Indian IT services market to reach US$ 14 billion by 2023
The IDC Asia/Pacific Semiannual Services Tracker – 2H 2018 has projected that the Indian IT & Business Services market will grow by 8.8% annually to reach US$ 13.1 billion by December 2019. It is further expected to grow by 8.7% YoY to reach US$ 14.3 billion by 2020.
The IT services market accounted for 76% of the market in the second half of 2018, and is expected to touch US$ 10 billion by December 2019 with a growth of 9.1% YoY. During 2019-23, the market is projected to grow at a CAGR of 8.6% to reach a size of US$ 14 billion. This is driven by higher government expenditure in Digital India and Smart Cities as well as growing adoption of next-gen technologies in the IT services market.
System integration is a prominent growth driver of increasing expenditure on IT services. Hosting Infrastructure Services, Hosted Application Management; IT Consulting and Application Management are among the fast growing services.
While BFSI and government have been the key customer segments over the years, a number of new customer verticals are emerging like manufacturing, retail, healthcare and education. Moreover, a number of technology start-ups are coming up with niche solutions in futuristic areas like AI, ML, IoT, blockchain, automation, etc, which is further driving adoption of IT Services, according to Mr Ranganath Sadasiva, Director, Enterprise Solutions, IDC India.