IT spending growth to slow down: IDC

NEW DELHI, JULY 22. IT market spending is estimated to slow down in 2001-02 with the growth at 27 per cent at Rs. 28,698 crores during the period, as compared to Rs. 22,600 crores in the previous year.

According to estimates released by the International Data Corporation (IDC), India, the growth in spending during 2001-02 is likely to come down by as much as 10 percentage points, as compared to 37 per cent growth clocked during 2000-01.

Analysis of the growth trends over the next five years reflects that the year 2000-01 represents the healthiest growth witnessed in the Indian IT market spending between 1999-00 and 2004-05.

The year-on-year growth is likely to dwindle from a high of 37 per cent in 2000-01 to a low of 27 per cent in the current fiscal, touching 28 per cent in 2002-03, 29 per cent in 2003-04 and then picking up at 31 per cent in 2004-05.

The market size in terms of spending would grow at Rs. 28,694 crores in 2001-02, Rs. 36,791 crores in 2002-03, Rs. 47,514 crores in 2003-04 and Rs. 62,122 crores in 2004-05.

The survey which gives the segment-wise break-up in spending in the current fiscal points out that the total hardware market comprising desktop PCs, notebooks, standard Intel architecture servers, other servers, traditional workstations, peripherals and Datacom equipment is projected to witness a 28.38 per cent growth to Rs. 17,377 crores in 2001-02 from Rs. 13,535 crores in 2000- 01.

IDC India estimated that packaged software is likely to grow 23.42 per cent to Rs. 2,482 crores in 2001-02 as compared to Rs. 2,011 crores in the previous year.

IT service spending growth is likely to be around 25.19 per cent to touch Rs. 6,171 crores as compared to Rs. 4,929 crores in 2000-01.

- PTI

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