The Asia Pacific is a growing market for ICT services in 2011 and onwards. India is seen as having a mature ICT industry in this region, and the International Data Corporation (news, site) is expanding into the country with a Research Business Unit.

The wholly-owned business unit is planned to open in Bangalore in the first quarter of 2011. This gets IDC into a better position to cover the ICT market in India in a more comprehensive manner. Likewise, opening a Bangalore office lets IDC service India-based clients more readily.

Kirk Campbell, IDC president and CEO, believes that India will be among the most important ICT markets in the long run, and IDC is taking advantage of a direct presence in the country at this point.

Already a leading provider of technology services and now a sizeable and rapidly expanding market for both business and consumer technology products, India represents an emerging economy that every company in the ICT industry must understand. By expanding our direct presence in India, IDC will be able to deliver a greater range of research on India while guaranteeing the insight and consistency our clients expect. The new business unit will also enhance our capacity to support a fast-growing base of customers in India, Campbell says.

A Growing ICT Industry

ICT in Asia is a growing industry, and IDC predicts ICT spending in India to double in the next five years to about US$ 41 billion, the majority of which is in the services sector and in software products. The telecommunications industry is likewise poised for growth at a forecasted US$ 46 billion by 2014. IDC expects India to be the third largest ICT market in Asia, behind China and Japan, accounting for 10% of all ICT spending in the region.

Apart from being a large ICT market, India also serves as home base for some of the world's known IT services providers, such as HCL, InfoSys, TCS and WiPro, with clients from around the world. While the business model for IT service providers in India started as outsourced offerings, these companies are now focusing on value-added business process services as well as managed IT services.

According to IDC, the offshore IT services industry will grow to US$ 43 billion by the second half of 2014, generating about US$ 200 billion in revenue by that time.

IDC managing director for Asia/Pacific Eva Au believes that the opening of a business office is timely, in that local clients will not only understand the domestic market better, but will also come to realize India's emerging importance in the world's ICT industry.

IDC is investing in the expansion of its research, consulting, go-to-market and sales capabilities at the same time that India is assuming a greater role in the regional and global ICT market, she says.

Relationships with Local Talent and Resellers

Given the launch of a wholly-owned business unit, IDC will no longer be partnered with Cyber Media (India) Limited, the company's long-term representative in the country. Cyber Media will continue to operate IDC India until February 28, 2011, after which IDC's wholly owned unit will take over. IDC is currently actively hiring management, consultancy, research, sales and support staff for its Bangalore office.