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IT services mkt growth slowed down to 7.4% in Jan-June: IDC

IT services mkt growth slowed down to 7.4% in Jan-June: IDC
According to IDC, overall political developments in the country during the first half of this year had an impact on project-based services with few infrastructure deals being signed as the industry was waiting for the formation of a stable government at the Centre.

The investments are likely to pick up in 2015 on the back of boost in business confidence, helped by the new government's policies and economic growth agendas, it said in a statement.

While spending in the government sector was sluggish, banking, financial services and institutions fared well with investments in enterprise data warehouse, analytics, customer relationship management (CRM) etc, driven by competition to catch up with the private sector banks and branch expansion.

"Support services saw a quiet period in terms of growth in first half of 2014 with organisations looking at cost cutting measures and holding on their hardware and software refresh. The segment grew 6.9 per cent over same period in 2013," it added. Spending on the system integration and IT consulting services registered growth of 6 per cent and 6.6 per cent respectively, which was quiet slower than the second half of 2013, owing to decrease in spend on infrastructure projects.

IDC said outsourcing services continued to be the fastest growing macromarket seeing a growth of 8.8 per cent in January-June 2014 over the same period in 2013.

Large outsourcing deals are being broken into smaller sizes, as companies prefer to work with more than one vendor, it said. Companies not only manage to get a good pricing advantage, but also access to niche technology vendors.

DoT names mjunction for spectrum auction

The Department of Telecom (DoT) has selected Kolkata-based mjunction services for conducting spectrum auction scheduled to be held in  February. “Pursuant to the conditions laid down in RFD... mjunction services Ltd... has been selected as agency for conducting e-auction of spectrum in various bands,” DoT said. The Department of Telecom  had shortlisted three companies.


PTI

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