Gartner Inc. today announced that India's information and communication technology (ICT) market is estimated to grow at a five-year compound annual growth rate (CAGR) of 20.3% to reach $24.3 billion, or nearly 2% of the country's gross domestic product (GDP), by 2011.
This growth will be driven by Indian chief information officers (CIOs) continuing to build and consolidate the basic IT infrastructure, in addition to small and midsize businesses (SMBs) increasingly leveraging technology to drive business growth and efficiency.
Based on the findings of the Gartner EXP Worldwide Survey of CIOs, Indian firms report stronger than average IT budget increases of around 13% versus the world average of 3.3% for 2008. This increased spending by Indian CIOs is directed primarily towards building new business capabilities, with 30% of IT spend allocated for business growth and 19% towards business transformation.
As Indian companies continue to increasingly take on global competition overseas as well as at home, Indian CIOs will need to re-examine their business models and processes to transform their IT organizations. Gartner’s India CIO Summit 2008, to be held at The Grand Hyatt, Mumbai on February 18-19, 2008, will concentrate on the significant challenges facing Indian CIOs and their teams as they strive to leverage IT to maximize their organization’s competitiveness.
According to Mr. Peter Sondergaard, global head of research, Gartner, “Enterprise expectations of IT have been building over the past three years. The increase in IT spending is driven by business priorities that need CIOs to drive distinctive, customer-focused solutions. CIOs need to become more tolerant of risk and innovation, and flexible to meet changing market and customer demands.”
The Indian IT landscape is evolving rapidly, driven by forces from a number of different directions, including continued growth in the offshore IT services sector, but increasingly augmented by strong domestic ICT growth. Almost all industries in India are seeing strong growth which, in an increasingly resource-constrained environment, they are trying to manage by rapidly improving their IT infrastructure. |
