eGov-Oct-2010-[32-33]-Growth Is Yet To Plateau

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Analysis

SOFTWARE & SOLUTIONS

Growth is yet to plateau The potential for IT-enablement of business systems is big and remains a key driver of software adoption across verticals By Pratap Vikram Singh

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T-enablement of India Inc. has been a continued phenomenon, as the country’s economy transitions from a developing state to a newfound ‘emerging’ status. A growing domestic market across various verticals and entry of global players leveraging IT for competitive advantages has driven Indian companies to follow suit. Consequently, new compliance and governance requirements have set in and software systems and applications that conform to those requirements are being put in place. All this, among other market factors, have led to a sustained growth in the software and solutions market in the country. A market analysis from IDC says that the software spending as a percentage of overall IT spend in the current year has risen to 4 percent over 2009, when the spending was as low as 3.3 percent. By 2014, Gartner predicts the market to grow at a compound annual growth rate (CAGR) of six percent over a five-year period. It forecasts that the revenue in 2010 from enterprise software would increase by 4.5 percent to cross the mark of $232 billion. In 2009, the revenue stood at $222.4 billion, globally. In a report, Gartner underlines that the Asia-Pacific market, excluding Japan, is expected to have the fastest growth in software revenue among all regions in 2010. The market for

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enterprise software in Asia-Pacific is estimated to reach $22 billion in 2010, up 13 percent from revenue of $19.5 billion in 2009. This study notes that both enterprise application and infrastructure software segment will demonstrate a strong rebound in 2010, and this positive momentum is expected to continue through 2011. The IT research firm attributed aging systems, greater demand for security and aligning of

software to business requirements as key drivers for organisations to increase their spending in the infrastructure software market. Domestically, India is expected to have an 11.8 percent growth in the enterprise software segment in 2010, over the previous year. In 2009, the figure was around 10 percent. Unlike some countries in the APAC region, India has the advantage of having a largely untapped


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