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IT spending to increase in India, China
By siliconindia
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Tuesday, 21 October 2008, 16:40 IST |
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New Delhi: Though economic downturn forces IT firms to review their budget plans in U.S., Europe and many other western countries, IT spending in Asia Pacific region, especially India and China, is expected to grow about 10-16 percent till 2010, reported The Economic Times. A study by Zinnov, a consulting firm finds that IT spending in India is likely to grow between 17.6 to 24 percent by 2010 and China's IT spending would reach by 10 to 13 percent whereas global IT spending would only increase 3.3 to 6.5 percent.
Chandramouli CS, Advisory Services Engagement Manager, Zinnov said, "With the shrinking IT budgets of the developed world set to shrink further, IT services companies have been working on realigning growth strategies and looking at opportunities in countries such as India and China."
Currently, India's IT spending reached at $17 billion and China spends about $21 billion.
According to Zinnova, IT spending in North America would grow about five percent and four to five percent in Europe. Spends in the U.S. would move in the range 2.5-6 percent, reflecting a dip in the nearer future and then picking up towards 2010.
"Companies in emerging markets, which are in their growth phase, have a greater requirement for building IT infrastructure. A recent CIO survey in India showed that most domestic companies don't have scalable IT systems," said Chandramouli.
Large presence of small and medium businesses (SMBs) further highlights opportunities in emerging markets. IDG finds that about 23.4 million SMBs, nearly one-third of the global total, are located in Asia-Pacific, excluding Japan. IT spending of Indian SMBs is expected to grow from 38 percent to over 50 percent by 2015.