Service sector plays very important role in terms of its contribution to GDP and in terms of generation of employment. Private security service industry is one of the key constituent of this sector. In the service sector the role of private security service is increasing drastically. According to Industry sources the estimated market size of private security services is expected to be in excess of INR 1500 billion by 2022. Though there exist government operated police department but still the police to population ratio is very low which make this sector even more popular. The growth of industry can be attributed to growing urbanization, growth in number of shopping malls, ATMs, frequent terror attacks, inability of police personnel to provide round-the-clock security and moreover huge profits in security business. Though there is huge growth in private security business but there are lots of challenges faced by this sector. This paper attempts to identify the challenges faced by the private security industry. To understand the problems of the industry one of the firm providing private security was identified and an attempt was made to analyze the problem faced by the firm.