Driven by increasing IT adoption by companies, the domestic information technology (IT) industry is expected to grow to Rs.1.75 lakh crore by 2016, a report by Boston Consulting Group (BSG) said on Monday.
“The domestic IT industry is expected to grow at 12 per cent over the next four years, reaching a size of Rs.1.75 lakh crore by 2016, driven primarily by faster growth in the services and software segments,” the BCG-CII report said.
According to the report, the IT market for 2011 is estimated at Rs.99,700 crore.
Of this, the share of IT services is the largest at 50 per cent (Rs.49,400 crore), the hardware segment contributed 32 per cent (Rs.32,500 crore) and software services Rs.17,800 crore.
While the IT services segment is expected to grow at 14 per cent to Rs.96,600 crore by 2016, the hardware segment is likely to grow 6 per cent to Rs.44,400 crore.
The software products will grow by 14 per cent to Rs.34,400 crore.
“Increase in IT adoption by companies, an increase in the size and scale of companies, outsourcing of non-core business activities, including new transformational IT deals in sectors such as banking and telecom, and emergence of new technologies such as cloud and data analytic, would drive the future growth of IT services in India,” the report said.