IT/ITeS industry growth may fall to 5-year low

IT/ITeS industry growth may fall to 5-year low

But in next four years, it would grow at 13.9 per cent to touch revenue of US$110 billion, the report by analyst firm IDC India has said.

“Going forward, the overall IT/ITeS industry is expected to grow at 13.9 per cent (CAGR 2008-2013) to touch over US$110 billion in 2013,” IDC India Country Manager Kapil Dev Singh said in the report.

The total revenue for the Indian IT industry in 2008 stood at over US$57 billion in 2008.
“The ongoing slowdown will definitely have its impact on the Indian IT sector. Despite that the industry is still expected to grow at a CAGR of 11.4 per cent by 2013,” Singh said.

The domestic IT and IT-enabled services (ITeS) revenue is slated to touch about Rs 2,06,398 crore by 2013 from Rs 99,254 crore in 2008, growing at a CAGR of Rs 15.8 per cent, the study said.

“The growth will be led by spending by the government, manufacturing, telecom, pharmaceutical, utility and healthcare sectors. Retail, IT/ITeS along with banking and financial services would also continue to spend on IT,” Singh said.

Export of IT/ITeS are expected to grow 12.7 per cent to touch Rs 3,28,081 crore by 2013 against Rs 1,80,064 crore in 2008, Singh said.

Pressure on hardware

IDC’s study pegs the total IT industry revenue to touch Rs 3,09,573 crore in 2009. Of this, while the domestic IT/ITeS market accounts for Rs 1,09,406 crore, exports could touch Rs 2,00,168 crore, the study said.

“The hardware market will remain under pressure through the year, while the software and IT services markets will also be affected, though to a comparatively lesser extent,” Singh said.

“The share of IT/ITeS in the Indian domestic market is expected to rise from 31.7 per cent to 41.9 per cent in 2013, signalling the increasing focus of enterprises to ‘leverage’ the capacities built-up,” Singh said.

Press Trust of India

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