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India IT Service Management Market

ID: MRFR/ICT/54101-HCR
200 Pages
Aarti Dhapte
February 2026

India IT Service Management Market Size, Share and Trends Analysis Report By Service Type (Incident Management, Problem Management, Change Management, Service Request Management, Configuration Management), By Deployment Type (On-Premises, Cloud-Based, Hybrid), By Industry (IT and Telecommunications, BFSI, Healthcare, Retail, Manufacturing) and By Organization Size (Small Enterprises, Medium Enterprises, Large Enterprises)-Forecast to 2035

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India IT Service Management Market Summary

As per Market Research Future analysis, the India IT Service-Management Market Size was estimated at 871.44 USD Billion in 2024. The India IT Service-Management Market is projected to grow from 1011.75 USD Billion in 2025 to 4500.0 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 16% during the forecast period 2025 - 2035

Key Market Trends & Highlights

The India IT Service-Management Market is experiencing robust growth driven by automation and cloud adoption.

  • Automation and AI integration are reshaping service delivery models across the sector.
  • Cloud adoption continues to surge, with the cloud services segment emerging as the largest in the market.
  • The focus on cybersecurity is intensifying, particularly in the fastest-growing segment of managed services.
  • Rising demand for IT efficiency and the shift towards remote work solutions are key drivers propelling market expansion.

Market Size & Forecast

2024 Market Size 871.44 (USD Billion)
2035 Market Size 4500.0 (USD Billion)
CAGR (2025 - 2035) 16.1%

Major Players

ServiceNow (US), BMC Software (US), Atlassian (AU), IBM (US), Micro Focus (GB), Cherwell Software (US), Freshworks (IN), ManageEngine (IN), Zendesk (US)

Our Impact
Enabled $4.3B Revenue Impact for Fortune 500 and Leading Multinationals
Partnering with 2000+ Global Organizations Each Year
30K+ Citations by Top-Tier Firms in the Industry

India IT Service Management Market Trends

The IT Service-Management Market is currently experiencing a transformative phase, driven by the increasing reliance on digital technologies across various sectors. Organizations are prioritizing the enhancement of their IT service delivery to improve operational efficiency and customer satisfaction. This shift is largely influenced by the growing demand for automation and integration of advanced technologies such as artificial intelligence and machine learning. As businesses strive to remain competitive, they are investing in innovative solutions that streamline processes and reduce costs. Furthermore, the emphasis on data security and compliance is shaping the landscape, compelling service providers to adopt robust frameworks that ensure the protection of sensitive information. In addition, the rise of remote work and the need for flexible IT solutions are reshaping service management strategies. Companies are increasingly adopting cloud-based platforms that facilitate seamless collaboration and accessibility. This trend indicates a shift towards more agile and responsive service management practices, allowing organizations to adapt to changing market conditions. As the it service-management market evolves, stakeholders must remain vigilant to emerging trends and technologies that could influence their strategies and operations in the future.

Automation and AI Integration

The integration of automation and artificial intelligence is becoming a cornerstone of the it service-management market. Organizations are leveraging these technologies to enhance service delivery, reduce manual errors, and improve response times. This trend suggests a move towards more efficient operations, where routine tasks are automated, allowing IT teams to focus on strategic initiatives.

Cloud Adoption

The shift towards cloud-based solutions is significantly impacting the it service-management market. Companies are increasingly migrating their services to the cloud to benefit from scalability, flexibility, and cost-effectiveness. This transition enables organizations to access their IT services from anywhere, fostering a more collaborative and responsive work environment.

Focus on Cybersecurity

As cyber threats continue to evolve, there is a heightened focus on cybersecurity within the it service-management market. Organizations are prioritizing the implementation of robust security measures to protect their IT infrastructure and sensitive data. This trend indicates a growing awareness of the importance of safeguarding against potential vulnerabilities.

