Enterprise application software vendor revenue in India is forecast to decline 1.3 percent this year and total $2.58 billion before rebounding next year, said a Gartner report on Tuesday.
Although the market is expected to grow 8.3 percent in 2021, the growth will be slower than the 14 percent growth it experienced in 2019, according to the forecast.
Globally, enterprise application software revenue will decline by 2.2 percent in 2020, to total $237 billion.
In India, all enterprise applications software markets will shrink in 2020 except the content services and customer experience and relationship management (CRM) markets.
“Spending on enterprise applications software is expected to shrink in 2020 due to recession caused by Covid-19 across industries,” Neha Gupta, Research Director at Gartner, said in a statement.
“The large decline in enterprise applications software spending is also due to some companies going out of business, in addition to the reduced workforce across industries, especially in transportation, manufacturing, and natural resource industries.”
In 2020, CRM software revenue will grow 2.5 percent, followed by content services revenue which will increase by 0.8 percent.
Analytics and business intelligence software revenue will be the worst hit in India in 2020, as it will decline by 3.9 percent.
Email and authoring software revenue, which experienced the highest growth in 2019 will decline by 1.2 percent in 2020, according to the forecast.
“We expect the market to start recovering by 2021, although the growth will be muted as organizations will observe prudence. Organizations will continue to put new long-term projects on hold and cut the scope of high-cost projects through 2020,” said Gupta.
