India Domestic IT and IT-enabled Services Growth Forecast - 2013

1. India IT/ITeS industry expected to cross US$ 110 Billion by 2013, 5–year CAGR at 13.9%
Domestic IT market to grow faster than exports
Share of Domestic IT Services and IT-enabled Services to increase to 41.9% in 2013 from 31.7% in 2008
New Delhi June 22, 2009:
Indian IT/ITeS industry is expected to grow at 13.9% (CAGR 2008-13) to touch INR 534,479 Crore (over US$
110 Billion) in 2013; with the domestic market growing at a slightly higher 15.8% (CAGR 2008-13) to report
revenues of Rs. 2,06,398 crore as against export revenues of Rs. 3,28,081 crore, a growth of 12.7% (CAGR
2008-13), according to IT advisory firm IDC estimates
In 2009, the overall India IT/ ITeS industry is expected to grow at 10.8%, to touch INR 3,09,573 Crore (over
US$ 64 Billion). The domestic market is estimated to grow at 10.2%, to touch INR 1,09,406 Crore (over US$ 22
Billion) and at the same time, exports are expected to grow at 11.2% to cross INR 2,00,000 Crore (over US$ 41
Billion).
These projections were made by IDC India on the occasion of the launch of their annual briefing session for the
ICT industry, Directions.
“Though there are certain signs of a revival happening in the domestic arena, the spending may
not begin to increase just yet. IT spending behaviour would remain conservative throughout
2009 due to uncertainty in the economic environment. The hardware market will remain under
pressure through the year, while the software and IT services markets will also be affected,
though to a comparatively lesser extent”, IDC India Country Manager Kapil Dev Singh
said.
Table 1: India IT/ ITeS Industry Size and Growth Rate, 2008-13
Market Size 2008 2009 2010 2013 CAGR 2008-13
(INR Crore) (%)
1. Domestic Hardware & 57,690 58,967 67,041 98,816 11.4%
Others
2. Domestic IT Services/IT- 31,416 38,984 47,191 86,517 22.5%
enabled Services (ITeS)
3. Domestic Packaged 10,147 11,454 13,064 21,065 15.7%
Software
A. Total Domestic IT/ITeS 99,254 1,09,406 1,27,297 2,06,398 15.8%
Revenue (1+2+3)
B. IT/ITeS Exports 1,80,064 2,00,168 2,21,122 3,28,081 12.7%
Revenue
C. Total India IT/ITeS 2,79,319 3,09,573 3,48,419 5,34,479 13.9%
Industry Revenue (A+B)
Source: IDC India, 2009
‘New Age’ Services and Solutions Set to Emerge in 2009-10 and Beyond
“The share of IT Services and IT-enabled Services (ITeS) in the India domestic market is
expected to rise from 31.7% in 2008 to 41.9% in 2013, signalling the increasing focus of
enterprises to ‘leverage’ the capacities built-up,” added Mr. Singh.
The domestic IT and ITeS market growth projection for the period 2008-13 is expected to moderate to 15.8%, as
against the average annual growth of 25% recorded during 2003-08. This signals the onset of a new phase of
growth, Growth Phase 2.0. This phase of growth will see IT vendors helping enterprises design and deliver ‘new
age’ services to their customers by leveraging the existing IT infrastructure.
IDC (India) Ltd., CYBER HOUSE, B-35, Sector 32, Gurgaon 122001 NCR Delhi Tel: +91-124-2384816,
4031234 Fax: +91-124-2381683 Web: www.idcindia.com
IDC (India) Limited is an ISO 9001: 2000 Company

2. About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information
technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business
executives, and the investment community makes fact-based decisions on technology purchases and business
strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry
opportunities and trends in over 100 countries worldwide. For more than 45 years, IDC has provided strategic
insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading
technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
About IDC India
IDC (India) Ltd., set up in 1987 is an ISO 9001:2000 company. IDC India, a subsidiary of CyberMedia, is
regarded as the country’s most comprehensive, dependable and respected source for market intelligence and
consulting in the fields of IT, telecommunications and consumer technology. With its head office at Gurgaon
(near New Delhi), the company has branches in Bangalore, Chennai, and Mumbai. Additional information about
IDC India's research, advisory and Go-To-Market service offerings can be found at www.idcindia.com.
For more details, please contact:
Sanjiv Kataria
Strategic Communications & PR Counsel
+91-9810048095 mob
sanjiv.kataria@gmail.com
Vishaal Bhatnagar
Associate Vice-President, IDC (India) Ltd.
+91-9810191634 mob
+91-124-2384816, 4031234 Ext. 228 landline
vbhatnagar@idcindia.com
IDC (India) Ltd., CYBER HOUSE, B-35, Sector 32, Gurgaon 122001 NCR Delhi Tel: +91-124-2384816,
4031234 Fax: +91-124-2381683 Web: www.idcindia.com
IDC (India) Limited is an ISO 9001: 2000 Company