The IT and IT-enabled services (ITeS) industry is projected to grow 10.8 percent to reach

Rs 3,09,573 crore or approximately $64 billion by the end of 2009, said a report from IDC, India.

The growth, however, represents the slowest in the last five years, weighed down primarily by the global economic recession.

But, the conditions are expected to take a positive turn from 2010 onwards, with an expected growth of 13.9 percent, to cross Rs. 534,479 Crore (over US$ 110 Billion) by 2013.

In the domestic market, the expected growth is 10.2 percent, to touch 1,09,406 Crore (over $22 Billion) by the fiscal end.

“Though there are certain signs of a revival happening in the domestic arena, the spending may not begin to increase just yet. IT spending behavior would remain conservative throughout 2009 due to uncertainty in the economic environment. The hardware market will remain under pressure through the year, while the software and IT services markets will also be affected, though to a comparatively lesser extent”, said Kapil Dev Singh, IDC India Country Manager.

The total IT and IT-enabled services revenue for the domestic market is set to touch about Rs 2,06,398 crore by 2013 from Rs 99,254 crore in 2008, growing at a CAGR of Rs 15.8 percent.

The domestic IT and ITeS market growth projection for the period 2008-13 is expected to moderate to 15.8 percent, as against the average annual growth of 25 percent recorded during 2003-08.

This points towards the arrival of a new phase of growth, Growth Phase 2.0, which will see IT vendors helping enterprises design and deliver ‘new age’ services to their customers with the help of the current IT infrastructure.