India software market size reached USD 21.1 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 61.5 Billion by 2033, exhibiting a growth rate (CAGR) of 11.7% during 2025-2033. The increasing demand for cloud computing, which offers scalability, flexibility, and cost-effectiveness, thereby allowing businesses to access and deploy software applications without the need for extensive infrastructure, is driving the market.

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

According to Cognitive Market Research, the global IT Services market size was USD 984.8 billion in 2022 and will grow at a compound annual growth rate (CAGR) of 8.70% from 2023 to 2030. What are the Key Opportunities Influencing the IT Services Market?

Increasing Number Of Smart Cities Supports Industry Growth

Governments throughout the world are investing in the creation of smart cities. With research money and environmental aims for member countries, the European Union supports smart city activities. Smart cities are also becoming more popular in developing countries. Around 300 smart city pilot projects are being developed in China and India alone. These objectives necessitate the implementation of cutting-edge IT infrastructure.

The emergence of AI is significantly driving the IT Services Market

This will be a big future growth driver for the IT services industry. Tencent also pledged a $70 billion investment in artificial intelligence, cloud computing, and cybersecurity between 2022 and 2030. Chinese firms have shown a significant desire to establish themselves in India through investments.

(Source:www.cnbc.com/2020/05/27/china-tech-giant-tencent-pledges-70-billion-investment-in-ai-cloud.html)

Still, their condition has deteriorated as New Delhi's attitude toward Chinese technology and investment in its domestic market has shifted. This will be a major future growth driver for the IT services sector.

Market Dynamics of IT Services Market

Key Drivers for IT Services Market

Quick Digital Change in All Sectors: Businesses in a variety of industries, including manufacturing, retail, healthcare, and finance, are quickly digitizing their processes to boost productivity, customer satisfaction, and competitive standing. This change is driving up demand for IT services including software integration, infrastructure management, and cloud migration, particularly from businesses implementing automation and data-driven tactics. Growing Use of Hybrid IT Models and Cloud Computing: IT service providers are in great demand for consultation, implementation, and managed services as companies shift from on-premise infrastructure to cloud-based solutions. Recurring revenue opportunities in deployment, migration, security, and optimization services are being created by the growth of hybrid and multi-cloud solutions.

Key Restraints for IT Services Market

High labor costs and a lack of talent: The ability of service providers to grow is being constrained by the worldwide lack of qualified IT workers, particularly in the fields of artificial intelligence, cybersecurity, cloud architecture, and DevOps. Profit margins are also being strained by the high expense of recruiting and keeping skilled workers, especially for mid-sized businesses. Privacy and Data Security Issues with Outsourcing: Because of worries about data breaches, third-party access, and regulatory issues, businesses are still hesitant to outsource critical activities. These issues may cause businesses that handle sensitive or proprietary data to postpone or cut back on their use of outside IT service providers.

Key Trends for IT Services Market

Rise of Automation, AI, and Integration with AIOps: In order to boost predictive maintenance, automate repetitive processes, and improve decision-making, AI and machine learning are being included into IT service delivery models. Infrastructure management is being revolutionized by the emergence of AIOps (Artificial Intelligence for IT Operations), which enables proactive problem solving and efficient resource utilization. Growth in As-a-Service and Managed Offerings: Managed services and "as-a-service" models (such as SaaS, IaaS, PaaS, and Security-as-a-Service) are rapidly replacing traditional IT support. These models are appealing to both major corporations and small businesses due to their predictable costs, scalability, and decreased internal IT burden.

Impact of the COVID-19 Pandemic on the IT Services Market:

The epidemic has expedited digital transformation across industries, as firms have had to adjust to distant work and online operations. This raised demand for IT services such as cloud computing, cybersecurity, and digital transformation consultancy. Companies needed to quickly integrate remote collaboration solutions, improve their cybersecurity procedures, and optimize their digit...

The AI market size in India was around *** billion U.S. dollars in 2024. Among all the segments, machine learning had the largest share at *** billion dollars. Artificial intelligence has been responsible for drastic changes in the technology sector where it can greatly improve productivity through process simplification and automation. It is also an integral part and one of the fundamental bases of Industry 4.0. IT industry in India The IT industry in India is a huge industry which consists of information technology services, consulting, and outsourcing. India’s IT services industry was born in Mumbai in 1967 when Tata Consultancy Services was established. India made up to more than ** percent of the global IT spending in financial year 2021. Within the global IT industry, India is renowned for its IT outsourcing services, and with governmental support and foreign investments, the industry is also developing technologies relative to AI and IoT. AI technologies The main branches of an AI ecosystem are machine learning, robotics, artificial neural networks, and Natural Language Processing (NLP). In machine learning, software programs run through existing data, and apply the learned knowledge to new data or to predict data. In the field of robotics, it develops and trains robots for various applications. A prominent example is autonomous vehicles, though the level of autonomy varies, it was estimated that between 2024 and 2025, fully autonomous cars could be seen in the market.

