India’s IT services market grew 6.1% in 2023, reaching a size of $14.5 bn: International Data Corporation

While IT investments showed a slower recovery compared to the previous year, digital transformation (DX) initiatives and IT environments would continue to drive market growth

The India IT services market grew 6.1% year-over-year (YoY) in calendar 2023, reaching a market size of $14.5 billion, reported International Data Corporation (IDC) on Monday (October 28, 2024). While IT investments showed a slower recovery compared to the previous year, digital transformation (DX) initiatives and the increasing complexity of IT environments would continue to drive market growth, IDC report said. “While 2023 saw a slowdown in IT investment, 2024 will be all about growth fueled by digital transformation (DX),’‘ said Neha Gupta, Senior Research Manager, Software and IT Services market, IDC India. According to her, 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,” Ms. Gupta added. The leading tech companies capitalised 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, while India-based companies prioritised strong analytics, automation, and cognitive enablement capabilities, including GenAI, from their next-generation IT service partners, IDC Market Analysis Perspective highlighted. “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,” Ms. Gupta further commented.

Published - October 28, 2024 10:32 pm IST