Indian IT revenues at $ 12 bn by 2005: Study

BANGALORE: According to a recent study by IDC for Microsoft, the number of IT

companies in India, which grew from 8,082 to 16,530 between 1995 - 2001, is

projected to grow to 26,648 by 2005. The number of jobs created in the IT

sector, which grew from 2,31,647 to 5,61,357 between 1995 - 2001, is projected

to grow to 11,81,735 by 2005. The total revenues from the IT sector are

projected to grow from $ 4.7 billion in 2001 to $ 12 billion by 2005 at a CAGR

of 26 per cent and Internet users in India to grow from 7.27 million in 2001 to

37.59 million by 2005.

The study titled "IT Economic Impact Study", projected that

the worldwide market for computer and networking hardware, software and services

will exceed $1 trillion for the first time this year, and will exceed $ 1.4

trillion in 2005. The study also found that worldwide IT spending grew by more

than 10 per cent annually during much of the past decade, much faster than the

global economy overall.

Some of the highlights of the study on the Asian market are

• Out of 28 countries and regions studied, the five countries projected to
  
  grow their IT Industries the fastest between now and 2005 are all Asian
  
  (China, India, Malaysia, Korea, Singapore - listed in decreasing rates of
  
  growth)
• The eight Asian countries covered in the study have already created 3
  
  million IT jobs since 1995 - a further 4.25 million projected to be created
  
  by 2005
• Number of IT companies in the 8 Asian countries covered in the study
  
  projected to rise from 182,000 in 1995 to 3,16,000 in 2005
• 21.2 per cent of Microsoft's global technology and resale partner
  
  community is in the Asia-Pacific region - comprising nearly 1,40,000
  
  partners
• IDC estimates that each $1 spent on Microsoft software generates another
  
  $8 in sales for Microsoft's partners

Microsoft Corp, CEO, Steve Ballmer said, "Innovations in technology,

including important advances such as XML Web services, are creating hundreds of

thousands of new jobs and helping drive economic growth around the world. By

enabling businesses and governments to be more productive, efficient and agile,

and by allowing people around the world to communicate seamlessly across a range

of devices, information technology is helping us all realize our true potential.

Working with more than 750,000 partners around the world, Microsoft is committed

to providing industry leadership in the exciting Digital Decade ahead."

IT employment and employers on the rise



Microsoft commissioned IDC to conduct an in-depth examination of IT industries
in 28 countries and regions. Findings revealed that millions of high-skill IT

jobs were created around the world during the second half of the 1990s. Of the

28 countries and regions studied, 18 saw growth in IT employment of 50 per cent

or more, according to IDC estimates. The IT sector in India added more than

5,61,357 jobs in 2001. Most of these jobs are within indigenous companies, many

of them born in just the past five years.

IDC estimated that in the 28 countries and regions, 200,000 new IT companies

have been created since 1995. Between 1995 and 2001, 8,448 new information

technology businesses in India were created, growing from 8,082 local IT

companies in 1995 to 16,530 local IT companies in 2001.

"Information technology has played a pivotal role in the growth of the

Indian economy. From software exports being one of the major foreign exchange

earners to generating over 3,29,710 new jobs in the last five years," said

Microsoft India, Managing Director, Rajiv Kaul. "Microsoft with its

commitment to growth and innovation within the IT industry will continue to

create opportunities for partners which will have a direct impact on the Indian

economy."

Multiplier effect of Microsoft and partners



Microsoft has been a key contributor to the IT industry growth. The company
currently partners with more than 750,000 hardware manufacturers, software

developers and service providers located on every continent. IDC estimated that

every $1 of Microsoft revenue generates $8 in purchases from Microsoft's

partners. By this calculation, Microsoft products accounted for more than $200

billion (US) in revenues in 2001.

IT industry growth is also aided by Microsoft's commitment to open software

standards, which creates opportunities for IT firms around the world to build

interoperable devices and software. Microsoft's commitment to a new set of

technologies based on a standard known as XML (Extensible Markup Language)

promises to unleash even stronger growth from a new generation of XML-based Web

services. Over the next decade, Web services are expected to grow into a

multibillion-dollar industry. Microsoft's .NET Enterprise Servers and other .NET

technologies are the most advanced platform for creating, delivering and using

XML Web services.