MS, HP to gain from surge in IT spending
More than one-third of Indian companies plan to increase their IT spending with MS and HP this year.
By PTI |
NEW DELHI: Global IT giants Microsoft and Hewlett-Packard are likely to emerge as the biggest gainers from the surge in IT-related investments by India Inc this year, a recent study on technology spending patterns shows.
Visualising IT investment as an important tool for global competitiveness, a vast majority of Indian corporates plan to raise their IT spend this year, international research firm Forrester said in its "India IT Spending Outlook 2006" report.
Visualising IT investment as an important tool for global competitiveness, a vast majority of Indian corporates plan to raise their IT spend this year, international research firm Forrester said in its "India IT Spending Outlook 2006" report.
| More than two-third of the Indian companies surveyed said that they would increase their IT budget in 2006, while more than 25 per cent were planning a significant increase in their new IT investments, it said. Nearly 24 per cent of the respondents said that they were expecting a moderate increase this year, it added. |
More than one-third of Indian companies plan to increase their IT spending with Microsoft and HP this year, which would be higher than any other vendor in the IT space, the report said.
While 31 per cent of Indian companies plan to increase their spending on computing hardware with HP, an equal number would increase their software spending with Microsoft.
Interestingly, none of the respondents said that they would reduce their spending with Microsoft.
More than two-third of the Indian companies surveyed said that they would increase their IT budget in 2006, while more than 25 per cent were planning a significant increase in their new IT investments, it said.
Nearly 24 per cent of the respondents said that they were expecting a moderate increase this year, it added.
Indian firms are better positioned as compared to other Asia Pacific countries to invest in new IT technologies, which improve efficiency and incur low costs, Forrester said.
However, about 41 per cent of Indian respondents, who had a significant participation from the manufacturing sector, said that 2006 was likely to be an extremely challenging year.
While 31 per cent of Indian companies plan to increase their spending on computing hardware with HP, an equal number would increase their software spending with Microsoft.
Interestingly, none of the respondents said that they would reduce their spending with Microsoft.
More than two-third of the Indian companies surveyed said that they would increase their IT budget in 2006, while more than 25 per cent were planning a significant increase in their new IT investments, it said.
Nearly 24 per cent of the respondents said that they were expecting a moderate increase this year, it added.
Indian firms are better positioned as compared to other Asia Pacific countries to invest in new IT technologies, which improve efficiency and incur low costs, Forrester said.
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However, about 41 per cent of Indian respondents, who had a significant participation from the manufacturing sector, said that 2006 was likely to be an extremely challenging year.
Forrester said that some sectors of the Indian economy, particularly the manufacturing sector, were expecting a tough year ahead with severe competition coming in from China and other parts of Asia.
More than half of the respondents in the survey were from the manufacturing sector.
Riding high on the back of booming outsourcing, telecom and financial services sector, the Indian economy picked up speed with GDP growing from less than 4 per cent in 2000 to almost 8 per cent in 2005, the report said.
On the other hand, the country's manufacturing sector has been hampered by low investment, weak infrastructure and competition from manufacturers in China and other parts of Asia, it said.
Besides Microsoft and HP, companies like IBM, Cisco, SAP and Oracle are also likely to gain from the increased IT spending in India this year.
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While IBM and Cisco would witness increased hardware spending of 24 per cent and 8 per cent respectively from Indian firms, in the software space SAP and Oracle are expected to see rise in spending from 14 per cent and 12 per cent respectively of Indian firms.
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