End-user IT spending in India to reach $15 bn in 2019: Gartner


MUMBAI, May 6: End-user information technology

spends by Indian companies will jump by nearly 10 percent to

USD 15 billion in 2019, a report said Monday.

The fastest growth will be in the business process

outsourcing sector, which is estimated to grow at over 14

percent to USD 1.9 billion, the estimate by the consultancy

firm Gartner said.

“High GDP growth rates are driving local organisations

to increase their investment in infrastructure, applications

and digital initiatives, which are increasingly moving to the

cloud,” its vice president for research Arup Roy said.

Non-traditional sectors like logistics, transportation

and manufacturing are experiencing healthy growth rates as

their business models get centered on investments in IT, he


On the BPO front, the report said crowdsourcing,

working at home (WAH) or teleworking, and the ‘gig economy’

will account for 40 percent of the customer management (CM)

BPO workforce by 2021, up from 7 percent in 2017. By 2021, it

will account for an estimated 900,000 people.

Nearly two-thirds of this will be employed by CM BPO

service providers, while the rest will be employed by end-user

companies directly, Roy said.

“A key benefit of crowdsourcing, WAH/teleworking and

the gig economy is access to specialized talent that may not

all reside in the same area or that may be unwilling to

commute to a central location to work,” he said.

This model also helps mitigate some other business

risks, by, for example, providing clear benefits from a

business continuity perspective and helping attract buyers

from a corporate social responsibility perspective, the report


The managed services and cloud infrastructure services

will continue to be the biggest segment in terms of spending

on IT services in India, with nearly USD 6 billion in spends,

it said.

Roy said there is a shift in how organisations are

adopting to the cloud, mentioning that they are looking not

just to acquire cloud infrastructure as a service (IaaS)

resources themselves, but also the automated management of

those resources, management tools delivered as services, and

cloud software infrastructure services.

Hence, the consultancy expects that while IaaS-only

cloud providers will continue to exist, they will become

increasingly niche due to the breadth and depth of service

offerings that end-user organisations require. (PTI)