Indian IT services will soon see double-digit growth: Gartner

[OhioChick]

Shivani Shinde / Mumbai February 08, 2010, 1:07 IST

By mid-2011, the Indian information technology services sector will be back to growth in double-digits, according to research and advisory agency, Gartner.

The ector may not touch the 30-40 per cent growth rates it witnessed before the slowdown, but an register above 20 per cent growth as it nears calendar year 2011, says Partha Iyengar, regional research head and Vice President, Gartner India.

Iyengar says while IT budgets would be flat for some time in 2010, there is a sense of urgency among clients to increase their cost efficiencies and hence a push towards outsourcing and offshoring. “This is also evident in the closure of sale cycles. During the slowdown, deal closure time had gone up by a few months but are now back in the range of three to five months. For instance, we had a call from a client in Europe who were asking for at least 100 people in the next two months. They wanted to close the deal as soon as possible,” he says.

IT spending, too, is expected to reach $3.4 trillion in 2010 — a 4.6 per cent increase from 2009, according to a new Gartner report. Although modest, this projected growth represents a significant improvement from 2009, when worldwide IT spending declined 4.6 per cent.

Iyengar says the growth was anticipated. (Software body Nasscom now says the IT industry will grow at 14-17 per cent in FY11). “The key difference during this slowdown and the earlier one is the sense of urgency among clients,” he explains.

More: http://www.business-standard.com/india/news/indian-it-services-will-soon-see-double-digit-growth-gartner/384976/

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