Domestic IT-ITeS Market To Grow 15% In 2010

Domestic IT-ITeS market will revive in 2010 to grow at 15 percent after a
moderate growth of 5.4 percent in 2009. The year-end 'India Domestic ICT Market
Top 10 Predictions 2010' report suggests that important structural changes,
brought about by the impact of economic slowdown will accelerate industry
transformation towards a new 'market order'. This new phase of market growth and
development, termed as 'Growth Phase 2.0' is evolving along trends that are
quite different from the earlier phase, Growth Phase 1.0 (2003-08), during which
the domestic market witnessed unprecedented growth, almost tripling the market
size from Rs 34,000 crore in 2003 to Rs 99,564 crore in 2008, a CAGR of 24
percent.

According to IDC there are four major trends that will rule in 2010. The
first is transformation of the consumer IT space: the metamorphosis of 'Consumer
1.0' to 'Consumer 2.0'. Another major trend will be consolidation and leveraging
of IT and telecommunications infrastructure built in Growth Phase 1.0 to realize
greater business efficiencies and launch innovative product and solution
offerings for their end-customers development of new business models in Growth
Phase 2.0 by both large and mid-size business enterprises.

2010 will also see increased adoption and acceptance of game changing
technologies such as x-as-a-Service (where 'x' could stand for software,
infrastructure or platform) delivered through the cloud and green technology and
3G/BWA telecommunications networks. Lastly the year will see government
intervention in providing economic stimulus to lagging end-use sectors, most
notably through the launch of large scale public infrastructure projects to
unlock hitherto untapped market potential.

Growth Phase 2.0, which started in 2009, will be built on the back of
innovative services and solutions sought by consumers and enterprises alike. The
technology behind these services-infrastructure, applications and
connectivity-will need to orchestrate and re-orient completely in order to
support their mass adoption.

IDC expects the annual growth rate of the India domestic IT-ITeS market
growth rate to reduce down from an average of 24 percent recorded during 2003-08
(Growth Phase 1.0) to 14.6 percent over the next five-years to 2013 (Growth
Phase 2.0).

Elaborating on the way ahead for 2010, Kapil Dev Singh, Country Manager, IDC
India said, "In 2010, changes that started last year will take concrete shape.
As the economy recovers both consumers and enterprises would demand services and
solutions that allow them to 'do more with less'. The key business concerns
through 2010, will be business model innovation, improved productivity, faster
return on investment and cost savings."

DQC News Bureau