Is Indian IT really fattening?

In the global slow down scenario, where all the countries are facing a recession, the Indian IT industry seems to be gradually gearing up to the mark in export revenues. According to IT research firm Gartner, IT end-user spending in India is expected to grow at a compound annual growth rate (CAGR) of 14.8 per cent from 2007 through 2012 to generate US $110 billion in 2012. We can say that the Indian IT industry hardly has a radical effect in the retrenchment of employees. The reason is that the Indian businesses continue to invest in IT in order to drive operational excellence and innovation to represent a significant growth opportunity for IT vendors.

There can be any number of reasons for the above statement like one of it is growth in server market, which is primarily stimulated by the growth in the x86 and the Itanium platform. According to market reports, the unit shipment growth will experience a 10.2 per cent compound annual growth rate for the time period of 2007 through 2012. This is not the end of the story, even the non-x86 based platforms continue to dominate the high-end and midrange server segments, especially banking, telecommunications and government sectors.

The continuous and gigantic emergence of laptops in Indian market portrays the real IT growth. As per latest statistics, the Indian market will ship nearly 24 million PCs, of which more than 50 per cent will be mobile PCs by 2012. The laptop developers are offering consumers with ultra-sleek, ultra-mobile and ultra-portable machines at genuine prices so that nobody can neglect this tiny machine from being attracted and computer makers are gearing up for that future. According to recent market report, the total laptop market size in India is currently estimated at 1.5 million units and is expected to grow at over 50 per cent a year and by 2010, mobile PCs will contribute 51.8 per cent of total shipments and will rise to 61.4 per cent by 2012.

India may not remain a software market for long. It is becoming one of the world’s top exporters of software. Even the domestic market grew by more than 45 per cent in 2007, making India one of the largest emerging markets for computer software. The reason is being the support of government of India ‘s industrial and investment policies. The states says that India will reach $3.4 billion by 2012 and expected to become the third highest CAGR of 16.3 per cent for the forecast period of 2007 through 2012.

More so, the telecommunications services market in India is expected to reach $52 billion growing at a CAGR (compound annual growth rate) of 26.8 per cent from 2007 through 2012 and will add its own contribution in the IT expansion.

Other growth drivers in the IT intensification are use of top technologies, broadband penetration, proper investment and other priorities that include security, business intelligence and enterprise application projects etc.