Indian ICT Spending To Grow 14 Per Cent In 2010

Government infrastructure projects in conjunction with the expansion of the financial services and manufacturing segments will drive strong IT growth in 2010. IT spending in India will reach $67 billion in 2010, an increase of 14.1 percent from 2009. The IT market in India is expected to grow 11 percent from 2009 until the end of 2013, with IT services growing faster than all other segments at 17.6 percent (see Table 1). Telecommunications will have the slowest growth, increasing 9.1 percent during the same period.

Computing Hardware is forecasted to grow by 16.2% by 2013. It was at $7,412 Million in 2010 is said to reach at $11,679 million by 2013, according to Gartner. Software is said to grow at 12.9%, from $2,477 Million to $3,604 in 2013. IT services is predicted to grow at the rate of 17.6%. It will reach from $7,403 Million to $11,777 million in 2013. While Telecommunications is said to grow only by 9.1% from $49,767 Million in 2010 to $ 89,356 million in 2013.

“India’s economy recorded GDP growth of more than 6 percent during the recent global economic crisis,” said Aman Munglani, principal research analyst, Gartner. “Its growth and the growth of India’s IT industry, have been driven largely by domestic consumption, which has left India less exposed than many emerging markets to global economic cycles”.

According to Gartner, India continues to be a vastly under-penetrated IT market relative to its potential. As IT buyers expand and mature and consumers increasingly understand the benefits of IT, acceptance of technology will increase, leading to further IT market growth. The Indian government’s focus on infrastructure projects with IT dimensions will

be a strong driver for overall IT growth within the country.

At the same time, manufacturing in India is increasing, and it is expected to show strong growth from 2008 through 2013. Other Industries to watch for growth include communications, utilities and retail. The domestic IT services sector, at $6.1 billion, accounted for more than 10 percent of the overall domestic ICT market in India in 2009, and is expected to witness the strongest growth at 17.6 percent among the four sectors through 2013. Gartner estimates the domestic IT services market in India will grow 17.6 percent, accounting for nearly 19 percent of the overall domestic ICT market in India by 2013.

The Indian PC market is expected to grow by 19 percent in 2010 and by more than 21 percent in 2011. Consumers and small businesses are leading PC growth, with higher growth rates occurring primarily in smaller cities. Enterprises are seeking to lower their PC acquisition costs by evaluating alternate PC delivery technologies based on desktop virtualization, such as hosted virtual desktops, server-based computing and blade PCs.

The Indian server market will reach $551 million in 2010, registering a growth rate of 6 percent from 2009. In the next few years, x86-based servers will be biggest driver for the server market in India. Blade adoption will be a key enabler of this growth. Virtualization will be another driver of growth in the x86 market in India, as many midsize companies are expected to join large enterprises in deploying server virtualization in the next three years.

Revenue in the Indian external-controller-based storage market will reach $319 million in 2013, growing 14 percent from 2009 to 2013. Network-attached storage will grow 22 percent over the same period. Telecommunications, finance and manufacturing will continue to account for the bulk of investments in disk storage during the forecast period. Repeat business within these verticals will provide a substantial opportunity for shipments of high-end disk arrays and high-value upgrades to machines. A strong return to growth is expected in 2010, with good growth expected across each of the verticals.

Software spending in India is projected to grow 12.9 percent through 2013, compared with the regional average of 10.8 percent during the same period. India is among the top four markets in Asia/Pacific, both in size and in its growth prospects for the next five years.

The Indian IT security market is forecast to grow more than 20 percent in 2010. The focus of IT security has shifted from single-point solutions, such as antivirus software, to more holistic suite solutions such as intrusion prevention systems and endpoint security solutions. Security solutions will increasingly include content-aware capabilities, which will enable the system to detect which data is critical and sensitive and requires greater levels of protection. One

example of this is content-aware data loss protection software, which includes content detection capabilities.

Indian telecommunications services market revenue will reach $41.4 billion in 2013, growing 7 percent from 2009 to 2013. The Indian mobile communications market continues to grow, as measured by the number of subscribers. However, revenue growth has slowed as price points continue to fall due to increased competition from new operators. Data services will be the main driver of the mobile sector from 2009 through 2013, and will grow at 13 percent through 2013, accounting for 14 percent of total mobile revenue in 2013. Mobile voice revenue will grow at a steady rate of 9 percent

Fixed services revenue will increase only slightly, at 1 percent per year. While fixed enterprise revenue will decrease by 1.8 percent per year, fixed consumer revenue will increase by 0.6 percent per year. Household penetration of consumer broadband connections will reach 7 percent in 2013. ADSL will remain the most popular technology, though adoption of fixed-wireless technology such as WiMAX will increase.