§1What this business is

An IT service provider that monitors and maintains a customer's computers, network, software and automation systems on a regular basis and charges a monthly package fee — troubleshooting, software and hardware upkeep, and help to run the business more smoothly. Customers are small and mid-sized offices, shops and factories without their own IT staff.

Capacity: ₹31.20 L a year at full capacity from monthly packages of ₹50,000 to ₹1,00,000 (business optimisation, software and hardware upkeep, troubleshooting); ₹18.72 L in year 1.

§2Is it right for you?

Who it is for

A hardware or networking professional who can also sell service contracts.

Who it is not for

Someone who cannot handle urgent support calls.

Advantages

  • Monthly contracts give steady income
  • Small offices cannot afford full-time IT staff
  • Low equipment cost
  • Can add security cameras, cloud and automation work

Drawbacks

  • Must respond fast at any hour
  • Price pressure from freelancers
  • Technicians leave after training
  • A few big clients can dominate income

Skills you need

  • Hardware and network troubleshooting
  • Software installation and licensing
  • Cyber-security basics
  • Writing and pricing service contracts

Why difficulty 2/5: Low cost; success depends on skill and on keeping contracts.

§3Market

Who buys

  • Small and mid-sized offices
  • Shops, clinics and schools
  • Factories with automation systems

How it sells

  • Direct sales of monthly contracts
  • Tie-ups with hardware and software resellers

Good to know

  • The profile says resellers and system integrators are moving to managed services because margins on product sales are shrinking.

§4Raw material & machinery

ItemQtyCost
Computers with Windows and MS Office5₹1,35,000
Fixtures and fittings1 lot₹50,000
Service-centre application1₹20,000
Bulk hosting services1₹20,000
Software licensing1₹16,000
Network installation1₹10,000

From: SIDBI Stand-Up Mitra project profile — Services and Support for IT or Automation (2018) — private guide — confirm locally

  • Spare parts and consumables for client systemsthe profile books ₹9.51 L a year as direct inputs at full capacity
  • Software licences and hosting

From: SIDBI Stand-Up Mitra project profile — Services and Support for IT or Automation (2018) — private guide — confirm locally

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. Shops and Establishments registration
  4. Written service agreements with data-confidentiality terms

We can do this registration for you

§6Schemes & subsidies

PMEGP and MUDRA fit a ₹10 L service unit; CGTMSE for a collateral-free loan; Stand-Up India for eligible founders.

§7Money

How the investment is worked out: Equipment ₹2.51 L (5 computers ₹1.35 L, service app ₹20,000, bulk hosting ₹20,000, software licences ₹16,000, network ₹10,000, fixtures ₹50,000) + furniture and electricals ₹0.50 L + preliminary ₹0.63 L + working capital ₹6.24 L = ₹9.88 L.

Working capital: Working capital ₹6.24 L (inventory ₹3.12 L, receivables ₹1.56 L, overheads ₹1.56 L); margin ₹2.73 L, bank ₹3.51 L.

Prices from 2018 — machinery, material and salary figures will be higher now.

How to prepare a loan file

§8Export potential

Export council / board: ESC (Electronics and Computer Software Export Promotion Council)

  • IT services have no HS code; service exporters take RCMC from ESC.

§9Risks — where people fail

  • Losing a key client
  • Data loss blamed on the provider
  • Staff turnover
  • Late payments

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working it support and managed services unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start IT Support and Managed Services?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. SIDBI Stand-Up Mitra project profile — Services and Support for IT or Automation (2018)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.