IT Service Market in India to Grow 23% in 2010

 As per global Research firm Ovum, an ICT  (Information and Communication Technology) advisory and consulting firm, India is going to witness huge boom in IT service market in 2010. The survey projects that Indian IT service market will grow 23% in 2010. Another report from the research firm Ovum predicts that IT service market is supposed to grow $11 billion in 2010 to $24 billion in 2013. The major demand will come from e-governance projects being undertaken by central government.

“The recession did impact the IT services market in India, with spending growth across all service lines witnessing a decline. However, growth in the Indian IT Services market is picking up as customers have renewed spending and are putting out work that was on hold during the past year. The resilience of the Indian economy and its rapid progress to normalization should bring more investment, driving growth in the sector,” commented Hansa Iyengar, co-author of the forecast, based in Ovum’s India office.

Due to global recession, the end of 2008 and 2009 witnessed some slowdown of IT spend in India. But, economic activity picked up in India in the last few months due to the sign of global economic recovery. Although, there is an increasing demand from the key verticals, the market is still expected to be slow because top vendors only share 33% of the market. The scenario is anticipated to improve soon because customers will look to consolidate the contract to reap maximum cost benefit. In turn, that will boost the market further.