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 a Gartner report on Wednesday.
However, software spending growth will be lower in 2022 than in 2021 due to a volatile global macroeconomic situation that has increased business uncertainty.
“Organizations will continue to selectively put new long-term projects on hold and scale back high-cost projects and instead turn to ‘quick-win’ projects that either have a shorter return on investment (ROI), is a competitive advantage,” said Neha Gupta, vice president analyst.
The increase in spending will be directed towards improving customers’ digital experiences.
“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,” Gupta added.
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%.
Indian companies will also increase their spending on messaging and creative and content services to continue supporting collaboration and remote/hybrid working, according to the report.
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