Domestic IT biz to be $10bn by 2011: Gartner

The information technology (IT) services industry in India is poised to touch $10.73 billion by 2011, according to research firm Gartner.

The industry will grow at a five-year compounded annual growth rate (CAGR) of 23.2% despite high attrition rates in IT departments, says the study.

Agility, growth, cost take-out and innovation are some of the factors driving this growth. The key catalyst for this growth and for companies to consider external service providers (ESPs) is the continuous turnover rates of key IT staff in the range of 15-20%.

"Growth of the IT services market is primarily being driven by economic growth, high growth among the small and mid-size enterprises (SMEs), government projects and increased customer focus. Many IT service providers, multinational companies (MNCs) and domestic companies have now recognised this potential and developed strategies exclusively for the domestic market. Many IT organisations are planning to spin off their IT organisation into an independent entity to capture the growing opportunities," said Arup Roy, senior research analyst, Gartner.