Indian IT industry unlikely to see robust growth till 2005
MUMBAI: Overall spending growth on ICT (Information, Communication and Telecom) has declined dramatically. Yet ICT spending continues in the areas of enterprise software, security, systems and networking. CIOs today have re-arranged their priorities and are now focused on spending on services and technologies where they see a tangible return on investment. It is encouraging to see that Indian software services have been quick to recognise this and are aggressively pitching for this business, Hayward said.
But Nasscom has sounded a optimistic note on the revival in IT spend. IT spending is likely to be flat and revival is likely in next fiscal 2003-04, said Phiroz Vandrevala, past chairman, Nasscom, and executive vice-president of Tata Consultancy Service.
BFSI, telecom, retail, FMCG, healthcare, e-governance will be the key verticals that are likely to witnessed high growth, he elaborated.
Global IT spend was higher during 1995-2000 due to various reasons such as Y2K, dotcom boom, IP networks, software upgrades. But since 2000 the IT spend is on decline due to dot com washout, low spend on upgradition, economic slowdown in various parts of the world such as US Germany etc, telecom crash, global geo-political uncertainty and recent row over issues of corporate governance.
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