India's Location-Based Services Market is Segmented by Component (Hardware, Software, Services), Location (Indoor, Outdoor), by Application (Mapping and Navigation, Business Intelligence and Analytics, Location-Based Advertising, Social Networking and Entertainment), by End-User (Transportation and Logistics, IT and Telecom, Healthcare, Government, BFSI, Hospitality, Manufacturing). The Report Offers Market Forecasts and Size in Value (USD) for all the Above Segments.

Retail accounted for the highest share in India's GDP at nearly 30 percent in financial year 2021 among service sectors. The retail sector was estimated to have a compound annual growth rate of 1.5 percent in fiscal year 2021. Food services and hotels expected to see a decline of nearly 30 and 43 percent respectively that year, owing to the impact of the COVID-19 pandemic.

In 2023, almost half of India’s GDP was generated by the services sector, a slight and steady increase over the last 10 years. Among the leading services industries in the country are telecommunications, IT, and software. The IT factorThe IT industry is a vital part of India’s economy, and in the fiscal year of 2016/2017, it generated about 8 percent of India’s GDP alone – a slight decrease from previous years, when it made up about 10 percent of the country’s economy. Nevertheless, the IT industry is growing, as is evident by its quickly increasing revenue and employment figures. IT includes software development, consulting, software management, and online services, and business process management (BPM). Employee migrationAlthough employment figures in IT, and thus in the services sector, are on the rise, most of the Indian workforce is still employed in agriculture, however, the figures show a trend pointing towards a reversal of this distribution. For now, the majority of Indians still do not live in cities – where IT jobs are generated – but urbanization is on the rise as well.

The India IT services market size reached USD 39.83 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 75.03 Billion by 2033, exhibiting a growth rate (CAGR) of 7.30% during 2025-2033. The market is driven by digital transformation, cloud adoption, AI and automation, rising cybersecurity needs, and a growing startup ecosystem. Increasing outsourcing demand, government initiatives like Digital India, 5G expansion, and skilled workforce availability further fuel the India IT services market share, attracting global investments and innovation.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the regional level for 2025-2033. Our report has categorized the market based on type, enterprise size, deployment mode, and end use industry.

India IT Services Market was valued at USD 25.59 Billion in 2024 and is expected to reach USD 51.05 Billion by 2030 with a CAGR of 12.03% during the forecast period.

The trade, hotels, transport, and communication industries had the highest GVA growth rate of 15 percent among all other industries in India in the financial year 2022. Overall, the services sector registered the highest growth compared to the agriculture and industry sectors. Public administration, defense and other services industries were expected to have a GVA growth of over nine percent in the financial year 2025.
What is GVA? GVA or gross value added is the value of goods and services produced by an industry, sector, manufacturer, or region in an economy and is used to calculate the GDP of a country. GDP combines all GVA values across industries, levies taxes, and subsidies. While GDP calculates an overall number of goods produced by a nation, GVA measures the value added to the product. It is the difference between gross and net production. The sectoral analysis provided by GVA helps policymakers create sector-specific policies and make decisions regarding incentives. The National Statistical Office (NSO) publishes estimates of GVA in India on a quarterly and annual basis, elaborating on eight main types of commodities. Services sector In India India’s services sector covers a wide range of industries including trade, hotels, restaurants, IT-BPM, storage, communication, financing, insurance, real estate, business services, etc. Numerous government projects like Smart Cities, Clean Cities, and Digital India are strengthening the growth of the services sector. The sector also attracts significant foreign direct investment and contributes massively to exports, although agriculture accounts for the majority of the employed population.

Source: TraceData Research Analysis Future Outlook and Projections for India Data Center and Cloud Services Market on the Basis of Revenues in USD Million, 2024-2029 The India data center and cloud services market is projected to grow steadily by 2029, exhibiting a respectable CAGR during the forecast period. This growth is expected to be driven by factors such as digital transformation, increasing adoption of cloud services, and expanding internet connectivity across the country.

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India IT and BPO Services Market Size 2025-2029

The India IT and BPO services market size is forecast to increase by USD 214.8 billion, at a CAGR of 12.3% between 2024 and 2029.

The IT and BPO market in India is experiencing significant growth, driven by several key factors. One major trend is the increasing cost pressure for businesses to maintain their in-house IT systems. This has led to a rise in the adoption of IT and business process outsourcing as a cost-effective alternative. Another trend is the growing preference for application outsourcing, which enables companies to focus on their core competencies while outsourcing non-core functions.
However, effective communication between clients and companies remains a challenge. Despite this, the benefits of IT services and BPO services, such as cost savings, improved efficiency, and access to skilled resources, continue to attract businesses in various industries. As the market continues to evolve, it is essential for organizations to carefully evaluate their outsourcing strategies to maximize the value they derive from these services.

What will be the Size of the Market During the Forecast Period?

