New Delhi. Despite slow recovery in IT investment, the country's IT services market is expected to grow by 6.1 percent yearonyear to reach $14.5 billion by 2023. This information has come to light in a new report on Monday.
According to an IDC report, IT investment has seen a slower recovery than last year. However, digital transformation (DX) initiatives and increasing complexity of the IT ecosystem will continue to drive market growth.
A slowdown in IT investment was seen in the year 2023. However, the year 2024 will see growth driven by DX.
Neha Gupta, senior research manager, software and IT services markets, IDC India, said, “The increasing complexity of IT ecosystems – including onpremises, private and multicloud environments – is driving increasing demand for AI and GenAI solutions, stronger security measures and automation, Will be helpful in taking the market forward.”
Gupta said service providers are at the center of this evolution, enabling businesses to manage complex infrastructure, use AI responsibly and deliver better customer experiences.
According to the report, top tech companies took advantage of the increase in digital spending among enterprises in India, which led to increased revenues.
The performance was driven by strong demand in cloud, AI, security and application modernization. Also there was success in government sector, telecommunication and manufacturing sectors.
Indiabased companies prioritized powerful analytics, automation, and cognitive enablement (including GenAI) from their next generation IT service partners.
“In today’s digital business environment, technology vendors must be forwardthinking innovators and use technology to create new digital value,” Gupta said.
According to the report, the GenAI solutions market is witnessing a boom, offering many opportunities for vendors. The boom is being seen especially in use cases related to productivity. Such as code creation, job description and summarizing reports.
Market growth is expected. This initial phase of growth will focus on business use cases that integrate AI models with enterprise data to drive marketing, sales and service.
—
– .
Image Credit: KhasKhabar.