Indian IT services market grew 7.1% in 2014; growth to accelerate through 2019: IDC
Report attributes growth to rising demand for cloud infrastructure & cloud-hosted applications, and a renewed focus on infrastructure projects.
MUMBAI: The Indian IT services market grew 7.1% to reach $7.7 billion in 2014, according to consultancy IDC India, helped by higher demand for cloud infrastructure and cloud-hosted applications and a renewed focus on infrastructure projects.
The consultancy expects growth to accelerate to about 11% in rupee terms from 2014 to 2019. In 2014, the total IT outsourcing services market grew at 6.8% during the same period while support & training services grew at 6.5%.
"The expanding start up community and increasing technology adoption by Small & Medium Enterprises (SMEs), who favour OPEX as against CAPEX model of IT, is creating healthy demand for hosted infrastructure, hosted application, managed and datacentre services. The market for these services will continue to grow at rapid pace over next few years," Vivek Gautam, research manager of IT services & software, of IDC India, said in a statement.
Among industries, IT spending in banking and financial services and retail grew fast, the consultancy said.
"New banking licenses awarded by RBI, increasing technology adoption NBFCs and microfinance institutions pushed the demand for IT services. While in Retail vertical emergence of e-commerce continues to be a key growth driver as they are forcing traditional brick and mortar players to embrace technology at wider scale," the consultancy said.
ET has already reported that technology firms are chasing the deals the have arisen due to the new banking licenses and from retail firms looking to compete in online sales.