India's IT,ITeS growth to fall to 5 year low

Silicon India

Bangalore: Indian IT and ITeS industry is expected to grow at 10.8 percent in the current year, which is the lowest in the last five years, because of the global recession.

It would touch $110 billion in the next four years, and is expected to grow at a rate of 13.9 percent, a report of IDC India stated. The total revenue of the IT industry was $ 57 billion in 2008.

"In the backdrop of one of the worst ever global financial and economic meltdown, it is estimated that in 2009, the overall IT/ITeS industry of India is expected to grow at 10.8 percent. Going forward, the industry is expected to grow at 13.9 per cent (CAGR 2008-2013) to touch over $110 billion in 2013," said Kapil Dev Singh, Country Manager, IDC India.

"The growth will be led by spending by the government, manufacturing, telecom, pharmaceutical, utility and healthcare sectors. Retail, IT/ITeS along with banking and financial services would also continue to spend on IT," said Singh.

The exports of the industry are expected to grow 12.7 per cent, reaching Rs 3,28,081 crore by 2013 as compared to Rs 1,80,064 crore in 2008. The IDC's study estimates total IT industry revenue of Rs 3,09,573 crore in 2009. The exports would reach Rs. 2,00,168 crore, as the domestic IT/ITeS market would account for Rs 1,09,406 crore.

"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, . The share of IT/ITeS in the Indian domestic market is expected to rise from 31.7 per cent to 41.9 per cent in 2013, signaling the increasing focus of enterprises to 'leverage' the capacities built-up" said Singh.