India's IT & Business Services Market Set to Reach $20.7 Billion by 2028
The IT and Business Services market in India is poised for significant expansion, projected to reach $20.7 billion by 2028 with a compound annual growth rate (CAGR) of 7.3%, as per a report released by International Data Corporation (IDC).
In 2022, the domestic IT & Business Services market attained a valuation of $14.5 billion, marking a year-over-year (YoY) growth of 6.1%, which moderated from 7.4% in 2022 owing to cautious IT spending amid volatile macroeconomic conditions, according to IDC.
Indian enterprises adopted a strategy of cost optimization while prioritizing IT initiatives that yield swift returns. Key focus areas included enhancing customer experience and optimizing operational efficiency, leveraging technologies such as cloud computing, analytics, and AI/ML to gain a competitive edge.
Harish Krishnakumar, senior market analyst at IDC India, highlighted the emerging trend of IT service investments being driven by GenAI interest. Enterprises are increasingly collaborating with IT service providers to explore potential use cases, proofs of concept (POCs), and manage intricate IT infrastructure and applications.
In 2023, the IT Services segment, which contributed 78.4% to the overall market, recorded a growth of 6.6%, compared to 8.1% in 2022. This reflects a dynamic industry landscape shaped by advancements in AI and GenAI.
Neha Gupta, senior research manager at IDC India, emphasized the industry's shift towards delivering tangible business outcomes through rigorous examination of use cases.
The report underscores India's evolving IT and Business Services sector, driven by technological advancements and strategic investments, poised to navigate future challenges and capitalize on emerging opportunities.
