Date - 20 April 2010  No of Pages - 31

The IT (Information Technology) market in India covers various aspects such as designing, developing, implementing, integrating, supporting and/or managing computer-based applications, systems or other hardware. It is segmented into Hardware, Software, and Services. Under the segment of Hardware, the Indian IT market has witnessed a growth in the area of wireless network & other peripheral equipment, PCs, cameras, and hand-held devices. The growth areas under Software include security & storage, business intelligence, data & information management, and other enterprise software. Further, the growth areas under Services include outsourcing, integration, consulting, and other support services.

Globalization is one of the trends witnessed in the IT market. Due to the economic slowdown many global companies have opted for cost-cutting measure, and are planning to open their cost centers in India. Moreover, the multinationals (such as IBM, HP, Accenture, CSC, etc) are adopting localization in the Indian market. At the same time, the Indian companies (such as TCS, Infosys, Wipro, HCL, etc) are adopting global outlook by increasing staff in the US, China, Japan, Malaysia, Czech Republic, etc., or acquiring companies in foreign markets. Further, these IT companies are designing innovative service offerings or recession service packages, which include bundling of different services. For example, Zensar Technologies launched similar recession service called 'Impact Sourcing' for US, European, Japanese and Indian markets.

The Indian Government is formulating different initiatives to improve condition of the rural regions, which have very low IT penetration. These initiatives include various e-Governance projects (such as e-ID card program), railway modernization, etc. Further, the Government has taken various measures to cope with the falling sales of the computers by cutting service tax and excise duties on computers. In addition, the state governments are entering into partnership with private companies to encourage computer-aided learning. For example, NIIT has worked with the various state governments (Andhra Pradesh, Assam, Chhattisgarh, Himachal Pradesh, Karnataka, etc) to offer computer-assisted education in schools. Also, through regulations and policies, the Government is encouraging SMEs (Small and Medium Enterprises) to use more technology products such as computers, mobiles, etc.

This report by TechNavio Insights highlights the current and future market potential of the IT Market in India. Further, it discusses trends, drivers, growth inhibitors. It also profiles a few major vendors in the market.

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