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The market continues to evolve, driven by the increasing adoption of artificial intelligence (AI) and the need for niche BPO services among businesses. Skilled labor, incentives such as tax breaks, and macroeconomic factors are key market dynamics. B2G, B2B, and B2C enterprises are increasingly turning to BPO services for technology spending optimization, particularly in areas like payroll, accounting, telemarketing, data processing, forms processing, running support, troubleshooting, problem resolution, software, hardware, peripherals, and up-selling. The ITES industry offers both horizontal services, catering to multiple industries, and vertical-specific services, addressing unique business requirements. AI technologies are transforming BPO services, enabling automation and improving efficiency, while internal resources and core competency remain crucial considerations for businesses.

How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

End-user

  Finance
  Insurance
  Telecom
  Healthcare
  Others


Type

  Export
  Domestic


Product

  IT services
  BPM
  Software and research and development


Outsourcing Type

  Onshore
  Offshore
  Nearshore


Deployment

  On premise
  Cloud


Geography

  India

By End-user Insights

The finance segment is estimated to witness significant growth during the forecast period. The market, particularly in the finance sector, experiences significant growth due to the increasing number of banking and financial institutions. These organizations rely on IT services for managed IT infrastructure management and BPO services for customer support and sales, enabling them to concentrate on their core operations. Global finance institutions increasingly depend on India for their IT and BPO requirements, contributing to the market's expansion. Key areas of focus include data security, ERP systems, personalized services, data processing, forms processing, running support, troubleshooting, and problem resolution. The market's growth is driven by the need for efficient and cost-effective services, ensuring data security, and addressing attrition rates within the ITES industry.

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India IT and BPO Services Market Dynamics

Our India IT and BPO Services Market researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in the adoption of India's IT and BPO services Market?

Rising cost pressure to maintain in-house IT systems is the key driver of the market.

Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO), driven by globalization, allow companies to arbitrage labor costs by shifting processes to countries with lower expenses. This trend is particularly prevalent in niche BPO services such as Artificial Intelligence (AI) technologies, ITES industry services, and consulting. By outsourcing, firms can access skilled labor, advanced technologies, and incentives like tax breaks and incentives. Macroeconomic factors, including Technology spending, Internet penetration, and telecommunication, facilitate this shift. B2G, B2B, and B2C enterprises benefit from outsourcing services, including surveys, forms processing, accounting, te

Unlock data-backed intelligence on India Domestic IT & Business Services Market with size at USD 14.4 billion in 2023, featuring industry analysis and strategic insights.

By Market Structure:The market is primarily divided into colocation data centers, managed service providers. Colocation data centers dominate the market due to their ability to provide scalable, secure, and cost-effective infrastructure for enterprises. Managed service providers hold a significant share as they offer comprehensive IT solutions, including cloud management, which are crucial for businesses looking to outsource their IT operations. Cloud service providers, particularly those offering public cloud services, are also gaining traction due to the flexibility and scalability they offer to businesses of all sizes. India Data Center Market Segmentation What are the Regulations and Initiatives which have Governed the Market:

India Facility Management Market is Segmented by Service Type (Hard Services [Asset Management, MEP and HVAC Services, Fire Systems and Safety, and Other Hard FM Services] and Soft Services [Office Support and Security, Cleaning Services, Catering Services, and Other Soft FM Services]), Offering Type (In-House and Outsourced [Single FM, Bundled FM, and Integrated FM]), and End-User (Commercial, Hospitality, Institutional & Public Infrastructure, Healthcare, Industrial & Process Sector, and Others). The Report Offers Market Sizes and Forecasts in Value (USD) for all the Above Segments.

India Foreign Direct Investment: Inflow: USD: Services Sector: Commodity Exchange data was reported at 1.180 USD mn in Jun 2014. This records an increase from the previous number of 0.050 USD mn for Jun 2013. India Foreign Direct Investment: Inflow: USD: Services Sector: Commodity Exchange data is updated quarterly, averaging 0.380 USD mn from Dec 2012 (Median) to Jun 2014, with 3 observations. The data reached an all-time high of 1.180 USD mn in Jun 2014 and a record low of 0.050 USD mn in Jun 2013. India Foreign Direct Investment: Inflow: USD: Services Sector: Commodity Exchange data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under India Premium Database’s Investment – Table IN.OA007: Foreign Direct Investment Inflow: by Industry: USD.

The India Food Service market is expected to grow at more than 11% CAGR from 2023 to 2028.

The India Software as a Service (SaaS) Market size is valued at USD 7 billion in 2023, driven by market growth, sector analysis, and industry trends. Explore market report, segmentation, and player analysis.

Global Services market size is expected to reach $24032.49 billion by 2029 at 8.3%, segmented as by type, civic services, real estate, leasing, commercial services, personal services, repair and maintenance

India (FDI) Foreign Direct Investment: Inflow: Service Sector data was reported at 591,992.350 INR mn in 2018. This records an increase from the previous number of 374,124.600 INR mn for 2017. India (FDI) Foreign Direct Investment: Inflow: Service Sector data is updated yearly, averaging 168,723.890 INR mn from Dec 2000 (Median) to 2018, with 19 observations. The data reached an all-time high of 591,992.350 INR mn in 2018 and a record low of 1,861.500 INR mn in 2000. India (FDI) Foreign Direct Investment: Inflow: Service Sector data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under Global Database’s India – Table IN.OA023: Foreign Direct Investment: Inflow: Annual: by Industry.

