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India's IT market set to grow at 21.5 p.c
By agencies
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Monday, 29 January 2007, 18:30 IST
New Delhi:Driven by huge investments across various sectors, India's domestic IT market is expected to grow at 21.5 per cent this year at Rs 75,891 crore, making it the fastest-growing segment in the Asia-Pacific region.
"A major wave of IT investments has started to take place across banks, financial services institutions, telecom, manufacturing, government, resources, education and other industries," IDC said in its report on "India Domestic IT market Top 10 Predictions for 2007."
"This is probably why India is the fastest-growing country by IT spending in 2006 at 22.4 percent, and is forecast to remain so in 2007 at 21.5 percent when it reaches Rs 75,891 crore," it said.
In 2007, Indian enterprises would graduate to the second-level of 'Dynamic IT infrastructure', where IT infrastructure would be able to effect changes in response to the changing business scenario, it said.
The key technology components that would come to the fore to attain this state would be virtualization, SOA and application integration.
This year will mark the beginning of an aggressive focus from all major vendors to broaden and deepen their coverage of the SMB sector. Vendors will experiment with new models like On-premise hosted applications, hardware on lease and Software as a Service (SaaS).
Major application vendors like SAP, Oracle and Microsoft will expand their SaaS offerings with a broader range of applications and greater scalability, setting the stage for more partners delivering complementary solutions via the SaaS model.
SMBs will contribute about 50 percent to the enterprise applications market in 2007 in India.
The market spend on system integration services in 2007 is expected to be around 872 million dollar, at a growth rate of 19 percent and will contribute to 21 percent of the total IT services market, the report said.
Vendors like IBM have already come to market with such offerings and TCS, Wipro and HP are expected to follow suit this year, the report said adding this trend is expected to gain further momentum through the year.