India IT and business services market may grow 6.9% annually to $13.3 billion by Dec this year: IDC
The India IT and business services market is likely to grow 6.9% annually to $13.3 billion by December this year, according to International Data Corporation’s (IDC) semi-annual services tracker.
The industry tracker forecasts that the IT and business services market is further expected to grow annually by 6.8% to be valued at $14.2 billion by December 2020. The IT Services market contributed 77% in the first half and is further expected to expand to $10.2 billion by December 2019, growing at 7.2% annually.
IDC expects that the IT Services market will grow at a compounded annual growth rate (CAGR) of 8.2% between 2019 and 2023, to be valued at $14 billion by the end of 2023. IDC classifies the IT Services market into three primary markets – project oriented, managed services, and support and training. For the first half of 2019 (January – June), project-oriented services was the largest segment, followed by managed services and support services.
The highest revenue-generating segment in the IT services market continued to be systems integration in the first half, the firm said, due to the shift towards modernised infrastructure and applications.
Hosting Infrastructure Services and Hosted Application Management continued to register high growth rates in the first half, further followed by IT Consulting and Application Management.
“Vendors are leveraging emerging technologies such as artificial intelligence (AI), advanced analytics, machine learning to position themselves as the trusted digital transformation partner. They are investing heavily on reskilling and upskilling their workforce to gain confidence and drive more business across major verticals such as BFSI, government and manufacturing, among others,” said Shweta Baidya, senior research manager, software and IT services, IDC India. “Vendors and startups are also partnering with each other to create innovation hubs, share ideas and collaborate to achieve greater synergy, through transformational projects,” she added.
According to Garima Goenka, market analyst, IT Services, in the first half of the year organisations’ demand to adopt Agile methodologies, DevOps, and Open Source had grown resulting in a higher adoption of emerging technologies.
“The dynamic changes in the marketplace has resulted in a huge skills gap amongst the IT youth. The need of the hour is quick and effective adaptation to the new digital environment, which can be achieved through the development of new skills for executing complex models in IoT, AI, ML, blockchain, data science and robotics,” she said.