The IT market is predicted to grow to $ 65 billion by 2009, a compounded annual growth rate of 21%. As per recent data released by IDC, the Indian IT market crossed the $25 billion mark in 2004. This included a contribution of $16.7 billion from exports, and $8.5 billion from the domestic market. 

According to IDC, the domestic market grew by 22.9% over 2003 and the growth primarily came from IT services (26% growth), PCs (25% growth), datacom products (32% growth) and multifunction devices (48% growth). Thus, the domestic IT market is clearly on a growth trajectory and the YoY growth rate is expected to peak at 23.3 % in 2005, the highest during this business cycle (2004-2009).

IDC predicts that the domestic market will grow at an average rate of 17% for the period 2004-09 and will move from Rs 38,303 crore in 2004 to Rs 84,878 crore in 2009. According to IDC (India) Country Manager, Kapil Dev Singh, “Higher growth will accrue in the areas of mobility, convergence and IT infrastructure management for the five-year period predicted by IDC”.

The IT exports market on the other hand grew by 32% in 2004 (in rupee terms) touching Rs 75,477 crore revenue. IT services exports clocked Rs 51,047 crore, whereas ITeS and hardware exports clocked Rs 24,430 crore. The growth came primarily from BPO services, which grew by 42% in 2004 (in rupee terms). IDC predicts that the export market will grow at an average rate of 22.2% (in rupee terms) touching nearly Rs 2,06,000 crore by 2009. 

These figures were released at Directions 2006, the annual ICT industry-briefing seminar organized by IDC. Kapil further commented, “The previous year was of strategic choices, which will have long lasting effect during this business cycle. In 2005, we will witness trends becoming mainstream and the market attaining another peak-success will depend on how well the strategic choices are executed or operationalised.”

CYBERMEDIA NEWS 
GURGAON

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