INDIA’S overall software market is forecast to grow at 3.8 per cent year-on-year in 2020 as enterprises relook at their IT spends amid the COVID-19 pandemic, research firm IDC said on Friday.
The software market in the country is expected to grow at compound annual growth rate (CAGR) of 7.6 per cent during 2019-2024, IDC said in a statement.
“There is a significant decline in the overall software market because of the COVID-19 pandemic which is forcing enterprises to relook at their IT spends,” it noted. Enterprises at this point are focusing on operational resiliency, return on investment (RoI), business continuity plans, and parking aside all non-critical projects for the next three to six months at least, it added
IDC said that there will be heightened demand for collaborative applications, application platforms, security software, system and service management software, and content workflow and management applications.
As per IDC’s latest Worldwide Semiannual Software Tracker, H219 (July-December), the India software market grew by 16 per cent year-over-year in the second half of 2019 compared to the year-ago period.
For 2019, the India software market achieved a revenue of USD 6.48 billion.
“India stands as the second-largest software market in Asia/Pacific (excluding Japan and China) and also managed to keep its growth pace stronger than some of the major economies in the region,” IDC
India Market Analyst, Enterprise, Mohsin Baig said.