The India IT services market is on pace to reach $ 9.5 billion in

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2011, an 18 per cent increase from the previous calendar year's revenue of $7.6 billion, IT research and advisory firm Gartner Inc said.

India’s domestic IT services market ranks third in Asia/Pacific. The market is forecast to grow to $15 billion by the end of 2014.

"India’s domestic IT services is a large emerging market in high growth mode", said Arup Roy, Principal Research analyst.

"Coupled with other factors such as openness to adopt technology, and a maturing sourcing approach, it represents an attractive target potential for providers of all sizes," he said.

"The top 10 providers have a cumulative market share of just 42 per cent, indicating a highly fragmented market served by many small players with no large, dominant, well-entrenched player. However, this scenario varies widely by sub-market such as by industry vertical," he said.

India's IT services market is quite small as compared with large markets such as the US or the UK, but it does offer a growth opportunity to the service providers because of the buoyant market conditions.

Gartner analysts said the market has a critical mass that is worth tapping and has the potential to expand further with 'as a service' type service offerings.