Indian ICT spending to grow 10.3% in 2011: Gartner

MUMBAI: The country's information and communication technology (ICT) spend is expected to reach $71.9-bn, a 10.3 per cent jump in 2011, as against USD 65.23-billion this year, global research firm Gartner said.

Hardware is the fastest growing segment with a compounded annual growth rate (CAGR) growth seen at 20.4 per cent by 2014, the research firm said.

IT services is showing the strongest annual revenue growth at 22 per cent in 2010, while the telecom segment that is expected to account for 73 per cent of the Indian ICT market in 2010, is witnessing a slowdown and is set to grow at 13.2 per cent, Gartner said.

The research firm said double-digit growth across all sub-segments of the ICT space will drive growth this year.

"IT spending in India saw somewhat of a slowdown as a result of the global economic recession through much of 2009. The overriding major theme across companies in India last year was better utilisation of existing resources and driving efficiencies of infrastructure," Gartner's Senior Vice-President and Global Head of Research, Peter Sondergaard, told reporters here today.

"While many companies adopted a cautionary approach in 2009, a strong return to growth has been seen in 2010, due in part to pent-up demand following budget slowdown in 2009, the need to replace or add hardware and the massive consumer segment-driven growth across many industries," he said.