Spending on enterprise application software in India could reach $4.7 billion in 2022

Spending on enterprise application software by Indian companies is expected to total $4.7 billion in 2022, an increase of 14.8% from 2021, according to analyst firm Gartner. However, overall software spending growth will be lower in 2022 than in 2021 due to a volatile global macroeconomic situation that has increased business uncertainty.

Enterprise application software includes analytics platforms, collaboration software, customer experience and relationship management (CRM), office suites, supply chain management (SCM) and enterprise resource planning (ERP) software, to name a few.

“Driven by the digital transformation agenda, Indian enterprises will continue to increase the share of software spending in their broader IT spending. Organizations are increasingly relying on software to manage all aspects of their business,” said Neha Gupta, vice president analyst at Gartner. However, Gupta noted, “The volatile global macroeconomic situation has heightened business uncertainty.

According to her, organizations will continue to selectively put “new, long-term projects on hold and reduce the scope of high-cost projects” and instead turn to “quick win” projects that have either a return on investment. (ROI) or provide a competitive advantage.

Applications critical to maintaining customer service quality, such as SCM and CRM, will see increased spending as organizations seek to manage complex supply chains and volatile markets, and adapt more effectively to change. and disturbances.

For example, spending on CRM software is expected to increase by more than 18% in 2022, while spending on SCM software will increase by more than 10%. Likewise, key financial and planning tools will see increased spending as businesses seek to improve their ability to manage cash and ensure a solid financial foundation on which to grow, the analyst firm said.

Indian companies will also increase spending on messaging and creative and content services to continue supporting collaboration and remote and hybrid working, Gartner said. Much of the pandemic-related spending in these two markets took place in 2020, causing a large spike that, while still growing, will slow spending over the next few years, he said.

In a report published in August 2022, research firm Statista said that enterprise software spending in India is expected to be around $10.5 billion in 2022. The research firm also attributes this increase in spending over to the past two years to the impact of the global pandemic which accelerated the digitization process for many companies soon after

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