The Report Covers India's Big Data Services Market Trends and is Segmented by Type (Solution, Services), Organization Size (Small & Medium Enterprise, Large Enterprise), and End-User Vertical (BFSI, Retail, Telecommunication & IT, Media & Entertainment, Healthcare). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

The India Data Center Server Market is Segmented by Form Factor (Blade Server, Rack Server, and Tower Server) and by End User (IT and Telecommunication, BFSI, Government, Media and Entertainment, and Other End Users). The Market Sizes and Forecasts are Provided in Terms of Value (USD) for all the Above Segments.

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.

India was the leading outsourcing destination in the world, accounting for more than half of the market of the global information technology services in financial year 2021. The IT & BPM sector accounted for around ***** percent of India’s GDP the same year. Rapid digitalization and transition to remote working helped the industry to stabilize its growth while facing the impact of the coronavirus pandemic. IT sector at a glance The Indian government has been very supportive of the IT sector, providing various tax exemptions and financial benefits, which enabled India to become the home of many major IT companies, like Tata Consultancy Services, Infosys, Wipro, L&T Infotech, Mindtree, and Tech Mahindra. India’s IT-BPM industry employed around *** million personnel in financial year 2022. The IT spending of the country in 2023 was estimated to be around *** billion U.S. dollars. Road Ahead New technologies like artificial intelligence and robotic process automation offer new opportunities for IT companies in India to grow. The global AI market revenue is forecast to reach more than half a trillion U.S. dollars by the end of 2024. India’s IT industry has been stably growing over the years in both the domestic and export markets and is expected to continue the growth trend in the upcoming years.

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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 Services Market in India is segmented by 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), and geography (India). This segmentation reflects the market's robust growth, driven by strong demand for IT services and BPM in finance and healthcare sectors, significant export-oriented offshore outsourcing, and increasing adoption of cloud-based solutions across India.
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

The India IT BPO services market is experiencing significant growth, driven by increasing demand for IT outsourcing India and comprehensive BPO services India. Businesses are prioritizing Digital Transformation India, leveraging advanced technologies like AI in Indian BPO and Cloud computing India to achieve operational excellence. The focus remains on delivering cost-effective BPO solutions India while addressing specific industry needs, particularly in Healthcare BPO India. Ensuring robust Cybersecurity India IT services is paramount. The strength of the Indian IT talent pool continues to be a

The India Data Center Storage Market report segments the industry into Storage Technology (Network Attached Storage (NAS), Storage Area Network (SAN), Direct Attached Storage (DAS), Other Technologies), Storage Type (Traditional Storage, All-Flash Storage, Hybrid Storage), and End-User (IT & Telecommunication, BFSI, Government, Media & Entertainment, Other End-User). Get five years of historical data and five-year market forecasts.

India modular data center market size reached USD 1,073.1 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 3,441.4 Million by 2033, exhibiting a growth rate (CAGR) of 13.8% during 2025-2033. The growing need for remote storage and access of organizational data, along with the expanding IT industry, is primarily driving the market growth across the country.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for 2025-2033. Our report has categorized the market based on component, data center size, application, and industry vertical.

In financial year 2023, the market size of India's technology sector was estimated to achieve *** billion U.S. dollars. The IT services had the largest share, at *** billion dollars. It is an *** percent increase in comparison with the previous year. Most of the value was generated by export.

The India Data Center Construction Market report segments the industry into By Infrastructure (By Electrical Infrastructure, By Mechanical Infrastructure, and more.), By Electrical Infrastructure (Power Distribution Solution, and more.), By Mechanical Infrastructure (Cooling Systems, and more.), By Tier Type (Tier-I and-II, and more.), and By End User (Banking, Financial Services, and Insurance, and more.)

The India IT training market was valued at USD 4.04 Billion in 2024. The market is expected to grow at a CAGR of 8.80% during the forecast period of 2025-2034 to reach a value of USD 9.39 Billion by 2034.

The India IT training market is a rapidly evolving ecosystem reshaped by AI integration, cloud-based learning platforms, and government-industry collaborations. According to a 2025 report, the country’s tech workforce is expected to grow by 20%, with over 2 million professionals requiring upskilling in AI, cybersecurity, and cloud computing. As of March 2025, the Ministry of Electronics and Information Technology (MeitY) launched FutureSkills Prime, targeting 4.12 lakh learners annually in niche digital domains.

