The Indian IT and business services industry was estimated at $13.41 billion in 2020, up 5.41 percent year over year (YoY) from 8.43 percent in 2019, according to a study released Tuesday by International Data Corporation (IDC).
IT Services accounted for 77.06 percent of the IT and Business Services industry in 2020, growing at a 5.97 percent compound annual growth rate, relative to an 8.91 percent compound annual growth rate in 2019.
The slower growth rate was attributed to the effect of the Covid-19 pandemic on the country’s industries.
The IDC forecasts that the IT and business services industry would expand at a 7.18 percent compound annual growth rate between 2020 and 2025, reaching $18.97 billion by the end of 2025.
“In the second half of 2020, enterprises will increasingly invest in technologies such as artificial intelligence, machine learning, and analytics for solutions such as conversational AI and chatbots, fraud prevention, and demand forecasting, among others,” said Harish Krishnakumar, Senior Market Analyst.
Also, industries such as retail, which was initially harmed by the pandemic, began engaging in cloud-based software and automation programs.
The year 2021 would pave the way for the implementation of market resilience strategies and the acceleration of developments in technology that benefit an enterprise’s digital objectives.
“Among the fields where IDC sees strong opportunities for service providers are cloud enablement and augmentation, network maintenance, optimization, and automation, managed security services, and artificial intelligence-based services,” said Shweta Baidya, Enterprise Software, and ICT Services, Senior Research Manager, IDC India.
With a sizable portion of the workforce out of commission during the pandemic’s second phase, companies would turn to their service partners to allow digital transformation projects and position them to be future-ready, she said.