India IT Services Market Forecast, 2025-2029

This IDC study forecasts the market size and growth for the India IT services market from 2025 to 2029, and presents its performance during 2023 and 2024. It also tackles the strategic balance required to address the shifting needs of large enterprises and unlock the opportunities presented by the underserved small and medium-sized enterprise (SME) market. Although large organizations demand highly specialized and scalable IT services, the SME segment represents a significant growth opportunity with its need for reliable, scalable, and cost-effective solutions. By developing a diversified portfolio of services, IT providers can ensure comprehensive market coverage, enhanced customer satisfaction, and sustainable growth."Despite ongoing inflationary pressures and macroeconomic challenges in 2024, the India IT services market has demonstrated modest growth, with buyers adopting a cautious approach to IT spending. Organizations are leveraging automation and new technologies to mitigate economic impacts, viewing them as cost-saving measures," says Neha Gupta, senior research manager, IDC. "As the focus shifts toward preparing IT architectures for AI integration, the market demands a multifaceted strategy with strong partnerships, talent development, and cybersecurity prioritization. Providers must adapt their go-to-market strategies to support clients at various stages of transformation, particularly as AI-led engagements evolve. By doing so, they can drive innovation, create value, and contribute to India's economic growth," she adds.