According to the report by IDC, compared to the 8.9 per cent growth in the first half, 2019, the India IT and Business Services market grew by 5.3 percent YoY in the first half of 2020. 

“In 1H20, the role of IT Services vendors gained higher prominence, as organisations increasingly approached them to help ensure business continuity by putting in place various technologies, solutions, best practices and frameworks. During these difficult times, organizations were investing higher in collaboration applications, VPN licenses, endpoint devices, cybersecurity solutions, cloud, AI and automation,” said Garima Goenka, Market Analyst, IT Services, IDC India.

Further, as per IDC, “The IT Services market will begin picking up momentum gradually from 2021 onwards and is projected to grow at a CAGR of 7.2 per cent between 2019-2024, to be valued at USD 13.4 billion by the end of 2024. This reduced rate of growth in the IT Services market in India is due to the COVID-19 pandemic.” 

“Enterprises strongly felt the need for advisory and support services to propel their digital journey amidst the pandemic. As a result, IT service providers witnessed a strong surge in demand for various services such as systems and network management, IT Consulting, hosting application management and hosting infrastructure services, among others,” said Shweta Baidya, Senior Research Manager, Enterprise Software and ICT Services, IDC India.

With respect to work from home/ anywhere policies, the new rules provide increased flexibility  and have also modified some of the existing guidelines to augment the growth in the sector, she added.