IT consultation services may be hit, Dataquest predicts
THE Indian IT services expenditure is projected to reach $-1.6 billion in 2001, a 25.2 per cent increase over 2000 revenue of $ 1.3 billion, according to industry analyst firm, Gartner Dataquest. The industry is forecast to continue growing strongly through 2005, when IT services revenue will reach $ 5.8 billion.
While the global economic slowdown and the uncertainty resulting from terrorism and war are expected to dampen growth somewhat through 2002 in many segments and countries, Gartner Dataquest believes overall demand will continue to experience double-digit growth from 2003 through 2005.
increased confidence in the economy and business will present vendors
with an opportunity to benefit from renewed demand among end users of
IT services based on exploiting technology innovations," Rolf
Jester, research director for the Asia-Pacific IT Services market at
Gartner said. "Our local research shows that IT management
services continue to do well despite sluggish economies. From late
2002, we expect networking, security and telecommunications technology
related services as well as e-business initiatives to be strong
drivers of demand."
Economic and political uncertainty is expected to hit consulting the hardest of all sectors, the growth rate coming down to only 7.7 per cent in 2001, extremely low for the Indian market. However, individual consulting areas such as security, business continuity planning, networking generally, and e-business related work would remain bright spots in the picture.
Another study by Dataquest concluded
that the economic slowdown would spell the end of the one-stop-shop
telecommunications vendors. "Of the world's eight leading telecom
equipment vendors, all of which until this year were aiming to become
suppliers of practically all gear needed by their carrier clients, none
will be able to realise this dream," Bhawani Shankar, principal
analyst for Gartner Dataquest's Worldwide Telecommunications and
Networking group said . "Although the leading players will remain,
their product portfolios, their market focus and, indeed, the nature of
their relationships with their clients is destined to change
radically," Shankar said. —TNS