India's IT Services Market Rises by 6.6 pc in 2023: IDC Report By CIOTechOutlook Team

India's IT Services Market Rises by 6.6 pc in 2023: IDC Report

CIOTechOutlook Team | Tuesday, 25 June 2024, 05:47 IST

The domestic IT and business services market in India will expand by 6.6% in 2023, demonstrating resilience in the face of economic uncertainty, as per the most recent information provided by the International Data Corporation (IDC).

The market, which is worth USD 14.5 billion, experienced a YoY growth rate of 6.1 percent, which was slightly lower than the 7.4 percent that was recorded in 2022. This directed development rate exhibits a cautious approach by Indian ventures towards IT spending in the midst of volatile macroeconomic circumstances.

Harish Krishnakumar, Senior Market Analyst for IT Services at IDC India, provided insights into the market dynamics, stating, "Indian enterprises focused on cost optimisation while prioritising IT projects with quicker returns. Enterprises continued to invest in areas like enhancing customer experience and improving operational efficiency to gain a competitive advantage by leveraging technologies like cloud, analytics, and AI/ML."

"In the coming years, IT service investments will be driven by interest in GenAI. Enterprises will continue engaging with IT service providers to develop potential use cases and POCs and also to transform and manage their complex IT infrastructure and applications," he added.

A close assessment of the IT and business services market uncovers that the IT administrations area, which comprises 78.4 percent of the total market, developed by 6.6 percent in 2023, a slight downfall from the 8.1 percent development saw in 2022. From 2023 to 2028, the IT and business services market is expected to expand at a compound annual growth rate (CAGR) of 7.3%, reaching USD 20.7 billion.