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ICT spending in India to rise 16 percent
Wednesday, 08 December 2004, 20:30 IST
MUMBAI:Indian businesses' spending on information and communications technology (ICT) is likely to increase by over 16 percent in the coming year to $22.88 billion (
999.86 billion), said an industry research firm Tuesday.
India, Asia's fourth-largest economy, will remain one the highest growth markets for telecom in 2005 with an addition of 35 million new subscribers, a growth of 18 percent over 2004, according to Gartner.
"Enterprise spending on ICT in India is expected to grow at 16.6 percent to $22.88 billion as compared to Asia Pacific growth at 7.6 percent in 2005," said Sujay Chohan, vice president and research director of Gartner India.
"For vendors the stakes couldn't be higher. Vendors, who have long ignored the local market, cannot afford to miss this transition," Chohan told a press conference here.
Of the $22.88 billion spends in 2005, $3.34 billion is likely to be earmarked for hardware, representing an increase of 21.1 percent over 2004, $16.7 billion on telecom and $2.32 billion on IT Services.
According to Gartner, India will remain the highest growth market for telecom with addition of around 35 million new subscribers in 2005, an 18 percent increase from 2004, with the growth occurring mainly in the mobile sector.
The projected users will account for almost one fourth of the new subscribers forecasted in Asia Pacific.
Gartner said open source and offshore IT services would continue to grow, with confidence growing in government circles about the capabilities of open source software.
"We believe 60 percent of large and mid-size government agencies in Asia Pacific will use open source software for applications in their core business processes by 2010," said Chohan.
"That compares with less than 15 percent today," he said. The agency, however, warned IT vendors to take competition from China seriously with at least three Chinese IT companies set to become significant global competitors by 2010.
Gartner predicted a dramatic uptake in global outsourcing of IT services in the coming years.
"When compared with the total IT services market, less than three percent of spending is attributable to outsourced services in 2004," said Chohan.
"By 2007, the globally sourced component of IT services spending will be about $50 billion, or seven percent of the total IT services," he added.
Source: IANS
999.86 billion), said an industry research firm Tuesday.
India, Asia's fourth-largest economy, will remain one the highest growth markets for telecom in 2005 with an addition of 35 million new subscribers, a growth of 18 percent over 2004, according to Gartner.
"Enterprise spending on ICT in India is expected to grow at 16.6 percent to $22.88 billion as compared to Asia Pacific growth at 7.6 percent in 2005," said Sujay Chohan, vice president and research director of Gartner India.
"For vendors the stakes couldn't be higher. Vendors, who have long ignored the local market, cannot afford to miss this transition," Chohan told a press conference here.
Of the $22.88 billion spends in 2005, $3.34 billion is likely to be earmarked for hardware, representing an increase of 21.1 percent over 2004, $16.7 billion on telecom and $2.32 billion on IT Services.
According to Gartner, India will remain the highest growth market for telecom with addition of around 35 million new subscribers in 2005, an 18 percent increase from 2004, with the growth occurring mainly in the mobile sector.
The projected users will account for almost one fourth of the new subscribers forecasted in Asia Pacific.
Gartner said open source and offshore IT services would continue to grow, with confidence growing in government circles about the capabilities of open source software.
"We believe 60 percent of large and mid-size government agencies in Asia Pacific will use open source software for applications in their core business processes by 2010," said Chohan.
"That compares with less than 15 percent today," he said. The agency, however, warned IT vendors to take competition from China seriously with at least three Chinese IT companies set to become significant global competitors by 2010.
Gartner predicted a dramatic uptake in global outsourcing of IT services in the coming years.
"When compared with the total IT services market, less than three percent of spending is attributable to outsourced services in 2004," said Chohan.
"By 2007, the globally sourced component of IT services spending will be about $50 billion, or seven percent of the total IT services," he added.
Source: IANS