India Managed Services Market Size, Share, Trends and Forecast by Type, Deployment Mode, Enterprise Size, End Use, and Region, 2025-2033

India Managed Services Market Size and Share:

India managed services market size reached INR 43,857.4 Crore in 2024. The market is expected to reach INR 93,197.3 Crore by 2033, exhibiting a growth rate (CAGR) of 8.7% during 2025-2033. The growth of the market is significantly fueled by the increasing IT infrastructure and technology complexity. Apart from this, mounting pressure to optimize costs, the emergence of digital transformation projects, growth in remote and hybrid workplace models, and increased demand for specialized skills are a few factors supporting market development.

Market Insights:

• On the basis of region, the market has been divided into North India, West and Central India, South India, and East and Northeast India.
• Based on type, the market has been divided into managed infrastructure, managed data center, managed security, managed communications, managed network, and managed mobility.
• On the basis of deployment mode, the market has been divided into on-premises and cloud-based.
• Based on enterprise size, the market has been divided into large enterprises and small and medium-sized enterprises.
• On the basis of end use, the market has been divided into IT and telecommunication, BFSI, healthcare, entertainment and media, retail, manufacturing, government, and others.

Market Size and Forecast:

• 2024 Market Size: INR 43,857.4 Crore
• 2033 Projected Marke Size: INR 93,197.3 Crore
• CAGR (2025-2033): 8.7%

Managed services refer to the outsourcing of a company's IT operations, maintenance, and support to a third-party service provider. In this model, the service provider takes responsibility for the day-to-day management and operation of specific IT functions, allowing the client organization to focus on its core business activities. Managed services often include tasks such as network monitoring, cybersecurity, data backup, software updates, and technical support. This approach is designed to enhance efficiency, reduce operational costs, and ensure that IT systems run smoothly. Service providers typically offer proactive monitoring, rapid issue resolution, and strategic planning to prevent potential problems. The managed services model is flexible, scalable, and allows businesses to access specialized expertise without the need for in-house management of all IT functions.

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The managed services market in India is experiencing robust growth, driven by several key factors. Firstly, the increasing complexity of IT environments necessitates specialized expertise for effective management. Consequently, organizations are turning to managed services providers (MSPs) to leverage their specialized skills and ensure seamless operations. Moreover, the growing emphasis on cost optimization is a significant driver as businesses seek to replace traditional in-house IT models with more cost-effective, scalable, and flexible managed services. In addition, the rise of digital transformation initiatives is propelling the India managed services market growth. As enterprises undergo digital transitions, the need for advanced technologies such as cloud computing, cybersecurity, and artificial intelligence intensifies. MSPs, equipped with the latest technological capabilities, become essential partners in helping organizations navigate and implement these transformative technologies successfully. Furthermore, the regional trend towards remote and hybrid work models is fueling the demand for managed services, as businesses require secure and efficient solutions to support dispersed workforce environments. This shift in work dynamics underscores the crucial role of MSPs in delivering seamless connectivity, collaboration, and cybersecurity services. In summary, the managed services market in India is being propelled by the confluence of factors such as technological advancements, cost optimization imperatives, and the evolving nature of work, making it a dynamic and integral component of modern business strategies.

India Managed Services Market Trends:

AI-Driven Automation

The incorporation of artificial intelligence and machine learning technologies is transforming the managed services market in India. Besides that, service providers are also embracing AI-based automation solutions for enhancing operational efficiency, reducing manual interferences, and incorporating predictive analytics features. The practice enables MSPs to provide proactively monitored services, intelligent threat identification, and automated incident resolution, thus enhancing service quality and response time. In addition to this, AI-driven automation also facilitates better optimization of resources, reduced costs, and scalability for managed services companies. This is contributing to the India managed services market share. Further, organizations are embracing these intelligent solutions to realize competitive differentiators through enhanced decision-making capabilities, enhanced system reliability, and reduced operational overhead. According to this, AI-driven automation is transforming the traditional managed services models into sophisticated, self-repairing, and adaptive IT infrastructure management solutions.

Multi-Cloud and Hybrid IT Infrastructure

The growing use of multi-cloud and hybrid IT infrastructure is reshaping the managed services industry in India. In addition to this, organizations are leveraging multiple cloud platforms and hybrid configurations to attain performance optimization, business continuity, and vendor lock-in avoidance. This move calls for sophisticated skills in managing dispersed, complicated IT infrastructure in various cloud providers and on-premises facilities. Apart from this, managed services providers are also developing end-to-end multi-cloud management features, providing single-pane monitoring, security, and governance options. Along with this, workload management between multiple cloud environments becomes too complicated, and it requires complex orchestration tools, automated deployment, and integrated security models. Also, this change is driving demand for managed services that will seamlessly integrate and manage diverse technology stacks to deliver optimal performance, security, and compliance across multiple platforms and environments.

