India's IT services market will grow from £2.2 billion ($4.1bn) in 2007 to £4.4 billion ($8.1bn) in 2011, representing a compounded annual growth rate (CAGR) of 18.6 per cent from 2006 to 2011, according to the research by Springboard Research, a leading innovator in the IT Market Research industry.
According to the Springboard report, titled 'India IT Services Market and Forecast 2006-2011', IT Services growth rate in India is well above the 10.5 per cent CAGR of overall Asia Pacific market and it makes India the fastest growing IT Services market in the Asia Pacific (excluding Japan) region.
The Indian IT Services market is heavily dominated by infrastructure services, which are estimated to garner 54 per cent of the market in 2007. Springboard further forecasts the segment to grow in line with the overall market and reach £2.3 bn ($4.27bn) by 2011. However, applications services with a CAGR of 19.6 per cent remain the fastest growing market segment, while IT Consulting - typically used by vendors as entry point to reach clients in India - is estimated to grow from £0.12bn ($0.22bn) in 2007 to £0.22 ($0.40bn) by 2011.
"India is the epicenter of growth in Asia Pacific IT Services marketplace," said Sanchit Vir Gogia, Senior Research Analyst for Services at Springboard Research.
"Not only is the India IT Services market forecast to be the fastest growing in the region, the country also has a rather unique position in the worldwide outsourcing arena through a well-educated and language-proficient workforce, that sets it apart from other Asian competitors," Gogia added.