IT spending in India is projected to total $71.5 billion in 2013, a 7.7 percent increase from the $66.4 billion forecasted for 2012, according to the latest from Gartner, Inc.

The research firm says that telecommunications market is the largest IT segment in India with spending forecast to reach $47.8 billion in 2013 followed by the IT services market with spending of $10.3billion.

“The computing hardware market in India is projected to reach $9.5 billion in 2013, and software spending will total nearly $4.0 billion. Software will record the strongest revenue growth at 15 percent, IT services will grow at 12 percent. The telecom segment, which accounts for 67 percent of the Indian ICT market, is set to grow at 7 percent revenue growth in 2013.”

India IT End-User Spending Forecast,  2012-2016 (US$ Billions )

2012 2013 2014 2015 2016 CAGR (2012-2016) %
Hardware 9.1 9.5 10.9 12.5 14.3 7.5
Software 3.5 4.0 4.5 5.2 6.0 11.4
Services 9.2 10.3 11.9 13.8 16.1 8.9
Telecom 44.7 47.8 51.5 54.6 59.5 3.6
Total 66.4 71.5 78.9 86.2 95.9 5.3

Source: Gartner (October 2012)

While IT  is the primary driver of business growth,  concerns around the economic slowdown are gathering strength and are a matter of concern, said Gartner. Based on their CEO survey, 85 percent of CEOs believe they will be negatively impacted by the global economic slowdown. Other findings:

Social: With 1.5 billion people or 20 percent of the world’s population on social networks, $34 billion from ads, gaming and subscription markets, social computing is in its next phase. By 2015, 10 organizations will each spend over $1billion on social media.

 Mobile: In 2016, more than 2.7 billion mobile devices will be purchased globally, two-thirds of the workforce will own a smartphone, and 40 percent of the workforce will be mobile.

The Cloud: Between 2011 and 2016 the market for Business Process Services in the cloud will double in size to nearly $145 billion.

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