The domestic IT services market in India is estimated to grow from US$5.7 billion in 2008 to US$12.8 billion in 2013, representing a compounded annual growth rate (CAGR) of 18.6 per cent from 2008 to 2013, according to the latest research from Springboard Research, an innovator in the IT Market Research industry.
The report predicts the Indian IT services market to be heavily dominated by infrastructure services, which are expected to reach US$7.2 billion in 2013 reflecting a steady 53 per cent market share, and a CAGR of 18.1 per cent from 2008 to 2013.
However, applications services with a CAGR of 19.6 per cent is to remain the fastest growing market segment, while IT Consulting Services remains the smallest with the expected market share of 5 per cent and CAGR of 16.4 per cent.
“The Indian domestic IT Services market is at par with international levels in terms of average gross margin and provides immense opportunity to the vendors,” said Sudip Saha, Senior Research Analyst for Services at Springboard Research.
“However, to meet high consumer expectations, vendors need to strategize around services delivery by implementing efficient processes, reusable tools and templates and replicable models,” Saha added.
The report reveals that infrastructure hosting services showed the highest growth over the period among the Infrastructure Services category with a CAGR of 23.4 per cent, closely followed by enterprise IT outsourcing, network integration and network management. Also, application hosting enjoys the highest growth momentum in the application service market followed by application management and infrastructure application integration.
In terms of vertical industries, banking, financial services and insurance (BFSI) leads the Indian IT services market with 21.5 per cent market share, followed by the public sector (including education) and telecom industry. However energy and utilities, followed by healthcare remain the fastest growing vertical industries.
“With industries such as public sector, healthcare, energy and utilities, and transportation and logistics stepping up their IT spending, the appeal for the Indian domestic market has increased tremendously and is drawing the attention of domestic and MNC IT service providers,” said Phil Hassey, vice president of services research at springboard research
Source:http://www.ciol.com/News/News-Reports/Indias-IT-services-market-to-double-by-13/241209129329/0/
