India’s IT Services Market Reaches $14.5 Billion in 2023, Growing 6.1% YoY Despite Slower IT .......
According to International
Data Corporation ’s latest report, IDC Market Analysis Perspective:
India IT Services Market, 2024, The India IT services market grew 6.1%
year-over-year (YoY) in 2023, reaching a market size of USD 14.5 billion. While
IT investments showed a slower recovery compared to the previous year, the
report highlights that digital transformation (DX) initiatives and the
increasing complexity of IT environments will continue to drive market growth.
"While 2023 saw a slowdown in IT investment, 2024 will be
all about growth fueled by digital transformation (DX). The increasing
complexity of IT ecosystems—blending on-premises, private, and multicloud
environments—along with surging demand for AI and GenAI solutions, stronger
security measures, and automation, will drive the market forward. Service
providers are at the heart of this evolution, enabling businesses to manage
complex infrastructures, responsibly harness AI, and deliver enhanced customer
experiences," says Neha Gupta, Senior Research Manager, Software and
IT Services market, IDC India.
The leading tech companies capitalized on increased digital
spending across enterprises in India, driving significant revenue growth.
Performance was bolstered by strong demand in cloud, AI, security, and
application modernization, with notable success in the government sector and
telecom and manufacturing verticals.
Increasing the use of external professional partners,
strengthening the capabilities of internal IT service workforces, and
developing new digital businesses will drive the increase in IT service
budgets. India-based companies are expected to leverage GenAI for data
management, risk management and compliance, and productivity-enhancing use
cases.
India-based companies prioritized strong analytics, automation,
and cognitive enablement capabilities, including GenAI, from their
next-generation IT service partners. The GenAI solutions market is experiencing
a surge, presenting numerous opportunities for vendors, particularly in
productivity-related use cases such as report summarization, job description
generation, and code creation. The market is expected to evolve, initially
focusing on business function use cases, where AI models are integrated with
enterprise data for specific functions like marketing, sales, service, and
procurement. Eventually, enterprises will leverage GenAI for industry-specific
use cases that require extensive customization to address unique industry
processes or activities.
"In today's digital business environment, technology
vendors must be forward-thinking innovators, utilizing technology to create new
digital value and keep their customers ahead of the curve," Gupta adds.
The recent IDC Market Analysis Perspective: India IT
Services Market, 2024 delivers the current state and outlook view of India
IT services market. The document provides insights into current and future
trends by the primary and foundation market segment of India's IT services market,
a top 20 service providers (SPs) analysis, and buyer behavior commentary. The
document also explores future development directions for India's IT services
market based on the current market situation and provides guidance and actions
to consider for IT SPs.
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