Publication date: 28 Oct 2024
IDC: India’s IT Services Market Reaches $14.5 Billion in 2023, Growing 6.1% YoY Despite Slower IT Investment Recovery
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For more information, contact:- Neha Gupta Email: ngupta@idc.com
- Miguel Carreon Email: mcarreon@idc.com
- Michael De La Cruz Email: mdelacruz@idc.com
Indian Enterprises to Prioritize AI, Security, and Advanced Tech as IT Environments Evolve.
INDIA, 28 October 2024 – 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 (DOC #AP52297124) 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.
To learn more about this IDC report, contact Neha Gupta at ngupta@idc.com or click HERE. For media queries, please contact Michael De La Cruz at mdelacruz@idc.com or Miguel Carreon mcarreon@idc.com.
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