As Per the IDC estimates, the IT services market will grow at a CAGR of 8.6 per cent between 2019-2023 to reach USD 14 billion by the end of 2023. Digital technologies driving growth in the India IT & Business Services market, to reach US$14.3 Billion by December 2020, IDC India Reports. IT industry employees 4.1 million people as of FY19.

China is the world's largest PC market and one of the top producers of supercomputers and hyperscale data centers. It's also one of the top consumers of memory chips. China is gradually reducing its dependence on American technologies, but its homegrown CPUs remain much slower than Intel and AMD's latest chips.The coronavirus epidemic in China is disrupting supply chains and seasonal buying trends across the tech sector. The chip sector, which was already pressured by the evolution of the trade war into a tech war, is facing the brunt of those challenges.

Indian IT & ITeS companies have set up over 1,000 global delivery centres in about 80 countries across the world. The Indian government’s higher spending on the Digital India and Smart Cities initiatives, and the increased adoption of next-gen technologies by organizations is driving growth in the IT Services market. Based on IDC’s forecasts, the IT & Business Services market is further expected to register an annual growth rate of 8.7% to be valued at US$ 14.3 billion by December 2020.

Increased spend on digitization has driven the demand for IT Services, especially around Systems Integration. The faster-growing services included Hosting Infrastructure Services and Hosted Application Management; followed by IT Consulting and Application Management. The IT Services market is slated to reach US$ 10 billion by December 2019, growing at 9.1% annually. In India, growth in the IT services market is being propelled by the BFSI and the government verticals. Spending on information technology in India is expected to reach US$ 90 billion in 2019.Revenue from digital segment is expected to comprise 38 per cent of the forecasted US$ 350 billion industry revenue by 2025.

India is the topmost offshoring destination for IT companies across the world. Having said that, the other emerging verticals which are expected to adopt IT Services and futuristic technologies more aggressively in the next 3-5 years are the manufacturing, retail, healthcare and education verticals. Additionally, a number of technology start-ups offering niche solutions in AI, ML, IoT, blockchain, automation, etc. have come up, which is further driving adoption of IT Services in the country.

IT Distribution houses are in India are the movers and shakers of the Indian IT industry . Distribution companies also face stiff challenges across the year but they hold their nerves to overcome all such issues. They control about 28% to 30% of the business in the country. India is one of the largest and fastest-growing digital markets globally. With digital capabilities improving and connectivity becoming all-pervading, technology is poised to radically change nearly every sector of India’s economy, owing to which the country is fast emerging as a rapidly growing economy in the world.

Digital transformation is disrupting businesses in every industry by breaking down barriers between people, businesses, and things. Technology is moving faster than ever while also changing the society, and it shows no signs of slowing down. Partners and VARs are the key enablers for taking the growth story of the corporates, by reaching the customers across the country. India’s IT industry is increasingly focusing on digital opportunities and is expected to grow over 30 per cent annually. 5G connectivity is set to accelerate the deployment of next generation ubiquitous ultra-high broadband infrastructure.

The cloud computing market of India is poised for a huge growth as the technology is increasingly being embraced across businesses as well as consumers. As per a report by NASSCOM, growing adoption of Big Data, analytics, artificial intelligence and Internet of Things is expected to further push the cloud market in India, which will result in it growing 3-fold to USD 7.1 billion by 2022. India’s cyber security market for products and services will grow up to $35 billion in 10 years from the present $4.5 billion. This growth is expected to be driven by the rising number of government initiatives towards digitizing government sector entities and processes, in the areas of healthcare, BFSI, education and other vital sectors of the country. The social media is the second most lucrative segment for IT firms, offering a US$ 250 billion market opportunity by 2020.

Cloud computing has been spurred by a confluence of changes in the business and information technology landscape.

Secondly, Banks must go beyond authentication and invest in digital onboarding – a continued source of frustration for customers. While traditional banks are moving towards improvements, often as part of wider digital strategies, neobanks are offering polished onboarding processing with advanced technology.

Rapid expansion of cloud providers has created a niche vertical in the business process is concerned:

Infrastructure as a Service (IaaS)
 

Platform as a Service (PaaS)
 

Software as a Service (SaaS)
 

Business as a Service (BaaS)

Data Recovery as services ( DraaS)

Cyber security as a services( CsaaS) and Everything as a services( EaaS)

These models of computing are being driven by the confluence of several changes in the business environment and IT landscape. The cloud had taken about 11% Business of the Technology Distribution houses.

Lastly,the coronavirus outbreak will likely throttle Intel's growth as demand from its top market withers and supply chain disruptions strike its memory business. That slowdown could ease Intel's chip shortage, but it's unclear if it can capitalize on that shift after more than a year of execution issues.