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Follow UsThe research added that the combined telecom services and products markets will hit Rs. 2,88,832 crore in 2012.
Growing at a CAGR of 17.3 per cent over 2010-2014, the aggregate market size of the domestic IT services and IT products sector will touch Rs 2,33,930 crore ($51 billion) by 2014, whereas the combined telecom services and products markets sector will grow at a CAGR of 15.8 per cent over five year period 2010-2014, leading up to a total domestic telecoms market opportunity of Rs 3,77,685 crore by 2014, the study went on.
Highlights of the study
India growth story to continue: Domestic IT Services and IT-enabled services markets will grow at a CAGR of 21.1 per cent to hit Rs 98,188 crore by 2014. Of this, IT services alone will grow at 16.7 per cent CAGR over 2010-2014, while domestic ITeS spending will grow at a CAGR of 30.2 per cent over the same period. Managed Services will emerge as a strong growth driver with demand for increasingly sophisticated services engagements from the India enterprise segment.
Growth of the Cloud Computing paradigm: The India public cloud computing market is expected to grow at a 53 per cent CAGR over the five-year period 2010-2014 to touch Rs. 2,434 crore. Penetration of cloud services in the Indian enterprise segment, which was at 4 per cent in 2010, would rise to 6.8 per cent by 2012. The country's SaaS market is expected to touch Rs 465 crore in 2011.
IT Product segments like software (20.1 per cent), PCs (12.9 per cent), servers (13.3 per cent) and networking equipment (15.5 per cent) will record 'above average' CAGR for the 2010-2014, driven by new deployments coupled with productivity enhancement initiatives in the business enterprise segment, and continued strong consumer demand for clients, particularly for notebook PCs.
Performance of traditional sectors like manufacturing and logistics in 2010 would partially help to swell the market for Customer Relationship Management (CRM) and product Supply Chain Management (SCM) solutions in 2011 and beyond.
CyberMedia Research also expects the Indian product supply chain applications market to witness a growth rate of 16.5 per cent in 2011, which is significantly higher than the CAGR of 2.2 per cent for the period 2007-10.
The need to digitize documents and effectively manage the huge volumes of data that is generated through paper forms, particularly by the BFSI, government, healthcare and telecommunications verticals as well as in digital media, will pave the way for growth of the enterprise content management (ECM) applications market in 2011 and 2012.
Enterprise-wide solutions spending will take off in 2011, as will the trend of 'cloud enablement' of applications in 2012.
Enterprise Resource Planning (ERP) Solutions: The ERP solutions market was negatively impacted due to the global recessionary trends in 2009. There were signs of recuperation in 2010, in which the ERP market grew by 20.3 per cent over 2009. This trend is expected to continue in 2011, as the ERP market is slated to register a growth of 17.9 per cent over 2010.
The study said the enterprise IT infrastructure spending will be strategically driven towards 'resource optimization' and 'business productivity boosting' technologies such as storage solutions, data center consolidation and virtualization, and unified communications plus collaborative applications. 'Green IT' spending will be driven by business priorities in 2012.
High growth areas in the enterprise IT infrastructure spending in 2011 and beyond will include:
a) Storage resource management/optimization, data de-duplication and automated tiering solutions
b) Data Center consolidation, virtualization and 'Green IT' initiatives will focus on reducing overall cost of business operations and maximizing availability and utilization of resources
c) Unified Communications (UC), collaborative applications plus other 'cost saving' solutions
The research also said the high-growth, IT-enabled ‘intelligent’ industry verticals and government sector are set to evolve. Notable verticals that would emerge as large or high growth IT spenders in the 2011 and 2012 are Healthcare and Life Sciences, Media and Entertainment, Retail, Government & Education sector, Smart Infrastructure and Energy and Power Utilities
To sum up, the combined India IT services, ITeS and IT products, and telecom services and mobile phones markets will grow at a CAGR of 16.4 per cent between 2010 to 2014 to aggregate revenues of Rs 6,11,615 crore ($133 billion) by 2014.
In fact, as early as 2012, the combined aggregate of the domestic IT services and product revenues, and telecom services and product revenues will touch Rs 4,60,528 crore ($100 billion), the study concluded.