Domestic IT services market in India to have substantial growth

Domestic IT services market in India to have substantial growth:
The domestic IT services market in India is estimated to grow to $12.8 billion in 2013 from $5.7 billion in 2008-09, representing a compounded annual growth rate (CAGR) of 18.6% from 2008 to 2013, according to a report from Springboard Research, a IT Market Research firm. The report predicts the Indian IT Services market will be dominated by IT infrastructure management services, which are expected to reach $7.2B in 2013 reflecting a steady 53% market share, and a CAGR of 18.1% from 2008 to 2013. However, applications services with a growth rate of 19.6% are expected to remain the fastest growing market segment. IT Consulting Services will remain the smallest segment, with an expected market share of 5% and a growth rate of 16.4%. Banking, financial services & insurance (BFSI) lead the IT services market with a 21.5% market share, followed by the public sector and telecom. However energy & utilities, followed by healthcare remain the fastest growing vertical industries. The report however, reveals that infrastructure hosting services showed the highest growth over the period among the infrastructure services category with a CAGR of 23.4%, closely followed by enterprise IT outsourcing, network integration and network management.
Key Insights : India has been one of the least affected country across the globe when it comes to domestic IT services consumption. Interestingly, domestic IT services average gross margin is quite comparable to international levels (according to report). It is no surprise that key IT services vendors have increased focus on India for its domestic IT services market. Dell’s recent launch of cloud services in India fits well in this opportunity.