The India IT and Business Services marketplace grew by five.three per cent year-more than-year (YoY) in the 1st half (1H20) (January to June 2020), as compared to the eight.9 per cent development in the 1st half, 2019, according to the International Data Corporation’s (IDC) Worldwide Semiannual Services Tracker – 1st half, 2020.
Of the IT and Business Services marketplace, the IT Services marketplace contributed 77.four per cent in 1H20 and grew by five.9 per cent year-more than-year (YoY) in 1H20 compared to the 9.three per cent development in 1H2019.
IDC forecasts that the IT and Business Services marketplace is anticipated to develop annually by five.four per cent to attain USD 13 billion by December 2020, according to an official release.
“In 1H20, the role of IT Services vendors gained higher prominence, as organisations increasingly approached them to help ensure business continuity by putting in place various technologies, solutions, best practices and frameworks. During these difficult times, organizations were investing higher in collaboration applications, VPN licenses, endpoint devices, cybersecurity solutions, cloud, AI and automation,” mentioned Garima Goenka, Market Analyst, IT Services, IDC India.
Further, as per IDC, the IT Services marketplace will commence choosing up momentum steadily from 2021 onwards and is projected to develop at a CAGR of 7.two per cent among 2019-2024, to be valued at USD 13.four billion by the finish of 2024. This decreased price of development in the IT Services marketplace in India is due to the COVID-19 pandemic.
IDC classifies the IT Services marketplace into 3 major markets – Project-Oriented, Managed Services and Support Services. For 1H20, project-oriented solutions registered the highest development followed by managed solutions and help solutions, respectively.
During 1H20, application hosting solutions and infrastructure hosting solutions continued to be larger development markets on account of growing adoption of cloud applications (majorly collaboration applications and videoconferencing) and cloud infrastructure. Owing to elevated demand for VPN licenses and requirement for larger network connectivity, network solutions witnessed larger adoption.
“Enterprises strongly felt the need for advisory and support services to propel their digital journey amidst the pandemic. As a result, IT service providers witnessed a strong surge in demand for various services such as systems and network management, IT Consulting, hosting application management and hosting infrastructure services, among others,” mentioned Shweta Baidya, Senior Research Manager, Enterprise Software and ICT Services, IDC India.
The government also relaxed some of the stringent suggestions that the IT sector had to adhere to, prior to COVID-19. The new guidelines present elevated flexibility with respect to function from household/ anyplace policies and have also modified some of the current suggestions to augment the development in the sector, she added.