Indian firms focus on ICT sector

26 May, 2008:

Indian companies are now concentrating aggressively on Information, Communication and Technology (ICT) business as part of their expansion plans. It is said that ICT is today one of the largest growing segments in the world market. According to a new study, the global market for Information and Communications Technology (ICT) would surpass $3.7 trillion this year and touch $4 trillion by 2011. The study done by Digital Planet and released by World Information and Services Alliance (WITSA) coinciding with the World Congress for Information Technology (WCIT). Strong demand in 2007 is expected to spill over into 2008, resulting in an annual growth of 10.3 per cent down from a peak level of 12.3 per cent in 2004. Growth in overall ICT spending is projected to decline to 3.6 per cent by 2011, the study said.

According to Chairman of WITSA George Newstrom, global demand for ICT is growing; it remains a lifeline for economic growth across all industries and in all economies. He added that the private and public sectors around the world has to work together to address the business and policy issues that collectively impact the ICT market. The study points out that top 10 ICT spending countries in descending order were: the United States, Japan, China, Germany, the United Kingdom, France, Italy, Brazil, Canada and Spain. In 2008, China jumped to third place from fifth place in 2006, surpassing Germany and the United Kingdom with spending of USD 327 billion.

The slowest growth in ICT will be in America. It is expected that ICT spending in the Asia-Pacific region and the Europe, Africa and the Middle East region will grow annually at 10.5 per cent and 5.0 per cent, respectively. WITSA produces Digital Planet biennially, using data provided by Global Insight. The report covers the world's 75 largest ICT buying nations in six regions. Considering huge potential in this sector Indian companies are now increasing their investment in the ICT sector.