Headline Expenditure Projections
Computer hardware sales: US$8.3bn in 2011 to US$9.3bn in 2012, +11.0% in US dollar terms. Forecast in US dollar terms downwardly revised due to weaker than expected sales in Q411 as a result of component shortages linked to the floods in Thailand
Full Report Details at
Software sales: US$2.2bn in 2011 to US$2.5bn in 2012, +16% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification and macroeconomic factors, but enterprise resource planning (ERP) spending will continue to trend upwards, with stronger demand for technology from the small and medium-sized enterprise (SME) segment.
IT services sales: US$7.3bn in 2011 to US$8.5bn in 2012, +18.0% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification and macroeconomic factors, but a number of large projects are expected from the government and from other key verticals.
Risk/Reward Ratings: India's score is 42.6 out of 100.0. India ranks ninth in our latest Asia RRR table, ahead of Thailand and Vietnam but still behind China. The country achieved a relatively high IT Market score of 52.5, reflecting the potential returns, but its overall rating was lowered by a Country Structure score of just 15, the lowest in the region.
Key Trends & Developments.
* In 2012 there are expected to be strong growth opportunities in the next 200-400 smaller cities in India, where vendors are expanding their retail and distribution presence. Around 45% of new PCs sold in the Indian market are now shipping outside the top 75 cities. The government's policy of providing tax breaks and subsidies for hardware manufacturers should help keep prices down and support growth.
* Despite an overall low level of government IT/software spending, government programmes, at both state and federal level, are likely to become an increasingly important source of IT contracts over the next few years. At the federal level, programmes such as the five-year e-governance initiative, and smart ID project, will generate more IT investment. Meanwhile, education looms large in procurements from state governments such as Tamil Nadu.
* The enterprise segment could receive a lift with companies in key IT verticals such as telecoms, pharma, retail and banking indicating their intention to increase spending. The enterprise trend towards mobility is one key driver, as is the interest in cloud computing. While spending is expected to increase, the economic slowdown has encouraged a greater focus on RoI, meaning growing demand for virtualisation of server and storage solutions.
Report Table of Contents:
- India IT Sector SWOT
- India Telecoms Industry SWOT
- India Political SWOT
- India Economic SWOT
- India Business Environment SWOT
Asia Pacific IT Risk/Reward Ratings
- Table: Asia Pacific IT Risk/Reward Ratings
IT Markets Overview
- IT Penetration
- IT Growth And Drivers
- Sectors And Verticals
- Government Authority
- Industry Developments
- Table: IT Industry Tax
- 2012 Outlook
- Market Drivers
- Table: India IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated)
Industry Forecast Internet
- Table: Internet - Historical Data And Forecasts, 2009-2016
- IT Services
- Internet Competitive Landscape
- Table: Regional Broadband Penetration Overview
- Table: India - Economic Activity, 2011-2016
- Microsoft Corporation
- Tata Consultancy Services
- Table: TCS Revenues By Geography, (US$mn)
- Table: IT Service Line Distribution
- Table: Verticals
- Table: Geography
- Mergers And Acquisitions
- Table: Customer Size Distribution (TTM)
- Table: Customer Metrics
Country Snapshot: India Demographic Data
- Table: India's Population By Age Group, 1990-2020 ('000)
- Table: India's Population By Age Group, 1990-2020 (% of total)
- Table: India's Key Population Ratios, 1990-2020
- Table: India's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- Transport Industry
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