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,
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)