Indian IT, biz services mkt grows 6.4% to $6.96 bn in H1 2021: IDC

NEW DELHI: The Indian IT and Business Services market was valued at $6.96 billion and recorded a 6.4% year-over-year growth in the first half of 2021, research firm IDC said on Wednesday.

The IT and Business Services market had registered a 5.1% growth in the January-June 2020 period, IDC said.

“The increase in growth rate was primarily due to the continued focus on digital transformation initiatives by enterprises in the country,” it added.

Of the IT and Business Services market, the IT Services market contributed 78% and grew by 7.3% in the first half of 2021, as compared to the 5.7% growth in the year-ago period.

As per IDC, the IT and Business Services market will witness an increased momentum in the upcoming cycles due to the revival of the economy and increased spending in areas like cloud, security, artificial intelligence, etc.

The IT and Business Services market is projected to reach $19.93 billion by the end of 2025, growing at a compound annual growth rate (CAGR) of 8.2% between 2020-2025, IDC said.

“Despite the harsh second wave of the Covid-19, enterprises continued to invest in digital transformation initiatives to address the change in business models, streamline operations, enhance customer and employee experience, and improve overall resiliency,” IDC India senior market Analyst (IT Services) Harish Krishnakumar said.

Verticals like government and manufacturing, which delayed IT investments in 2020, hiked up their IT spend in the first half of 2021, and enterprises in the country continued to increasingly depend on IT service providers for solutions in areas like cloud, security, artificial intelligence, analytics, etc, he added.