India IT Service Management Market Drivers

Emergence of Managed Services

The IT Service-Management Market in India is experiencing a notable emergence of managed services as organizations seek to offload certain IT functions to specialized providers. This trend is driven by the desire for cost efficiency and access to expertise that may not be available in-house. Managed service providers (MSPs) are increasingly offering comprehensive IT service management solutions that allow businesses to focus on their core competencies while ensuring that their IT infrastructure is well-managed. Recent market analysis suggests that the managed services segment is expected to grow by 20% over the next few years, reflecting a shift in how organizations approach IT service management. This evolution indicates a growing reliance on external expertise to enhance service delivery and operational efficiency.

Rising Demand for IT Efficiency

The IT Service-Management Market in India is experiencing a notable surge in demand for enhanced operational efficiency. Organizations are increasingly recognizing the need to streamline their IT processes to reduce costs and improve service delivery. According to recent data, the market is projected to grow at a CAGR of approximately 12% over the next five years. This growth is driven by the necessity for businesses to optimize their IT resources and ensure that they can respond swiftly to changing market conditions. As companies strive to maintain a competitive edge, the focus on efficient IT service management becomes paramount, leading to increased investments in tools and technologies that facilitate better service delivery.

Integration of Advanced Analytics

The IT Service-Management Market in India is witnessing a significant integration of advanced analytics into service management processes. Organizations are increasingly leveraging data analytics to gain insights into service performance and customer satisfaction. This trend is indicative of a broader movement towards data-driven decision-making in IT service management. By utilizing analytics, businesses can identify trends, predict issues, and optimize service delivery. The market for analytics-driven IT service management solutions is projected to grow at a CAGR of 18%, as companies recognize the value of data in enhancing service quality and operational efficiency. This integration not only improves service outcomes but also empowers organizations to make informed strategic decisions.

Shift Towards Remote Work Solutions

The IT Service-Management Market in India is witnessing a significant shift towards solutions that support remote work. As organizations adapt to new work environments, there is a growing need for IT service management tools that enable seamless collaboration and communication among remote teams. This trend is reflected in the increasing adoption of cloud-based service management platforms, which allow for greater flexibility and accessibility. Recent statistics indicate that the market for remote IT service solutions is expected to expand by 15% annually, as businesses prioritize the implementation of systems that can support a distributed workforce. This shift not only enhances productivity but also necessitates robust IT service management frameworks to ensure consistent service quality.

Increased Focus on Compliance and Governance

In the context of the IT Service-Management Market in India, there is an escalating emphasis on compliance and governance. Organizations are increasingly required to adhere to various regulatory standards, which necessitates the implementation of comprehensive IT service management practices. This focus on compliance is driving the demand for solutions that can help organizations manage their IT assets and services in accordance with legal and regulatory requirements. The market is projected to see a growth rate of around 10% as companies invest in IT service management tools that facilitate compliance tracking and reporting. This trend underscores the importance of governance in IT operations, as businesses seek to mitigate risks associated with non-compliance.

Market Segment Insights

By Service Type: Incident Management (Largest) vs. Change Management (Fastest-Growing)

The India IT Service-Management Market displays a diverse distribution of service types, with Incident Management emerging as the largest segment. It commands a significant portion of the market share, driven by organizations' need to restore normal service operation as quickly as possible after incidents. Meanwhile, Change Management is gaining traction, marked by its rapid growth due to increased demand for effective software implementation and process optimization in business operations. Several factors are influencing the growth trends within this segment. The digital transformation efforts of companies are pushing for more robust service management frameworks, creating opportunities for both Incident and Change Management services. As organizations prioritize operational efficiency and customer satisfaction, the demand for these services continues to accelerate, positioning Change Management as a key player in this evolving landscape.

