PROFESSIONAL SERVICES SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Professional Services Industry in India
Summary/Snapshot
Professional services Industry
The Indian healthcare business continues to migrate towards teleconsultation, enabling digitally-enabled distant consultations. From 2024 to 2029, the Indian telemedicine industry is estimated to grow at a CAGR of 23.95%.
By the end of 2024, India’s IT and business services sector is projected to reach US$ 26.73 billion, reflecting significant growth.
The government continues to encourage critical services. Under the GST framework, basic educational services and certain health services remain tax-free, while other services like private coaching and vocational training are subject to GST.
Over the years, the Indian consulting industry has seen substantial growth, not only in terms of size but also in terms of service offerings. In recent years, the demand for specialist consulting services has been immensely sought by customers in India. The industry is expected to grow at a CAGR of 8.3% from 2021 to 2028.
Medical tourism has significantly increased the demand for healthcare and medical devices. The Indian medical tourism market is projected to grow to $10.4 billion in 2024, with a CAGR of 17.2% from 2024 to 2034.
Between April 2000 and March 2024, India’s services category garnered a total of US$ 109.49 billion in foreign direct investments (FDIs). According to data from the Department for Promotion of Industry and Internal Trade (DPIIT), the services category ranked top in FDI inflows.
By 2025, the government intends to increase public health spending to 2.5 percent of GDP. As of 2023-24, public health spending has reached 1.9 percent of GDP.
Growth Drivers
- 100% FDI is allowed in scheduled air transport, regional air transport, and domestic scheduled passenger airlines.
- By 2024, Indian businesses are expected to have deployed ten cloud platforms to help them modernize their businesses in areas including retail, telecommunications, and insurance.
- The Indian government plans to create a credit incentive scheme of US$ 6.8 billion to expand healthcare facilities in the country, according to a spokesperson.
Sub industries
- Business Services
- Cleaning Services
- Engineering Services
- Technical Consulting Services
Opportunities
- The population’s average age in India is anticipated to rise from 26.7 years in 2015 to 31.4 years in 2030. This rise in average age, together with rising income levels, is predicted to result in a large increase in healthcare demand.
- During the 2019-25 period, the rollout of 5G wireless technology in India is estimated to generate US$10 billion in global revenue for Indian IT services firms.
Challenges
- Project complexity has increased due to the rapid rise in Professional services to manage complicated projects.
- Many professional services firms make financial mistakes that lead to their downfall before their first anniversary. Almost seventy-five per cent of professional services start-ups fail to owe to poor decision-making.
- To stay ahead of the competition in the digital transformation era, every firm must implement new technology. Adapting to new technology and keeping up with trends is one of the most difficult difficulties the professional services sector faces.
How we can help you:
- Product-Pricing analysis
- Strategies for – product/service localization
- Market research to sell effectively
Key Investment Opportunities
IT services, BPM, software product companies, and shared service centers are all being established.
Knowledge services, data analytics, legal services, business process as a service (BPAAS), and cloud-based services are fast-growing sectors within the bpm domain.
IT services and fast-growing industries within it, such as SMAC (social, mobile, analytics, cloud) products and services, it consulting, and software testing.
Recent Developments
- Artificial intelligence and automation have been gradually creeping into the industry in recent years, but it is becoming increasingly prevalent as brands attempt to automate their services. Automation will be a definite trend to watch out for in the coming years as it offers the industry a chance to develop new, innovative ways of delivering professional services.
- In the professional service industry, technology-enabled tools have made communication across distance boundaries possible. Additionally, intuitive project and resource management tools have allowed managers to keep track of their projects from afar. Clients are approaching firms based on reputation and work regardless of where they are located.
Key Players in India
National
- Max for Life
- Fortis
- Apollo
- Reliance JIO
- VI
- Infosys
- TCS
- Wipro
- Deloitte
- KPMG
- PWC
- Accenture
- Boston Consulting Group
- EY
- Bain & Company
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