NEW DELHI, India — India’s information technology sector is projected to reach $400 billion by 2030, fueled by companies delivering domain-specific automation that surpasses traditional service models in speed, quality, and cost, according to a new report released Tuesday.
The study by Bessemer Venture Partners highlighted that India’s strong talent base, global client trust, and cost competitiveness position it well to capitalize on rising global demand for AI-driven solutions.
Artificial intelligence is rapidly automating tasks once handled by humans, disrupting the billable-hour model that has long underpinned India’s IT services sector. The report emphasized that strategic pivots will be essential for firms to remain competitive as this transformation accelerates.
According to Bessemer, new AI-native challengers are adapting faster than established players. These emerging disruptors fall into three categories — AI-enabled services, services built for AI, and pure software-led platforms — each poised to reshape the industry landscape.
Despite these disruptions, the report predicted that India’s IT services industry will continue expanding with profit margins largely intact. Three years after the launch of ChatGPT, sector revenues remain robust, with most large-scale adoption of general-purpose language models still concentrated in technology and media or advertising sectors.
Incumbent IT companies, the report said, continue to play a key role in addressing complex, customized business problems rather than offering generic software-as-a-service (SaaS) solutions. Their strong balance sheets and consistent performance have reinforced client confidence, especially among Fortune 500 firms that rely on Indian IT partners for long-term projects and stable execution amid economic volatility.
India’s top ten IT firms have seen their combined market capitalization more than double over the past decade, rising from $166 billion to $354 billion, driven by annual revenue growth exceeding 7 percent. (Source: IANS)
