India Accounts for 15-17% of Global IT Consulting and Services Market: BCG Study

India's IT Services Market: Navigating Emerging Segments for Future Growth

Market Overview India accounts for 15-17% of the global IT consulting and services market, representing 83-85% of the country's overall tech market. According to a recent report by Boston Consulting Group (BCG), innovations in emerging segments will drive the next decade of value creation for India.

Current Market Dynamics The IT services segment in India is a $300 billion sector, contributing 7% to the national GDP and generating over $200 billion in exports. The segment directly employs nearly 5.8 million people. However, compared to other emerging segments, Indian IT is growing at an annual rate of 4-6%, significantly lower than the double-digit growth rates of 20-40% observed globally in segments such as semiconductors, hyperscalers, and deeptech.

Global Technology Market Context The overall global technology market stands at around $8.4 trillion, with IT-enabled services accounting for only 17% of the total global tech revenues, approximately $1.5 trillion. The report highlights the need for India to increase its focus on maturing these emerging segments.

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Industry Insights According to Rajiv Gupta, Managing Director and Senior Partner at BCG, India needs to shift its focus beyond IT services to tap into the remaining $7.5 trillion industry. Shavi Gandhi, Partner at BCG, notes that the IT segment is growing at a slower pace than other emerging segments, with valuations in these areas also increasing significantly.