Indian IT, ITeS industry to touch $100 bn by 2011

New Delhi, May 2: The Indian IT and ITeS sector is projected to become a 100-billion-dollar plus industry at an 18 per cent compound annual growth rate (CAGR) over the next five years to cross an estimated Rs 4,58,228 crore of revenue in 2011.

The industry clocked revenues worth Rs 1,98,477 crore last year, a jump of 31 per cent a year ago, according to IDC India's latest figures released here today.

''This will be a significant milestone for the industry and will surely mean a lot in terms of contribution to the country's GDP, employment generation and a whole host of gains, which ICT usage brings alongwith it,'' said IDC (India) Ltd Country Manager Kapil Dev Singh.

On the domestic front, IT/ITeS spend has been estimated at Rs 68,411 crore in 2006, a gain of 26 per cent over 2005. The revenues are projected to touch Rs 1,68,370 crore in 2011, at a CAGR of 19.7 per cent (IT growing at 16.4 per cent and ITeS at 40.4 per cent).

This further implies that domestic IT/ITeS revenues will grow faster than its export revenues for the next five-year period.

The Indian IT industry has been able to keep up the momentum of growth since 2003 with equal drives from exports revenue and domestic IT spending.

''Continuing with the same growth momentum for the next five years is not going to be an easy task. It will require the industry to create new user segments, identify new uses of ICT, define new relevance of ICT in the consumers' life and help develop the ecosystem required for that by designing innovative products and services,'' added Mr Singh.

UNI