In my last blog I mentioned about the IDc presentation in the Solution Provider Summit in Kathmandu. Given below is part of the presentation which talks about how Indian IT market will shape up in next 5 years. I’m sure you will find the report extremely useful
Live with Passion 🙂
IDC’s India Domestic IT/ITeS Market Top 10 Predictions for 2009 Report Reveals
Domestic IT/ITeS market to grow 13.4% in 2009, the slowest since 2003
Economic slowdown to Propel Transformation to Growth Phase 2.0
New Delhi/Bangalore, December 31, 2008: The global ICT market intelligence firm, IDC India predicts that the domestic Indian IT/ITeS market will grow at 13.4% in 2009, the slowest since 2003. The much awaited annual IT/ITeS market forecast suggests that important structural changes, taking place on the back of a global economic meltdown, will propel a new ‘market order’ in the domestic Indian IT/ITeS industry.
This new ‘market order’, termed as Growth Phase 2.0, will be quite different from the earlier phase, Growth Phase 1.0 (2003-08), during which the domestic market witnessed unprecedented growth, nearly tripling the market size from Rs. 34,000 crore in 2003 to Rs.1,01,031 crore in 2008, a CAGR of over 24%.
IDC’s report India Domestic IT/ITeS Market Top 10 Predictions for 2009 states that Growth Phase 2.0 will leverage the IT infrastructure built and consolidated during Growth Phase 1.0.
Growth Phase 2.0, expected to evolve 2009 onwards, will be built on the back of new and innovative services sought by consumers and enterprises alike. The technology behind these services—infrastructure, applications and connectivity—will need to orchestrate and re-orient completely in order to support their mass adoption.
IDC expects the India domestic IT/ITeS market growth rate to come down from an average of 24.3% recorded during 2003-08 (Growth Phase 1.0) to 16.4% in the coming five years till 2013. This relatively slower growth will see enhanced competition leading to a rapidly changing strategy and continuous market re-alignment on the part of ICT market participants.
"It’s not only the end of another year; it’s also the end of a business cycle, that began in 2003", says Mr. Kapil Dev Singh, Country Manager, IDC India.
"2009 shall herald the beginning of a new business cycle, that will be marked by slow growth in 2009 but would eventually be the basis of a new phase of growth. The issues in the short run, more pronounced throughout 2009, will be productivity, cost savings and customer retention. This would eventually pave way for innovative services (for both consumers as well as enterprises) by leveraging the existing infrastructure built so as to align with emerging opportunities,” Mr. Singh adds.
2009 Domestic IT/ITeS Market to grow at 13.4% (against 17.3% in 2008) :
The combined India domestic IT / ITeS market grew by 17.3% in 2008 to touch revenue of Rs. 1,01,031 crore (over Rs. 86,101 crore recorded in 2007). The domestic IT market (excluding domestic ITeS) grew at 15.4% in 2008 over 2007 to report revenue of Rs. 94,185 crore. The domestic ITeS market grew 53.2% in 2008 to report revenues of Rs. 6,846 crore (from Rs. 4,468 crore in 2007).
IDC expects the combined India domestic IT/ITeS market to grow at a slower 13.4% in 2009 to achieve revenue of Rs. 1,14,574 crore. The domestic IT market is expected to grow at 11.4% in 2009 to post Rs. 1,04,937 crore, while the domestic ITeS market will post revenues of Rs. 9,637 crore, a growth of 40.8 %.
Table 1: India Domestic IT/ITeS Market Size (in Rs. Crore)
|Market Segment||2007||2008||2009||Growth 2008 over 2007||Growth 2009 over 2008|
|Hardware + Others*||52,890||59,465||63,703||12.4%||7.1%|
|Total Domestic IT Market||81,633||94,185||1,04,937||15.4%||11.4%|
|Total Domestic ITeS Market||4,468||6,846||9,637||53.2%||40.8%|
|Total Domestic IT/ITeS Market||86,101||1,01,031||1,14,574||17.3%||13.4%|
The India Domestic IT/ITeS Market Top 10 Predictions for 2009 are as given below:
SLOWDOWN TO ACCELERATE IT/ITES MARKET TRANSFORMATION FROM GROWTH PHASE 1.0 TO GROWTH PHASE 2.0
INDIA TO BE THE FASTEST GROWING MARKET IN APAC
IT OPTIMIZATION TECHNOLOGIES ADOPTION AND USAGE TO GROW
TELECOMMUNICATIONS SECTOR IT SPENDING GROWTH WILL BE FASTEST
THE OUTSOURCING SERVICES MARKET WILL MOVE TOWARDS CONSOLIDATION IN FAVOUR OF LARGER PLAYERS IN 2009.
EXPERIMENTATION WITH ‘CLOUD COMPUTING’ MODEL WILL INCREASE BUT WILL NOT BECOME MAINSTREAM IN 2009
THE STAGE WOULD BE SET IN 2009 FOR NEW CHANNEL FORMS TO EVOLVE
CONSUMER 2.0 ELUSIVE! DELAY IN ORCHESTRATION OF CONTENT, CONVERGENCE AND CONNECTIVITY
ENTERPRISES TO LOOK AT AN INTEGRATED SECURITY APPROACH, REVAMP THEIR BUSINESS CONTINUITY PLANS
GLOBAL IT GROWTH WILL BE HALVED