Tuesday, December 31, 2013

Domestic IT market to grow 9.7% in 2014: Study

NEW DELHI: IT spending in the country is expected to grow at 9.7% and touch Rs 1,51,728 crore in 2014 as companies invest in technology to control costs, drive efficiency and ensure organic business growth, a study by research firm Coeus Age said. 

According to the report titled 'Enterprise Business Priorities and IT Plans, India, 2014', the domestic IT spending in India grew 8.1% in 2013 to Rs 1.38 lakh crore. 

This is estimated to grow at 9.7% in 2014 and reach a size of Rs 1,51,728 crore, it added. 

Based on inputs from 130 CIOs/IT heads of large and medium-sized Indian enterprises, the report gauges the perception of the companies regarding business scenario, priorities and plans regarding IT for the year 2014. 

"After a very sluggish growth in 2013 -- the lowest since 2002 -- the year 2014 is expected to see the beginning of a new growth trajectory," Coeus Age Founder Kapil Dev Singh said. 

2014 is the year of general elections at the Center and with the new government formation being just six months away, the hope of revival is a natural outcome, he added. 

However, businesses are also cautious on account of pressures of moderate revenue growth across industries as well as high inflation. 

"Though the enterprises have coped by increasing the product prices, cutting unwanted costs and becoming more efficient, the pressure is expected to continue through 2014," the former country manager of IDC India said. 

According to the report, 76% of the CIOs interviewed said their top priority is operational in nature, focused on cost control, efficiency drive, striving for a healthy cash flow and ensuring an organic business growth. 

About 51% of the respondents said their IT focus is to bring efficiency and optimization in IT management.

Source: Times of India

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