IT spend among India Inc less than 1% of turnover

Information technology spending in India accounts for even less than one per cent of the annual turnover of the companies though domestic software market is estimated to grow to $4.2 billion in the current fiscal, according to a Nasscom survey.

"IT spending as a percentage of annual turnover of user organisation is still low in the country. Around 50 per cent of the user organisations are spending less than one per cent of their annual turnover on IT", the survey said.

About 16 per cent of the user organisations are spending more than one per cent of the annual turnover on IT, it said.

Banking, finance and insurance continues to be the single largest contributor at 24 per cent to the overall IT spending in India followed by telecom and government.

Twenty five per cent of the user organisations have defined and documented proof of impact on customer satisfaction for implementing IT.

Over 60 per cent of the user organisations have between one-two per cent of their employees in IT department and approximately 20 per cent of the companies have more than 40 per cent of IT employees having specialised training.

Security continues to be the prime concern among the user industries. However, 90 per cent of the organisations still spend on basic security infrastructure, the survey revealed.

About 53 per cent of the organisations have almost all the processes automated and integrated to the central system.