COVID-19 to bring software market growth down to 4.1% in 2020

New Delhi: Due to the impact of the COVID-19 pandemic, growth in India's domestic software is expected to drop to 4.1 per cent in 2020, as compared to 2019 growth rate of 16.7 per cent, according to an International Data Corporation (IDC) forecast on Thursday.

The decline in growth rate is likely because enterprises relook at their buying decisions owing to increased focus on profitability, said the IDC ‘s “Worldwide Black Book Live Edition, March 2020” report.

However, there will be a demand for productivity applications as the remote workforce increases.

Collaborative application vendors are looking at making minor adjustments and offering the premium version through a minimum price subscription model.

Apart from collaborative tools, cloud platforms, security solutions, and automation technologies, most of the other applications will post only marginal growth, IDC said.

“IT vendors are gearing up to adapt and transform the way of doing business, in a bid to support their clients during these testing times,” Shweta Baidya, Senior Research Manager, Enterprise Software & IT Services, IDC India said in a statement.

“Although IT spending will be impacted, specific solutions such as conferencing and collaboration, secure endpoint and network management, CRM, cloud storage, backup & recovery solutions, and remote support & services will continue to witness a steady rise amidst the crisis,” Baidya added.

Overall, India domestic IT spending (hardware, software, and services) is expected to drop to minus 4.5 per cent as compared to 2019 growth rate of plus 9.1 per cent, as per the IDC forecast. (IANS)

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