The Indian information technology and related services industry is predicted to become a $100 billion plus industry by 2011, growing at a compound annual growth rate of 18 per cent, states an IDC report.

Moreover, the domestic IT/ITeS, with revenues growing at 19.7 per cent CAGR, is projected to touch Rs 1,68,370 crore in 2011 (IT growing at 16.4 per cent and ITeS or BPO at 40.4 per cent). This also means that domestic IT/ITeS revenues will grow faster than the export revenues over the next five years.

On the occasion of Directions08, IDC's annual briefing session for the information and communication technology industry, the research firm stated the Indian IT/ITeS industry clocked Rs 1,98,477 crore (Rs 1,984.77 billion) of revenue in 2006, up by an impressive 31 per cent over 2005.

With equal drives from exports revenue and domestic IT spending, the Indian IT industry has been able to keep up with the momentum it gained since 2003.

On the domestic front, IT/ITeS spend has been estimated at Rs 68,411 crore (Rs 684.11 billion) in 2006, a gain of 26 per cent over 2005. The growth in domestic IT/ITeS spend has been primarily driven by investments by enterprises in IT infrastructure, line of business applications, security products and services, IT outsourcing and managed services and by consumers in mobile and digital products (digicams, notebooks, smart handheld devices etc.).

'The domestic IT/ITeS market has attained a significant size now but continuing with the same growth momentum for the next five years is not going to be an easy task. It will require the industry to create new user segments, identify new uses of ICT, define new relevance of ICT in the consumers' life and help develop the ecosystem required for that by designing innovative products and services', commented Kapil Dev Singh, country manager, IDC India.