India’s IT Sector Set for $400 Billion Boom by 2030
India’s information technology sector is projected to reach a massive $400 billion valuation by 2030, driven by domain-specific automation that outperforms traditional models on speed, quality, and cost.
Key Takeaways
- India’s IT sector projected to hit $400 billion by 2030
- AI-driven automation disrupting traditional service models
- Market cap of top 10 IT firms doubled to $354 billion in a decade
- Annual revenue growth exceeding 7% driving expansion
AI Transformation Underway
According to Bessemer Venture Partners, AI is automating human-performed tasks and disrupting the traditional billable-hour model that has long supported Indian IT services. This makes strategic pivots crucial for companies to stay competitive.
The report highlights that agile, AI-native challengers are adapting faster than incumbent companies. Three types of AI-first disruptors are emerging: AI-enabled services, services built specifically for AI, and pure software-led platforms.
Resilient Growth Despite Disruption
Despite AI-related challenges, India’s IT services industry continues to grow with margins intact. Three years after ChatGPT’s launch, IT revenues keep climbing while margins remain surprisingly resilient.
This resilience stems from the fact that uptake of general-purpose large language models is currently concentrated in only two sectors: technology and media/advertising.
Incumbent Strengths Remain
Established IT firms continue to play a crucial role in solving complex, nuanced business problems rather than providing one-size-fits-all SaaS deployments. Their strong balance sheets further strengthen client confidence.
Fortune 500 companies maintain trust in IT services vendors to manage multi-year projects, absorb macroeconomic shocks, and deliver consistent execution.
The market capitalisation of India’s top ten IT firms has more than doubled from $166 billion to $354 billion over the past decade, driven by sustained annual revenue growth exceeding 7 percent.
