India’s IT services market grew by 6.1 percent in 2023, reaching $14.5 billion. While 2023 saw slower recovery in IT investments, 2024 is expected to witness robust growth driven by digital transformation (DX), IDC said.
The growth in Indian IT services market is propelled by the need for complex IT ecosystems, blending on-premises, private, and multi-cloud environments, alongside growing demand for AI and GenAI solutions, stronger security protocols, and automation.
“Tech companies capitalized on increased digital spending across enterprises in India, driving significant revenue growth. Performance was bolstered by strong demand in cloud, AI, security, and application modernization, with notable success in the government sector and telecom and manufacturing verticals,” Neha Gupta, Senior Research Manager, Software and IT Services market, IDC India, said.
IT service providers are crucial in supporting businesses to manage increasingly intricate infrastructures, responsibly implement AI, and deliver improved customer experiences. Leading IT service providers in India are Infosys, TCS, Wipro, HCL Tech, Accenture, Cognizant, Tech Mahindra, among others.
Revenue growth in Indian IT services was driven by increased digital spending in the government, telecom, and manufacturing sectors, with strong demand for cloud, AI, security, and application modernization.
India-based companies are leveraging GenAI for applications in data management, compliance, and productivity, with rising demand for use cases like report summarization and code creation.
Initially, enterprises are expected to implement GenAI for business function-specific applications, such as marketing and procurement, and eventually transition to industry-specific use cases requiring extensive customization.
