IDC to Expand Its Business in India with the Launch of a New Research Business Unit in Bangalore 

FRAMINGHAM, MA – January 10, 2011 – International Data Corporation (IDC) today announced plans to establish a wholly-owned India research business unit in Bangalore, India. The new research business unit, which is expected to open in the first quarter of 2011, will enable IDC to provide more comprehensive coverage of the rapidly expanding information and communications technology (ICT) markets in India, as well as service the needs of IDC's customers based in India. The announcement also signals the end of IDC's long-standing relationship with Cyber Media (India) Limited, which served as IDC's partner and representative in India.

"India will be one of the most important technology markets in the world over the next several decades," said Kirk Campbell, President and CEO of IDC. "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."

With a population of more than one billion and a GDP that is forecast to grow by more than 8% annually, India offers enormous market potential for technology products and services. IDC expects total IT spending in India to double over the next five years, reaching more than $41 billion with particularly strong growth in packaged software and IT services. Similar growth is expected in India's telecommunications services sector, with spending expected to approach $46 billion in 2014.1 By the middle of the decade, India will be the third largest ICT market in the Asia/Pacific region, trailing only China and Japan, and will represent roughly 10% of all ICT spending in the region.

India is also home to some of the industry's leading providers of IT and other business services (notably HCL, Infosys, TCS, and Wipro). Over the past decade, the offshore services model has evolved from using offshore resources for Y2K fixes to today's market where providers are increasingly focused on delivering value-added business process services as well as outsourced/managed IT services. IDC forecasts the worldwide offshore IT services market will grow to nearly $43 billion in 20142 while the worldwide business process outsourcing market will generate revenues of more than $200 billion in 20143.

"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," said Eva Au, IDC's Managing Director, Asia/Pacific. "This will help IDC's clients to better understand not only what is happening in India's domestic ICT markets, but how India is shaping the global ICT market."

IDC India will continue to be operated by CyberMedia until February 28, 2011, at which time IDC will launch its own India research business unit. IDC will be hiring a substantial number of research, consulting, management, sales, and support staff as part of its expansion. The new business unit will be located in Bangalore.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 46 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

– # # # –

(1) IDC, Worldwide Black Book Query Tool, Version 2, 2010, Doc #224335, July 2010

(2) IDC, Worldwide and U.S. Offshore IT Services 2010–2014 Forecast, Doc #223080, May 2010

(3) IDC, Worldwide and U.S. Business Process Outsourcing Services 2010–2014 Forecast, Doc #223210, May 2010

###