The industry is projected to grow at 18% CAGR for the next five years time frame to cross an estimated INR 458,228 Crore of revenue in 2011, which means it will become a US Dollar 100 Billion plus industry. "This will be a significant milestone for the industry and will surely mean a lot in terms of contribution to the country's GDP, employment generation and a whole host of gains, which ICT usage brings alongwith it", commented Mr. Kapil Dev Singh, Country Manager, IDC (India) Limited.
On the domestic front, IT/ITeS spend has been estimated at INR 68,411 Crore in 2006, a gain of 26% over 2005. The growth in domestic IT/ITes spend has been primarily driven by investments by enterprises in IT infrastructure, line of business applications, security products and services, IT outsourcing and managed services and by consumers in mobile and digital products (digicams, notebooks, smart handheld devices etc.).
Domestic IT/ITeS revenues are projected to touch INR 1,68,370 Crore in 2011, at a CAGR of 19.7% (IT growing at 16.4% and ITeS at 40.4%). This also means that domestic IT/ITeS revenues will grow faster than IT/ITeS export revenues for the next five-year period.
"The domestic IT/ITeS market has attained a significant size now but continuing with the same growth momentum for the next five years is not going to be an easy task. It will require the industry to create new user segments, identify new uses of ICT, define new relevance of ICT in the consumers life and help develop the ecosystem required for that by designing innovative products and services", commented Mr. Singh.
The domestic market has moved into a new phase where just affordability is not a concern, availability of the right products/services and applicability of IT has gained more prominence and a healthy orchestration of these "three As" will help the market grow.
