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IT sector recovery in 2003: IDC

Our Bureau

CHENNAI, June 6

RECOVERY in Indian IT market would have to wait until 2003, says an IDC India research.

The total IT spending during 2001, a poor year, was estimated at Rs 24,952 crore, a 10 per cent growth as against 36 per cent in 2000. This includes all domestic IT spending on hardware, software and services.

However, 2001 had seen at least one quarter (January-March) of good growth before the slowdown began in the second quarter (April-June). In 2002, the tough market conditions of 2001 continued into the first half of the year, with some slight recovery expected in Q3 (June-September) and Q4 (October-December).

Lacking even one high-growth quarter, 2002 would see an IT spending growth of only 8 per cent, says IDC India research. IDC India is an affiliate of IDC, US. Within IT spending, hardware was particularly under pressure and its share in total IT spend would decline from 62 per cent in 2000 to 58 per cent in 2002, but would recover somewhat to 59 per cent in 2003.

The share of services would increase owing to the essential nature of services such as maintenance, support and outsourcing. Improvement in market conditions and sentiments in 2003 would lead to an IT spending growth of 21 per cent, says the report.

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