Owing to the effect of the Covid-19 pandemic on businesses, the country’s IT and business services sector grew 5.41 percent year over year to $13.41 billion in 2020.
Due to the effect of the COVID-19 pandemic on businesses, the country’s IT and business services sector grew 5.41 percent year over year to USD 13.41 billion in 2020, according to research firm IDC. However, on the back of increased investment in areas like cloud and artificial intelligence, the IT and Business Services market is projected to rise at a CAGR of 7.18 percent from 2020 to 2025, reaching nearly USD 19 billion by the end of 2025.
According to the IDC Worldwide Semi-annual Services Tracker, the Indian IT and Business Services sector grew by 8.43 percent in 2019, but the pace of growth slowed in 2020 due to the effect of the COVID-19 pandemic on businesses in the region.
The IT Services segment contributed 77.06 percent to the IT and Business Services industry and is expected to grow by 5.97 percent by 2020. This compares to a growth rate of 8.91% in 2019.
According to IDC, the IT and Business Services sector will steadily gain traction from 2021 onwards as a result of increased spending in areas such as cloud, application modernization, AI, and automation.
Harish Krishnakumar, IDC India Senior Market Analyst (IT Services), said that businesses across all sectors have begun to invest in digital transformation as the pandemic demonstrated that businesses with higher digital adoption will do better than those with conventional IT systems.
The managed services sector is expected to rise at the fastest pace of 6.85 percent in 2020, followed by project-oriented services at 5.92 percent and support services at 4.41%. According to IDC, hosted application management and hosted infrastructure services will expand faster in 2020 as more businesses move their applications to the cloud.
Cloud enablement and augmentation services, network management, optimization and automation, managed security services, and AI-based services are among the areas where IDC sees strong opportunities for service providers.
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Hello, my name is Anuj Boruah. I am quite interested in writing about current events in business, finance, and the economy. I work as a newswriter at Reviewminute.
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