Incident Management (Dominant) vs. Service Request Management (Emerging)

Incident Management stands out as the dominant value in the India it service-management market, focusing on minimizing downtime and assuring consistent service quality. This service type is crucial for businesses as it directly impacts operational efficiency and customer experience. Conversely, Service Request Management is emerging rapidly, designed to streamline the process of handling user requests efficiently. It supports business operations by automating service requests and improving user satisfaction. While Incident Management is entrenched in the market due to its critical nature, the increasing adaptability of Service Request Management tools is enabling organizations to enhance their service delivery capabilities, indicating a significant trend towards integrated service management processes.

By Deployment Type: Cloud-Based (Largest) vs. On-Premises (Fastest-Growing)

In the India IT Service-Management Market, the distribution of market share among deployment types reveals a clear dominance of cloud-based solutions, which have captured significant attention from businesses seeking scalability and flexibility. On-premises solutions continue to maintain a robust user base, especially among organizations with stringent security requirements, yet their share is gradually declining as more enterprises shift to cloud offerings. The growth trends in this segment are primarily driven by increased adoption of cloud technologies, propelled by the demand for remote access and enhanced collaboration capabilities. Hybrid solutions, which integrate both on-premises and cloud functionalities, are emerging rapidly as organizations seek balanced, flexible approaches to meet their operational needs. The increasing focus on cost-effective service delivery is also accentuating the growth of cloud-based deployment models.

Cloud-Based (Dominant) vs. On-Premises (Emerging)

Cloud-based deployment in the India it service-management market stands out as the dominant solution due to its ability to offer scalable infrastructure and lower upfront costs, catering to businesses of all sizes. This model supports rapid deployment and agile access to advanced features with minimal maintenance. On the other hand, on-premises solutions are recognized as an emerging value among certain sectors that prioritize data security and compliance, despite facing challenges in scalability. Organizations leveraging on-premises systems often benefit from personalized control over their IT operations, making this segment still relevant, especially in highly regulated industries. As businesses navigate their digital transformation journeys, the coexistence of these deployment types highlights a shifting landscape towards increased hybrid models.

By Industry: IT and Telecommunications (Largest) vs. Healthcare (Fastest-Growing)

The India IT Service-Management Market is characterized by a diverse range of industry segments, with IT and Telecommunications commanding the largest share. This segment leverages advanced technologies to streamline operations and enhance customer experiences, resulting in significant adoption across various enterprises. Following closely, the BFSI and Manufacturing sectors also contribute substantially to market dynamics, reflecting a strong demand for IT service solutions. Meanwhile, the Healthcare and Retail segments are also gaining traction, indicating shifting consumer preferences towards digital transformations in these areas. Growth trends in the India it service-management market are driven by rapid digitalization, increasing investments in IT infrastructure, and the growing need for effective service management solutions. The trend towards automation and artificial intelligence integration is reshaping how services are delivered across sectors. The Healthcare segment, in particular, stands out as the fastest-growing due to its urgency in adopting technologies for better patient management and operational efficiency. With rising consumer expectations and regulatory requirements, companies are focused on innovating their IT service offerings to stay competitive.

IT and Telecommunications: SCR (Dominant) vs. Healthcare (Emerging)

The IT and Telecommunications sector is recognized as a dominant force within the India it service-management market, providing essential services that enhance connectivity and operational efficiency. This segment encompasses a wide range of solutions, including cloud services, network management, and cybersecurity, which are crucial for virtually all industries today. In contrast, the Healthcare sector, while currently emerging, shows significant potential for growth as it increasingly integrates technology into medical services. With escalating demand for telehealth and electronic health records management, Healthcare is rapidly adopting innovative IT solutions. Companies within this segment are focusing on leveraging data analytics to improve patient outcomes and streamline processes, positioning themselves favorably for future growth.

