End-user IT spending in India to reach USD 15 bn in 2019: Report

New Delhi: End-user spending on IT services in India is set to hit USD 15 billion in 2019 -- an increase of 9.8 per cent from 2018, a new release by Gartner said on Monday.

Spending on Business Process Outsourcing (BPO) is forecast to achieve the highest growth in 2019, at 14.4 per cent year-over-year (YoY).

"In 2019, end-user spending on IT services in India will represent 59 per cent of total end-user spending on IT services in emerging Asia/Pacific, and it is on track to reach 60 per cent in 2020".

"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," said Arup Roy, Research Vice President at Gartner.

Non-traditional sectors, such as logistics, transportation and manufacturing, are also experiencing healthy growth rates, and their business models are centred on investments in IT.

BPO is the segment where Indian end-user organisations will increase their information technology (IT) services spending the most in 2019.

End-user spending on BPO is on course to reach USD 1.7 billion in 2019, and is forecast to reach USD 1.9 billion in 2020.

In 2019, managed services and Cloud infrastructure services remain the biggest segment in terms of spending on IT services in India, accounting for close to $6 billion.

The segment represents 40 per cent of the end-user spending on IT services in India.