Business   

Operational excellence, innovation to drive IT businesses

NEW DELHI: With a compounded annual growth rate (CAGR) of 14.8 per cent, the Indian information technology market would be worth $110 billion by 2012, where both hardware and software verticals would play an equal part, says a report by Gartner.

Pointing out that, in 2008, IT end-user spending would reach $64.7 billion, a 17.2 per cent increase from 2007, Gartner says Indian market continues to represent a significant growth opportunity for IT vendors, thanks to a robust gross domestic product (GDP) growth.

India is poised for double-digit growth across many vertical markets, with financial services and communications organisations spending the most on IT, closely followed by services, manufacturing and government sectors. All these factors would fuel IT spending, it says. “Indian businesses continue to invest in IT in order to drive operational excellence and innovation. Small and midsize businesses (SMBs) will drive the growth of various IT-related industries, with the critical involvement of value-added resellers, distributors and retailers. Additionally, the Indian government’s pro-business policies and its own increasing use of IT will continue to build confidence among local companies seeking to invest in and use IT,” says Naveen Mishra, senior research analyst at Gartner. The report also points out that by 2012, the Indian market will ship more laptops than desktop PCs. While desk-based PCs are expected to represent 46.1 per cent of the total market, the remaining will be mobile PCs.

Similarly, India is also one of the fastest-growing software markets and it is expected to register the third highest CAGR of 16.3 per cent for the forecast period of 2007 through 2012. Software spending and plans for critical IT initiatives to attain business agility will remain unaltered, the report adds.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

RBI to cap cheque collection charges
Airtel Innovation Fund launched
Taj Hotels launches Gateway brand
Operational excellence, innovation to drive IT businesses
LIC signs bulk deal with Infosys
Hyundai to make India global export hub for small cars
More voting rights for India in IMF
Asset Homes to diversify
Electronic rights issue process mooted
GMR gearing up to set up nuclear plants
Sensex tracks weak global trends
Exchange Rates
Bullion Rates
Wipro Infotech opens unit in Uttarakhand
Skoda expands dealer network in Chennai
Andhra Bank to sell Reliance MF products
Newgen sells minority stake to SAP Ventures
TVS Motor launches ‘balancing wheels’
Poddar to head Texmaco
HCL begins exports to Africa, Gulf countries
TCS, Wipro tie up with U.S.-based SAS

Copyright © 2008, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu