By laksh5382 
According to the International Data Corporation (IDC) Worldwide Semi-Indian IT and business services market, it was valued at $13.41 billion in 2020, registering a 5.41 percent year-on-year (YoY) growth compared to 8.43 percent in 2019. Annual Service Tracker.
The IT services market contributed majorly to the growth of 77.06 percent in the IT and professional services market. It grew by 5.97 percent in 2020 compared to 8.91 percent growth in 2019.
gaining momentum
According to IDC, the IT and business services market will continue to grow due to increased spending in areas such as cloud, application modernization, artificial intelligence, automation, etc., with the pace gradually increasing from 2021. The market is expected to grow at CAGR. It will grow by 7.18 percent between 2020-2025 to reach $18.97 billion by the end of 2025.
Harish Krishnakumar, senior market analyst, IT Services, IDC India, said, “Enterprises across sectors have started investing in digital transformation as the pandemic has made it clear that businesses with high digital adoption will outperform businesses with traditional IT systems. Will perform better in comparison.”
During the second half of 2020, in addition to cloud adoption and IT security, enterprises began to increasingly invest in technologies such as artificial intelligence, machine learning and analytics for solutions such as conversational AI and chatbots, fraud prevention, demand forecasting, etc. , which will help in streamlining their business operations. Even sectors like manufacturing, which was adversely affected during the initial stages of the pandemic, started investing in cloud-based applications and automation projects,” Krishnakumar said.
IDC has categorized the IT and professional services market into three primary markets – Project-Oriented, Managed Services, and Support Services. For 2020, the managed services segment recorded the highest growth rate of 6.85 per cent, followed by project-oriented services at 5.92 per cent and support services at 4.51 per cent respectively.
In the last year, hosted application management and hosted infrastructure services witnessed high growth. This happened as many enterprises continued to move to the cloud.
cloud demand
This growth is also attributed to the increase in demand for cloud services due to increase in remote work, online classes and online streaming amid the COVID-19 pandemic.
“While the year 2020 led enterprises to focus on survival and business continuity strategies through cost takeouts and cost optimization initiatives, the year 2021 will see the year 2021 boost and accelerate investments in technologies to support an enterprise’s digital goals. “will pave the way for business resilience plans.” ” said Shweta Baidya, Senior Research Manager, Enterprise Software and ICT Services, IDC India.
“Some of the areas where IDC sees clear opportunities for service providers include cloud enablement and enhancement services, network management, optimization and automation, managed security services, and AI-based services. Baidya said, with a large portion of the workforce out of work during the second wave of the pandemic, enterprises will look towards their service partners to enable digital transformation initiatives and help them become future-ready enterprises.