IT spending in India is set to grow the fastest in the world in 2008, says global research firm IDC. And as the information & communications technology market in Asia-Pacific reaches $154 billion in 2008, it says India and China will contribute half the total IT spend by next year.
The Asia-Pacific region (excluding Japan) is likely to register a growth rate of 10% in 2008 over 2007, and India and China will be the drivers of this growth, as their GDPs are forecasted to expand by between 9% and 10% during the year.
In both the countries, growth will be led by small & medium businesses, which are increasingly adopting more IT solutions as a strategic business differentiator. Moreover, government spending is increasing as they deploy technologies to bridge the digital divide.
IDC also predicts the combined IT spending in Asean will exceed that of India, and become an important market for future investment. For emerging South Asian markets such as Bangladesh, Pakistan and Sri Lanka, the year looks promising despite political risks as governments seek to improve the business environment and attract foreign investment.
The future looks bright for the India BPO sector, too, because despite countries like China, Russia and Brazil providing credible alternatives, India remains the undisputed leader in offshore services, according to Gartner.
Sam Chopra, president, Business Process Industry Association of India, says the US subprime lending crisis will increase outsourcing to BPOs in India. ?Anything which is price-sensitive has to be outsourced. In 2008, the supply of business to Indian BPOs is only going to increase, as it may not be economically viable for companies in the US to run call centres.?