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Monday, July 23, 2012

India IT Market To Grow To $43.57 Bn In 2012


International Data Corporation (IDC) has recently released a new research report - India IT Market Overview Report - 2012, which provides stakeholders in the IT ecosystem and related firms with a holistic understanding of the IT market scenario in India and the major shifts in dynamics that are expected to redefine the competitive landscape and the technology ecosystem in the immediate future.

Key highlights of the report are as follows:
  • Despite the economic volatility, IT spending will grow by 16.3 percent in 2012.
  • Traditional verticals such as BFSI, Communication & Media, Government, Manufacturing and IT/ITeS continued to be the highest spenders in 2011 with a moderate CAGR (2010-2015) of 14 percent-18 percent. Retail & Wholesale, Energy & Utilities, and Healthcare witnessed tremendous growth (>23 percent) in IT spending. The trend is expected to continue.
  • India is witnessing a phenomenal increase in SME spending on IT. 38 percent of Enterprise IT spending in 2011 was by the SME segment. The proportion is expected to grow to 43 percent by 2015.
  • Investments on emerging technologies such as social media, cloud, mobility and Big Data are on the rise.
The total IT market is expected to grow to 43.57 billion USD in 2012, up from 37.46 billion USD in 2011. Despite lesser than expected GDP growth figures in 2011-2012, followed by a similar trend in the quarter ending June 2012, India still commands a high growth rate, next only to China among the BRIC countries - and higher than several developing economies. Rupee depreciation and high inflation have slowed down consumer spending - but this is expected to be a temporary phenomenon.

"Cautious optimism will continue to be the order of the day for most enterprises. However, this is not expected to reduce IT investments. It merely indicates that future investments will undergo intense scrutiny and that effective financial and risk management will gain priority in the days to come," said Ravi Sharma, Research Manager, Consulting Group, IDC India. "Market driven policies pertaining to e-Governance, Financial Inclusion and Youth-driven Entrepreneurship are enabling rural development. Sector driven policies in the areas of Infrastructure, Manufacturing and Retail have steered industry growth. Political initiatives are increasingly driving demand for IT Hardware," added Ravi.

"Although at a nascent stage of adoption, Indian enterprises have started leveraging social technologies externally for customer engagement and internally to promote team collaboration and knowledge sharing. There is large demand for SaaS based applications among large enterprises. Enterprise mobility is at the top in terms of organisation focus and investments. Awareness around Big Data technologies and its benefits is increasing with time, with vendors and technology advisory firms playing a key role in educating enterprise stakeholders," said Pavan Magge, Senior Analyst, Consulting Group, IDC India.
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1 comment:

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