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News >> Technology >>
Indian ICT spending to surpass $54.8B
By agencies
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Tuesday, 30 August 2005, 19:30 IST
MUMBAI: Indian information and communication technology (ICT) spending will surpass $54.8 billion by 2008 against $29.5 billion in 2004, representing a compounded annual growth rate (CAGR) of 19 percent; according to IT research and analysis firm Gartner Inc.
"The most dominating sector will be telecom followed by hardware, IT services and software," Gartner India Research & Advisory Services Pvt Ltd Vice President Partha Iyengar said.
He said domestic vendors currently account for 42 percent of the market share while the remaining 58 percent is with foreign vendors.
"If Indian vendors do not focus on the domestic market opportunity, this percentage is expected to slip even further by 2008. The growth of the Indian ICT market will be driven by a combination factors that include an economic upswing, new government policies and foreign direct investment,'' he said.
He said the domestic ICT industry has limited choices when it comes to local vendors and this is because 60 percent of Indian services vendors focus on the export market due to the lucrative margin, except for strategic engagements with the government and multinational companies.
Gartner estimates that by 2005 end, the ICT export industry in India would be worth $16.5 billion (IT outsourcing and BPO). Application outsourcing would constitute the major component, followed by IT services and high-end BPO.
''By 2006 end, IT services are projected to grow at 35 percent, while BPO at 45 percent,'' Iyengar added.