The latest IDC report has insights on what will be the size of the Indian IT Services market in 2024 and 2028.
The Indian IT Services market grew by 6.4 percent in 1H2024, contributing 79.2 percent to the overall IT & Business Services market, which reached $7.4 billion. Despite slight moderation compared to 1H2023, the growth reflects sustained investments in digital transformation, cloud migration, and GenAI adoption. Indian enterprises prioritized critical IT projects, focusing on cost optimization and operational efficiencies.
The Indian IT Services market is expected to grow at a CAGR of 6.4 percent, reaching $19.8 billion by 2028. Growth remains cautious due to macroeconomic uncertainties, but long-term resilience is supported by IT-led transformation efforts.
Project-oriented services led with 6.4 percent growth, followed by managed (5.6 percent) and support services (5.4 percent). Key drivers include system integration, infrastructure modernization, and GenAI implementation.
Harish Krishnakumar, Senior Market Analyst, IT Services, IDC India, highlights enterprise investments in GenAI for decision-making and customer experience, along with a growing focus on AI integration, data efficiency, cybersecurity, and workforce upskilling. These advancements are expected to reshape the Indian IT services industry in the coming years.
Neha Gupta, Senior Research Manager, Software and IT Services Market, IDC India, said IT vendors are integrating AI into their offerings to enhance intelligence and operational efficiency. The coming 12-18 months promise to bring transformative changes, redefining the trajectory of Indian IT services.
Rajani Baburajan