By Organization Size: Large Enterprises (Largest) vs. Medium Enterprises (Fastest-Growing)

The market share distribution among the organization sizes in the India IT Service-Management Market shows that large enterprises hold a significant portion of the market due to their substantial resource allocation to IT services. These enterprises are often characterized by their need for comprehensive IT solutions to support large-scale operations and workforce, leading to a stable demand for service management. In contrast, medium enterprises are rapidly gaining traction, driven by their agility and increasing investments in modernization efforts to enhance operational efficiency. Growth trends indicate that medium enterprises are becoming the fastest-growing segment, fueled by digital transformation initiatives and a shift towards adopting advanced technologies. These enterprises are increasingly prioritizing IT service management to improve service delivery and customer satisfaction. The focus on scalability, security, and cost-effectiveness is prompting medium enterprises to explore tailored solutions, thereby expanding their market presence and contributing to the dynamic nature of the India it service-management market.

Large Enterprises: Dominant vs. Medium Enterprises: Emerging

Large enterprises perceive significant value from IT service management, as they require robust frameworks to manage complex IT ecosystems and ensure seamless service delivery across multiple departments. This dominance gives them leverage in negotiating contracts with IT service providers and accessing premium services. On the other hand, medium enterprises are emerging players, leveraging their flexibility and responsiveness to implement IT service strategies that align with their growth objectives. These enterprises often adopt cloud-based solutions, allowing them to scale services quickly while managing costs effectively. As they grow, the demand for comprehensive support solutions increases, enabling them to compete more effectively with larger players in the market.

Get more detailed insights about India IT Service Management Market

Key Players and Competitive Insights

The it service-management market in India is currently characterized by a dynamic competitive landscape, driven by rapid digital transformation and an increasing demand for efficient IT solutions. Major players such as ServiceNow (US), BMC Software (US), and Freshworks (IN) are strategically positioning themselves to capitalize on these trends. ServiceNow (US) focuses on innovation through its cloud-based platform, enhancing user experience and operational efficiency. BMC Software (US) emphasizes mergers and acquisitions to expand its service portfolio, while Freshworks (IN) leverages its local expertise to cater to the unique needs of Indian businesses, thus shaping a competitive environment that is both collaborative and competitive.
The market structure appears moderately fragmented, with a mix of established players and emerging startups. Key business tactics include localizing services to meet regional demands and optimizing supply chains to enhance service delivery. This collective influence of major players fosters a competitive atmosphere where innovation and customer-centric solutions are paramount.
In October 2025, ServiceNow (US) announced a strategic partnership with a leading Indian telecommunications provider to enhance its service delivery capabilities. This collaboration is expected to streamline IT operations for the telecom sector, showcasing ServiceNow's commitment to expanding its footprint in the Indian market. The strategic importance of this partnership lies in its potential to drive operational efficiencies and improve customer satisfaction in a rapidly evolving industry.
In September 2025, BMC Software (US) launched a new AI-driven service management tool tailored for the Indian market. This tool aims to automate routine IT tasks, thereby reducing operational costs and improving service response times. The introduction of this innovative solution underscores BMC's focus on leveraging AI to enhance service delivery, positioning the company as a leader in technological advancement within the market.
In August 2025, Freshworks (IN) expanded its product offerings by integrating advanced analytics into its service management platform. This move is designed to provide businesses with deeper insights into their IT operations, enabling data-driven decision-making. The strategic significance of this enhancement lies in its ability to empower organizations to optimize their IT resources effectively, thereby fostering a more agile and responsive service environment.
As of November 2025, current trends in the it service-management market include a pronounced shift towards digitalization, sustainability, and AI integration. Strategic alliances are increasingly shaping the competitive landscape, as companies recognize the value of collaboration in driving innovation. Looking ahead, competitive differentiation is likely to evolve, with a greater emphasis on technology and supply chain reliability rather than solely on price. This shift suggests that companies that prioritize innovation and customer-centric solutions will be better positioned to thrive in an increasingly competitive environment.

Key Companies in the India IT Service Management Market include

Industry Developments

The India IT Service Management Market has experienced several recent developments, particularly among key players such as Tata Consultancy Services, Infosys, and Wipro, which have seen a notable increase in market valuation, reflecting a growing demand for digital transformation services.

