Domestic IT Mkt to Grow 9.7% to Rs 1.51 Lakh Crore in 2014: Study - The New Indian Express

Domestic IT Mkt to Grow 9.7% to Rs 1.51 Lakh Crore in 2014: Study

Published: 30th December 2013 06:04 PM

Last Updated: 30th December 2013 06:04 PM

IT spending in the country is expected to grow at 9.7 per cent 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 today said.

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

This is estimated to grow at 9.7 per cent 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 Centre 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 per cent 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 per cent of the respondents said their IT focus is to bring efficiency and optimisation in IT management.

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