India Software Services Export Market Size

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. Thereby contributing to the market expansion during the forecast period.

• Rapidly increasing digital transformation across industries, adoption of new technologies such as AI, IoT, and blockchain, and a growing emphasis on leveraging the core competencies by outsourcing non-core operations are the major driving factors of the market. According to IBEF, businesses in India have embraced technology to a large extent, and new digital business models may expand to most industries. By 2025, core digital industries like IT and business process management, digital communication services, and electronics manufacturing could double their GDP levels to USD 355-435 billion, while newly digitized industries and digital applications in the public sector and the labor market could each add USD 10-150 billion to the economy over the same period.
• As Indian organizations gravitate towards the cloud, artificial intelligence (AI), automation, network infrastructure, Internet of Things (IoT), and other developed technologies to transform them digitally, spendings on digital transformation (DX) and IT modernization are at the top of the mind of Indian companies. With more than 95% of Indian enterprises planning to increase DX spending or keep it at the same level in 2023, the overall DX spending in India is pegged to reach USD 85 billion by 2026, as per official data.
• Further, the growing migration to cloud services is a crucial driving factor in the market studied, resulting in significant collaborations and generating revenue. In September 2022, Tata Consultancy Services assisted Penumbra, a US-based multinational healthcare organization focused on advanced technology, in completing the first stage of its cloud transformation journey by envisioning its order management, finance, and procurement processes with a new digital core.
• 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.
• Regulatory pressures are intensifying along many industry supply chains. Climate change-related environmental concerns, globalization and the ensuing need to track, satisfy, and verify compliance with regulations from multiple locations, and mass customization, which requires regulatory compliance for an ever-increasing variety of products in an ever-smaller variety of lots or batches, all add to these pressures. Under these circumstances, manufacturers want compliance management software that delivers the appropriate data at the precise moment and in the manner required, in accordance with the essential quality requirements. While some manufacturers and industries have met these needs with paper-based or in-house compliance software solutions, an integrated compliance software solution is now necessary to satisfy the rising demands caused by expanding regulatory complexity. This is expected to hinder the market growth.
• Furthermore, in the Post COVID-19, 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 augmented the market growth.