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Indian IT growth to dip by half
By siliconindia
|
Friday, 16 January 2009, 16:15 IST |
2 Comments
Bangalore: The IT growth in India is to witness a severe slump as it is expected to dip by about half compared to the 25 percent growth it saw in the previous year. Reduction in capital expenditure and delayed investments in technology will trim down the IT growth to 13 percent.
"On the opex side (operational expenditure), things are stable because running operations is critical, however, new technology investments such as SOA are being held back," Rajesh Uppal, IT head of Maruti Suzuki India told The Economic Times. Different Indian enterprises such as Maruti Suzuki, Hero Honda, Bharti Airtel and midsized companies including Madura Coats and Gokaldas Exports are still willing to spend around $18 billion (
87,715 crore) in buying new software applications, hardware systems and services this year. Yet, there is a more focus on short-term information technology projects that assure significant cost savings.
As per TR Madanmohan of consulting firm Browne and Mohan, this year's growth will be driven by mid-sized organizations such as Madura Coats and Gokaldas. The total Indian market for domestic IT including hardware and BPO services clocked revenue of around $16 billion (Rs 78,002.5 crore) for the year ended December 2008. It is also expected that the Indian enterprises will spend almost $5.8-6 billion on IT services this year, compared with around $5.6 billion these firms spent on software services in 2008. Infosys co-founder and Chairman NR Narayanmurthy is among those banking on India's domestic IT services market.
87,715 crore) in buying new software applications, hardware systems and services this year. Yet, there is a more focus on short-term information technology projects that assure significant cost savings.
As per TR Madanmohan of consulting firm Browne and Mohan, this year's growth will be driven by mid-sized organizations such as Madura Coats and Gokaldas. The total Indian market for domestic IT including hardware and BPO services clocked revenue of around $16 billion (Rs 78,002.5 crore) for the year ended December 2008. It is also expected that the Indian enterprises will spend almost $5.8-6 billion on IT services this year, compared with around $5.6 billion these firms spent on software services in 2008. Infosys co-founder and Chairman NR Narayanmurthy is among those banking on India's domestic IT services market.
