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India to drive market growth: IDC
By agencies
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Monday, 09 May 2005, 19:30 IST
NEW DELHI: The global IT market will expand at a compound annual growth rate of 6 percent between 2005 and 2009, with India exhibiting the strongest growth opportunities, research firm IDC has said.
Over the next five years, IDC expects to see worldwide IT market growth, which slightly outpaces nominal GDP growth. ''The global IT market will expand at a compound annual growth rate of 6 percent during 2005-2009,'' IDC Research Manager (Worldwide IT Markets) Juan Orozco said.
''Assuming economic stability, IT budgets should continue to grow in every region with emerging markets like India and Russia exhibiting the strongest growth opportunities,'' he said.
Further, the global network equipment market will reach $61 billion in 2005, with India surpassing China. ''Total network equipment spending will reach $61 billion in 2005 with a 2004-2009 compound rate of growth exceeding 10 percent.
''The Asia Pacific region continues to see some of the strongest growth with India surpassing China as the fastest developing nation in terms of network equipment spending,'' said IDC Worldwide Black Book 2005.
''Global growth will remain relatively robust in 2005, although the economic performance of the major industrial economies will be uneven and this will worsen the existing global imbalances,'' IDC Analyst Anna Toncheva said.
High oil prices and exacerbated protectionist pressures in the U.S. and Europe recently raised the risks of abrupt currency adjustments and a further increases in U.S. interest rates. ''Such a reversal in the economic environment will undermine IT spending plans and pose a threat to the stability of the IT market,'' IDC added.