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| 15% growth rate projected for domestic IT, ITeS mkt in 2010 |
| BS Reporter / Mumbai Jan 01, 2010, 01:34 IST |
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Important structural changes, brought about by the impact of the economic slowdown, will accelerate industry transformation.
The domestic information technology (IT) and IT-enabled Services (ITeS) market, excluding exports, is expected to grow at a rate of 15 per cent in 2010 to touch a revenue of Rs 120,666 crore, according to advisory services and research firm IDC.
This is nearly three times the 5.4 per cent growth rate that the combined India domestic IT and ITeS market is expected to clock in 2009 to touch a revenue of Rs 104,906 crore — up from the Rs 99,654 crore recorded in 2008.
The year-end ‘India Domestic ICT Market Top 10 Predictions 2010’ report by IDC India suggests that important structural changes, brought about by the impact of the economic slowdown, will accelerate industry transformation towards a new ‘market order’.
“In 2010, changes that started last year will take concrete shape. As the economy recovers, both consumers and enterprises would demand services and solutions that allow them to ‘do more with less’. The key business concerns through 2010 would be business model innovation, improved productivity, faster return on investment and cost savings,” IDC India Country Manager Kapil Dev Singh said.
IDC expects the annual growth rate of the domestic IT-ITeS market to reduce from an average of 24 per cent recorded during 2003-08 (Growth Phase 1.0) to 14.6 per cent over the next five-year period of till 2013 (Growth Phase 2.0). This relatively slower growth, albeit on a higher base, will witness enhanced competition, leading to a rapidly changing strategy and continuous market re-alignment on the part of ICT vendors and suppliers.
The report noted that Growth Phase 2.0, which started in 2009, will be built on the back of innovative services and solutions sought by consumers and enterprises alike. The technology behind these services — infrastructure, applications and connectivity — will need to orchestrate and re-orient completely in order to support their mass adoption.
| PICKING UP SPEED ON INFO HIGHWAY |
| India’s domestic IT-ITeS market size (in Rs crore) |
Market
segment |
2008 |
2009 |
2010* |
2013* |
Growth (2009
over 2008) |
Growth (2010
over 2009*) |
| Software |
10,147 |
11,454 |
13,064 |
21,065 |
12.90% |
14.10% |
| Services |
24,322 |
27,888 |
32,190 |
52,071 |
14.70% |
15.40% |
| Hardware + others |
58,248 |
55,926 |
62,401 |
94,173 |
-4.00% |
11.60% |
| Total domestic IT-ITeS market |
99,564 |
1,04,906 |
1,20,666 |
1,97,205 |
5.40% |
15.00% |
| Source: IDC *Estimated |
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