Indian IT- ITeS segment is likely to register slowest ever growth rate since 2003 for the financial year 2009. Market research firm, IDC forecasts 13.4% growth rate of the technology sector in 2009. IT- ITeS market including hardware, software and services registered a growth rate of 17.3% in 2008 and generated revenue of Rs 1,01,031 crore.  

IDC also painted a gloomy picture for growth rate of IT sector in the next five years. It forecasts an average growth rate of 16.4% in 2009-13 as compared to the growth rate of 24.3% during 2003-08 periods. It would boost competition among the various players and large scale change in strategy and continuous market re-alignment may take place for adequate business growth.

The country manager of IDC, Kapil Dev Singh said, "The issues in the short run, more pronounced throughout 2009, will be productivity, cost savings and customer retention. This would eventually pave way for innovative services by leveraging the existing infrastructure and aligning it with the emerging opportunities."

However, India will continue to strengthen its position in the IT segment despite slow growth rate. It would register faster growth rate in IT segment as compared to China, Vietnam, Thailand and Philippines. Global slowdown would become more severe in the coming times and spending on IT would decrease following the low demand.