Quoting from Chennaionline:
IT research firm IDC (India) Limited has predicted that the domestic IT/ITeS market revenue will touch Rs. 1,10,000 crore in 2008 while sustaining the growth of 27 per cent recorded in 2007.
This would result into the market growing at 24 per cent in 2008 over 2007. The year 2008 is set to mark the beginning of Growth Phase 2.0 to be characterised by opportunities arising out of the leveraging of the IT infrastructure built up so far.
IDC India revealed this as part of its annual predictions for the domestic IT market for 2008. "By posting a substantial jump in the domestic IT/ITeS market since 2002, the industry is now onto a new growth trajectory. IDC India expects a significant transition in the Indian IT market as part of the Growth Phase 2.0," said Kapil Dev Singh, country manager, IDC India.
Growth Phase 2.0
"Growth Phase 2.0 will leverage the IT infrastructure and technical capability built up so far to offer new-age services to the Indian enterprises and consumers," he added.
The India domestic IT market will transform significantly with the existing IT infrastructure evolving both in technology terms and depth of penetration. Higher demand for sophisticated enterprise and consumer services will drive this trend as the India domestic IT market 'comes of age'.
Not only are key market segments growing at a healthy pace, the evolution of the market is visible in the scale and scope of enterprise IT infrastructure deployment across all verticals as well as emerging verticals, including the government.
The consumer IT sector maturity is driven by the launch of new consumer Internet, telecommunication services (Fixed-Mobile Convergence, tele-presence, Web 2.0 and social networking sites, online and mobile gaming, music and video downloads), as well as healthy growth in shipments of mobile handsets, consumer notebook PCs and accessories. The growth in IT retailing also underscores the 'arrival' of the consumer IT phenomenon in India.
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Coming of age
Virtualisation will become mainstream in 2008 as it gains wide-scale adoption. Enterprises across segments like IT/ITeS in India have been early adopters of consolidation and virtualization.
IDC India estimated the share of virtualized servers to double from the present 22 per cent to 45 per cent by 2008-end. Riding on the success of server virtualization, storage virtualization is also coming of age in India.
The success stories of virtualization that have gained momentum are expected to have a positive impact on other segments like Manufacturing, BFSI and Aviation during 2008. IDC said uptime, availability and performance management of infrastructure and applications to be at the core of innovation.
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SMBs hold the key
IT Solutions delivery will witness change in 2008 with pockets of success and growing awareness setting the stage for wider market adoption. Fast-maturing Small and Medium Business (SMB) segment will be a key driver. IDC added that 2008 will witness a major expansion of Software-as-a-Service (SaaS) as a way to accelerate SMB penetration and Service Oriented Architecture (SOA) adoption.
IDC predicted that in 2008, worldwide IT market growth will be lower, at a moderate 5.5-6 per cent worldwide, down from 2007's 6.9 per cent. According to IDC's Global Research Operation (GRO) team, the earliest impact from economic downturns is felt, historically, in the hardware sector, with software impact lagging by one or two quarters and services impact more gradual.
Read the entire article at Chennaionline, here.