Despite economic volatility, pricing pressure and decreased employee utilization rate, domestic IT spending is expected to grow by 16.3 percent by 2012 end, according to a latest report generated by International Data Corporation (IDC).

Latest stats revealed, total IT market is expected to grow to US$ 43.57 billion in 2012, up from US$ 37.46 billion in 2011.

Presently, India is witnessing a phenomenal increase in SME spending on IT. In 2011, enterprise IT spending was 38 percent, which is likely to grow to 43 percent by 2015.

In addition, it is expected that the traditional verticals including manufacturing and IT/ITeS, BFSI and communication & Media are continued to be the highest spenders in 2012. The Compund Annual Growth Rate (CAGR) for the time period 2010-2015, would be moderate with 14 percent-18 percent increase.

Report further revealed, large government spending in areas such as e-governance will catalyze speedy development of the domestic IT market.

As far as other sectors like retail & wholesale, energy & utilities, and healthcare are concerned; they are also expected to witness tremendous growth in IT spending.

Analysts believe, India, like other emerging markets, continues to grow in a strong momentum, despite inflationary pressures and appreciation of rupee against the US dollar. 

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