2014-01-26 16:16:56 - Recently published research from Business Monitor International, "India Information Technology Report Q1 2014", is now available at Fast Market Research
India's IT market continues to have a bright outlook over the medium term, making it one of the leading emerging markets. We forecast Indian IT spending will increase 14.4% to INR1,077bn in 2013, with strong growth in hardware, software and services sales. Hardware is a particularly large opportunity, with regionally low PC penetration, declining device costs, rising incomes and government procurement initiatives combining to provide an engine for sales growth. However, it is IT services that will be the outperformer in terms of growth rates, as has been the case traditionally in India's IT market. Outsourcing firms are innovating and acquiring to expand product portfolios and generate non-linear growth, which should sustain the segment as a whole despite competition from
other low-cost locations.
Full Report Details at
- www.fastmr.com/prod/763969_india_information_technology_report_q ..
Headline Expenditure Projections
* Computer Hardware Sales: INR457.3bn in 2012 to INR526.7bn in 2013, +15.2% in local currency terms. The wider availability of low-cost tablets and laptops, rising incomes, increasing connectivity and government procurement for education are key drivers behind spending growth..
* Software Sales: INR106bn in 2012 to INR112bn in 2013, +5.7% in local currency terms. Solid but unspectacular uptake of Windows 8 and continued high prevalence of piracy mean growth is underperforming its potential.
* IT Services Sales: INR379bn in 2012 to INR438bn in 2013, +15.8% in local currency terms. Large projects are expected from the government, including its push to developing a private government cloud, as well as from other key verticals that are implementing cloud solutions. The outsourcing market will remain strong as vendors transition to non-linear growth strategies in the face of global competition.
India's score is 48.6 out of 100.0 and is now seventh in our latest Asia RRR table.
Key Trends And Developments
According to India's Manufacturers' Association for Information Technology (MAIT), sales of PCs in urban areas amounted to 11.17mn units in the 2012/13 financial year, which corresponded to a growth rate of 5%. Within this figure, sales of desktop computers were up by 1% to 6.77mn, while sales of laptops were up by 10% to 4.40mn. However, the main area of growth was in the tablet sector, which is tracked separately by MAIT. Sales in this sector shot up by as much 424% - albeit from a low base - to reach 1.90mn units. Over the same period, server sales declined by 2% to stand at 89,075 units, while printer sales were down by 1% to 2.93mn units. Among printers, the only segment to experience growth was laserjets, with sales were up by around 14% to 1.57mn units.
In terms of company-specific developments, Apple had a tough time in the Indian market in the 2013 fiscal year, with profits down by as much 33% y-on-y (to stand at US$18.25mn), albeit this was on the back of a sales increase of 51% to US$491.07. Meanwhile, at the other end of the value chain, DataWind continues to make inroads in the tablets sector, with the Aakash 2 increasing its penetration and the Aakash 3 now poised for roll-out.
Meanwhile, looking at the cloud market, US-based technology Gartner said that it expects public cloud services to rise by 37.5% to US$434mn in India during 2013. Within the overall figure, Gartner expects infrastructure-as-a-service (IaaS) to grow by 41.8% to US$62.5mn. Over the next few years, the share of the cloud market taken by software-as-a-service (SaaS) is likely to gradually diminish as the share taken by IaaS rises.
Report Table of Contents:
The table of contents for this report is available upon request.
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
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