Our Bureau

Bangalore, July 25

Revenues from the domestic IT and ITES market grew by 26 per cent to cross the Rs 50,000-crore mark in the 2005 calendar year over 2004, according to market research and consultancy firm IDC India.

"The domestic market in India has come of age now and beyond 2005 it is expected to show faster growth compared to the IT/ITES exports revenue," said Mr Kapil Dev Singh, Country Manager.

"This makes India a great market with significant domestic consumption and not just a sourcing base. I believe the critical mass has been achieved and one can expect a phenomenal growth of IT adoption by all sections of the IT market by 2010."

IDC has come out with these numbers on the domestic market ahead of its industry briefing session, Directions, to be held in New Delhi and Bangalore on Wednesday and Friday.

The growth in domestic IT market in 2005 was driven by products and services across segments.

Sales of notebooks and PCs grew by 77 per cent, while the smart hand-held devices grew by 275 per cent.

The x86 servers grew by 39 per cent, multi-function devices by 47 per cent and other peripherals by 35 per cent, IDC said.

"The twin play of `IT going deep into enterprises with dynamic IT adoption being the driver' and `IT spreading wide into the SMB and consumer space', is slowly gaining momentum and manifesting itself in the form of healthy market growth," Mr Singh said.

IDC India included the domestic BPO market for the first time in its estimates as this market is maturing and gaining increasing traction and visibility.

The market for the domestic ITES/BPO segment has been estimated at Rs 3,800 crore in 2005 and is expected to grow at 52 per cent CAGR to touch Rs 30,000 crore by 2010.

The overall industry (including domestic market and exports) crossed the Rs 1,50,000-crore mark in 2005 IDC said.

(This article was published in the Business Line print edition dated July 26, 2006)
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