India is going through a tough time: Poor policy, delayed reforms, the free fall of the rupee against major currencies, multibillion-dollar scams, and political gridlock are all negatively affecting the country’s growth. However, we anticipate Indian economy to start picking up — albeit at a slower rate — in 2014, mainly due to good monsoons, improving exports, and huge infrastructure projects that should launch once a new central government is in place.
Forrester’s Asia Pacific (AP) analyst team has just published its 2014 technology predictions report. What top trends will be critical to the Indian market?
- India’s IT market will grow by 8%.Despite broader challenges in the country’s economy, Forrester expects Indian IT spending to grow by 8% in local currency in 2014. Political instability after the April 2014 national elections is the biggest threat to the economy; India needs bold measures and tough decisions to return to high economic growth, which won’t be possible with a fractured government.
- CIOs’ IT spending will decline as the business’s clout grows.IT spending in AP is undergoing a critical shift: Business stakeholders are increasingly making IT purchases out of their business budgets, shrinking CIOs’ tech budgets.AP CIOs now control just 51% of enterprise IT procurement decisions, down from 58% in 2012.We expect this to accelerate further as businesses prioritize acquiring systems that can help them achieve growth objectives.