IT spending outlook of India Inc to be cautiously optimistic - E&Y

With continued market volatility and uncertain economic conditions, the IT spending outlook of India Inc has become cautiously optimistic, according to ‘The Enterprise IT Investment Trends Survey 2012’ conducted by Ernst & Young (E&Y) and CIO KLUB. The duo surveyed 184 CIOs from companies with revenues ranging from Rs 100 crore to Rs 1,000 crore in India.

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According to the survey, 60% of the Indian CIOs plan to increase their IT spending (both, Opex and Capex) in 2012-13. About 20% of them qualify the increase in Capex to be greater than 20% in the current financial year. According to Devendra Parulekar, Partner-Advisory Services, Ernst & Young, while IT spending by Indian corporations will experience a steady increase, CIOs will be cautiously optimistic this year. "Identifying revenue increasing opportunities while enhancing the agility for quick response to business needs would be the key...," he says.

E&Y lists out the year 2012-13 IT spending priorities of the Indian CIOs as business continuity, cost reduction, improving IT function effectiveness, business intelligence, and information security. Amongst applications, budgeting, planning and consolidation (BPC), mobile apps, and CRM will attract sizeable chunk of IT spending. While virtual desktop will gain momentum, security audits and software testing will prove demand drivers for outsourcing in the current financial year.

View all the important data slides of the IT spending survey by E&Y and CIO KLUB below.

>> View Slideshow: Access the key findings of E&Y CIO KLUB survey on Indian enterprise IT spending priorities for the financial year 2012-13.