Domestic IT industry to grow at 12% to touch 1.76 lakh crore by 2016


Infotech Lead Asia:
The domestic IT industry is expected to grow at 12 percent over next 4 years, reaching 1.76 lakh crore by 2016.

The services and software segments will drive the growth, according to a report by CII-BCG report.

The report says the role of the IT functions within end user industries will evolve from order takers to transformative business partners as IT adoption picks up.

According to Kapil Sibal, telecom and IT minister, the Indian industry and the Government need to work in tandem for realizing new horizons and opportunities in Indian IT sector.

The IT spending in India is expected to grow at a healthy 12 percent per annum, rising from Rs 99,700 crores in 2011 to about Rs 175,400 crores in 2016.

Businesses in India are not only looking at the traditional IT usage in their organizations, but are also showing keen interest in the next wave of technology – cloud, big data and mobility – that will help them leapfrog the technology adoption cycle.

IT adoption across end user industries is not the same—some sectors like banking, telecom and insurance have leveraged IT across their business functions, including the back–end organizational processes, customer facing activities and revenue generating initiatives, and are at an advanced stage in IT adoption.

Sectors like education, healthcare, media and retail are relatively low IT spenders currently, but are expected to significantly increase their expenditure on this front in the future.

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