New Delhi : According to IDC (International Data Corporation) Asia Pacific Semiannual Services Tracker, 2H 2017, the India IT & Business Services market is expected to register an annual growth rate of 9.4% and reach US$ 13.2 billion by the end of 2018. IT Services which contributed around 76% of the overall services market in 2H 2017 is expected to reach US$ 10.1 billion in 2018.
With the economic growth rebounding in 2H 2017 after a slowdown in the first half of the year, business sentiment improved paving the way for sustained Digital Transformation initiatives and core systems enhancements amongst Indian organizations. These, coupled with regulatory and compliance driven needs such as the GDPR, led the IT Services growth in 2H 2017.
IDC classifies the IT Services market into three categories – Outsourcing, Project Oriented and Support and Training. For the 2H 2017 period (July – December 2017). Project Oriented services constituted the largest segment with a share of 39.6%, followed by Outsourcing (38.1%), and Support and Training (22.3%).
“The demand for digital services is rising exponentially, and enterprises across all industry verticals are exploring modes to add such capabilities. Emerging technologies, particularly Cloud, Analytics & Artificial Intelligence (AI) and Internet of Things (IoT), are already beginning to define the way in which enterprises should operate. This is slated to boost the IT Services market for the next 3-5 years with sizeable investments in IT Consulting, Systems Integration, and IT Outsourcing,” Ranganath Sadasiva, Director Enterprise at IDC India.
IDC estimates that the IT Services market will advance at a healthy CAGR of 9.0% to reach US$ 14.3 billion by the end of 2022.
“Managed Security Services is another area that is poised for a healthy growth in the next 3-5 years, with a highly evolved threat landscape, pressure to launch DX initiatives, and the lack of in-house skilled cybersecurity professionals,” said Sandeep Kumar Sharma, Associate Research Manager- Software and Services, at IDC India.