In line with the latest report formulated, courtesy, IDC, has been able to reveal the writing on the wall that reads – the IT services market in India has witnessed a year-on-year growth of around 7.6% in 1H CY 2013 over 1H CY 2012, to reach a value of INR2, 43,387 million (US$4.4 billion) the exchange rate for 1H 2013 – US$1= INR55.04. The growth in the IT services market was slower than expected largely due to cautious spending by organizations amidst a scene of slowing economy.
Interestingly enough, central government projects witnessed a slow progress; whereas state governments are rapidly adopting IT unto their hierarchy which in turn has contributed to the growth in IT services spend in the public sector as well. However, outsourcing services continued to lead the growth in the Indian IT services market in 1H 2013 with a growth of 10.8% over 1H CY 2012.
Kavita Bhadauria, Research Manager, Software and IT Services, IDC, reportedly commented, “As the adoption of third platform technologies like cloud, mobility and analytics picks up in the Indian market, it will drive the growth in IT services spend as well. The third platform technologies will change the way services are delivered and consumed and will impact the overall value chain. Although the IT services spend will increase in absolute dollar terms but in the long run wallet share will shift from vanilla services to these solution-oriented services.”
Moreover, IDC forecasts IT services market to grow at the rate of 8.3% year-on-year in CY 2013 reaching a value of INR4,42, 199 million (US$7.97 billion).
Also in the upcoming H1 CY 2014, organizations are likely to take a cautious approach while spending on IT services due to the pending parliamentary elections in May 2014.