Domestic IT services market to be worth $13.6 bn by 2014: Gartner

NEW DELHI: The fast growing Indian domestic IT services market is expected to be worth nearly $ 14 bn in the next four years, courtesy increased government spending, according to research group Gartner.

"The country's domestic IT services market is expected to see a Compounded Annual Growth Rate (CAGR) of 16 per cent by 2014, which would make that market worth $ 13.6 bn," Gartner's Senior Research Analyst Arup Roy told media.

In 2009, the domestic IT services market was worth about $ 9 bn. Generally, this market comprises products and professional services.

According to Roy, large government spending in areas such as e-governance would drive IT services market in the country.

Higher consumer spending would boost the economic growth, which in turn is expected to increase the demand for IT services, he said.

A recent Gartner report on IT services in Asia-Pacific region, co-authored by Roy, said that large government and defence projects would continue to drive IT services uptake in 2010 and 2011.

"e-governance and e-government projects, a national identity programme and large-scale digitisation programmes both at the central and state level should create IT services demand," it noted.

According to Gartner, IT management services would grow in areas such as data centre, business continuity/disaster recovery, security and networks as many domestic organisations are focusing on IT infrastructure efficiency.

Roy said the growth would also provide good opportunities for small and medium domestic IT players.