Springboard: India IT Market To Grow At 14% in 2009

Springboard research recently published a list of top trends expected to impact IT spending in India in 2009.  In their press release, Springboard predicts that India’s IT spending is expected to grow at an annual rate of 14.1% in 2009, down from 18.1% growth in 2008.  Springboard says that IT spending in verticals like retail and real estate will be hardest hit, while the advent of 3G and a largely protected financial system will help sustain growth in the telecom and banking/finance verticals respectively.  In addition, government stimulus initiatives to spur economic growth and increase spending on public security and national defense, coupled with rural sector initiatives should include outlays for new technology in the years to come.

India's Top Ten IT Trends

Here is Springboard's list of the top 10 trends in IT spending for India in 2009

  1. Arrival of 3G unlocks enormous opportunities for IT vendors
  2. Cost concerns will drive a key focus on IT infrastructure consolidation
  3. Economic pressures to drive SMBs towards outsourcing and SaaS
  4. Start-ups and smaller firms become more important accounts for IT vendors
  5. Virtualization will gain traction in medium and large sized enterprises
  6. IT outsourcing will be seen as a catalyst to HR retention and cost reductions during the economic squeeze
  7. Media and Entertainment (M&E) industry to transform further with new technologies
  8. Online advertising markets to gain momentum with the emergence of niche social networking sites and regional portals
  9. The Public Sector will buoy IT spending
  10. Green IT will be fueled by cost efficiency benefits

Springboard’s executive brief, “India IT Market Predictions 2009,” is available for free download at Springboard's Research Central (registration required)

India's Top IT Services Vendors

Springboard also recently released a report on the IT Services market in India.  Springboard says that the US$4.8 billion Indian IT Services Market is a highly fragmented and competitive marketplaces.  The top three players, IBM (market share 10.8%), Wipro (market share (8.7%) and TCS (market share 6.1%), took up a quarter share of the market.  According to Springboard’s research, the market in 2008 saw an overall increase in the average deal size of contracts where buyer enterprises are not only using IT vendors as technology providers but as business partners, providing them with means of competitive differentiation.   More information can be found at Top 10 Vendors Grabbed 39% of India’s IT Services Market in 2008, Says Springboard Research