India IT and business services market growth slows down in 2020

India’s IT and business services market grew to US$13.41b in 2020, according to IDC. However, the 5.41 percent year-over-year growth was slowed down by the pandemic. In 2019, the market enjoyed 8.43 percent increase from the previous year.

IDC expects the market to pick up from due to increased spending in areas such as cloud, application modernisation, artificial intelligence, and automation. It is projecting a compounded annual growth rate of 7.18 percent between 2020 and 2025 to reach US$18.97 billion in 2025.

“During the second half of 2020, apart from cloud adoption and IT security, enterprises also started to increasingly invest in technologies like artificial intelligence, machine learning, and analytics for solutions like conversational AI and Chatbots, fraud prevention, demand forecasting, etc., which would help streamline their business operations. Even sectors like manufacturing, which was adversely affected during the initial stages of the pandemic, started investing in cloud-based applications and automation projects,” said Harish Krishnakumar, Senior Market Analyst of IT Services at IDC India.

“While the year 2020 pushed enterprises to focus on survival and business continuity strategies through cost takeout and cost optimisation initiatives, the year 2021 will pave the way for business resiliency plans to kick-in and accelerated investments in technologies to support an enterprise’s digital goals. With a large part of the workforce being out of action during the second wave of the pandemic, enterprises will look up to their service partners to enable digital transformation initiatives and prepare them to be a future-ready enterprise,” said Shweta Baidya, Senior Research Manager of Enterprise Software and ICT Services at IDC India.

Photo: Song Kaiyue from Pexels

Tagged with: