Indian ICT market to reach $24.3bn by 2011
India's ICT market is estimated to grow at a five-year compound annual growth rate (CAGR) of 20.3 per cent to reach $24.3bn, or nearly 2 per cent of the country's gross domestic product (GDP), by 2011, says market-watcher Gartner
Growth will be driven by Indian chief information officers (CIOs) continuing to build and consolidate the basic IT infrastructure, the analyst says, in addition to small and medium-size businesses (SMBs) increasingly leveraging technology to drive business growth and efficiency.
Based on the findings of the Gartner EXP Worldwide Survey of CIOs, Indian firms report stronger than average IT budget increases of around 13 per cent versus the world average of 3.3 per cent for 2008. This increased spending by Indian CIOs is directed primarily towards building new business capabilities, with 30 per cent of IT spend allocated for business growth and 19 per cent towards business transformation.
As Indian companies continue to increasingly take on global competition overseas as well as at home, Indian CIOs "will need to re-examine their business models and processes to transform their IT organisations", said Peter Sondergaard, Gartner's global head of research.
"The Indian IT landscape is evolving rapidly, driven by forces from a number of different directions, including continued growth in the offshore IT services sector, but increasingly augmented by strong domestic ICT growth," Sondergaard added. "Almost all industries in India are seeing strong growth which, in an increasingly resource-constrained environment, they are trying to manage by rapidly improving their IT infrastructure."
Image: The Indian IT landscape is evolving rapidly, driven by forces from a number of different directions, Gartner says
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