Indian IT market to revive on signs of recoveryDecember 31st, 2009 - 7:53 pm ICT by IANS
Bangalore, Dec 31 (IANS) Amid signs of economic recovery, the Indian IT and IT-enabled services (ITeS) market is projected to grow by 15 percent in 2010 as against a modest growth of 5.4 percent in 2009, a report by market intelligence firm IDC (International Data Corporation) India said Thursday.
“As the economy recovers, both consumers and enterprises will demand services and solutions that allow them to do more with less. The structural changes undertaken in 2009 will propel the domestic IT-ITeS market to grow in 2010,” IDC India country manager Kapil Dev Singh said.
The changes were effected by the resilient IT industry to overcome the impact of economic slowdown and accelerate the industry transformation towards a new market order.
The domestic IT-ITeS market in 2010 is projected to be at Rs.120,666 crore (Rs.1206.66 billion/Rs.1.21 trillion), a growth of 15 percent over the growth of 5.4 percent in 2009 at Rs.104,906 crore (Rs.1049 billion/Rs.1.05 trillion).
The combined market size was Rs.99,654 crore (Rs.996.54 billion) in 2008.
“On stand alone basis, the domestic IT market is expected to grow by 13 percent in 2010 to Rs.107,655 crore (Rs.1076.55 billion/Rs.1.08 trillion), while the ITeS market will grow by 35 percent to Rs.13,011 crore (Rs.130 billion) in the New Year,” the report pointed out.
The report titled ‘India Domestic ICT (Information and Communication Technologies) Market Top 10 predictions 2010′ said the new phase of growth and development was evolving along trends that were different from the previous growth phase during 2003-08.
The four major trends that will accelerate the industry growth are - transformation of the consumer IT space, consolidation and leveraging of IT and telecom infrastructure, increased adoption of game-changing technologies and government intervention in providing economic stimulus to slack end-use sectors.
The domestic market witnessed unprecedented compounded annual growth rate (CAGR) of 24 percent during 2003-08, with sales tripling to Rs. 99,564 crore (Rs.995.64 crore) in 2008 from Rs.34,000 crore in 2003.
On a wider base, the annual growth rate of the domestic market will, however, decline to 14.6 percent in the second phase (2009-13) from an average of 24 percent in the first phase (2003-08).
“The relative slower growth, albeit on a higher base, will witness increasing competition leading to change in strategies and market re-alignment among ICT vendors and suppliers,” Singh said, citing the highlights of the report.
The technology behind these services - infrastructure, applications and connectivity - is being oriented to support their mass adoption.
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