India snatches enterprise software market

[EMBEDDDED]The enterprise software market is booming in India and is projected to be the third fastest growing by 2016, CBR reports.

The market is projected to grow 13% in 2012, to revenues of $3.2 billion, according to Gartner.

"With Indian enterprises continuing to embrace IT to improve productivity and drive growth, penetration of ICT infrastructure has been growing rapidly during the past decade,” says Asheesh Raina, principal research analyst at Gartner.

Raina adds: “The primary drivers of growth have been domestic demand, the growing maturity of users and incremental enhancements in the technology."

Priority areas of software spending include operating systems, database management systems and application development, The Times of India states.

Gartner indicates that in the next five years, the fastest-growing segments will be Web conferencing and team collaboration, enterprise content management, customer relationship management and enterprise resource planning.

By 2016, India's share of the software market in Asia Pacific is expected to reach 12.1%, representing $5.4 billion in revenue, or 1.5% of the total worldwide software market revenue of $361 billion, CIOL says.

In comparison to other countries in the Asia Pacific region, such as China (with 27% share of regional spending in 2011), the software market in India is still relatively small and evolving.