The India IT & Business Services market grew by 8% YoY in 2H19, according to the International Data Corporation (IDC) Worldwide Semi-annual Services Tracker-2H19. Of the IT & Business Services market, the IT Services market contributed 76.3% in 2H19 and grew by 8.5% year-over-year (YoY) in 2H19.
IDC forecasts the IT & Business Services market to grow annually by 6.5% to reach $14 billion by December 2020. Further, as per IDC, the IT Services market will grow at a CAGR of 7.6% between 2019-2024, to be valued at $14.6 billion by 2024-end. The COVID-19 pandemic has resulted in a slowdown in the overall economy, and also in the IT Services market.
Amidst the COVID-19 outbreak, project-oriented services, such as consulting, custom application development, systems integration, etc. are expected to reduce steeply in the short-term, while managed services, such as application management, hosting services, IT outsourcing, network management etc. are expected to reduce only marginally in the short-term. Further, it is expected that help desk support services will witness an upsurge for emergency support extended to remote working professionals.
“In CY2020, the focus of IT Services vendors during the pandemic has shifted to addressing the challenges of remote connectivity and collaboration, connecting with their ecosystem of customers, suppliers and partners, while also ensuring business continuity, building organizational resilience, and being more adaptable. Digital technologies are the core in ensuring business continuity in this challenging time, with cloud and AI being the technology forerunners,” said Garima Goenka, Market Analyst, IT Services, IDC India.
“The crisis has accelerated the adoption of digital technologies to keep the lights on amidst the COVID-19 pandemic. Enterprises ahead in the digital maturity curve will be better equipped to handle the crisis and will further invest in technology upgrade to address the changing demand. Long-term managed services contracts are expected to continue despite lockdowns, as IT vendors find innovative ways to continue servicing their customers,” said Shweta Baidya, Senior Research Manager, Software and IT Services, IDC India.
