Indian cloud market to reach $16bn

cloud computing market was projected to grow at a 33% compounded annual growth rate, and reach $680 billion by 2020, while India's domestic market opportunity might touch $16 billion in the same period, reports The Economic Times.

About two-thirds of this would be 'new business' and the rest would come from existing service lines, said the study, titled, 'Deconstructing the "Cloud": The New Growth Frontier for Indian IT-BPO Sector', brought out by Nasscom, in association with Deloitte.

Launching the report on the sidelines of the Nasscom Infrastructure Management Services Summit, Nasscom president Som Mittal said cloud computing was reshaping the Indian IT market by generating new opportunities for IT providers, and driving change in traditional IT offerings, says The Times of India.

Interestingly, according to the study, while cloud will create and utilise some of the existing service spaces for IT-BPO companies, it also opens up a whole new opportunity to play along the cloud services stack, according to ITPro India.

For instance, SaaS, the largest segment, contributing $244 billion by 2020, will see an explosion of players delivering solutions to suit specific industry, geography and/or business process needs.

"The infrastructure management sourcing industry has been a growth driver for IT services, and our estimates indicate that the industry revenues are in excess of $5 billion in FY 2011 and provides direct employment to over 100 000 skilled professionals," said Mittal.