The Indian IT sector will grow 12 percent between this year and next as tech budgets start to rise again, according to investment bank Goldman Sachs.
Goldman Sachs analysts Rishi Jhunjhunwala and Girish Ramkumar said in the company's 67th edition of its global IT spending survey that Indian IT companies will benefit due to several factors.
"Despite a slow start to the year, we expect FY14 [July 1 2013 - June 30 2014] to be a better year for Indian IT, as we forecast 12 percent US$ revenue growth (vs eight percent in FY13)," they said.
The revenue growth is likely to occur in part because of larger IT budgets.
Goldman Sachs says the industry checks it has carried out suggest that initial IT budgets for 2013 are higher than last year and may improve further now fiscal cliff concerns have subsided in the US.
The investment bank also expects India to benefit from increased growth in global IT spend. The bank itself anticipates that growth in global IT spend will increase from the two percent it forecast for FY13, to three percent for FY14.
Goldman Sachs' predictions for the growth in global IT spend are based on the results from a survey of 100 IT executives from Global 2000 companies, in addition to the outlook it sees for economic growth, capital spending, and corporate profits.
However, predictions for growth in global IT spending vary, depending on who you ask.
Gartner predicted global IT spend would grow four percent in 2013, taking total spend up to $3.7tn. At the other end of the scale, analyst group Tech Market View said global IT spend will grow only one percent in 2013.