Domestic IT spend up by 11%: IDC

According to the DQ-IDC Megaspender Survey-2005, domestic IT spend has

witnessed an 11% increase vis-à-vis last year (2003-04), an improvement of over

5.5% growth that was witnessed last year. This rise in spend is fueled by an

over-the-top growth in telecom and insurance verticals. Banking and telecom

continue to be the two dominant verticals for IT spending is concerned.

According to the survey, compared to last year's 51%, only about 40% of the

total IT spend is done on hardware in 2004-05.

Robust growth in IT spending to the tune of 17% expected as compared to last year in the large enterprise segment PARIJAT CHAKRABORTY

The hardware spend has grown in absolute term and still contributes the

largest share in the overall spend. However, the growth in packaged software and

services has increased from 24% in 2003-04 to 30% in 2004-05.

According to Head of User Research and Communication Research at IDC India,

Parijat Chakraborty.

A more robust growth in the IT spending is expected this year in the large

enterprise segment, to the tune of 17% as compared to the year just concluded.

According to the survey, 'PC and PC servers' and 'ERP applications' are

the top two items in the buying list of the CIOs for the coming year.

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