A $100-Billion Indian IT / ITeS Sector By 2011
posted in Outsourcing News and Top Outsourcing deals |Source: www.buiness-standard.com
Growing at a compound annual growth rate (CAGR) of 18%, the Indian information technology and related services (IT/ITeS) industry, according to an IDC report, is predicted to become a $100-billion plus industry by 2011.
Moreover, domestic IT / ITeS, with revenues growing at 19.7% CAGR, is projected to touch Rs. 1,68,370-crore in 2011 (IT growing at 16.4% and ITeS / BPO at 40.4%), which means, domestic IT / ITeS revenues will be growing faster than export revenues over the next five years.
At an annual briefing session for the information and communication technology (ICT) industry held by IDC, the research firm stated the Indian IT/ITeS industry had clocked Rs. 1, 98,477-crore in revenues for 2006, up by an impressive 31% over 2005.
It is equal drives from exports revenue and domestic IT spending that has helped Indian IT industry to keep up the momentum it has been gaining since 2003.
On the domestic front, IT / ITeS spend has been estimated at Rs. 68,411-crore in 2006, a gain of 26% over 2005. The growth in domestic IT / ITeS spend has been primarily driven by enterprise investments in IT infrastructure, line of business applications, security products and services, IT outsourcing and managed services and by consumers in mobile and digital products (digicams, notebooks, smart handheld devices etc.).
‘The domestic IT / ITeS market has attained a significant size now but continuing with the same growth momentum for the next five years is not going to be an easy task. It will require the industry to create new user segments, identify new uses of ICT, define new relevance of ICT in the consumers’ life and help develop the ecosystem required for that by designing innovative products and services’, commented Kapil Dev Singh, Country Manager, IDC India.
Indian IT / ITeS continue to steam ahead without losing momentum, pulling other business sectors along in its wake. What Indian IT has done for the country’s economy is nothing short of a miracle. Indian techies have not only put India on the global map, they have shown India and Indians can outperform the world in any given field. By its exemplary example, India has shown other developing nations, those in the Asia-Pacific region, including Eastern Europe and the break-offs of the dismantled Czecoslavakian Empire that they do not have to live off charity from the developed nations.
While, they wish to emulate the success story of Indian IT, the truth is India has stolen a march it may not be easy to imitate!