In October 2023, HCL Technologies announced an expansion of its cloud services to enhance its portfolio, following a trend among firms like Cognizant and Capgemini, which are investing heavily in artificial intelligence and automation solutions to stay competitive.

Currently, Larsen & Toubro Infotech and Tech Mahindra are focusing on enhancing customer experience through innovative IT service solutions, thereby driving growth. In terms of mergers and acquisitions, Persistent Systems completed its acquisition of a strategic stake in a software company in September 2023, strengthening its footprint in the IT service space.

Over the past two to three years, major players have continuously adapted their offerings in response to the rapid technological advancements and emerging market needs, positioning themselves to leverage opportunities in sectors such as healthcare and finance, which are increasingly seeking IT service solutions to enhance operational efficiency.

 

Future Outlook

India IT Service Management Market Future Outlook

The IT service-management market in India is poised for growth at a 16.1% CAGR from 2025 to 2035, driven by digital transformation and increased automation.

New opportunities lie in:

  • Development of AI-driven service desk solutions
  • Expansion of cloud-based ITSM platforms
  • Integration of IoT for proactive service management

By 2035, the market is expected to achieve substantial growth and innovation.

Market Segmentation

India IT Service Management Market Industry Outlook

  • IT and Telecommunications
  • BFSI
  • Healthcare
  • Retail
  • Manufacturing

India IT Service Management Market Service Type Outlook

  • Incident Management
  • Problem Management
  • Change Management
  • Service Request Management
  • Configuration Management

India IT Service Management Market Deployment Type Outlook

  • On-Premises
  • Cloud-Based
  • Hybrid

India IT Service Management Market Organization Size Outlook

  • Small Enterprises
  • Medium Enterprises
  • Large Enterprises

Report Scope

MARKET SIZE 2024 871.44(USD Billion)
MARKET SIZE 2025 1011.75(USD Billion)
MARKET SIZE 2035 4500.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 16.1% (2025 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled ServiceNow (US), BMC Software (US), Atlassian (AU), IBM (US), Micro Focus (GB), Cherwell Software (US), Freshworks (IN), ManageEngine (IN), Zendesk (US)
Segments Covered Service Type, Deployment Type, Industry, Organization Size
Key Market Opportunities Integration of artificial intelligence enhances efficiency in the it service-management market.
Key Market Dynamics Rising demand for automation in IT service management drives competitive innovation and efficiency in India.
Countries Covered India
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FAQs

What is the expected market size of the India IT Service Management Market in 2024?

The India IT Service Management Market is expected to be valued at 2.5 USD Billion in 2024.

What is the projected market size of the India IT Service Management Market by 2035?

By 2035, the India IT Service Management Market is expected to reach a value of 5.25 USD Billion.

What is the anticipated compound annual growth rate (CAGR) for the India IT Service Management Market from 2025 to 2035?

The expected CAGR for the India IT Service Management Market from 2025 to 2035 is 6.978%.

Which service type segment holds the largest market share in the India IT Service Management Market for 2024?

Incident Management is projected to hold the largest market share with a value of 0.75 USD Billion in 2024.

What is the estimated market value for Problem Management in the India IT Service Management Market in 2035?

The market value for Problem Management is estimated to be 1.0 USD Billion by 2035.

Which are the major players in the India IT Service Management Market?

Major players include HCL Technologies, Cognizant, Wipro, Tata Consultancy Services, and Accenture.

What is the expected market value for Change Management in 2024?

Change Management is expected to have a market value of 0.45 USD Billion in 2024.

How much is the Service Request Management segment projected to grow by 2035?

The Service Request Management segment is projected to grow to 0.9 USD Billion by 2035.

What impact do technological advancements have on the India IT Service Management Market?

Technological advancements are expected to drive efficiency and innovation within the India IT Service Management Market.

What factors are contributing to the growth of the India IT Service Management Market?

Factors contributing to growth include increasing IT complexities, demand for improved service efficiency, and digital transformation.

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