The Indian IT market is expected to grow at a lower rate of 13.4 per cent to touch a size of about Rs 1,30,376 crore (Rs 1,303.76 billion) in 2012 compared to that in the last year, says a report by IT consultancy company Coeus Age.
The domestic IT market had grown by approximately 14.5 per cent in 2011 having a size of close to Rs 1,15,000 crore (Rs 1,150 billion), the report said.
According to the report, the context for IT consumption will remain challenging, given the overall uncertainty in the economic and political situation.
"The business environment is expected to remain challenging, thus leading to demand uncertainty and high input costs, but the pressure on IT to perform will mount further," Coeus Age Founder and Principal Consultant Kapil Dev Singh said.
Singh added that this would result in a paradoxical pressure on IT to perform with stretched budgets.
Coeus sees most of the
"Consumer segment IT spending will grow the fastest in 2012 at 16.5 per cent, followed by government sector at 13.9 per cent and Enterprise segment at 12.4 per cent," the statement said.
The report said that there are indications that IT budgets will be pruned to compensate for other input costs, which are rising disproportionately with business expansion.
In the enterprise segment, growth in IT spending by 'very large' enterprises will be the highest at 13.8 per cent, whereas in small and medium businesses spending on IT will only manage to notch up 9 per cent, lower than the average enterprise segment growth rate, the report said.
Consumption of IT products and services is expected to grow in energy vertical at 19 per cent, followed by infrastructure and construction at 16.8 per cent, hospitals and healthcare at 16.5 per cent and 15.6 per cent in retail sector during 2012, Coeus report said.
