IT Market will Touch Rs 1.75 Lakh Cr in 3 Years
Introduction
Despite a sharp slowdown in economic growth, India’s domestic IT market will touch Rs 1.75 lakh crore by 2016, according to a Boston Consulting Group and CII study.
This is expected to go up as companies based in the country look at increasingly embracing IT. The report pegs IT services sector to grow at 14 per cent and touch Rs 96,600 crore by 2016.
The domestic IT sector was worth Rs 99,700 crore in 2011 with IT services contributing Rs 49,400 crore followed by contribution from hardware such as PCs, estimated at Rs 32,500 crore. Software services contributed Rs 17,800 crore of the overall pie, according to the report.
According to Infosys Co-founder and CII President, Kris Gopalakrishnan, the IT sector should focus on doing projects with Indian companies.
Rise in IT adoption
The report said that IT services and software products will lead this growth due to an increase in IT adoption by companies, shift towards outsourcing and emergence of new technologies such as social media and cloud computing. Sectors such as education, healthcare, media and retail are relatively low IT spenders currently, but are expected to significantly increase their expenditure on this front in the future, the report added.
According to Microsoft Corporation India Chairman Bhaskar Pramanik - who is the Chairman of CII National Committee on IT, ITeS and e-commerce, there is an opportunity for the IT sector to work with the Government sector, going forward. Companies such as TCS and HCL work with Indian companies but have the found the going tough in the last couple of years as companies have held back IT spending on the back of economic uncertainty coupled with slowdown in growth.
Last year, Infosys bagged projects from Ministry of Corporate Affairs to maintain their IT systems.
IMF estimates that India will grow at 5.4 per cent and the IT sector has contributed 7.5 per cent to India’s GDP, according to the report.
Source
The Hindu Business Line March 19, 2013
