IT spend in Indian mftg sector to double by 2016: IDC

IT spending by the manufacturing sector in the country is expected to grow at 14.5 per cent to touch USD 8.78 billion by 2016, driven by segments including automotive, chemicals and consumer products, research firm IDC said.

According to IDC Manufacturing Insight, increasing costs and intensifying competition is pushing manufacturers to update and automate their business processes.

The 2012 projected spending is double the manufacturing IT spending of 2011 and represents a compounded annual growth rate (CAGR) of 14.5 per cent between 2012 and 2016, it said.

"With increasing costs and uncertainty in the world economy, manufacturers across the region are increasingly focusing their efforts on productivity and efficiency in 2012," IDC head (International)

manufacturing insights Christopher Holmes said.

There is rise in interest in looking beyond ERP, as companies seek to leverage technology to deliver value to the enterprise, he added.

Holmes said there is an 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," he added.