Led by system integrators, the India IT services and business market is likely to grow annually by 6.9 per cent to hit $13.3 billion by the end of this year, an IDC report said on Wednesday.
According to the IDC’s ‘Worldwide Semiannual Services Tracker – 1H19,” the IT and Business Services market is further expected to grow annually by 6.8 per cent to be valued at $14.2 billion by December 2020.
The highest revenue generating segment in IT Services market continued to be Systems Integration in 1H19, on account of the shift towards modernized infrastructure and applications.
“Vendors are investing heavily on re-skilling and upskilling their workforce to gain confidence and drive more business across major verticals such as BFSI, government and manufacturing, among others,” said Shweta Baidya, Senior Research Manager, Software and IT Services, IDC India.
Vendors and start-ups are also partnering with each other to create innovation hubs, share ideas and collaborate to achieve greater synergy, through transformational projects.
The IT Services market contributed 77 per cent in 1H19 and is further expected to expand to $10.2 billion by December 2019, growing at 7.2 per cent annually.
IT Services market will grow at a CAGR of 8.2 per cent between 2019-2023, to be valued at $14 billion by the end of 2023.
“The need of the hour is quick and effective adaptation to the new digital environment, which can be achieved through the development of new skills for executing complex models in IoT, AI, ML, blockchain, data science and robotics.
“The government as well as leading organizations have already taken steps towards reskilling the IT/ITeS workforce of the country, and this is expected to further increase,” said Garima Goenka, Market Analyst, IT Services, IDC India.