IT Services - India

India

The IT Services market in India is expected to witness a significant growth in the coming years.
According to projections, the revenue in this market is estimated to reach US$26.73bn by 2024.
Among the various segments, IT Outsourcing is expected to dominate the market, with a projected market volume of US$11.04bn by 2024.
Furthermore, the revenue in the IT Services market is anticipated to exhibit an annual growth rate (CAGR 2024-2029) of 10.49%, resulting in a market volume of US$44.02bn by 2029.
This growth can be attributed to the increasing demand for IT services and the adoption of digital transformation strategies by businesses in India.
In terms of average spend per employee, it is projected to reach US$49.02 in 2024, indicating the level of investment made by companies in IT services to enhance their operations and stay competitive in the market.
When compared globally, United States is expected to generate the highest revenue in the IT Services market, with an estimated revenue of US$522.00bn in 2024.
This highlights the dominance of the United States in the global IT industry.
Overall, the IT Services market in India is poised for substantial growth, driven by technological advancements, increasing digitalization, and the growing need for IT support and solutions across various industries.
India's IT Services market is booming, with a high demand for software development, digital transformation, and cloud computing solutions.

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Analyst Opinion

India, the world's second-most populous country, is home to a thriving IT services market that has been experiencing significant growth in recent years.

Customer preferences: Indian customers are increasingly looking for IT services that are cost-effective, innovative, and tailored to their specific needs. As a result, there has been a growing demand for services such as cloud computing, cybersecurity, and artificial intelligence.

Trends in the market: One of the key trends in the Indian IT services market is the shift towards digitalization. With the Indian government's push towards a digital economy, businesses are increasingly looking to adopt new technologies to stay competitive. This has led to a surge in demand for services such as mobile app development, e-commerce solutions, and digital marketing.Another trend that has emerged in recent years is the rise of niche players in the market. While large IT services companies continue to dominate the market, there has been a growing demand for specialized services from smaller, more agile players. This has led to the emergence of niche service providers in areas such as blockchain, IoT, and machine learning.

Local special circumstances: India's IT services market is unique in that it is heavily influenced by the country's large and growing startup ecosystem. With over 50,000 startups, India is one of the world's fastest-growing startup hubs. Many of these startups are focused on developing new technologies and disrupting traditional industries, which has led to a growing demand for IT services that can support their growth.

Underlying macroeconomic factors: India's IT services market is closely tied to the country's overall economic growth. With a GDP growth rate of over 7%, India is one of the world's fastest-growing major economies. This has led to a growing demand for IT services from businesses across a range of industries, including finance, healthcare, and retail.In conclusion, India's IT services market is experiencing significant growth as businesses across the country look to adopt new technologies to stay competitive. With a growing demand for cost-effective, innovative, and specialized services, the market is likely to continue to evolve in the coming years.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.