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Nov 2016 - IDC Presentation - Doc # AP41922316

1H16 Country Report on IT Services – India

Author: Arun Dani
On-line Presentation

This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in India from January to June 2016 (1H16). It covers the market size movements and growth trends in each of the macromarkets (i.e., project oriented, outsourcing, and support and training services) as well as the key industries such as finance, manufacturing and resources, public sector, distribution and services, and infrastructure. The report also provides a market and vendor analysis of the 3rd Platform technologies as the key market drivers. The competitive analysis section includes key strategies and activities of large global and local IT services providers in the market.

The data and insights within this presentation are a part of the "Asia/Pacific Semiannual Services Tracker" research, which covers 14 foundation markets across 14 Asia/Pacific countries.

The Indian IT services market has sustained its growth momentum in 1H16, with the growing demand for digitization arising from both the private and public sectors. India's gross domestic product (GDP) growth is projected to remain strong and grow around 7.5% during 2016–2017. Private consumption is expected to grow with the increase in public and private sector wages along with moderated inflation. Government spending continues to be robust with improved tax revenues, which is expected to divert more investment toward social and physical infrastructures. Also, factors such as improved ease of doing business, moderated inflation, wage hikes in the country have added thrust for growth.

The BFSI and government sectors continue to grow at a faster rate in terms of IT adoption. The emergence of fintech banks and payment banks, and the growing 3rd Platform technology adoption have been major drivers for growth in the BFSI sector. Various digitization initiatives across government departments have significantly pushed the government's technology consumption.

The evolving IT landscape in the country would force companies to develop offerings alongside new digital service lines, even as they reinvent their traditional service lines to sustain in the long run. Hosting services, security, analytics, and custom application development continued to be in high demand. Cybersecurity has come to the limelight and received industrywide attention in light of rapidly growing cyberthreats and attacks. Hosting services majorly benefited from a growing number of enterprises moving from a capex-intensive model to an opex-intensive one.