"IT spend in Indian manufacturing to double by 2016"

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SME Times News Bureau | 04 Aug, 2012
Manufacturing in India is still expanding, but as costs increase and competition intensifies manufacturers are updating and automating their business processes, said a study.

IDC Manufacturing Insight predict the India manufacturing IT spending to grow to USD 8,781.8 million by 2016, which doubles the manufacturing IT Spending of 2011, representing a CAGR of 14.5 percent between 2012 and 2016.

The sector with the highest IT spends in the Indian manufacturing sector in 2012 is Automotive, which is followed by chemicals and consumer products.

The report was based on industry sectors within 14 countries across the Asia/Pacific (excluding Japan) or APEJ region.

"With increasing costs and uncertainty in the world economy, manufacturers across the region are increasingly focusing their efforts on productivity and efficiency in 2012," said Dr. Christopher Holmes, head — international, IDC Manufacturing Insights.

"From a technology perspective, we will see companies move to clearly establish the link between technology and efficiency as companies focus on driving out cost and becoming ever more productive. There is increased interest in looking beyond ERP, as companies seek to leverage technology to deliver value to the enterprise, with increased focus on more specific applications to support manufacturing operations, supply chain management and product lifecycle management."

"We are also seeing increased interest in newer technologies such as business intelligence and mobile within manufacturing enterprises, as companies seek to leverage these for enhanced productivity," Holmes added.