India Retail Sector IT Usage and Trends 2007-2011 Forecast and Analysis: An Overview

This IDC study provides an overview of the IT spending trends in the India retail sector. It also provides insights into important sector dynamics and opportunities, emerging trends, existing business challenges and issues, and the role that IT plays in allowing companies to exploit opportunities and meet challenges. Furthermore, this study also provides insights into the componentwise IT spending patterns in major product categories in 2006 as well as forecasts for the same on an annual basis until 2011.

"The total retail sector IT spending in India was US$173.2 million in 2006, which is expected to increase at a compound annual growth rate (CAGR) of 29.9% from 2006-2011 to reach US$640.1 million. The major contributor to the retail sector IT market was hardware, which is forecast to increase at a CAGR of 32.5% from US$72.2 million in 2006 to US$294.4 million by 2011. The other growth drivers include services and packaged software, which are forecast to increase at CAGRs of 39.6% and 29.8%, respectively, from 2006-2011. With the huge expansions planned in the India retail sector throughout the forecast period, all IT product and service markets are expected to increase at CAGRs greater than that of the overall India IT market. The key solutions retailers are looking at include supply chain management (SCM), inventory management, customer relationship management (CRM), store management, and storage and security solutions. The packaged software, service, server, PC, and networking segments are expected to be the key markets in the sector," says Arpan Gupta, analyst, Verticals Research, IDC India.