Mumbai: The market for information technology or IT services in India will touch $13 billion by 2013 according to a study released Wednesday by the Indian unit of Singapore-based Springboard Research, an IT market research firm. The domestic market is expected grow at an average of nearly 19% annually from $5.7 billion at the end of the financial year ended March 2008.
Among specialized segments, infrastructure services is likely to be the largest at $7.2 billion in 2013 or 53% of the market, the report said. Contrary to popular perception, consulting services as a service area are expected to remain the smallest segment with an expected market share of 5%.
‘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 at Springboard, in a Tuesday statement.
In terms of verticals, banking, financial services & insurance, or BFSI, is likely to generate nearly 21% of business. Public sector and telecom will be the second largest verticals.Phil Hassey, vice president of services research at Springboard, cautioned that a key challenge would be the ability to convert potential demand into successful client engagement.