Research and development outsourcing market for information technology in India is estimated to grow to $9.1 billion by 2010 from $1.3 billion in 2003, according to research agency Frost & Sullivan.

The R&D outsourcing market for IT in India is forecasted to grow from the present size of 1.3 billion dollars in 2003 to $9.1 billion in 2010 at a compounded annual growth rate of 32.05 per cent, Frost & Sullivan, which undertook the study for the department of IT, said in its report.

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The R&D outsourcing market for telecom in India is slated to grow from $0.7 billion in 2003 to $4.1 billion in 2010 at a CAGR of 28.73 per cent, it said.

Listing out opportunity areas in IT, the report said computing architecture, encryption and network security, human computer interface, programming language and software engineering were the focus segments.

It said telecom would see areas like business support system, new version of IP (IPv6), video servers and wireless sensors as growing opportunities.

With regard to key technologies and forecasts, it said semiconductors and nano-technologies were to be watched out for.

The agency's prescription for growth included increase in research funding to IITs and central research labs; technology specific funding; urgent need for a national initiative in emerging technologies like micro-electronics and nano-technology and setting up of centres of excellence.

The Frost and Sullivan report said the government should ease the import process of components and materials required for research by academics.

Other recommendations include encouragement to technology licensing and commercialisation through IP exchange forum and funding to small-scale industries for commercialising the project.