Indian IT-ITeS market is expected to revive in 2010 to grow at 15% to achieve revenues of INR1,207bn compared to INR1,049bn in 2009, according to a report from ICT market intelligence firm IDC India.
The domestic IT market is expected to grow at 13% in 2010 to touch INR1,077bn, while the domestic ITeS market is expected to grow at a rate of 35% to touch revenues of INR130bn.
The year-end ‘India Domestic ICT Market Top 10 Predictions 2010’ report by IDC India suggests that important structural changes, brought about by the impact of economic slowdown will accelerate industry transformation towards a new market order.
According to IDC, the four major trends that will accelerate the industry growth in 2010 include transformation of the consumer IT space; consolidation and leveraging of IT and telecommunications infrastructure; increased adoption and acceptance of game changing technologies; and government intervention in providing economic stimulus to lagging end-use sectors.
IDC expects the annual growth rate of the Indian IT-ITeS market growth rate to reduce down from an average of 24% recorded during Growth Phase 1.0 in the period 2003-08 (from INR340bn in 2003 to INR995.64bn in 2008) to 14.6% over the next five-years during Growth Phase 2.0 until 2013.
This relatively slower growth, albeit on a higher base, will witness enhanced competition leading to a rapidly changing strategy and continuous market re-alignment on the part of ICT vendors and suppliers, the firm said.
Kapil Dev Singh, country manager of IDC India, said: “In 2010, changes that started last year will take concrete shape. As the economy recovers both consumers and enterprises would demand services and solutions that allow them to ‘do more with less’. The key business concerns through 2010, will be business model innovation, improved productivity, faster return on investment and cost savings.
“These business concerns will mean that IT implementations in 2010 and beyond will have to deal with two paradoxical realities – higher business effectiveness and innovation through IT and secondly, greater efficiency of IT investments. Businesses will have to embrace such paradoxes more and more moving forward.”
