The Indian IT and business services market is expected to grow annually by 8.8 percent to reach USD 13.1 billion by December 2019, according to the IDC. The market is further expected to register an annual growth rate of 8.7 percent to be valued at USD 14.3 billion by December 2020.
Of the IT and business services market, the IT services market contributed 76 percent in 2H 2018. The IT services market is slated to reach USD 10 billion by December 2019, growing at 9.1 percent annually. The Indian government’s higher spending on the Digital India and Smart Cities initiatives, and the increased adoption of next-gen technologies by organizations is driving growth in the IT services market. Increased spend on digitization has driven the demand for IT services, especially around systems integration. The faster-growing services included hosting infrastructure services and hosted application management, followed by IT consulting and application management.
In 2H 2018, it was seen that the major leading IT services vendors forged partnerships or made acquisitions in open-source technology in a bid to be able to meet organizations’ demand for adopting agile methodologies. Amongst the emerging technologies, AI and ML attracted more partnerships, on the back of increased demands from organizations to create innovative products and services. IT services vendors also increasingly entered into partnerships to set up datacenters, or security operations centers (SOCs), or centers of excellence (CoEs) in the country.