IBM, Wipro, Tata Consultancy Services (TCS), HP, HCL Technologies are leading the India IT services market in the second half of 2013 (H2 2013), said IDC.
The IT services market share of IBM is 12.1 percent, Wipro 7.4 percent, TCS 7.2 percent, HP 3.3 percent and HCL Technologies 2 percent.
The India IT services market in the second half of 2013 rose nearly 6.5 percent to $4.1 billion.
The lower than expected growth in the IT services market is mainly attributed to the cautious approach in the market and a decrease in the infrastructure spend.
Support services business rose 5.5 percent with organizations looking at cost cutting measures and holding off plans for hardware and software refresh.
System integration and IT consulting services grew 6.8 percent and 6.3 percent respectively, owing to fewer infrastructure projects.
Outsourcing services market grew 7.1 percent.
IDC noted that large outsourcing contracts are being replaced by small discrete outsourcing deals, where the contract value, and length of contract have come down to 3-5 years instead of 7-10 years.
Managed Services market has picked up pace as organizations are looking for solutions which are efficient and cost effective. Concerns around providers’ capabilities to manage vertical specific applications remain high, which is limiting the kind of applications getting outsourced and the overall scope of engagement.
IBM has benefited from its long time presence in India and ability to execute a range of IT services, from software and hardware support installation to systems integration and information system outsourcing (ISO).
Wipro market share increased to 7.4 percent from 6.9 percent in H1 2013.
Sectors like Banking and Financial Services, Manufacturing, Telecom and Government constituted 82.5 percent of the total spend. Banks continue with their IT adoption, with a focus towards delivering value to their client and organizations by reducing cost and improving efficiency. They are automating their back end processes to offset the higher cost of financial inclusion, which involves large amount of manual intervention.
IT services market will grow 8.4 percent in 2014 to $7.69 billion.
IDC says organizations are likely to increase their IT spend after the elections results are out and new government announces its policies. Increasing infrastructure spend will drive the demand for related IT services such as Consulting and System Integration services.