New Delhi April 30, 2008:
The India domestic IT and ITeS market is expected to cross the Rs. 2,00,000 Crore (US$ 50 Billion) mark in 2012 compared to Rs. 90,014 Crore recorded in 2007. This translates into a CAGR of 18.4% in the five year period. Together with IT and ITeS exports revenue of Rs. 3,20,278 Crore, the total IT and ITeS industry size will grow to Rs. 5,29,976 Crore (US$ 132 Billion) by 2012, representing a CAGR of 16.5% (please see para ## below for expansion). These projections were announced by IDC India at the 21st annual briefing session for the ICT industry, Directions09 at New Delhi. Sharing the IT and ITeS domestic and exports market projections for 2008-2012 here today, India Country Manager Kapil Dev Singh said,
“The domestic IT and ITeS industry CAGR of 18.4% (during 2008-12) is expected on the back of a robust growth of the past five years (2003-2007). “We expect the industry to achieve this by offering innovative services to the evolving domestic buyers, we’ve called ‘Consumer 2.0’,” he added. IT market grew at 22.4% in 2007
The Indian IT and ITeS industry grew to Rs. 2,46,609 Crore in CY (Calendar Year) 2007, up from Rs. 2,01,413 Crore in 2006, representing a growth of 22.4%. Of the total industry size of Rs. 2,46,609 Crore, the domestic IT and ITeS Market contributed Rs. 90,014 Crore, while the remaining Rs. 1,56,594 Crore was contributed by the IT and ITeS exports segment. In 2007, IT Services (excluding ITeS) Exports continued to be the biggest segment at Rs. 97,492 Crore. In 2008, IDC expects the IT and ITeS industry to grow at 20%, with the domestic market growing at 22.4% compared to the IT and ITeS export market growth of 18.9%. The overall industry is projected to be Rs. 5,29,976 Crore by end 2012, with the share of domestic IT and ITeS revenues adding to 40% of the total, compared to the current 37%. The IT and ITeS exports market is likely to more than double to Rs. 3,20,278 Crore in 2012 from Rs. 1,56,594 Crore in 2007. In 2008, it (IT and ITeS exports segment) is expected to clock a growth of 20.4% to touch Rs. 1,86,142 Crore. “IDC believes that today’s connected consumer is using many more converged devices and looking for relevant content and services. We expect this trend to continue, with the addition of newer dimensions, so as to permeate to the mid- and lower-end of the pyramid by 2012”, IDC Country Manager Kapil Dev Singh added. India’s packaged software and services market grew faster than the hardware market, a trend that is likely to continue over the next five years. While packaged software and services as a segment is projected to grow from Rs. 29,104 Crore in 2007 to Rs. 73,101 Crore in 2012, the hardware segment is expected to grow from Rs. 48,940 Crore to Rs. 96,558 Crore in the six year period (2007 to 2012). ## While the overall IT and ITeS industry is projected to grow at a CAGR of 16.5% in the next five years, the highest growth, a CAGR of 27.3%, will come from the domestic ITeS market, climbing three times from Rs. 11,970 Crore in 2007 to Rs. 40,039 Crore in 2012. The IT Services Exports market is likely to report a lower CAGR of 13.8%. Growth to be powered by Enterprise 2.0
The premier IT consultancy firm, IDC India believes that Enterprise 2.0 is the next avatar of an enterprise that is more open and more prone to adopting new technologies and business practices. The other characteristics of Enterprise 2.0 will be the seamless connect between the customers and business partners. This essentially means the arrival of a new paradigm where information power shifts from a centralized authority to the constituents of the extended enterprise. The effect on the market landscape will be in the suppliers aligning to the new reality of Enterprise 2.0 in order to enable their organisations evolve from the current Enterprise 1.0 stage. Most importantly, the opportunity lies in leveraging the existing infrastructure as opposed to the technology infrastructure build-up and consolidation witnessed in the Enterprise 1.0 phase. India IT/ ITeS Industry Size, 2007-12
| (Rs.
Crore) |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
CAGR
07-12 |
| Domestic
Hardware & Others |
48,940 |
57,410 |
66,831 |
76,734 |
86,550 |
96,558 |
14.6% |
| Domestic
IT Services |
20,920 |
25,330 |
30,519 |
36,691 |
43,834 |
51,973 |
20.0% |
| Domestic
Packaged Software |
8,184 |
10,081 |
12,319 |
14,870 |
17,790 |
21,129 |
20.9% |
| Domestic
ITeS |
11,970 |
17,357 |
23,431 |
29,758 |
34,817 |
40,039 |
27.3% |
| Domestic
IT/ ITeS Market |
90,014 |
110,177 |
133,100 |
158,053 |
182,991 |
209,698 |
18.4% |
| IT/
IteS Exports Revenue |
156,594 |
186,142 |
218,107 |
250,087 |
284,666 |
320,278 |
15.4% |
| India
IT/ ITeS Industry Size |
246,609 |
296,319 |
351,207 |
408,139 |
467,657 |
529,976 |
16.5% |
Source: IDC India Limited, 2008
About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community makes fact-based decisions on technology purchases and business strategy. More than 900 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 90 countries worldwide. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting
www.idc.com. About IDC India
A subsidiary of CyberMedia, IDC India is regarded as the country’s most comprehensive, dependable and respected source for market intelligence and consulting in the fields of IT, telecommunications and consumer technology. Set up in 1987, IDC India is an ISO 9001:2000 company. With its head office at Gurgaon (near New Delhi), the company has branches in Bangalore, Chennai, and Mumbai. Additional information about IDC India's research, advisory and Go-To-Market service offerings can be found at
www.idcindia.com. For more details, please contact:
Sanjiv Kataria
Strategic Communications & PR Counsel
+91-9810048095 mob
Vishaal Bhatnagar
Associate Vice-President, IDC (India) Ltd.
+91-9810191634 mob
+91-124-2384816, 4031234 Ext. 228 landline
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