New Delhi, Nov 15 (IANS) India’s IT and business services market reached $7.15 billion and recorded 7.4% year-on-year (YoY) growth in the second half of 2022, compared to 6.4% in the same period last year. year, an IDC report said Tuesday.
The IT and business services market is expected to grow at a CAGR of 8.3% between 2021 and 2026 and reach $20.5 billion by the end of 2026.
In the IT and business services market, the IT services market contributed 78.5% and grew 8.1% in the first half, compared to 7.3% growth in the first half of 2021.
“Despite the current global economic crisis and the Russian-Ukrainian conflict, India’s IT services market has recorded robust growth as enterprises continue to increase investment in IT services to improve resilience, increase customer satisfaction, accelerate product development, etc. said Harish Krishnakumar, Senior Market Analyst, IT Services, IDC India.
In addition to digital transformation initiatives, there is also an increase in discretionary spending as IT investments suspended due to the pandemic have resumed.
“With cloud investments continuing to increase, enterprises also continue to invest in data analytics and AI/ML for better decision making and IT security to improve their security posture. overall,” added Krishnakumar.
According to IDC, more than 60% of Indian organizations plan to increase their budgets for all business and IT services outsourced to professional service providers because a service provider can better support their business and IT.
“We see this trend continuing as Indian companies turn to their service providers as they move towards their goal of becoming a future business,” said Neha Gupta, Senior Research Manager, Software Market and IT services, IDC India.