Research firm IDC (International Data Corporation) expects India's IT & Business Services market in India will grow by 5.4 percent annually to reach US $13 billion by December 2020. The IT & Business Services market grew by 5.3 percent year-on-year in 1H 2020 (January-June 2020) as compared to the 8.9 percent growth in 1H 2019. Reduced growth is the result of the pandemic. Of the IT & Business Services market, the IT Services market contributed 77.4 percent in 1H 2020 and grew by 5.9 percent YoY in 1H 2020 compared to the 9.3 percent growth in 1H2019.
Further, as reported by IDC, the IT Services market will begin picking up momentum gradually from 2021 onwards and is projected to grow at a CAGR (Compound Annual Growth Rate) of 7.2 percent between 2019-2024, to be valued at US $13.4 billion by the end of 2024.
"In 1H20, the role of IT Services vendors gained higher prominence, as organizations increasingly approached them to help ensure business continuity by putting in place various technologies, solutions, best practices and frameworks. During these difficult times, organizations were investing higher in collaboration applications, VPN licenses, endpoint devices, cybersecurity solutions, cloud, AI, and automation. Apart from just ensuring business continuity, the role of IT service providers have also been towards helping organizations to achieve a higher degree of tech resilience, adaptability, and DX maturity, to become future-ready." said Garima Goenka, Market Analyst, IT Services, IDC India.
"Additionally, most leading IT Service vendors have launched innovative AI-based applications to help the government and healthcare sectors to provide citizen services and answer COVID-19 related queries, and for organizations to ensure the safe and secure return of their employees to the workplace,” Goenka added.
"Enterprises strongly felt the need for advisory and support services to propel their digital journey amidst the pandemic. As a result, IT service providers witnessed a strong surge in demand for various services such as systems and network management, IT Consulting, hosting application management and hosting infrastructure services, among others. IT investments across all the major sectors such as BFSI, healthcare, telecom, IT/ITeS, government and manufacturing increased considerably to improve overall experience and maintain business continuity and resiliency," said Shweta Baidya, Senior Research Manager, Enterprise Software and ICT Services, IDC India.
"The government also relaxed some of the stringent guidelines that IT sector had to adhere to, prior to COVID-19 . The new rules provide increased flexibility with respect to work from home/ anywhere policies and has also modified some of the existing guidelines to augment the growth in the sector," added Baidya.