Information and communication technology (ICT) spending in India is expected to reach $71.9bn in 2011, an increase of 10.3% compared to $65.23bn in 2010, according to IT research and advisory firm Gartner.
Telecommunications is expected to record slowest growth, increasing 13.2% during the same period.
The research firm anticipates computer hardware and IT service market in India to grow at a CAGR of 20.4% and 22%, respectively between the period 2010-2014.
According to the report, the domestic hardware market will reach $7.56m in 2010, registering a growth rate of 18.3% from 2009.
End-user spending on software is expected to reach $2.4bn in 2010, an increase of 14.3% compared to $2.1bn in 2009.
Domestic spending on IT Services and Telecommunications is expected to reach $7.6bn and $47.7bn in 2010, compared to $6.2bn and $42.1bn in the previous year, respectively.
Content from our partners
Gartner said that it expects the hardware spending to increase at CAGR of 20.4% and Software spending to increase at a CAGR of 13.4% between 2009 and 2014.
End-user spending on IT Services and Telecommunications is expected to grow at a CAGR of 17.1% and 7.9%, respectively, during 2009 and 2014.
Gartner head of research in India Partha Iyengar said the IT services space in India will be driven by new projects in areas of business applications (CRM, ERP, BI), virtualisation and data centre consolidation and green IT exploration.
"Government and defense segments will create sizeable opportunities in large systems integration projects for application services and managed services around IT infrastructure will open up doors to application services," Iyengar said.
