India IT and IT-Enabled Service Sector IT Usage and Trends 2007-2011 Forecast and Analysis: An Overview

This IDC study provides an overview of the IT spending trends by the India IT and IT-enabled service sector. It also provides insights into their important industry dynamics and opportunities, the trends shaping the vertical, emerging business challenges and issues, and the role that IT plays in exploiting opportunities and meeting challenges. This study also provides insights into componentwise IT spending patterns for major product categories in the vertical in 2006 as well as forecasts for the same on a yearly basis up to 2011.

"The total IT spending by the India IT and IT-enabled service sector was US$1,566.9 million in 2006, which is expected to increase at a compound annual growth rate (CAGR) of 16.2% throughout the forecast period to reach US$3,324.8 million by 2011. The major contribution will come from hardware, which is forecast to increase at a CAGR of 16.3% from US$911.1 million in 2006 to US$1,935 million by 2011. The major growth driver in the vertical is expected to be the packaged software market, which is forecast to increase at a CAGR of 20.7% throughout the forecast period from US$216.4 million in 2006 to US$553.6 million by 2011. The service market is also forecast to grow from US$276.1 million in 2006 to US$635 million by 2011 at a CAGR of 18.1%. With planned huge expansions into tiers 2 and 3 cities and the increased confidence of foreign clients in the India business process outsourcing (BPO) industry, all major IT product and service markets such as PC, networking equipment (e.g., IP PBXs, WLANs, and routers), server (i.e., midrange servers), packaged software, and service are forecast to maintain healthy growth rates throughout the forecast period. The key solutions industry players are targeting include business intelligence (BI) and knowledge management, customer informatics, automation, networking and integration, interactive voice response (IVR), VoIP and Web self-services," says Arpan Gupta, analyst, Verticals Research, IDC India.