IDC Report Highlights Growth in India's IT Services Market in 2024

The latest IDC Market Analysis Perspective report, India IT Services Market, 2024, reveals that India's IT services market grew by 6.1% year-over-year in 2023, reaching USD 14.5 billion. Despite slower IT investment recovery, the report points to digital transformation (DX) initiatives and increasingly complex IT environments as major growth drivers.

"While 2023 saw a slowdown in IT investment, 2024 will be all about growth fueled by digital transformation (DX). The increasing complexity of IT ecosystems—blending on-premises, private, and multicloud environments—along with surging demand for AI and GenAI solutions, stronger security measures, and automation, will drive the market forward. Service providers are at the heart of this evolution, enabling businesses to manage complex infrastructures, responsibly harness AI, and deliver enhanced customer experiences," says Neha Gupta, Senior Research Manager, Software and IT Services market, IDC India.

The report highlights that major tech firms in India saw revenue growth due to increased digital investments, particularly in cloud, AI, security, and application modernization. The government, telecom, and manufacturing sectors saw significant demand, further driving industry performance.

GenAI Adoption and New Opportunities

India-based companies are expanding IT budgets to support analytics, automation, and cognitive capabilities, focusing on GenAI-driven solutions for data management, compliance, and productivity. The GenAI market is projected to evolve from business function use cases—integrating AI with enterprise data for marketing, sales, and service—to industry-specific applications requiring customized solutions tailored to unique processes.

"In today's digital business environment, technology vendors must be forward-thinking innovators, utilizing technology to create new digital value and keep their customers ahead of the curve," Gupta adds.

The IDC Market Analysis Perspective: India IT Services Market, 2024 (DOC #AP52297124) offers a comprehensive analysis of the present and projected trends within India's IT services sector. The report provides insights into the primary and foundational segments of the market, examines the top 20 service providers, and discusses evolving buyer behavior. Additionally, the report outlines potential future developments for India's IT services market and presents recommendations and actionable guidance for IT service providers based on current market dynamics.

Read More:

CyberArk and DSCI Launch Report on Multi-Cloud Identity Management

PACT Expresses Concerns about Pricing of PCs, Demands Parity in Prices