Indian IT spend to see CAGR of 11.8 pc’

The Indian IT spend will reach Rs 989 billion in 2009, and is expected to grow to Rs. 1643 billion by 2013 at a compounded annual growth rate (CAGR) of 11.8 percent, a recent study has revealed.

A study by International Data Corporation to measure the IT industry’s contribution to local economies in 52 countries also said that by 2013, IT as a percentage of GDP will increase from 1.8 percent to 2.3 percent in India.

The IT market creates nearly 7,000 new businesses and over 3.24 lakh new jobs between 2009 and 2013, the study said.

Presently, software spending represents 12 percent of India’s total IT spending where as much as 45 percent of IT employees are engaged in creating, distributing, installing or servicing software.

The IDC study, commissioned by Microsoft, investigates the contribution of IT to GDP, job creation in the IT industry, employment in the software sector, and formation of new companies, local IT spending, and tax revenues in 52 countries, representing 98 percent of total worldwide IT spending.

“In this fundamental economic reset, innovative technologies will play a vital role in driving productivity gains and enabling the creation of new local businesses and highly skilled jobs that fuel economic recovery and support sustainable economic growth.” said Steve Ballmer, CEO of Microsoft.

“Countries that foster innovation and invest in infrastructure, education and skills development for their citizens will have a major competitive advantage in the global marketplace.”

According to the study, local partners in the Microsoft ecosystem will generate more than Rs. 420 billion ($9.6 billion) in revenues for themselves. “To generate these revenues, they will invest Rs. 134 billion ($3.1 billion) in development, marketing, training and sales in the Indian economy,” the study said.