Indian IT to be $55 billion industry by 2008
The Indian IT industry will witness a compound annual growth rate of 23.1 per cent between 2003 and 2008 with exports growing 25.3 per cent and domestic market 18.5 per cent. The Indian IT industry will grow to Rs 2,47,000 crore by the end of calender year 2008 from Rs 87,000 crore in 2003, according to IDC.
The higher growth in exports between 2003 and 2008 will be contributed primarily by the Business Process Outsourcing (BPO) or IT-enabled Services which is expected to grow at a high compound annual growth rate of 36 per cent.
In 2003-08, growth will be driven by two critical aspects of converged devices and management of IT environment, IDC said, adding India will be one of the top three growing markets and worldwide technology resurrection will happen in 2004.
In 2003, the Indian IT industry grew 21 per cent at Rs 87,000 crore ($19.5 billion) from Rs 72,000 crore in 2002, and in 2004 growth will be 26 per cent with ITeS expected to log 51 per cent growth.
The growth in 2003 makes India the fastest growing and fourth largest domestic market in the Asia-Pacific region. The growth trend in domestic IT market is going to peak in 2005 at 21 per cent with all three components -- hardware, software and services -- expected to grow at a decent pace.
IDC said in terms of high growth areas in 2003, smart handheld devices, inkjet MFDs, notebooks, system infrastructure software, security and IT outsourcing were the frontrunners.
According to IDC, worldwide IT market will recover and grow at a rate of 6- 8 per cent in this calender year. 2004 will see a major growth in security market, data storage, multifunctional devices, datacom and verticals like government, banking, insurance and financial services. Security software market will grow at a CAGR of over 24 per cent over the next four years.
The research firm predicted offshore delivery model will thrive despite negative publicity, and small and medium business segment will emerge as a major battlefront and drive significant portion of regional IT market growth.
It said branded personal computers will dominate and notebooks will see tremendous growth, while data services will see intense competition among telecom companies.