The global market research and business intelligence firm, International Data Corporation (IDC), on Wednesday (November 27), stated that the IT service market is likely to reach $ 13.3 Bn by December 2019 (1H19), growing at a compound annual growth rate (CAGR) at 6.9%.
IDC further said in a press statement that the IT & business services segment is expected to be valued at $14.2 Bn by December 2020, growing at a CAGR 6.8%.
For 2019-2023, IDC further projected that the IT and business service market will be valued at $14 Bn by the end of 2023, growing at CAGR 8.2% for the forecasted period.
According to IDC, the growth of the IT and business services will be driven by project-oriented (consulting, integration, application development), managed services (application management, infrastructure services, outsourcing) and support services (hardware and software support, IT education). Interestingly, for the first half of FY19, project-oriented services dominated the market, followed by managed services and support services.
Garima Goenka, market analyst, IT services at IDC India said that during the first half of FY19, a lot of enterprises began adhering to newer methods and processes, resulting in higher adoption of emerging technologies like internet of things (IoT), artificial intelligence (AI), machine learning (ML), blockchain, data science and robotics among others. This transformation in the marketplace, in a way, has resulted in a massive skills gap among the IT employees, she added.
Shweta Baidya, senior research manager, software and IT services at IDC India, further stated that companies are investing heavily in re-skilling and upskilling of their workforce to gain momentum and drive the business forward across major verticals such as BFSI, government, and manufacturing among others. Additionally, many companies and startups are collaborating to create innovation hubs, share ideas to achieve greater results. Also, the implementation of the GDPR in May 2018, has demanded cybersecurity and enterprise governance risk compliance (eGRC) services from businesses, who have significant exposure to European Union (EU) clients, Baidya added.
As per the IBEF report, India’s IT and business services industry grew to $181 Bn in 2018-2019. It said that India is one of the topmost offshore destinations across the world. The export revenue of the segment is expected to grow between 7 – 9 % annually to $135 – $137 Bn in FY19. Further, the market is expected to grow to $350 Bn by 2025, the growth will be fueled by business process management companies, contributing anywhere between $50 Bn and $55 Bn.