NASSCOM: From Storage to Services: Can India’s Data Center Boom Catalyze Tech Services Growth?
SDG 8: Decent Work and Economic Growth
SDG 9: Industry, Innovation, and Infrastructure
Institutions: Ministry of Electronics & Information Technology; Ministry of Commerce & Industry
This report analyzes the cascading effects of India’s rapid expansion in data center infrastructure on the broader technology services sector over the next three to five years. It reveals that 82% of industry respondents anticipate a significant (around 20%) revenue boost in tech services, including domestic IT market growth. The surge in demand is expected to concentrate on cybersecurity, cloud operations, and infrastructure management - accounting for nearly half of future service requirements. Roles such as cybersecurity experts, cloud infrastructure engineers, and AI/ML specialists will see heightened demand, with skills in automation, virtualization, containerization, and hybrid/multi-cloud architecture becoming essential.
To effectively leverage this opportunity, the report highlights strategic collaboration models - managed services, joint ventures, and equity partnerships - as key enablers, though talent gaps, data security concerns, and lack of domain-specific solutions remain challenges. Looking ahead, tech service providers are advised to develop integrated offerings in cloud migration, AI-enabled data center management, and zero-trust cybersecurity frameworks, with added emphasis on sustainability and energy efficiency .
Follow the full report here: