According to IDC, the Indian domestic IT and ITeS market is expected to cross the Rs. 2,00,000 Crore (US$ 50 Billion) mark in 2012 compared to Rs. 90,014 crore recorded in 2007. This translates into a CAGR of 18.4% in the five year period. Together with IT and ITeS exports revenue of Rs. 3,20,278 Crore, the total IT and ITeS industry size will grow to Rs. 5,29,976 Crore (US$ 132 Billion) by 2012, representing a CAGR of 16.5% (please see para ## below for expansion).

IDC India Country Manager Kapil Dev Singh said, "The domestic IT and ITeS industry CAGR of 18.4% (during 2008-12) is expected on the back of a robust growth of the past five years (2003-2007).
"We expect the industry to achieve this by offering innovative services to the evolving domestic buyers, we've called 'Consumer 2.0'," he added.

The Indian IT and ITeS industry grew to Rs. 2,46,609 Crore in CY (Calendar Year) 2007, up from Rs. 2,01,413 Crore in 2006, representing a growth of 22.4%. Of the total industry size of Rs. 2,46,609 Crore, the domestic IT and ITeS Market contributed Rs. 90,014 Crore, while the remaining Rs. 1,56,594 Crore was contributed by the IT and ITeS exports segment. In 2007, IT Services (excluding ITeS) Exports continued to be the biggest segment at Rs. 97,492 Crore.

In 2008, IDC expects the IT and ITeS industry to grow at 20%, with the domestic market growing at 22.4% compared to the IT and ITeS export market growth of 18.9%. The overall industry is projected to be Rs. 5,29,976 Crore by end 2012, with the share of domestic IT and ITeS revenues adding to 40% of the total, compared to the current 37%.

The IT and ITeS exports market is likely to more than double to Rs. 3,20,278 Crore in 2012 from Rs. 1,56,594 Crore in 2007. In 2008, it (IT and ITeS exports segment) is expected to clock a growth of 20.4% to touch Rs. 1,86,142 Crore.

"IDC believes that today's connected consumer is using many more converged devices and looking for relevant content and services. We expect this trend to continue, with the addition of newer dimensions, so as to permeate to the mid- and lower-end of the pyramid by 2012", IDC Country Manager Kapil Dev Singh added.

India's packaged software and services market grew faster than the hardware market, a trend that is likely to continue over the next five years. While packaged software and services as a segment is projected to grow from Rs. 29,104 Crore in 2007 to Rs. 73,101 Crore in 2012, the hardware segment is expected to grow from Rs. 48,940 Crore to Rs. 96,558 Crore in the six year period (2007 to 2012).
While the overall IT and ITeS industry is projected to grow at a CAGR of 16.5% in the next five years, the highest growth, a CAGR of 27.3%, will come from the domestic ITeS market, climbing three times from Rs. 11,970 Crore in 2007 to Rs. 40,039 Crore in 2012. The IT Services Exports market is likely to report a lower CAGR of 13.8%.

IDC India believes that Enterprise 2.0 is the next avatar of an enterprise that is more open and more prone to adopting new technologies and business practices. The other characteristics of Enterprise 2.0 will be the seamless connect between the customers and business partners. This essentially means the arrival of a new paradigm where information power shifts from a centralised authority to the constituents of the extended enterprise.

The effect on the market landscape will be in the suppliers aligning to the new reality of Enterprise 2.0 in order to enable their organisations evolve from the current Enterprise 1.0 stage. Most importantly, the opportunity lies in leveraging the existing infrastructure as opposed to the technology infrastructure build-up and consolidation witnessed in the Enterprise 1.0 phase.