India Information Technology Report Q1 2013
- ID: 2373238
- January 2013
- Region: India
- 82 pages
- Business Monitor International
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.
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.
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$6.69bn).
The healthcare IT market has more than doubled in the past 10 years, according to estimates, as healthcare players have realised the potential of IT to drive both service and business efficiency.
- Despite an overall low level of government IT/software spending, government programmes, at both state and federal level, are likely to become an increasingly important source of IT contracts over the next few years. At the federal level, programmes such as the five-year e-governance initiative and smart ID project, will generate more IT investment. Meanwhile, education looms large in procurements from state governments such as Tamil Nadu. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
Indian IT Sector SWOT 7
Indian Telecoms Industry SWOT 8
India Political SWOT 9
India Economic SWOT 10
India Business Environment SWOT 11
Asia Pacific IT Risk/Reward Ratings 12
Table: Asia Pacific IT Risk/Reward Ratings, Q113 15
Asia Pacific IT Markets Overview 16
IT Penetration 16
IT Growth and Drivers 18
Sectors And Verticals 20
Market Overview 24
Government Authority 24
End-User Analysis 37
Industry Developments 39
Table: IT Industry Tax 42
Industry Forecast 44
Table: India IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2009-2017 47
Industry Forecast Internet 48
Table: Internet - Historical Data And Forecasts, 2010-2017 48
Competitive Landscape 50
Internet Competitive Landscape 51
Table: Regional Broadband Penetration Overview 52
Macroeconomic Forecast 53
Table: India - GDP By Expenditure, Current Prices Breakdown, 2008-2016 55
Company Profiles 56
Table: IT Service Line Distribution 58
Table: Verticals 59
Table: Geography 59
Table: Mergers And Acquisitions 59
Table: Customer Size Distribution (TTM) 60
Table: Customer Metrics 60
Microsoft Corporation 61
Tata Consultancy Services 66
Table: TCS Revenues By Geography, (US$mn) 68
Country Snapshot 74
Table: India's Population By Age Group, 1990-2020 ('000) 75
Table: India's Population By Age Group, 1990-2020 (% of total) 76
Table: India's Key Population Ratios, 1990-2020 77
Table: India's Rural And Urban Population, 1990-2020 77
BMI Methodology 78
How We Generate Our Industry Forecasts 78
IT Industry 78
IT Ratings - Methodology 79
Table: IT Business Environment Indicators 80
Table: Weighting Of Components 81