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The India IT & Business Services market is expected to grow annually by 8.8% to reach US$ 13.1 billion* by December 2019, according to the IDC Asia/Pacific Semiannual Services Tracker—2H 2018. Based on IDC’s forecasts, the IT & Business Services market is further expected to register an annual growth rate of 8.7% to be valued at US$ 14.3 billion by December 2020.
Of the IT & Business Services market, the IT Services market contributed 76% in 2H 2018. The IT Services market is slated to reach US$ 10 billion by December 2019, growing at 9.1% annually. The Indian government’s higher spending on the Digital India and Smart Cities initiatives, and the increased adoption of next-gen technologies by organizations is driving growth in the IT Services market.
IDC classifies the IT Services market into three categories—Project Oriented, Managed Services, and Support and Training. For 2H 2018 (July – December 2018), Project-Oriented Services was the largest segment, followed by Managed Services, and Support and Training
Increased spend on digitization has driven the demand for IT Services, especially around Systems Integration. The faster-growing services included Hosting Infrastructure Services and Hosted Application Management; followed by IT Consulting and Application Management.
“In India, growth in the IT services market is being propelled by the BFSI and the government verticals. The other emerging verticals which are expected to adopt IT Services and futuristic technologies more aggressively in the next 3-5 years are the manufacturing, retail, healthcare and education verticals. Additionally, a number of technology start-ups offering niche solutions in AI, ML, IoT, blockchain, automation, etc. have come up, which is further driving adoption of IT Services in the country,” said Ranganath Sadasiva, Director, Enterprise Solutions, IDC India.
"In 2H 2018, it was seen that the major leading IT Services vendors forged partnerships or made acquisitions in open-source technology, in a bid to be able to meet organization’s demand for adopting Agile methodologies. Amongst the emerging technologies, AI and ML attracted more partnerships, on the back of increased demands from organizations to create innovative products and services. IT Services vendors also increasingly entered into partnerships to set up datacenters, or Security Operations Centers (SOCs), or Centers of Excellence (CoEs) in the country,” said Garima Goenka, Market Analyst - IT Services, IDC India.
IDC estimates that the IT Services market will grow at a CAGR of 8.6% between 2019-2023, to reach US$ 14.0 billion by the end of 2023.
*All market size and growth percentage numbers are in constant currency.
About IDC Trackers
IDC Tracker products provide accurate and timely market size, company share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company.