IT spend in education to grow 19 p.c by 2012

NEW DELHI, INDIA: India’s Education sector is forecasted to step up its IT spending from an estimated $356 million in 2008 to $704 million in 2012, reflecting a Compounded Annual Growth Rate (CAGR) of 19 per cent during 2007-2012, says the latest research study by Springboard Research, an IT Market Research firm.

According to Springboard’s report, “Inside the Campus: IT in India’s Education Sector”, Wireless LAN (WLAN), Storage Area Network (SAN) and ERP are the three most popular IT solutions adopted by education institutes in India, said a press release.

The report also revealed that upgrading networking and basic IT infrastructure and implementing IT security solutions rank highest on the agenda of most IT decision-makers in Indian education institutes.

“Educational institutions in India are presently focused on the deployment of IT systems that will enable them to improve the educational process for their students, and to stay ahead of the competition,” said Nilotpal Chakravarti, senior research analyst – Vertical Markets at Springboard Research.

“In particular, a large number of institutions are opting for networking solutions, storage and ERP implementations to support their business, upgrade operations and streamline budgets,” Chakravarti added.

The report also revealed that majority of institutes reported moderate to high IT spending on software (up to 50 per cent of their total IT spending). In contrast, 18 per cent of respondents reported spending more than 75 per cent of their budgets on hardware.

Spending on IT services remains low in the Indian education sector with nearly half of respondents spending up to 25 per cent of their budgets on services.

When questioned on their future IT investment plans, survey respondents gave the highest importance to networking, PCs and servers and student administration systems, the release added.

“License and subscription fee renewals take up a large piece of spending, while network infrastructure upgrades will enable students and teachers to have more access to quality curriculum-based digital content such as digital learning objects,” Chakravarti said.

Springboard also revealed high level of home PC penetration among students in major cities in India with 74 per cent of school students and 86 per cent of college and higher education students estimated to have access to personal computers at home, the release added.

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