At a glance
The Indian technology services industry is transitioning from labour-intensive models to AI-native architectures. This shift aims to drive $750–850 billion in annual revenue by 2035.
Executive overview
India’s technology sector is navigating a structural pivot from headcount-based scale to intelligence-led orchestration. By integrating agentic AI and specialized software platforms, the industry seeks to move beyond traditional outsourcing. Success depends on investing in research, developing defensible intellectual property, and transitioning toward outcome-based pricing models for global enterprises.
Core AI concept at work
Agentic AI refers to autonomous systems designed to set goals, plan complex workflows, and execute tasks with minimal human intervention. Unlike traditional software that follows rigid scripts, these agents use reasoning to adapt to real-time data. In enterprise environments, they automate end-to-end processes by coordinating between multiple software tools and human supervisors.
Key points
- The industry is moving from cost-saving labour arbitrage to value-driven intelligence arbitrage by prioritizing high-impact outcomes over billable hours.
- A six-point strategy focuses on scaling agentic services, rearchitecting software platforms, and establishing India as a global hub for AI-ready data centres.
- Growth is driven by human-tech hybrids where AI agents handle routine optimization while human professionals focus on complex judgment and domain-specific orchestration.
- Strategic targets include expanding data centre capacity from 1.4 GW to 12 GW and capturing a significant share of the global R&D operations market.
Frequently Asked Questions (FAQs)
How does agentic AI differ from traditional automation in IT services?
Traditional automation follows predefined rules for specific tasks, whereas agentic AI uses reasoning to handle open-ended workflows and autonomous decision-making. This allows the system to manage complex projects from start to finish rather than just executing isolated steps.
What are the projected economic impacts of AI on the Indian IT sector by 2035?
The sector is projected to reach annual revenues of $750–850 billion by 2035 through a deliberate shift toward AI-native delivery and sovereign cloud infrastructure. This transformation involves moving away from linear headcount growth toward non-linear efficiency powered by software-as-a-service and innovation hubs.
FINAL TAKEAWAY
The evolution of India’s technology sector reflects a broader transition from service provision to system architecture. By embedding agentic AI and intellectual property into its core, the industry aims to secure a dominant position in the global digital economy through specialized technical leadership.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
