are some of the other highlights of the report.
- Microsoft continued to lead the India software market with a share of 30.0% in CY2013, a jump of 1.5% compared to CY2012 owing to OS upgrades and Windows XP migration.
- Microsoft was closely followed by Oracle, SAP and IBM with a market share of 11.9%, 7.9% and 6.0% respectively for the mentioned period.
- Some of the vendors with niche specialization such as cloud or analytics fared well in terms of market penetration.
- India software market for 2H 2013 stood at INR 113.7 billion (USD 1.8 billion) and registered a half yearly growth of 6.0% over 1H 2013 and a year-on-year growth of 10.0% over 2H 2012.
IDC expects the India software market to grow at a CAGR of 10.3% over the five year forecast period (2014-2018). The growth will be primarily driven by markets such as security software, system software, enterprise applications and analytics, which continue to be the top priorities for enterprises in terms of IT investments.