Indian Domestic IT Services, ITeS and Products Market To Touch Rs 1,71,697Cr In 2012

Indian Domestic IT Services, ITeS and Products Market To Touch Rs 1,71,697Cr In 2012

The overall Indian domestic IT services and products markets will touch Rs.1,71,697 Crore in 2012. The market will continue to grow at a compound annual growth rate (CAGR) of 17.3 per cent over 2010-2014 and the combined market size of the domestic IT services and IT products sector will touch Rs.2,33,930 Crore by 2014, according to CyberMedia Research (CMR).

The domestic IT Services and IT-enabled services markets will grow at a CAGR of 21.1 per cent and will touch Rs.98,188 Crore by 2014, while IT services alone will grow at a CAGR of 16.7 per cent over 2010-2014 and the domestic ITeS spending will grow at a CAGR of 30.2 per cent over the same period.

Anirban Banerjee, Associate Vice President, CyberMedia Research, said "A large chunk of IT hardware and software products, will witness good traction on account of the healthy growth in IT services, as enterprises try to gain the best leverage out of their IT deployment."

The Indian public Cloud computing market is expected to grow at a CAGR of 53 per cent over 2010-2014 and touch Rs.2,434 Crore by 2014 while the penetration of Cloud services in the Indian enterprise segment will increase to 6.8 per cent by 2012 from 4 per cent in 2010. The Indian SaaS market is expected to touch Rs.465 Crore in 2011 while the IT Product segments like software (20.1 per cent), personal computers (12.9 per cent), servers (13.3 per cent) and networking equipment (15.5 per cent) will have an above average CAGR growth over 2010-2014.

The Enterprise Resource Planning (ERP) market is slated to register a growth of 17.9 per cent over 2010. The Enterprise IT infrastructure spending will be driven towards storage solutions, data center consolidation and virtualization and unified communications plus collaborative applications. Green IT spending will also increase in 2012.

In 2012, emerging verticals like healthcare and life sciences (over 19 per cent growth over 2011), media and entertainment (over 16 per cent growth), banking and financial services  industry (BFSI) (nearly 15 per cent growth), manufacturing (over 15 per cent growth) and telecommunications (over 16 per cent growth) will all witness healthy IT spending growth. Retail sector IT spending is expected to grow at more than 19 per cent in 2012 (over 2011), while IT spending growth for the government and education sector is expected to touch nearly 16 per cent year-on-year (2012 over 2011). Other emerging verticals which are expected to grow are smart infrastructure (intelligent transportation), and energy and power utilities sectors.

Vivek Mishra, Lead Analyst, Smart Infrastructure and Energy Practice, CMR, said "IT applications such as Automatic Fare Collection (AFC) Systems for Rail, Road and Multimodal Transport (like Metro Rail, Monorail, and Bus Rapid Transit (BRT)); Intelligent Transport System (including Urban Traffic Management System, Highway Traffic Management System, Public Transportation System, Traveler Information System, Toll Collection System) for toll plazas, national highways and city transport infrastructure; Airport Information Management Systems (AIMS) for new airport terminals as well as greenfield airports are being extensively deployed. Around Rs.206 Crore was spent during 2010 to deploy these intelligent IT applications and nearly Rs.4,000 Crore is the expected value of IT spending on these deployments in the 4 years from 2011 to 2014."

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