IDC: India's Domestic IT and Business Services Market Grew 6.9 Percent in 2024 to Reach $16.5 Billion
IT News Online Staff
2025-07-04
According to IDC's Worldwide Semi-annual Services Tracker, India's domestic IT and Business Services market reached $16.5 billion in 2024, growing 6.9 percent year-over-year (YoY), down slightly compared to 7.3 percent in 2023. The continuing moderation in growth rate is due to the prevailing volatile macroeconomic conditions.
"Despite cautious IT spending, enterprises are prioritizing application modernization, cloud adoption, cybersecurity and emerging technologies like generative AI (GenAI)," said Harish Krishnakumar, senior market analyst, IT Services, IDC India. "Service providers are expanding capabilities by forging strategic partnerships, establishing dedicated business units, etc., to capitalize on the rising Global Capability Center (GCC) investments in the country."
Market Highlights:
- IT Services accounted for 75.7 percent of the overall IT and Business Services market and grew by 7.2 percent in 2024.
- The total IT and Business Services market is projected to grow at a CAGR of 5.8 percent from 2024 to 2029, reaching $21.8 billion by 2029.
- Among service segments in 2024:
-- Managed Services led growth with 7.4 percent, driven by hosting infrastructure and application management services.
-- Project-Oriented Services followed at 6.9 percent, driven by the rising adoption of emerging technologies.
-- Support Services grew by 5.2 percent, buoyed by renewal of hardware AMCs.
"Despite global uncertainties, including tariff disputes and geopolitical tensions, India's IT sector remains robust," said Neha Gupta, senior research manager, Software and IT Services Market, IDC India. "Technologies like GenAI and Agentic AI are reshaping enterprise strategies, while growing GCC investments position India as a global hub for tech innovation and service delivery."
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