Indian IT Services Market to Double by 2013
Date: Monday , February 01, 2010
The domestic IT services market in India is estimated to grow from $5.7 billion in 2008 to $12.8 billion in 2013, which represents a Compound Annual Growth Rate (CAGR) of 18.6 percent, says a study.
According to a study conducted by the IT research firm Springboard Research, the vertical would be heavily dominated by infrastructure services that are expected to reach $7.2 billion in 2013, while applications services, with a CAGR of 19.6 percent, would be the fastest growing segment. In terms of industry verticals, banking, financial services, and insurance (BFSI) leads the Indian IT services market with 21.5 percent marketshare, followed by the public sector (including education) and telecom industry. However, energy and utilities, followed by healthcare, remains the fastest growing vertical.
"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," says Sudip Saha, Springboard Research Senior Research Analyst (Services). However, to meet the high consumer expectations, vendors need to use strategies around services delivery by implementing efficient processes, reusable tools and templates, and replaceable models, he adds.
"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," Springboard Research Vice President (Services Research) Phil Hassey says. He adds that the key challenge remains the disability to convert the potential demand into successful client engagement.