The IT industry sector is growing at a rapid pace in India, even if the country has not evaded consequences of the U.S. recession and dollar volatility in recent months.
The market for IT services, which totalled $4.1 billion in 2007, is expected to grow to $8.1 billion by 2011, according to a recent report conducted by Springboard Research.
The market research report, released yesterday, reveals that India is the fastest growing market in the Asia-Pacific region, with a compound annual growth rate (CAGR) of more than 18.6 percent.
Infrastructure application integration is the largest category on the Indian market and, by 2011, it is expected to cover about 21 percent of the overall IT services market in the country. "Compared to the Asia Pacific countries, enterprise IT outsourcing enjoys the highest growth momentum in India with a CAGR of 24.4% during 2007-2011 and is expected to become the second largest market opportunity in the country by 2011," said Sanchit Vir Gogia, senior research analyst for services at Springboard Research.
Enterprise application integration, the second biggest market, is expected to fall to the third place by 2011 in spite of a 19.1 percent CARG.
Infrastructure services are expected to chalk the single biggest growth on the IT services market; $4.27 percent by 2011, which will amount to 14 percent of the share of the Asia-Pacific market.
IT consulting services will grow from $0.22 in 2007 to $0.40 billion by 2011 according to the report, mainly as a result of enterprise IT outsourcing in India.
"Not only is the India IT Services market forecast to be the fastest growing in the region, the country also has a rather unique position in the worldwide outsourcing arena through a well-educated and language-proficient workforce, that sets it apart from other Asian competitors," concluded Mr. Gogia.