The India Satellite Imagery Services Market report segments the industry into Application (Geospatial Data Acquisition and Mapping, Natural Resource Management, Surveillance and Security, Conservation and Research, Disaster Management, Intelligence) and End-User (Government, Construction, Transportation and Logistics, Military and Defense, Forestry and Agriculture, Others).

The India Facility Management (FM) market is experiencing robust growth, projected to reach a substantial size with a Compound Annual Growth Rate (CAGR) of 7.37% from 2025 to 2033. This expansion is driven by several key factors. The increasing adoption of outsourcing strategies by businesses across commercial, industrial, and infrastructure sectors is a major catalyst. Companies are increasingly recognizing the value proposition of FM services in enhancing operational efficiency, reducing costs, and improving workplace productivity. Furthermore, the growth of organized retail, the expansion of the e-commerce sector, and a rising emphasis on sustainable building practices are all contributing to market expansion. The market is segmented by facility management type (hard and soft services), sector type (organized and unorganized), end-user (commercial, industrial, and infrastructure), and geography (North, West, South, and East). While precise regional breakdowns are unavailable, we can infer that regions with higher concentrations of commercial and industrial activity, such as the North and West, are likely to exhibit stronger growth compared to others. The presence of established players like Quess Corporation, ISS Facility Management, and Sodexo, alongside emerging local companies, indicates a dynamic and competitive market landscape. The market's future growth trajectory hinges on several factors. Continued economic growth in India will be a significant driver. Government initiatives promoting sustainable infrastructure development and smart cities will further stimulate demand. However, challenges remain, including the need for skilled workforce development within the FM sector and the potential for price fluctuations in input materials. Nevertheless, the overall outlook for the India FM market remains positive, promising substantial opportunities for both established players and new entrants over the coming decade. The market’s segmentation offers diverse entry points for specialized service providers catering to specific sectors or geographic regions. Understanding the unique needs of each segment will be crucial for businesses seeking to capitalize on the growth opportunities within this expanding market. This comprehensive report provides an in-depth analysis of the burgeoning India facility management market, encompassing the period from 2019 to 2033. With a base year of 2025 and an estimated year of 2025, the report offers valuable insights into market size (in millions), growth drivers, challenges, and future trends. We analyze key players, market segmentations, and recent industry developments, equipping stakeholders with the knowledge needed to navigate this dynamic sector. Keywords: India facility management market, facility management services India, FM market India, hard services, soft services, commercial facility management, industrial facility management, infrastructure facility management, outsourcing facility management, India FM industry. Recent developments include: Apr 2023: Sodexo Facilities Management Services India Private Limited Sodexo signed an MOU with the Ministry of Skill Development of India and launched the Tourism & Hospitality Skill Council (THSC) and Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) under the aegis of NSDC and India Skill Development Initiative to offer first-time employment opportunities to the frontline workforce working in the food & catering and facilities management spaces., May 2022: Tech24 announced its acquisition of Facilities Management LLC and Peltz Services Inc., based in Indiana, to enhance the FM services in maintenance for food service and commercial HVAC equipment.. Key drivers for this market are: Growing Emphasis on Outsourcing of Non-core Operations, Steady Growth in Commercial Real Estate Sector; Strong Emphasis on Green Practices and Safety Awareness. Potential restraints include: Skilled Manpower Shortage and Macro Level Fluctuations. Notable trends are: Soft Services to Drive the Market Growth.

India Foreign Direct Investment: Inflow: USD: Services Sector: Technical Testing and Analysis data was reported at 6.750 USD mn in Dec 2018. This records an increase from the previous number of 2.230 USD mn for Sep 2018. India Foreign Direct Investment: Inflow: USD: Services Sector: Technical Testing and Analysis data is updated quarterly, averaging 5.580 USD mn from Jun 2012 (Median) to Dec 2018, with 27 observations. The data reached an all-time high of 37.140 USD mn in Dec 2017 and a record low of 0.030 USD mn in Dec 2012. India Foreign Direct Investment: Inflow: USD: Services Sector: Technical Testing and Analysis data remains active status in CEIC and is reported by Department of Industrial Policy and Promotion. The data is categorized under India Premium Database’s Investment – Table IN.OA007: Foreign Direct Investment Inflow: by Industry: USD.

Some of the recent competitor trends and key information about competitors include: The India data center and cloud services market is relatively concentrated, with a few major players dominating the space. However, the entrance of new firms and the expansion of both global and domestic providers such as Tata Communications, NTT Ltd., Sify Technologies, Reliance Jio, and AWS India have diversified the market, offering businesses more choices and advanced services. Competitive Landscape in India Data Center and Cloud Services Market