Favorable Government Schemes

Government policies are serving as a major driver in driving the managed services market in India. The Digital India program is fueling national-level digitalization, which is again triggering large-scale demand for managed IT services in government offices and public sector units. The Startup India program too is fueling technology entrepreneurship and innovation, which again is creating niche-managed services solutions and platforms. Other than this, the Production Linked Incentive (PLI) Scheme for Electronics and IT Hardware is augmenting the domestic technology ecosystem by providing opportunities to managed services providers for catering to manufacturing and technology companies. Government schemes like these are establishing good policy frameworks, providing cash incentives, and prompting technology adoption in various industries. Additionally, they are generating rewarding prospects for the managed services sector, which is fueling digital infrastructure investment, facilitating the growth of technology-enabled services in India.

Opportunities and Challenges in the India Managed Services Market:

• Market Opportunities: The expanding adoption of cutting-edge technologies like IoT, blockchain, and edge computing offers huge growth prospects for managed services providers. Government digitization programs and smart city initiatives create huge demand for full-cycle managed IT services. The expanding emphasis on cybersecurity and data protection regulations creates new opportunities for specialized security-oriented managed services offerings.
• Market Challenges: The India managed services market analysis suggests that the lack of skilled IT and cybersecurity professionals is a major impediment in managed services provider growth, as they hinder effective scalability of operations. The presence of fierce competition from global as well as local players puts pressure on prices and compresses margins in different segments of services. Data security needs and compliance requirements elevate operational complexity and the cost of investment for service providers.

India Managed Services Market Segmentation:

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 end use.

Type Insights:

• Managed Infrastructure
• Managed Data Center
• Managed Security
• Managed Communications
• Managed Network
• Managed Mobility

The report has provided a detailed breakup and analysis of the market based on the type. This includes managed infrastructure, managed data center, managed security, managed communications, managed network, and managed mobility.

Deployment Mode Insights:

• On-premises
• Cloud-based

A detailed breakup and analysis of the market based on the deployment mode have also been provided in the report. This includes on-premises and cloud-based.

Enterprise Size Insights:

• Large Enterprises
• Small and Medium-sized Enterprises

The report has provided a detailed breakup and analysis of the market based on the enterprise size. This includes large enterprises and small and medium-sized enterprises.

End Use Insights:

• IT and Telecommunication
• BFSI
• Healthcare
• Entertainment and Media
• Retail
• Manufacturing
• Government
• Others

A detailed breakup and analysis of the market based on the end use have also been provided in the report. This includes IT and telecommunication, BFSI, healthcare, entertainment and media, retail, manufacturing, government, and others.

Regional Insights:

• North India
• West and Central India
• South India
• East and Northeast India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, West and Central India, South India, and East and Northeast India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latest News and Developments:

• August 2025: Vodafone Idea (Vi) entered into a strategic partnership with IBM to modernize its operations and enhance service reliability through AI-powered managed services and a unified DevOps operating model. Central to the collaboration is a newly established AI Innovation Hub, staffed by Vi and IBM Consulting experts, aimed at co-creating next-generation AI solutions, automation tools, and digital accelerators to speed development cycles and bolster customer experience.
• June 9, 2025: Bharti Airtel signed a long-term managed services agreement with Ericsson to handle the comprehensive management of its nationwide network. This includes 4G, 5G NSA/SA, Fixed Wireless Access (FWA), Private Networks, and Network Slicing. Ericsson will manage Airtel's network operations through its state-of-the-art Network Operations Center (NOC) platform, assisting Airtel in expanding the adoption of emerging technologies like FWA and network slicing across India.
• May 2025: Sonata Software unveiled AgentBridge, a managed services platform designed to facilitate the deployment and governance of intelligent AI agents across enterprise functions. The platform offers a unified, no-code interface for building and orchestrating AI workflows, integrating seamlessly with existing systems and supporting multi-cloud environments. Key features include an AI agent marketplace, agent builder with industry-specific templates, and robust compliance tools, enabling organizations to scale automation securely and efficiently.
• March 2025: Wipro launched TelcoAI360, an AI-first managed services platform aimed at transforming telecommunications operations by enabling CSPs (Communication Service Providers) to deploy technology solutions at scale and speed while reducing costs and improving customer experience. The platform combines Wipro’s telecom domain expertise with AI tools to automate workflows, streamline processes, and manage resources efficiently, thereby delivering faster time to market and enhanced revenue potential.

India Managed Services Market Report Coverage:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India managed services market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India managed services market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India managed services industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.