In addition, the Digital India program is revolutionizing the India IT training market dynamics. With the Union Budget 2024–25 for digital skilling aiming for 20 lakh youth and R&D innovation clusters, a new generation of training institutions is expected to emerge. These institutions offer immersive learning via XR and simulation labs, other than conventional PPT lectures. Partnerships like Infosys Springboard and TCS iON’s career edge platforms are now supporting MSMEs to upgrade workforce skills flexibly, thus fueling market demand in tier-II and tier-III cities.

Moreover, the growing popularity of cloud computing training among tech professionals, due to the ongoing cloud demand, is a prominent trend aiding the India IT training market expansion. With the increased shift of enterprises towards a hybrid cloud model, there is a surge in the number of job openings in the cloud sector, which boosts the demand for cloud-based training.

The India Location-Based Services Market report segments the industry into By Component (Hardware, Software, Services), By Location (Indoor, Outdoor), By Application (Mapping and Navigation, Business Intelligence and Analytics, Location-based Advertising, Social Networking and Entertainment, and more), and By End-User (Transportation and Logistics, IT and Telecom, Healthcare, Government, BFSI, Hospitality, and more).

The India spreads market size reached USD 361.1 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 1,698.3 Million by 2033, exhibiting a growth rate (CAGR) of 17.83% during 2025-2033. The burgeoning FMCG industry, increasing demand of ready-to-eat (RTE) products with several flavors, and the wide availability of spread represent some of the key factors driving the market.

IMARC Group provides an analysis of the key trends in each segment of the India spreads market report, along with forecasts at the country and regional levels from 2025-2033. Our report has categorized the market based on product type, distribution channel and income group.

By the financial year 2023, India's already rapidly expanding gaming market had grown to *** billion U.S. dollars. The gaming industry is one of the fastest-growing segments of the Indian media and entertainment sector. At a CAGR of ** percent, industry reports suggested that this market was likely to be worth over *** billion U.S. dollars by financial year 2028.

The India flat glass market size reached USD 3.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 6.3 Billion by 2033, exhibiting a growth rate (CAGR) of 5.78% during 2025-2033.

IMARC Group provides an analysis of the key trends in each sub-segment of the India flat glass market report, along with forecasts at the country and regional levels from 2025-2033. Our report has categorized the market based on technology, product type, raw material, end use, type and end use industry.

Market Size for India Data Center Market on the Basis of Revenue in INR Trillion, 2018-2023 In 2023, AWS India launched a new cloud region in Hyderabad to cater to the growing demand for cloud services in South India. This initiative aims to tap into the increasing digital transformation in the country and provide a more localized service experience. Mumbai and Bangalore are key markets due to their high concentration oftechnologycompanies and robust IT infrastructure. The India data center and cloud services market reached a valuation of INR 1.5 Trillion in 2023, driven by the increasing demand for digital infrastructure, growing internet penetration, and the rapid adoption of cloud computing across various industries. The market is characterized by major players such as Tata Communications, NTT Ltd., Sify Technologies, Reliance Jio, and AWS India. These companies are recognized for their extensive data center networks, diverse service offerings, and customer-focused solutions.

India application security market size reached USD 63.2 Million in ​2024​. Looking forward, IMARC Group expects the market to reach USD 250.0 Million by ​2033​, exhibiting a growth rate (CAGR) of 16.51% during ​2025-2033​. The rising organizations across the country prioritizing proactive measures to defend against cyber threats and secure their digital assets are primarily augmenting the market growth.

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country level for ​2025-2033​. Our report has categorized the market based on component, type, testing type, deployment mode, organization size, and industry vertical.

Market Size for India Consumer Electronics Market on the Basis of Revenue in INR Crores, FY’2018-FY’2024 In 2023, Xiaomi launched a new series of smart televisions with integrated AI-based voice assistance to enhance the user experience. This initiative aims to tap into the growing market for smart home devices and offer consumers an integrated entertainment solution. Key regions such as Maharashtra and Delhi NCR are the largest contributors due to their high population density, robust retail infrastructure, and growing technology adoption. The India consumer electronics market reached a valuation of INR 7.5 Trillion in 2023, driven by the increasing demand for smartphones, televisions, and home appliances. The growth is attributed to the rising disposable incomes, increased urbanization, and the proliferation of digital platforms. The market is characterized by major players such as Samsung, LG, Xiaomi, Sony, and Panasonic, which have a strong presence and extensive distribution networks across the country. These companies are recognized for their innovative product offerings, diverse portfolios, and customer-centric services.