2013-02-01 18:11:13 - New Computer Technology research report from Business Monitor International is now available from Fast Market Research
BMI View: Indian IT spending is expected to reach US$24.4bn in 2013, up 19%, with government IT procurements at state and federal level helping to generate spending. Following double-digit growth in PC sales in H212, BMI expects a continued upwards trajectory in 2013, with IT Services in the vanguard. India's potentially vast IT market appears set to remain one of the region's growth opportunities owing to a growing economy and healthy consumer sentiment. Realisation of the market's long-term potential depends on raising India's low computer penetration and the government's ambitions to connect the vast rural areas to the outside world. The next layer of tier-3 and tier-4 towns, beyond the top 75 cities in India, is expected to be the
major growth driver for the next few years, due to rising PC penetration.
Full Report Details at
- www.fastmr.com/prod/529377_india_information_technology_report_q ..
Headline Expenditure Projections
Computer Hardware Sales: US$9.7bn in 2012 to US$11.3bn in 2013, +17.0% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification following a pick-up in unit sales growth in Q212.
Software Sales: US$2.5bn in 2012 to US$3.1bn in 2013, +25% in US dollar terms. Forecast in US dollar terms upwardly revised due to macroeconomic factors, with a boost from Windows 8 and stronger demand for technology from the small and medium-sized enterprise (SME) segment.
IT Services Sales: US$8.1bn in 2012 to US$10.0bn in 2013, +21.0% in US dollar terms. Forecast in US dollar terms upwardly revised due to analyst modification and macroeconomic factors and a number of large projects are expected from the government and from other key verticals.
Risk/Reward Ratings: India's score is 42.1 out of 100.0, unchanged from the previous quarter. India still ranks ninth in our latest Asia RRR table, ahead of Thailand and Vietnam but behind China. The country achieved a relatively high IT Market score of 52.5, reflecting the potential returns, but its overall rating was lowered by a Country Structure score of just 15, the joint-second lowest in the region.
Key Trends & Developments.
* In 2013, there are expected to be strong growth opportunities in the next 200-400 smaller cities in India, where vendors are expanding their retail and distribution presence. Around 45% of new PCs sold in the Indian market are now shipping outside the top 75 cities. The government's policy of providing tax breaks and subsidies for hardware manufacturers should help keep prices down and support growth.
* Healthcare is expected to be another major area of opportunity over BMI's five-year forecast period, as the government makes healthcare modernisation a key priority. In its 2012-2013 union budget, the government increased healthcare spending by 14%, to INR307.02bn (US$6.69bn). The healthcare IT market has more than doubled in the past 10 years, according to estimates, as healthcare players have realised the potential of IT to drive both service and business efficiency.
* Despite an overall low level of government IT/software spending, government programmes, at both state and federal level, are likely to become an increasingly important source of IT contracts over the next few years. At the federal level, programmes such as the five-year e-governance initiative and smart ID project, will generate more IT investment. Meanwhile, education looms large in procurements from state governments such as Tamil Nadu.
Report Table of Contents:
- Indian IT Sector SWOT
- Indian Telecoms Industry SWOT
- India Political SWOT
- India Economic SWOT
- India Business Environment SWOT
Asia Pacific IT Risk/Reward Ratings
- Table: Asia Pacific IT Risk/Reward Ratings, Q113
Asia Pacific IT Markets Overview
- IT Penetration
- IT Growth and Drivers
- Sectors And Verticals
- Government Authority
- End-User Analysis
- Industry Developments
- Table: IT Industry Tax
- Table: India IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2009-2017
Industry Forecast Internet
- Table: Internet - Historical Data And Forecasts, 2010-2017
- Internet Competitive Landscape
- Table: Regional Broadband Penetration Overview
- Table: India - GDP By Expenditure, Current Prices Breakdown, 2008-2016
- Table: IT Service Line Distribution
- Table: Verticals
- Table: Geography
- Table: Mergers And Acquisitions
- Table: Customer Size Distribution (TTM)
- Table: Customer Metrics
- Microsoft Corporation
- Tata Consultancy Services
- Table: TCS Revenues By Geography, (US$mn)
- Table: India's Population By Age Group, 1990-2020 ('000)
- Table: India's Population By Age Group, 1990-2020 (% of total)
- Table: India's Key Population Ratios, 1990-2020
- Table: India's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
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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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