Indian IT services market rebounds strongly
The Indian IT Services market is anticipated to grow around 23 per cent during 2010, says analyst Ovum, but will not recover to pre-recessionary growth levels until the end of the forecast period in 2013.
Indian IT procurers are expected to remain cautious with discretionary spending not picking up until 2011, according to Ovum’s ‘India Market Trends 2009: IT services forecast’ report. By the end of Ovum’s forecast period in 2013, the Indian IT services market will grow to over $24bn - from $11bn in 2010 - propelled mainly by large e-governance projects undertaken by central government.
Ovum reports that 2008 was a ‘particularly buoyant year for the Indian IT Services market’, as strong economic growth helped boost IT spending; however, the latter part of 2008 and 2009 witnessed growth slowdown as the global economic situation made customers scale back budgets. India never technically went into recession, however, and with the global economy on its way to recovery, economic activity has also picked up in India.