Digital Technologies Driving Growth in the India IT & Business Services Market


Reading time ( words)

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.

About IDC

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.

Share

Print


Suggested Items

Telecom (Compute and Storage) Infrastructure Market to Reach $16.35B in 2022

09/03/2018 | IDC
A new forecast from IDC sizes the market for compute and storage infrastructure for Telecoms at nearly $10.81 billion in 2017. However, as Telecoms aggressively build out their infrastructure, IDC projects this market to see a healthy five-year compound annual growth rate (CAGR) of 6.2% with purchases totaling $16.35 billion in 2022.

Flights Show Promising Technologies from Industry and Academic Partnerships

02/06/2018 | NASA
The technologies ranged from proposed new space suits to cryogenic propellant research, with implications for future NASA space missions as well as other research efforts.

Improving Military Communications with Digital Phased-Arrays at Millimeter Wave

01/26/2018 | DARPA
There is increasing interest in making broader use of the millimeter wave frequency band for communications on small mobile platforms where narrow antenna beams from small radiating apertures provide enhanced communication security.



Copyright © 2019 I-Connect007. All rights reserved.