India Software Services Export Market Size (2024 - 2029)

India Software Services Export Market Analysis

The India Software Services Export Market size is estimated at USD 151.60 billion in 2024, and is expected to reach USD 189.19 billion by 2029, growing at a CAGR of 4.53% during the forecast period (2024-2029).

As the cloud transformation in the North American and European nations involves high costs and lacks proper resources, India is preferred as it is at the forefront of offshoring and outsourcing and is updated with emerging trends, techniques, and technology. This factor is expected to contribute to the market’s expansion during the forecast period.

• Rapidly increasing digital transformation across industries, adoption of new technologies such as IoT, AI, and blockchain, and a growing emphasis on leveraging the core competencies by outsourcing non-core operations are the major driving factors of the market.
• As Indian organizations gravitate toward the cloud, artificial intelligence (AI), automation, network infrastructure, Internet of Things (IoT), and other developed technologies to transform them digitally, spending on digital transformation (DX) and IT modernization are the top priorities of Indian companies.
• The growing migration to cloud services is a crucial driving factor in the market studied, resulting in significant collaborations generating revenue from it. Cloud migration facilitates both large and small businesses to move their software applications, databases, and other IT resources to cloud servers for seamless, secure, and transparent systems. This allows the company's software development lifecycle process management to be more efficient. Businesses generally invest in cloud migration strategies for better scalability, availability, and quicker deployment of software services.
• The Indian National Policy on Software Products has been addressed partly by the Next Generation Incubation Scheme (NGIS), which has been approved to support the software product ecosystem. It is planned to build a thriving software product ecosystem to support the strong IT sector's sustained expansion, new job creation, and competitiveness improvement. As per NASSCOM estimate, the Indian Software Product industry has made historic achievements in revenue in FY 2023, reaching USD 14.2 billion.
• However, factors like managing regulatory and compliance needs can restrain the market’s growth during the forecast period. It is because this involves increasing operational costs, limiting service offerings due to stringent data protection laws, and diverting resources from innovation and expansion efforts due to the constant need to adapt to varying and evolving regulations.
• Furthermore, after the COVID-19 pandemic, several businesses have employees working from home, and the need to adopt efficient IT systems has increased substantially. Organizations have increasingly migrated to the cloud or cloud-based platforms for their applications and software. This situation has significantly augmented the growth opportunities for the market studied.

India Software Services Export Industry Segmentation

Software services indicate services that display, make available, run, access, or interact with the functionality of the software products, which are provided to users from one or more data centers through the Internet or a private network on a rental, subscription, or assistance fee basis. The Indian software services considered for the study cover two key activities: computer and IT-enabled services. Computer services cover IT services and software product development, while IT-enabled services cover BPO and engineering services. The impact of macroeconomic trends on the market is also covered under the scope of the study. Furthermore, the disturbance of the factors affecting the market's evolution in the near future has been covered in the study as drivers and constraints.

The Indian software services export industry market is segmented by activity (IT services, software product development, BPO services, and engineering services), service type (on-site and off-site), and export destination (North America, Europe, Asia-Pacific, and the rest of the world). The market sizes and predictions are provided in terms of value in USD for all the above segments.