Indian IT mart seen at $4.3bn in 2006

The adoption of Information Technology by the companies in India is expanding rapidly with domestic market expected to grow to $4.3 billion in 2005-06 from $3.5 billion in 2004-05, according to IT industry body Nasscom.

A survey conducted by the industry body on the usage of IT by the Indian companies found out that few organisations have managed to reach nearly 100 per cent computer to employee ratio.

While this might be true of the large organisations, small and medium enterprises typically exhibit employee to PC ratio of 10-30 per cent. Thirty-five per cent of the surveyed organizations have automated almost all their processes while five per cent of them use it for a few standalone applications.

"While there is increased IT adoption by user organisations in the country, both at an operational and advanced levels, the ongoing phase of investment by the industry will need a gestation period to exhibit its full potential, thereby achieving the maximum Return on Investments by organisations," Kiran Karnik, president, Nasscom said.

The industry will need to continue the existing focus on sustaining this growth curve through investments and adoption, he said.

As many as 67 per cent of the organisations who responded to Nasscom IT User Survey have more than 90 per cent of their PCs connected to a LAN.

There are still organisations with less than 25 per cent of PCs connected to LAN, but are looking at graduating to full scale LAN infrastructure within few years, the survey found out.

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