The IT Services market in India is estimated to grow from US$4.1 Billion in 2007 to US$8.1 Billion in 2011, representing a compounded annual growth rate (CAGR) of 18.6 percent from 2006 to 2011, according to a new report from Springboard Research.

The report, titled “India IT Services Market and Forecast 2006-2011”, finds that the IT Services growth rate in India is well above the 10.5% CAGR of overall Asia Pacific market and makes India the fastest growing IT Services market in the Asia Pacific (excluding Japan) region.

According to the report, the Indian IT Services market is heavily dominated by infrastructure Services, which are estimated to garner 54 percent of the market in 2007. Springboard further forecasts the segment to grow in line with the overall market and reach US$4.27 billion by 2011. However, Applications Services with a CAGR of 19.6 percent remain the fastest growing market segment, while IT Consulting – typically used by vendors as entry point to reach clients in India – is estimated to grow from US$0.22 Billion in 2007 to US$0.40 Billion by 2011.

Sanchit Vir Gogia, Senior Research Analyst for Services at Springboard Research, commented: “India is the epicenter of growth in Asia Pacific IT Services marketplace. Not only is the India IT Services market forecast to be the fastest growing in the region, the country also has a rather unique position in the worldwide outsourcing arena through a well-educated and language-proficient workforce, that sets it apart from other Asian competitors”.

Some key findings from the report include:

· Infrastructure Application Integration is the single largest category in India and is expected to contribute approximately 21 percent of the total IT Services opportunity in India by 2011

· Enterprise IT Outsourcing enjoys the highest growth momentum in India with a CAGR of 24.4 percent during 2007-2011 and is expected to become the second largest market opportunity in the country by 2011.

· Enterprise Application Integration, the second-ranked market in India currently, will slip to the third place by 2011 despite registering a high CAGR of 19.1 percent. Together, the top three markets will garner over 42 percent of the Indian IT Services market by 2011.

· The report uses Springboard’s Market Attractiveness Index to rank 15 individual IT Services markets on the basis of growth opportunities. According to the Market Attractiveness Index, the top five IT Services markets in India are:

1. Infrastructure Application Integration

2. Enterprise IT Outsourcing

3. Enterprise Application Integration

4. Custom Application Development

5. Network Integration