| The Indian IT industry
will grow to Rs 2,470 billion by the end of calender year
2008 from Rs 870 billion in 2003, according to a latest
study. "The Indian IT industry will witness a compound
annual growth rate of 23.1 per cent between 2003 and 2008
with exports growing 25.3 per cent and domestic market
18.5 per cent," the study by market research firm
IDC said.
In 2003, the Indian IT industry grew 21 per cent at
Rs 870 bn (19.5 billion dollars) from Rs 720 bn in 2002,
and in 2004 growth will be 26 per cent with ITeS expected
to log 51 per cent growth.
"The higher growth in exports between 2003 and
2008 will be contributed primarily by the Business Process
Outsourcing (BPO) or IT-enabled Services which is expected
to grow at a high compound annual growth rate of 36
per cent. IT services export is expected to grow at
19 per cent during the same period," Kapil Dev
Singh, Country Manager, IDC (India) said while presenting
the study during 'Directions 2005'.
IDC said the domestic market has revived with 17 per
cent growth in 2003 after seeing the lowest growth rate
of six per cent in 2002 in the last 15 years. "This
growth rate has been made possible on the back of strong
global economic recovery.
The other pluses have been 8.2 per cent GDP growth
and rising corporate profits," he said.
The growth in 2003 makes India the fastest growing
and fourth largest domestic market in the Asia-Pacific
region.
"The growth trend in domestic IT market is going
to peak in 2005 at 21 per cent with all three components
-- hardware, software and services -- expected to grow
at a decent pace," Singh said.
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