India’s IT spending to hit US$110 by 2010

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Sept. 12 – India's star industry, the Information Technology sector is predicted to double its spending by 2012 from 2007, reaching US$110 billion as companies and state-run organisations boost efficiency, a Gartner report said. The sectors CAGR is 14.8 per cent.

IT spending in 2008 is on track to reach US$64.7 billion, a 17.2 percent increase from US$55.2 billion in 2007, the research and advisory firm said.

The Hindu reported that India is poised for double-digit growth across many vertical markets, with financial services and communications organisations spending the most on IT, closely followed by services, manufacturing and government sectors. All these factors would fuel IT spending, it says. “Indian businesses continue to invest in IT in order to drive operational excellence and innovation. Small and midsize businesses (SMBs) will drive the growth of various IT-related industries, with the critical involvement of value-added resellers, distributors and retailers. Additionally, the Indian government’s pro-business policies and its own increasing use of IT will continue to build confidence among local companies seeking to invest in and use IT,” says Naveen Mishra, senior research analyst at Gartner.

The report also points out that by 2012, the Indian market will ship more laptops than desktop PCs. While desk-based PCs are expected to represent 46.1 per cent of the total market, the remaining will be mobile PCs.

Reuters adds that the financial services and telecommunications firms are the biggest spenders on IT, the growth is also likely to be aided by services, manufacturing, government, and small- and mid-sized organisations, the report said.

Spending on telecommunications technologies in the world's fastest-growing wireless market is expected to grow to US$82 billion in 2012 from an estimated US$49.8 billion in 2008.

Gartner said spending on software services and applications will rise to US$3.4 billion in 2012, growing at a compounded annual growth rate of 16.3 percent from 2007, while spending on computers will almost double in the period to US$12.9 billion.

Services such as network security and enterprise application projects will rise to US$11.8 billion, from US$4.7 billion in 2007, Gartner said.