The domestic ITeS-BPO market is expected to cross Rs 6,600 crores in 2006-07, according to a new study by the National Association of Software and Service Companies. The study was conducted jointly with IDC India, the Indian arm of IDC, a research and advisory firm.
The study is estimated that in-house spending on IT services (including training costs, salaries of in-house IT staff and associated overheads) still accounts for more than half of the corporate IT spend in India, while the outsourced / vendor addressed spends account for just 45 per cent of the total. The study found that though IT services form 27 per cent of the total domestic IT spending, its share is significantly higher in segments like BFSI, Telecom, Automotive and the Manufacturing segment.
"In terms of split by industry vertical spending, BFSI, manufacturing and communications accounted for 77 per ent of the overall spend on IT services in 2004. On the one hand, the mature user segments are increasing spending on IT services by moving towards holistic IT services contracts, while on the other hand emerging segments like healthcare, the government and small and medium businesses are also deploying IT services as a means of productivity enhancement, competitive advantage and value addition," the study said.
It said that Nasscom had commissioned IDC India to conduct the baseline research study against the backdrop of the increased interest in the domestic IT services market by major IT vendors that has been fuelled by high value deals (SBI-TCS, Bharti-IBM, Bank of Baroda-HP, andDabur-Accenture). "Nasscom is very keen on promoting the domestic IT Market. Increasing use of IT within the country will help to enhance the competitiveness of the Indian economy and of the companies and sectors that use IT," a Nasscom release quoted.
The study is estimated that in-house spending on IT services (including training costs, salaries of in-house IT staff and associated overheads) still accounts for more than half of the corporate IT spend in India, while the outsourced / vendor addressed spends account for just 45 per cent of the total. The study found that though IT services form 27 per cent of the total domestic IT spending, its share is significantly higher in segments like BFSI, Telecom, Automotive and the Manufacturing segment.
"In terms of split by industry vertical spending, BFSI, manufacturing and communications accounted for 77 per ent of the overall spend on IT services in 2004. On the one hand, the mature user segments are increasing spending on IT services by moving towards holistic IT services contracts, while on the other hand emerging segments like healthcare, the government and small and medium businesses are also deploying IT services as a means of productivity enhancement, competitive advantage and value addition," the study said.
It said that Nasscom had commissioned IDC India to conduct the baseline research study against the backdrop of the increased interest in the domestic IT services market by major IT vendors that has been fuelled by high value deals (SBI-TCS, Bharti-IBM, Bank of Baroda-HP, andDabur-Accenture). "Nasscom is very keen on promoting the domestic IT Market. Increasing use of IT within the country will help to enhance the competitiveness of the Indian economy and of the companies and sectors that use IT," a Nasscom release quoted.