Indian IT services market grows by 8.1 pc during first half of 2022
The higher growth rate is due to the continuing rise in digital transformation investments among Indian enterprises.
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FollowThe Indian domestic IT and business services market was valued at $7.15 billion and recorded a 7.4 per cent year-over-year growth compared to 6.4 per cent in the first half of 2021.
According to the International Data Corporation's Worldwide Semi-annual Services Tracker, the higher growth rate is due to the continuing rise in digital transformation investments among Indian enterprises.
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'The Indian IT services market recorded robust growth despite the ongoing global economic crisis and the Russia-Ukraine conflict as enterprises continued to increase their IT service investments to increase customer satisfaction, improve resiliency, accelerate product development, etc. There is also a rise in discretionary spending apart from digital transformation initiatives as IT investments put on hold due to the pandemic have resumed,' the report notes.
'Enterprises also continue to invest in data analytics and AI/ML along with increased investments in the cloud, enabling them to make better decisions,' said Harish Krishnakumar, Senior Market Analyst-IT Services at IDC India.
The IT Services market grew by 8.1 per cent in the first half of 2022 compared to the 7.3 per cent growth in the same period in 2021. Further, as per IDC, the Information Technology and Business Services market is poised to record strong growth in the upcoming years, as enterprises are expected to continue with their digital transformation investments and will not face a considerable impact due to the economic slowdown.
The IT and Business Services market is projected to reach $20.5 billion by the end of 2026 and grow at a CAGR of 8.3 per cent between 2021-2026.
The IDC classifies the IT & Business Services market into three primary markets – Managed Services, Project-Oriented and Support Services. Project-oriented services registered the highest growth rate at 8.1 per cent for the first half of 2022, followed by managed services at 7.3 per cent and support services at 6 per cent, respectively.
Driving the increased demand for hosted application management and hosting infrastructure services in the managed services market is the rising adoption of colocation and cloud services.
The demand for system integration services is driving the project-oriented services market and as enterprises try to ensure their IT investments are aligned with their desired business outcomes, the demand for IT consulting services is also on the rise.
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