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.
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.