China and India enterprise app software spending continues to rise, says Gartner
Encouraging news on different markets for enterprise application software: according to Gartner, the boom of spending in India and China is not going to stop any time soon.
Enterprise app software spending in India is predicted by the analyst firm to hit $2.5 billion in 2018, an increase by 19.8% on the previous year, while China will see an 18.9% rise to $5.1 billion this year.
The most popular categories for enterprise software in both countries are around enterprise content management (ECM) and CRM, with open source software and business intelligence (BI) also cited. Gartner said that ECM, despite its hype, remains a small market; however it is set to rise dramatically as business requirements become ever-more complex.
So what are the key influences for India and China upping its software spend? For India, overarching digital transformation (91%) was the biggest influence, ahead of mobile and artificial intelligence (AI), both cited by 88% of respondents. Respondents in China cited cloud and software as a service (SaaS) offerings most frequently (63%), ahead of the Internet of Things (IoT) with 62% and mobile with 60%. China’s trust in the IoT is down largely to the country’s manufacturing base.
“China’s and India’s enterprise application software spending has grown at double digit rates historically, and they will continue to be hot spots,” said Keith Guttridge, research director at Gartner in a statement. “To be competitive in those countries, technology business unit leaders in technology providers must understand software adoption dynamics and spending intentions.”
According to a recent Gartner survey around software spending, organisations in India are more likely to focus more on pricing and contract flexibility, while Chinese companies put a lot of faith on corporate branding strength.
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