The India IT services market is forecast to reach $10.2 billion in 2013, a 12 per cent rise from an estimated $9.1 billion in 2012.
As companies grow in size and scale, the market is likely to see larger IT services deals with more sophisticated deal engagement practices, according to a study by research and analyst firm Gartner.
This market has a critical mass that is worth tapping into and has the potential to expand further with "as a service"-type service offerings. India's IT services market offers significant opportunities for IT services providers because of the increasing needs and wants of IT buyers.
“Although India's IT services growth rate has slowed in the past two years, the rate of growth remains relatively high. Although India's GDP growth has slowed in the past year because of global economic challenges, India's GDP growth fundamentals are on relatively solid footing, driven primarily by growing domestic consumption,” said Gartner principal research analyst Arup Roy.
“For this reason, GDP growth is expected to remain steady in the longer term. Services spending on the transparency and efficiency-related projects from the government, such as e-governance projects Unique Identification Authority of India and Accelerated Power Development and Reforms Programme, are expected to drive service spending,” he added.
Government infrastructure projects will strongly drive IT, in conjunction with the expansion of the financial services and manufacturing sub-sectors. All industry verticals have a high propensity and willingness to spend on IT given the growth story across the board.
The India domestic IT services market is fast transitioning, with profound changes in buying needs and behaviour. The number, size and scale of IT services deals are increasing.