India‘s domestic IT & Business Services market reached USD 16.5 billion in 2024, growing 6.9% year-over-year (YoY), down slightly compared to 7.3% in 2023, according to the International Data Corporation’s (IDC) Worldwide Semi-annual Services Tracker. The continuing moderation in growth rate is due to the prevailing volatile macroeconomic conditions.
“Despite cautious IT spending, enterprises are prioritizing application modernization, cloud adoption, cybersecurity, and emerging technologies like generative AI (GenAI),” said Harish Krishnakumar, senior market analyst, IT Services, IDC India. “Service providers are expanding capabilities by forging strategic partnerships, establishing dedicated business units, etc., to capitalzie on the rising Global Capability Center (GCC) investments in the country.
Market Highlights:
- IT Services accounted for 75.7% of the overall IT and Business Services market and grew by 7.2% in 2024.
- The total IT and Business Services market is projected to grow at a CAGR of 5.8% from 2024 to 2029, reaching USD 21.8 billion by 2029.
- Among service segments in 2024:
Managed Services led growth with 7.4%, driven by hosting infrastructure and application management services.
Project-Oriented Services followed at 6.9%, driven by the rising adoption of emerging technologies.
Support Services grew by 5.2%, buoyed by renewal of hardware AMCs.
“Despite global uncertainties, including tariff disputes and geopolitical tensions, India’s IT sector remains robust,” said Neha Gupta, senior research manager, Software and IT Services Market, IDC India. “Technologies like GenAI and Agentic AI are reshaping enterprise strategies, while growing GCC investments position India as a global hub for tech innovation and service delivery.”
*All market size and growth percentage numbers are in constant currency.
