The Indian domestic IT & Business Services market posted 7.4 percent growth to reach $13.87 billion in 2022 as compared to 7.2 percent in 2021, according to International Data Corporation (IDC).
The rise in growth rate in spending on IT & Business Services is due to the digital transformation initiatives among enterprises in the country.
Cloud, analytics, AI/ML, and security continued to be key technology investment areas as enterprises focused on enhancing customer experience, improving operational efficiency and agility, etc., and will continue to do so in the upcoming years,” said Harish Krishnakumar, Senior Market Analyst, IT Services, IDC India.
Of the IT & Business Services market, the IT Services market contributed 78.1 percent and grew by 8.1 percent in 2022 compared to the 7.9 percent growth in 2021.
IT & Business Services market is projected to grow at a CAGR of 8 percent between 2022-2027 and reach $20.42 billion by the end of 2027.
For 2022, project-oriented services registered growth of 8 percent, followed by managed services at 7.2 percent, and support services at 6.4 percent respectively.
India’s economy has demonstrated resilience amidst major macroeconomic factors, yet the impact of inflation on IT spending has spurred a renewed focus on investment optimization to achieve optimal return on investment (ROI) of various IT initiatives, said Neha Gupta, Senior Research Manager, Software and IT Services Market, IDC India.