Gurgaon, July 6, 2005. As per recent data
released by IDC, the India IT market crossed the US$ 25
billion mark in 2004. This included a contribution of
US$ 16.7 billion from exports, and US$ 8.5 billion from
the domestic market. "This is the best performance
by the Indian IT industry after the technology market
bounced back from the slowdown", according to Kapil
Dev Singh, Country Manager, IDC (India). The IT market
is predicted to grow to US$ 65 billion or Rs. 290
thousand crore by 2009, a compounded annual growth rate
of 21%.
Domestic Market:
The domestic market grew by 22.9% over 2003 and the
growth primarily came from IT services (26% growth), PCs
(25% growth), datacom products (32% growth) and
multifunction devices (48% growth). Thus, the domestic
IT market is clearly on a growth trajectory and the YoY
growth rate is expected to peak at 23.3% in 2005, the
highest during this business cycle (2004-2009). The
domestic market will grow at an average rate of 17% for
the period 2004-09 and will move from Rs. 38,303 crore
in 2004 to Rs. 84,878 crore in 2009.
The high growth categories for the five-year period
predicted by IDC are:
Hardware: Notebook PCs, Digital Cameras, Smart
Handheld Devices, Wireless LAN Equipment and other new
kinds of peripheral devices.
Software: Security Software, Business
Intelligence Software, System Management Software,
Information and Data Management Software and Storage
Software.
Services: Enterprisewide Outsourcing, Network
Consulting and Integration, Software Support, and System
Integration.
"A close look at these categories will reveal
that higher growth will accrue in the areas of mobility,
convergence and IT infrastructure management",
commented Kapil.
Exports Market:
The IT exports market on the other hand grew by 32%
in 2004 (in rupee terms) touching Rs. 75,477 crores
revenue. IT services exports clocked Rs. 51,047 crore
whereas ITeS and hardware exports clocked Rs. 24,430
crore. The growth came primarily from BPO services,
which grew by 42% in 2004 (in rupee terms).
The export market will grow at an average rate of
22.2% (in rupee terms) touching nearly Rs. 206 thousand
crore by 2009.
These figures were released at Directions 2006, the
annual ICT industry-briefing seminar organized by IDC.
Speaking at this day long event, attended by IT vendors
and users, Kapil commented, "The year 2004 was of
strategic choices which will have long lasting effect
during this business cycle. In 2005, we will witness
trends becoming mainstream and the market attaining
another peak - success will depend on how well the
strategic choices are executed or operationalised."
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