Dan’s Biz Bookshelf: 'A View from the Top: Moving from Success to Significance'
The Chemical Connection: The Practice of Doing Business in Foreign Lands
It’s Only Common Sense: Pricing PCBs? It’s All in Their Heads
Indian IT Services Market Grows 6.4% in 1H2024 Driven by AI and Digital Transformation
December 27, 2024 | IDCEstimated reading time: 2 minutes
According to the International Data Corporation (IDC) Worldwide Semi-annual Services Tracker, the Indian IT Services market grew by 6.4% year-over-year (YoY) in 1H2024, contributing 79.2% of the overall IT & Business Services market. While this growth marks a slight moderation from 6.7% in 1H2023, it reflects sustained investments in digital transformation, cloud migration, and GenAI adoption. Indian enterprises remained committed to critical IT initiatives, prioritizing cost optimization and operational efficiencies to drive competitiveness.
The broader IT and Business Services market in India reached USD 7.4 billion in 1H2024, registering a 5.9% YoY growth, compared to 6.2% in 1H2023. The market is projected to expand at a CAGR of 6.4% between 2023 and 2028, reaching USD 19.8 billion by the end of the forecast period. Modest overall growth reflects enterprise caution amid macroeconomic uncertainties, though continued investments in IT-led business transformation signal long-term resilience and opportunity.
“Indian enterprises prioritized critical projects in areas like digital transformation, cloud migration, GenAI, cybersecurity, etc., amidst cost optimization initiatives to drive innovation, improve business outcomes, and remain competitive,” said Harish Krishnakumar, Senior Market Analyst, IT Services, IDC India. “As the macro-economic environment gradually improves, the resulting rebound in discretionary spending and increased investments in digital transformation are expected to drive IT services investments during the forecast period. Investments in GenAI would likely surge as enterprises try leveraging GenAI for improved decision-making, enhancing customer experience, etc., as well as integrating this into existing business applications, with IT service providers as their prime technology partners for their GenAI plans.”
IDC classifies the IT and Business Services market into three primary markets – Project-Oriented, Managed Services, and Support Services. For 1H2024, project-oriented services registered the highest growth rate at 6.4%, followed by managed services at 5.6% and support services at 5.4%, respectively.
The system integration segment will be driven by initiatives like cloud migration, application modernization, integration of emerging technologies, etc., and services around data engineering, infrastructure modernization, and implementation services to facilitate GenAI adoption. The managed services segment will be driven by the need to efficiently manage enterprise applications and infrastructure across complex distributed IT environments.
“The India IT ecosystem stands at a pivotal moment. As investments in AI and GenAI transition from discussions to implementation, the demand for advanced capabilities and elevated expectations from IT service providers is set to reshape the industry,” said Neha Gupta, Senior Research Manager, Software and IT Services Market, IDC India. “Vendors are integrating AI into their offerings to enhance intelligence and operational efficiency. Consequently, the spotlight is on achieving data efficiency, ensuring robust security, and prioritizing the upskilling and reskilling of talent. The coming 12-18 months promise to bring transformative changes, redefining the trajectory of Indian IT services."
*All market size and growth percentage numbers are in constant currency.
Share on:
Testimonial
"The I-Connect007 team is outstanding—kind, responsive, and a true marketing partner. Their design team created fresh, eye-catching ads, and their editorial support polished our content to let our brand shine. Thank you all! "
Sweeney Ng - CEE PCBSuggested Items
North American EMS Industry Shipments Down 1.4% in August
10/02/2025 | Global Electronics AssociationThe Global Electronics Association announced the August 2025 findings from its North American Electronics Manufacturing Services (EMS) Statistical Program. The book-to-bill ratio stands at 1.26.
Hon Hai Technology Group (Foxconn) and TECO Announce Strategic Alliance Targeting AI Data Center Capabilities
07/31/2025 | Hon Hai Technology GroupHon Hai Technology Group (“Foxconn”) and TECO Electric & Machinery Co Ltd (“TECO”) on Wednesday announced a share exchange, strategic alliance that will strengthen their AI infrastructure capabilities and propel the two Taiwanese tech majors into key markets in the global super-computing race.
KOKI to Showcase Analytical Services and New HF1200 Solder Paste at SMTA Guadalajara 2025
07/31/2025 | KOKIKOKI, a global leader in advanced soldering materials and process optimization services, will exhibit at the SMTA Guadalajara Expo & Tech Forum, taking place September 17 & 18, 2025 at Expo Guadalajara, Salón Jalisco Halls D & E in Guadalajara, Mexico.
Global Citizenship: The Global Push for Digital Inclusion
07/16/2025 | Tom Yang -- Column: Global CitizenshipIt can be too easy to take the technology at our fingertips for granted: high-speed internet, cloud-based collaboration, and instant video calls across continents. Yet, for billions of people, access to these digital tools is a distant dream. As a global community, we must ensure that technology is available to all. Here is how technology is bridging physical, economic, and educational gaps in underserved regions and profoundly reshaping lives.
SMT007 Magazine July—What’s Your Competitive Sweet Spot?
07/01/2025 | I-Connect007 Editorial TeamAre you in a niche that’s growing or shrinking? Is it time to reassess and refocus? We spotlight companies thriving by redefining or reinforcing their niche—what are their insights? In the July 2025 issue of SMT007 Magazine, we spotlight companies thriving by redefining or reinforcing their niche and offer insights to help you evaluate your own.