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Indian IT/ITeS growth likely to fall to 5 year low

Indian IT/ITeS growth likely to fall to 5 year low
PTI
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First Published: Sun, Jun 21 2009. 05 02 PM IST
Updated: Sun, Jun 21 2009. 05 02 PM IST
New Delhi: Indian IT and IT-enabled services industry is expected to grow at 10.8% in 2009, the lowest in the last five years, due to the global economic meltdown, a report by analyst firm IDC India said.
“In the backdrop of one of the worst ever global financial and economic meltdown, it is estimated that in 2009, the overall India IT/ITeS industry is expected to grow at 10.8%, which is the lowest in the last five years, but in the next four years, it would grow at 13.9% to touch a revenue of $110 billion,” the report added.
“Going forward, the overall IT/ITeS industry is expected to grow at 13.9% (CAGR 2008-2013) to touch over $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 $57 billion in 2008.
“The global slowdown will definitely have its impact on the Indian IT sector. Despite that the industry is still expected to grow at a compound annual growth rate (CAGR) of 11.4% by 2013,” Singh said.
The domestic IT and IT-enabled services (ITeS) revenue is slated to touch about Rs2,06,398 crore by 2013 from Rs99,254 crore in 2008, growing at a CAGR of 15.8%, the study said.
”The growth will be driven by governement spending, 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 is expected to grow at 12.7% to touch Rs3,28,081 crore by 2013 against Rs1,80,064 crore in 2008, Singh said.
IDC’s study pegs the total IT industry revenue to touch Rs3,09,573 crore in 2009. Of this, while the domestic IT/ITeS market accounts for Rs1,09,406 crore, exports could touch Rs2,00,168 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% to 41.9% in 2013, signalling the increasing focus of enterprises to ‘leverage´ the capacities built-up,” Singh said.
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First Published: Sun, Jun 21 2009. 05 02 PM IST