IT Industry Growth
The industry body, NASSCOM, believes the sector will close off the year (that’s March 2016) with between 12-14 percent growth. In the next fiscal, NASSCOM expects the sector to add $20 billion of revenues to its current $146 billion—that’s about 13.6 percent growth. According to NASSCOM, “Export revenues for FY2016 is projected to grow by 12 to 14 percent and reach $110-112 billion. Domestic revenues (including ecommerce) for the same period will grow at a rate of 15-17 percent and is expected to reach $55-57 billion during the year.”
India will remain the world’s fastest growing information technology (IT) market in 2016 as it is expected to spend more than $72 billion on IT services, products and hardware, up from 7.2% from the current year, according to research firm Gartner Inc.
The growth will come on the back of the digitization wave catching up with Indian companies and the growing number of connected devices that form the Internet of Things (IoT), said the research firm said on Tuesday at its three-day annual symposium and IT expo 2015 which started on 2 November in Goa.
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India’s IT market is projected to grow annually at a rate of 4.95% between 2015 and 2019—the fastest globally—to touch $85.3 billion by the end of 2019.
The robust growth will help India overtake Australia to become the second largest IT market in the Asia-Pacific by 2019, behind China, said Aman Munglani, research director at Gartner.
Devices, which include mobile phones, personal computers and tablets, will account for almost 33% of the overall IT spend in India, growing at 9.3% in 2016. While data centre systems will grow 3.9% in 2016, IT services, which accounts for 18.1% of the overall IT spend, will be the fastest growing segment in 2016 with 13.8% growth year on year, predicts Gartner.
Software, which accounts for nearly 7% of IT revenue in India, will grow 12.7%. Communication services will continue to account for the largest share of IT spend: 39.2% of revenue in 2016. However, this will also be the slowest growing segment, with a 2.1% rise in revenue in 2016, according to Gartner.
As per the research firm’s survey of chief information officers, Indian IT budget growth of 11.7% is one of the highest in the world, while global average is 1%. “The IT industry is being driven by digital business, and an environment driven by a connected world,” said Mike Harris, group vice-president at Gartner.
Gartner predicts spending on Internet of Things (IoT) hardware to exceed $2.5 million per minute in 2016. IoT, usually defined as a network of things that can communicate and exchange information over the Internet. These interconnections, relationships, and algorithms are defining the future of business, according to Harris.