Indian companies will spend $35 billion on IT by 2011 - India shows fastest growth among emerging markets

By Jayant Mishra @ Monday, July 14, 2008 9:46 AM

Section - Business/Financials

Indian companies will spend $35 billion on IT by 2011, according to Springboard Research. The contribution from small and medium businesses (SMBs) accounts for $8-9 billion.

The research company forecasts that Indian companies will place orders for IT services worth $8.1 billion by 2011.  Ravi Shekhar Pandey, senior analyst and manager of Springboard Research, said the growth in the IT sector in India was the fastest among emerging markets, with top vendors in the key segment growing at between 25 per cent and 60 per cent in 2007.

According to the research, the rapid growth is driven by the business transformation of big companies and growth in SMBs. India will be the fastest growing market for Service Oriented Architecture, with a compounded annual growth rate (CAGR) of 43 per cent. The growth in new server purchases by SMBs has been pegged at 25-30 per cent, and the base for software development is estimated to go up by two percent by 2010. X