'Indian IT services market to grow to USD10 bn by '11'

22 Jan 2008, 1535 hrs IST,PTI

BANGALORE: As user organisations continue to grapple with challenges of higher attrition rate in internal IT departments, the Indian IT services market is pegged to grow to USD 10.73 billion by 2011 at a five year compounded annual growth rate (CAGR) of 23.2 per cent, according to Gartner Inc, leading IT research and advisory company.

Key factors driving this growth are agility, growth, cost takeout and innovation. But a factor which is acting as a prime impetus for companies to consider external service providers (ESPs) is the continuous turnover rates of key IT staff in range of 15-20 percent, said the Gartner study.

Growth of the IT services market is primarily being driven by economic growth, high growth among the small and midsize businesses, government projects and increased customer focus. Many IT service providers, MNCs and domestic have now recognised this potential and developed strategies exclusively for the domestic market, said Arup Roy, senior research analyst, Gartner.

"Many IT organisations are planning to spin off their IT organisations into an independent entity to capture the growing opportuniites", added Roy.

http://timesofindia.indiatimes.com/Indian_IT_services_market_to_hit_USD10_bn_by_2011/articleshow/2720964.cms

it was their policy to reduce the workforce by 10% quarterly. It's not high turnover.. people were not leaving of their own volition, it's was/is the policy.