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'India fastest growing IT services market in Asia Pacific'
By siliconindia
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Friday, 28 March 2008, 01:08 IST
New Delhi: India is the fastest growing IT services market in Asia Pacific while China represents the largest regional opportunity, says a report by IT market research firm Springboard Research. According to the report, the IT services market in Asia Pacific (excluding Japan) is poised to reach $55.9 billion by 2011, representing a compounded annual growth rate (CAGR) of 10.5 percent. In 2007, the market stood at $37.5 billion.
The top 10 countries in the region were China, India, Australia, Korea, Indonesia, Vietnam, Malaysia, the rest of ASEAN, Singapore, and the Philippines.
"For India and China, local capabilities, offerings and presence are just the start of a list of essential requirements for success. On the other hand, existing relationships, marquee clients and strong partnerships can provide capabilities for expansion in markets such as Hong Kong and New Zealand with relatively limited opportunities," said Phil Hassey, Vice President, Services Research at Springboard Research.
The report says that application hosting - with a CAGR of 19.5 percent between 2007 and 2011 - would register the fastest growth during the forecast period, although enterprise application integration at $7.8 billion would continue to be the largest component of the market by 2011.
Meanwhile, the reluctance of Chinese firms to use the Enterprise IT outsourcing model would reduce the relative size of the sector and would bring down its weighting in the market by 2011.
The report goes on to say that China would not challenge India as the home of offshore service delivery especially for English language requirements as skill levels, quality and governance are more suited to India being a hub of global delivery.