Financial Daily from THE HINDU group of publications
Friday, Jun 07, 2002

Port Info

Group Sites

Info-Tech - Outlook

IT sector recovery in 2003: IDC

Our Bureau


RECOVERY in Indian IT market would have to wait until 2003, says an IDC India research.

The total IT spending during 2001, a poor year, was estimated at Rs 24,952 crore, a 10 per cent growth as against 36 per cent in 2000. This includes all domestic IT spending on hardware, software and services.

However, 2001 had seen at least one quarter (January-March) of good growth before the slowdown began in the second quarter (April-June). In 2002, the tough market conditions of 2001 continued into the first half of the year, with some slight recovery expected in Q3 (June-September) and Q4 (October-December).

Lacking even one high-growth quarter, 2002 would see an IT spending growth of only 8 per cent, says IDC India research. IDC India is an affiliate of IDC, US. Within IT spending, hardware was particularly under pressure and its share in total IT spend would decline from 62 per cent in 2000 to 58 per cent in 2002, but would recover somewhat to 59 per cent in 2003.

The share of services would increase owing to the essential nature of services such as maintenance, support and outsourcing. Improvement in market conditions and sentiments in 2003 would lead to an IT spending growth of 21 per cent, says the report.

Send this article to Friends by E-Mail

Stories in this Section
Infosys meet to be Web cast

Mahajan open to talks with Tatas on VSNL
Bank consortium to raise Rs 870 cr for Ericsson
No business sense in investing in Tata Tele, insist officials
GSM trial launch in Bangalore
Sun Micro bags major order from Tata Tele
War threat -- TCS has crisis management system in place
i-flex board to decide on auditors
Tenet chosen for NEC centre
Twinwood to set up co in India
Monster bullish on online recruitment
Internet calling card from HCL, Times
TAIB arm to assist in Silverline recast
Nortel network for GAIL
TRAI notice to ISPs -- Net services to get better from June 10
IT sector recovery in 2003: IDC
RPG Cell launches new facility
Estel clearing house services

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line