Digital Drive Propels IT Services To $24.5-Bn Level

New Delhi: The India IT services market grew 6.1 per cent year-over-year (YoY) to reach $14.5 billion in 2023 despite slower IT investment recovery, according to a new report on Monday. While IT investments showed a slower recovery compared to the previous year, digital transformation (DX) initiatives and the increasing complexity of IT environments will continue to drive market growth, according to an IDC report.

While 2023 saw a slowdown in IT investment, 2024 will be all about growth fuelled by digital transformation (DX).

“The increasing complexity of IT ecosystems — blending on-premises, private, and multi-cloud environments — along with surging demand for AI and GenAI solutions, stronger security measures, and automation, will drive the market forward,” said Neha Gupta, senior research manager, software and IT services market, IDC India.