India’s domestic IT and business services market grew 7.2 pc in 2022, says report

New Delhi [India], May 23 (ANI): Indian IT and business services market was valued at USD 13.87 billion and recorded a 7.4 per cent year-on-year growth in 2022 as compared to 7.2 per cent in 2021, according to International Data Corporation (IDC).
International Data Corporation (IDC), a global market intelligence and advisory services provider, attributed the rise in growth rate to digital transformation initiatives among enterprises in India.
"The Indian IT services market remained resilient, with enterprises investing in digital transformation amidst macroeconomic uncertainties like the war in Ukraine, high-interest rates, inflation, etc. Cloud, analytics, Artificial Intelligence/Machine Learning and security continued to be key technology investment areas as enterprises focused on enhancing customer experience, improving operational efficiency and agility, etc., and will continue to do so in the upcoming years," said Harish Krishnakumar, Senior Market Analyst, IT Services, IDC India.
"Factors like chances of an impending recession, high inflation, etc., are not expected to cause a significant impact on the Indian IT services market in the near term. However, there will be a slight slowdown due to discretionary spending cuts, delayed decision-making, etc., in some segments," said Krishnakumar.
The IT and business services market is projected to grow at a compound annual growth rate (CAGR) of 8.0 per cent between 2022-2027 and reach USD 20.42 billion by 2027.
IDC classifies the IT and business services market into three primary markets - project-oriented, managed services, and support services. For 2022, project-oriented services registered the highest growth rate at 8.0 per cent, followed by managed services at 7.2 per cent, and support services at 6.4 per cent, respectively.
"As organizations seek to efficiently manage their hybrid infrastructures, we foresee a substantial increase in the adoption of cloud services, fueled by the benefits of agile and scalable pricing structures like consumption-based and outcome-based pricing models," said Neha Gupta, Senior Research Manager, Software and IT Services Market, IDC India. (ANI)