Gartner Says Indian ICT Spending To Grow 10.3 Percent in 2011

India information and communication technology (ICT) spend is forecast to reach $71. 9 Billion in 2011, a 10.3 percent increase from 2010 spending of $65.23 billion, according to Gartner.Hardware is the fastest growing segment with a compound annual growth rate (CAGR) growth of 20.4 percent through 2014. IT services is showing the strongest annual revenue growth at 22 percent in 2010 while the telecom segment, that is forecast to account for 73 percent of the Indian ICT market in 2010, is witnessing a slow down and is set to grow at 13.2 percent growth. Double-digit growth across all sub segments of the ICT space will drive the growth this year.

In hardware, much of the growth will be driven by spending within the client computing space. Increasing rural prosperity, aided by growth in the small office and the small business segment, are the key growth drivers in the PC segment.

The software segment in India is expected to grow with strong traction being recorded in business intelligence, middleware, database management systems (DBMS) and application development (AD) tools. The India market is in a growth stage and is the fourth largest software market in Asia-Pacific after China, Australia and South Korea. There are sizeable opportunities within manufacturing, retail, transport and hospitality, as well as the already established opportunities in government, telco, financial sectors and IT services.

India continues to be a vastly under penetrated IT market relative to its potential. Infrastructure projects undertaken by India's government will strongly drive IT, in conjunction with the growth of the hyper-competitive financial services in India, which requires highly sophisticated IT systems. At the same time, manufacturing in India is beginning to take off, and is expected to show strong growth through 2014.

Related Articles:

Green IT : Towards a Greener IT

Getting the Right IT: Navigating Growth