Indian IT & ITeS market to cross $50 bn by 2012

News Gallery

New Delhi, May 4: A market intelligence agency expects India's domestic IT and ITeS market to cross the 50 billion dollar mark ( Rs 2,00,000 crore) in 2012, recording a compounded annual growth rate of 18.4 per cent in five years on Rs 90,014 crore in 2007.

IDC India says the total IT and ITeS industry size will grow to Rs. 5,29,976 crore (132 billion dollars) by 2012, representing a CAGR of 16.5 per cent. The company's India manager Kapil Dev Singh said, "the domestic IT and ITeS industry CAGR of 18.4 per cent (during 2008-12) is expected on the back of a robust growth of the past five years (2003-2007)". "We expect the industry to achieve this by offering innovative services to the evolving domestic buyers," he added. IT market grew at 22.4 per cent to Rs 2,46,609 crore in 2007 from Rs 2,01,413 crore in 2006.

Of the total industry size of Rs 2,46,609 crore, the domestics contributed Rs 90,014 crore, while the remaining Rs 1,56,594 crore was contributed by exports. Exports of IT services alone stood at Rs 97,492 crore in 2007, said IDC India.

Projecting an overall growth of 20 per cent this year, the agency has estimated the industry to grow to Rs 5,29,976 crore by end 2012, with the share of domestic revenue going up by three per cent to 40 per cent from the current 37 per cent. Exports share is likely to more than double to Rs. 3,20,278 crore in 2012 from Rs 1,56,594 crore in 2007.

In 2008, exports are expected to clock a growth of 20.4 per cent to touch Rs 1,86,142 crore, IDC added.

The agency said India's packaged software and services market grew faster than the hardware market, a trend that is likely to continue over the next five years. While packaged software and services as a segment is projected to grow from Rs 29,104 crore in 2007 to Rs 73,101 crore in 2012, the hardware segment is expected to grow from Rs 48,940 crore to Rs. 96,558 crore in the six year period (2007 to 2012).

IDC India said while the overall IT and ITeS industry is projected to grow at a CAGR of 16.5 per cent in the next five years, the highest growth, a CAGR of 27.3 per cent, will come from the domestic ITeS market, climbing three times from Rs 11,970 crore in 2007 to Rs 40,039 crore in 2012. The IT services exports market is likely to report a lower CAGR of 13.8 per cent, it added.

UNI