The Indian IT sector is projected to cross the $400 billion mark by 2030, with artificial intelligence (AI) expected to play a central role in shaping the next phase of growth. According to a report by Bessemer Venture Partners, the rapid adoption of AI is transforming how global enterprises approach technology delivery, creating both challenges and new opportunities for India’s IT industry.
AI-driven efficiencies are influencing pricing and productivity in the technology services market. While automation is expected to reduce some short-term costs, the long-term impact of AI is set to expand the global outsourcing market. Enterprises are increasingly outsourcing complex, AI-integrated workflows, combining automation with human expertise to improve performance and scalability.
The report highlights that India’s IT exports, which reached $264 billion in FY25, are expected to grow at an annual rate of 8.7% over the next 5 years. This growth trajectory indicates a strong recovery and structural transformation within the sector, with companies evolving to meet changing client expectations.
Between FY22 and FY25, India’s IT industry recorded a compound annual growth rate (CAGR) of 8.1%. The next 5 years are expected to see a similar pace, as firms adopt AI-enabled solutions across key service areas such as cloud management, analytics, and digital transformation.
The report suggests that as enterprises continue to integrate AI, the market will see a higher volume of outsourcing contracts focusing on data-driven decision-making, cybersecurity, and automation support. These emerging opportunities are likely to balance the temporary slowdown in traditional IT spending caused by AI-led efficiency gains.
As automation takes over routine tasks, Indian IT firms are repositioning themselves to deliver AI consulting, product engineering, and automation management. Bessemer Venture Partners’ report notes that while some pricing pressures are visible in the short term, the broader trend indicates expansion in the overall addressable market.
Enterprises are showing increased willingness to invest in AI-enabled outsourcing that blends human intelligence with automated solutions for enhanced efficiency.
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The ongoing technological transition marks a new chapter for India’s IT industry. The integration of AI is expected to reshape service delivery, accelerate digital adoption, and enhance India’s position as a key player in global technology exports.
By FY30, with projected revenues of $400 billion, India’s IT sector is set to strengthen its global standing, driven by continuous innovation and the evolution of AI-powered business solutions.
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Published on: Oct 28, 2025, 4:26 PM IST
Suraj Uday Singh
Suraj Uday Singh is a skilled financial content writer with 3+ years of experience. At Angel One, he excels in simplifying financial concepts. Previously, he cultivated his expertise at a leading mortgage lending firm and a prominent e-commerce platform, mastering consumer-focused and engaging content strategies.
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