Pandemic won’t stop growth in IT services sector: IDC1 min read . Updated: 05 May 2020, 10:34 PM IST
IDC added that the IT services market is expected to grow annually at 7.6% between 2019 and 2024, slower than the 9.1% rate predicted last year
The Indian business and IT services sector is expected to grow annually by 6.5% to reach $14 billion by December, despite the virus setback, according to International Data Corp. (IDC).
IDC added that the IT services market is expected to grow annually at 7.6% between 2019 and 2024, slower than the 9.1% rate predicted last year.
Contracts and renewal of contracts in the IT services space are expected to be affected by the pandemic, but it will also drive demand for some other services in the sector in 2020, the report said.
“The number of contracts signed in the first quarter of 2020 have declined annually by 40%. The decline in new contract signings for March alone is 42% from the previous month and 65% as compared to March last year," said a 23 April report by data and analytics company GlobalData.
That said, consulting services, modern collaborative applications, managed security services and network management services are expected to see increased demand.
In the second half of 2019, the IT and business services market grew by 8% year-on-year. The IT services market contributed 76.3% to this, growing by 8.5% year-on-year, according to the IDC report.
“In CY2020, the focus of IT services vendors has shifted to addressing the challenges of remote connectivity and connecting with their ecosystem of customers, suppliers and partners, while also ensuring business continuity," said Garima Goenka, market analyst, IT services, IDC.
(Abhijit Ahaskar and Nandita Mathur contributed to this story.)