India’s IT market up by 8.1% in H1 ‘22: IDC

It has also clocked a 7.4% year-on-year (YoY) growth from H1 2021

November 16, 2022

The country’s IT and business services market is currently valued at US$ 7.5 billion

Between 2021-2026, the IT & Business Services market is projected to grow at a compound annual growth rate (CAGR) of 8.3%

According to the report, project-oriented services registered the highest growth rate at 8.1%, followed by managed services at 7.3%, and support services at 6%

The Indian IT services market recorded healthy growth as enterprises, despite numerous geopolitical challenges, continued to increase their IT service investments

India’s Information Technology (IT) services market rose by 8.1% during the first six months (H1) of this year and clocked a 7.4% year-on-year (YoY) growth from H1 2021, according to a report from the International Data Corporation (IDC). Additionally, the country’s IT and business services market is currently valued at US$ 7.5 billion.

About 75% of this value comes from IT services. According to the report, the increase in digital transformation investments within Indian companies has driven their overall growth. The market is expected to witness strong growth in the coming years due to continued digital transformation by enterprises.

Between 2021-2026, the IT & Business Services market is projected to grow at a compound annual growth rate (CAGR) of 8.3%. By the end of 2026, it is expected to reach US$ 20.5 billion.

According to the report, project-oriented services registered the highest growth rate at 8.1%, followed by managed services at 7.3%, and support services at 6%.

Indian IT services market recorded healthy growth as enterprises, despite numerous geopolitical challenges, continued to increase their IT service investments to improve resiliency, increase customer satisfaction and accelerate product development. Enterprises are also continuing to increase their investment in data analytics, Artificial Intelligence/Machine Learning and better security technology. 

As one of the world’s fastest adopters of digital transformation, emerging technologies like Web3, quantum computing, and 5G will be incorporated within India’s IT services. This will increase its global market share even further. 


Source: Economic Times

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