The market for end-user IT services in India is on a rapid growth trajectory

09 May 2019 Consultancy.in

As digital access increases in India, the level of expenditure amongst end-users and the overall investment in the business process outsourcing (BPO) domain are set to grow rapidly over the course of this year, according to new analysis from global research and consulting firm Gartner.

Much has been said of the digitalisation of business environments across the globe. Industry 4.0 technology such as Internet of Things, automation, data analytics and a number of others are being implemented by organisations in order to bring greater efficiency to their operations.

Nevertheless, the digitalisation of business has been facilitated, to a large extent, by the digitalisation of audiences across the globe. In India, the number of online users is expected to reach a staggering 850 million by 2025, facilitated by dips in the cost of data access opportunities.

The impact that this scenario has had on the demand for IT services has been analyses extensively, although it has been limited to the demand amongst businesses thus far. Now, Gartner has revealed that IT services are growing in popularity amongst this highly digitalised user base as well.

The market for end-user IT services in India is on a rapid growth trajectory

As per the firm’s analysis, end-user expenditure on IT services is expected to reach a mammoth value of $15 billion by the end of this year. As a result, the IT services sector in India alone will account for nearly 60% of the overall end-user expenditure across the entire Asia Pacific region.

Most of this growth in end-user expenditure is expected to be driven by the BPO sector, which has been expanding rapidly in the country. By the end of this year, end-user BPO expenditure is expected to reach a value of $1.7 billion, further extending to $1.9 billion by the end of next year.

Commenting on the findings, Research VP at Gartner Arup Roy said, “High GDP growth rates are driving local organisations to increase their investment in infrastructure, applications and digital initiatives, which are increasingly moving to the cloud. Nontraditional sectors, such as logistics and transportation and manufacturing, are also experiencing healthy growth rates, and their business models are centred on investments in IT.”

On the specific areas of growth, Roy said, “We have identified a shift in how organisations adopt cloud technologies. Organisations in India are increasingly looking to acquire not only cloud infrastructure as a service (IaaS) resources themselves, but also the automated management of those resources, management tools delivered as services, and cloud software infrastructure services.”


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