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India's IT and business services market likely to reach $13 billion by December 2020: IDC
Nov-26-2020

Research firm International Data Corporation (IDC) has said that India's IT and business services market is expected to grow 5.4 percent annually to reach $13 billion by December 2020. The segment grew 5.3 percent year-on-year (y-o-y) in January-June (H1) 2020 period as compared to 8.9 percent growth in H1 2019. 

Of the IT and business services market, IDC said the IT services market contributed 77.4 percent in H1 2020, growing 5.9 percent y-o-y as compared to 9.3 percent growth in the year-ago period. It also noted that IT services market will begin picking up momentum gradually from 2021 onwards and is projected to grow at a CAGR of 7.2 per cent between 2019-2024, to be valued at $13.4 billion by the end of 2024.

Research firm further said this reduced rate of growth in the IT services market in India is due to the COVID-19 pandemic. It noted that during H1 2020, application hosting services and infrastructure hosting services continued to be higher growth markets on account of increasing adoption of cloud applications (majorly collaboration applications and video-conferencing) and cloud infrastructure. It added that owing to increased demand for VPN licenses and requirement for higher network connectivity, network services witnessed higher adoption.

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