IT sector to touch Rs 1.75 lakh crore by 2016, says Boston Consulting Group

Information Technology (IT) industry in India is expected to touch the Rs 1.75 lakh crore mark by 2016, helped by rise in IT services and software segments, a report by Boston Consulting Group (BSG) said.

"The domestic IT industry is expected to grow at 12 per cent over next 4 years, reaching a size of Rs 1.75 lakh crore by 2016, driven primarily by the services and software segments," the BCG-CII report added.

According to the BCG-CII report on IT enablement of the business, the domestic IT sector was worth Rs 99,700 crore in 2011 with IT services contributing the largest share at Rs 49,400 crore followed by hardware (Rs 32,500 crore) and software services (Rs 17,800 crore).

The report pegs IT services sector to grow at 14 per cent and touch Rs 96,600 crore by 2016 followed by hardware, that is pegged to grow at 6 per cent to Rs 44,400 crore and the software products segment is expected to grow at 14 per cent to Rs 34,400 crore by 2016, it said.

While presenting the report, Microsoft Corporation India chairman Bhaskar Pramanik said Indian IT industry is expected to touch $100 billion in FY 2012-13, which is approximately 7.5 per cent of the gross domestic product (GDP).

While it will continue to accelerate growth from the global market, there is an opportunity for the IT sector to work closely with the government to kick-start the economy, Mr Pramanik, who is also the Chairman of CII National Committee on IT, ITeS and e-Commerce, added.