IT spending to hit $110 BN in 2012

End-user spending in information technology in India is expected to grow at a CAGR of 14.8 per cent and generate $110 billion (Rs 4.73 lakh crore) revenues in 2012. According to Gartner, IT end-user spending has increased as expected in the 2008 calendar year to $64.7 billion (Rs 2.78 lakh crore), a 17.2 per cent increase over last year.

This means the Indian market continues to represent a significant growth opportunity for IT vendors. India is poised for double-digit growth across verticals with financial services and communications organisations spending the most on IT, followed by services, manufacturing and government. “Indian businesses continue to invest in IT in order to drive operational excellence and innovation,” says Naveen Mishra,

Senior Research Analyst at Gartner. “Small and medium enterprises (SMEs) will drive the growth of various ITrelated industries, with the critical involvement of value-added resellers, distributors and retailers,” he adds. Gartner’s other predictions suggest that by 2012, the Indian market will ship nearly 24 million PCs, of which more than 50 per cent will be mobile PCs. Moreover, the total software market in India will reach $3.4 billion (Rs 14,620 crore) by this time.

—K.R. Balasubramanyam