The Indian IT industry’s love affair with the United States may finally be winding down. The value of ‘managed services’ contracts from the country—the bread and butter of Indian service providers, accounting for 62% of India’s IT exports—is on the wane. In the year ended December 2019, the US’ managed-services market shrank marginally compared to the previous year: $13 billion versus $13.7 billion, according to technology research firm ISG.
At the same time, American firms were increasingly moving to the cloud. There has been a rise in the value of ‘as-a-service’ cloud-based technology deals, with new deals moving to companies such as Amazon Web Services (AWS) and Microsoft Azure.