Gartner predicts that application software spending in India will increase by 15% in 2022

End-user spending on enterprise application software in India is expected to total $4.7 billion in 2022, a 14.8% increase from 2021, according to Gartner, Inc.

“Driven by the digital transformation agenda, Indian enterprises will continue to increase the share of software spending in their broader IT spending. Organizations are increasingly relying on software to manage all aspects of their business,” said Neha Gupta, vice president analyst at Gartner.

However, software spending growth will be weaker in 2022 than in 2021. “The volatile global macroeconomic situation has increased business uncertainty. Organizations will continue to selectively put new long-term projects on hold and reduce the scope of high-cost projects and instead turn to “quick win” projects that have a shorter return on investment (ROI) or provide a competitive advantage,” Gupta said.

Applications critical to maintaining customer service quality, such as supply chain management (SCM), supply chain execution (SCE), and customer relationship management (CRM), will see their expenses will increase as organizations seek to manage complex supply chains and volatile markets, etc. adapt effectively to change and disruption. Spending on CRM software is expected to increase by 18.1% in 2022, while spending on SCM software will increase by 10.2% (see Table 1). Likewise, key financial and planning tools will see increased spending as businesses seek to improve their ability to manage cash and ensure a solid financial foundation on which to grow.

Table 1: Forecasted total end-user spending on enterprise application software in India, 2021 – 2023 (USD Million)

Market

2021 expenses

2021 growth (%)

2022 expenses

2022 growth (%)

Expenditure 2023

2023 growth (%)

Analytical platforms

360

19.6

419

16.5

495

18.2

Content services

276

20.0

319

15.5

366

14.8

Customer experience and relationship management (CRM)

959

20.5

1,132

18.1

1,341

18.5

Email and creation

568

21.7

659

16.0

768

16.5

Integrated Management Software

460

18.5

514

11.6

566

10.3

Project and portfolio management

65

15.2

71

9.6

78

10.2

Supply chain management

196

14.4

216

10.2

241

11.4

Other application software

746

14.9

828

11.0

566

10.3

Total

3,629

18.6

4,157

14.6

4,774

14.9

Source: Gartner (August 2022)

Indian companies will also increase their spending on messaging and creative and content services to continue to support collaboration and remote/hybrid working. Much of the pandemic-related spending in these two markets took place in 2020, causing a large spike that, while still growing, slowed spending over the next few years.

Gartner customers can learn more in the “Forecast: Enterprise Application Software, Worldwide, 2020-2026, 2Q22 Update” report.

Gartner analysts will discuss strategic application software trends at Gartner IT Symposium/Xpo 2022, to be held in Kochi from November 14-16, 2022. Follow conference news and updates on Twitter using #GartnerSYM.

Upcoming dates and locations for the Gartner IT Symposium/Xpo 2022 include:

October 17-20 | Orlando, Florida

September 12-14 | Gold Coast, Australia

October 31-November 2 | Tokyo, Japan

November 7-10 | Barcelona, ​​Spain

November 14-16 | India

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