India's CFOs seem to be realising the benefits of information technology to the business as IT spending in country will reach $67 billion in 2010, an increase of 14.1% from 2009, says Gartner. The IT market in India is expected to grow 11% from 2009 until the end of 2013, with IT services growing faster than all other segments at 17.6%.
Telecommunications will have the slowest growth, increasing 9.1% during the same period. “India's economy recorded GDP growth of more than 6% during the recent global economic crisis,” says 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 the Gartner report, 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.
The domestic IT services sector, at $6.1 billion, accounted for more than 10% of the overall domestic ICT market in India in 2009, and is expected to witness the strongest growth at 17.6% among the four sectors through 2013. Gartner estimates the domestic IT services market in India will grow 17.6%, accounting for nearly 19% of the overall domestic ICT market in India by 2013.
The Indian PC market is expected to grow by 19% in 2010 and by more than 21% 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.
Meanwhile, the IT security market is forecast to grow more than 20% 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.