Indian IT, Business Services market grows 6.4% to US$ 6.96 billion in H1 2021: IDC

Accroding to International Data Corporation (IDC), Indian IT and Business Services market logged a 6.4% y-o-y growth in the first half of 2021 and was valued at US$ 6.96 billion. The research firm stated that the IT and Business services sector recorded a 5.1% growth in the first half of 2020.

“The rise in growth rate was predominantly due to the continued focus on digital transformation initiatives by enterprises in the country,” it revealed.

The IT Services market contributed 78% and expanded by 7.3% in H1 2021, as compared to the 5.7% growth in the year-ago period.

According to IDC, the IT and Business Services market is ready to mobilize steam in the upcoming cycles owing to the revival of the economy and enhanced spending in areas such as cloud, security, artificial intelligence, etc.

The research firm categorises the IT & Business Services market into three primary markets - project-oriented, managed services, and support services.

It estimates the IT and Business Services market to reach US$ 19.93 billion by the end of 2025, expanding at a compound annual growth rate (CAGR) of 8.2% between 2020-2025.

Mr. Harish Krishnakumar, IDC India senior market analyst (IT services) stated that “Despite the severe second wave of the Covid-19 pandemic, businesses continued to invest in digital transformation initiatives to discourse the change in business models, streamline operations, enhance customer and employee experience, and improve overall resiliency.”

Throughout the first half of 2021, project-oriented services recorded the highest growth rate at 7.2%, subsequently managed services at 6.2%, and support services at 5.3%.

Ms. Shweta Baidya, IDC India Senior Research Manager (Enterprise Software and ICT Services) stated that “1H2021 turned out to be the year that represented that enterprise resiliency bolstered at a remarkable pace. Most enterprises saw a bounce back with business reaching the pre-pandemic situation.”

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.