Search the Internet          Tips  Sites: Finance, Investment

IT revenues to touch $12 bn by 2005, says IDC

BS Corporate Bureau

Total revenues of Indian IT companies are projected to grow to $12 billion by 2005 from the $4.7 billion in 2001 - a compounded annual growth rate of 26 per cent per annum.

However, India is only the second fastest growing IT market in the world, with China occupying the numero uno position. This was revealed by an International Data Corporation study conducted for Microsoft Corporation.

According to the report, the number of Indian IT companies, which grew from 8,082 to 16,530 between 1995 and 2001, is projected to grow to 26,648 by 2005.

The Indian IT sector will create more jobs in the years to come. According to the survey, the number of IT jobs created in India is projected to grow to 11,81,735 by 2005 from 3,61, 357 in 2001. In the year 1995, the number of IT jobs in the country was 2,31,647.

"The information technology sector has played a pivotal role in the growth of the Indian economy - from software exports being one of the major foreign exchange earners to generating over 3,29,710 new jobs in the last five years," said Rajiv Kaul, managing director, Microsoft India.

The Internet market in India is also projected for a boom, with the number of subscribers growing to 37.59 million by 2005 from the present base of 7.27 million subscribers.

Listing the fastest growing IT markets in the world, the survey said that out of the 28 countries and regions covered by the study, five countries are projected to grow the fastest till 2005.

On the rate of growth, the third, fourth and fifth position are occupied by Malaysia, Korea and Singapore, respectively.

The survey said the eight Asian countries covered in the survey have already created 3 million IT jobs since 1995 and would create 4.25 million jobs by 2005. Of the 28 countries and regions covered, 18 saw growth in IT employment of 50 per cent or more.

Powered by

ALSO READ:
The Rediff Budget Special
The Rediff-Business Standard Special
Money

Tell us what you think of this report