New Delhi- July 28, 2012: Market analyst International Data Corporation (IDC) says Infotech spending in India is slated to grow at a comfortable 16.3 percent this year, with a sharp increase in the contribution of the ‘small guys’ . A new research report, released last week -- India IT Market Overview Report 2012-- finds that traditional verticals such as BFSI, Communication & Media, Government, Manufacturing and IT/ITeS continued to be the highest spenders in 2011 with moderate Compoundedc Annual Growth Rate (2010-2015) of 14%-18%. Retail & Wholesale, Energy & Utilities, and Healthcare witnessed tremendous growth (>23%) in IT spending. The trend is expected to continue.India is witnessing a phenomenal increase in SME spending on IT says IDC: 38% of Enterprise IT spending in 2011 was by the SME segment. The proportion is expected to grow to 43% by 2015. Investments on emerging technologies such as Social Media, Cloud, Mobility and Big Data are on the rise.
The total IT market is expected to grow to $ 43.57 billion in 2012, up from $ 37.46 billion in 2011. Despite lesser than expected GDP growth figures in 2011-2012, followed by a similar trend in the quarter ending June 2012, India still commands a high growth rate, next only to China among the BRIC countries - and higher than several developing economies.
However Rupee depreciation and high inflation have slowed down consumer spending - but this is expected to be a temporary phenomenon.
Says Ravi Sharma, Research Manager, Consulting Group, IDC India: "Cautious optimism will continue to be the order of the day for most enterprises. However, this is not expected to reduce IT investments. It merely indicates that future investments will undergo intense scrutiny and that effective financial and risk management will gain priority in the days to come. Market driven policies pertaining to e-Governance, Financial Inclusion and Youth-driven Entrepreneurship are enabling rural development. Sector driven policies in the areas of Infrastructure, Manufacturing and Retail have steered industry growth. Political initiatives are increasingly driving demand for IT Hardware”.
In recent days, Infosys, Wipro, TCS and HCL have announced their quarterly results – with the first two performing less well than expected, and the last two exceeding their targets… suggesting a mix of good times, bad times for India-brand IT.