IT to touch $55 bn by '08

The information technology (IT) sector is likely to clock a 23.1 per cent compounded annual growth during 2003 to 2008 to achieve a turnover of

Rs 2, 47,000 crore ($55 billion), according to a study by International Data Corporation (IDC) Ltd.

IDC said IT exports would drive growth, with their share increasing from 65 per cent to 71 per cent during 2003-08.

"The export market is expected to grow at a compounded annual growth rate (CAGR) of 25.3 per cent, whereas the domestic market will grow at 18.5 per cent during 2003-08," Kapil Dev Singh, Country Manager, IDC (India) said.

The total IT market in India is likely to grow 26 per cent in 2004 with the Business Process Outsourcing (BPO) market growing at 51 per cent during the year, he added.

According to IDC, the ITES-BPO sector is expected to grow at a CAGR of 36 per cent during 2003-08, compared to 19 per cent CAGR seen in IT services exports during the same period.

" Growth in the IT enabled services sector will fuel the over all exports growth," it said.