IBM, Wipro, TCS, HP, HCL lead India IT services market in H2 2013: IDC

IBM, Wipro, Tata Consultancy Services (TCS), HP, HCL Technologies are leading the India IT services market in the second half of 2013 (H2 2013), said IDC.

The IT services market share of IBM is 12.1 percent, Wipro 7.4 percent, TCS 7.2 percent, HP 3.3 percent and HCL Technologies 2 percent.

The India IT services market in the second half of 2013 rose nearly 6.5 percent to $4.1 billion.

The lower than expected growth in the IT services market is mainly attributed to the cautious approach in the market and a decrease in the infrastructure spend.

Support services business rose 5.5 percent with organizations looking at cost cutting measures and holding off plans for hardware and software refresh.

System integration and IT consulting services grew 6.8 percent and 6.3 percent respectively, owing to fewer infrastructure projects.

Outsourcing services market grew 7.1 percent.

India IT Service Market

IDC noted that large outsourcing contracts  are  being  replaced  by small discrete outsourcing deals, where  the  contract  value, and length of contract have come down to 3-5  years  instead of 7-10 years.

Managed Services market has picked up  pace  as  organizations  are  looking  for  solutions  which  are efficient  and  cost  effective.  Concerns around providers’ capabilities to manage vertical specific applications remain high, which is limiting the kind of applications getting outsourced and the overall scope of engagement.

IBM  has benefited from its long time presence in India and ability to execute a range of  IT services, from software and hardware support installation  to  systems  integration  and  information system outsourcing (ISO).

India IT Services Top 5 vendors market share

Wipro market share increased to 7.4 percent from 6.9 percent in H1 2013.

Sectors like Banking and Financial Services, Manufacturing, Telecom and Government constituted 82.5 percent of the total spend. Banks  continue  with  their  IT  adoption,  with  a  focus towards delivering  value  to  their  client and organizations by reducing cost and improving  efficiency.  They are automating their back end processes to offset the higher cost of financial inclusion, which involves large amount of manual intervention.

IT services market will grow 8.4 percent in 2014 to $7.69 billion.

IDC says organizations are likely to increase their IT spend after the elections results are out and new government announces its policies. Increasing infrastructure spend will drive the demand for related IT services such as Consulting and System Integration services.

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