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Home is where the money is

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CIOL Bureau
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BANGALORE: IT spending in home and small and medium sites (less than 50

employees) would grow at a healthy 55 per cent and 25 per cent, respectively, by

end 2000-01. Overall, the domestic IT spending in the country is slated to cross

the Rs 21,000-crore mark by the end of 2000-01. This has been revealed in a

study conducted by IDC India. The Map-IT 2000 study pointed out that high growth

in spending in home and small and medium sites would drive the growth in the

overall domestic IT spending.

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IDC India’s Map-IT 2000 is a large-scale study based on end-user survey of

commercial establishments and households across 25 cities in the country. The

study aims to map the IT potential of these cities with an effort to capture the

segment and component spending details within each.

According to a statement by IDC India, there has been a clear shift in the

share of different segments to total IT spending. While spending in the home

segment is estimated to account for 14 per cent of total IT spending in 2000-01,

an increase of 3 percentile points over 1999-00, large sites (with more than 50

employees) are expected to witness a drop in their share of total domestic IT

spending. However, a minimal change is observed in the shares of small and

medium sites and government, education and research.

IT spending in homes would continue to be hardware centric in 2000-01 and the

component of software and services is not likely to grow, the study said. With

the dominance of single-PC households, the annual spending on service component

is nearly negligible. The low spending on software can be attributed to the

dominance of pirated software in the home segment. Much of the legal software

that goes into homes is dominated by operating systems, which are mostly

pre-installed.

In the small and medium sites segment, the share of hardware to total IT

spending is expected to drop from 64 per cent in 1999-00 to 59 per cent in

2000-01. The share of services is expected to grow from 17 per cent to 22 per

cent during the said period. The spending on software in small and medium sites

is expected to witness a marginal drop in its share in the same period.

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