By Kavita Mistry 
The Indian IT sector is projected to exceed $400 billion by 2030 as artificial intelligence changes how companies deliver technology.
In the short term, AI-related efficiencies could lower service prices, but the overall impact of AI is expected to increase both the demand and capacity for outsourcing complex work globally, according to Bessemer Venture Partners.
AI-Driven Growth to Push Indian IT Sector Beyond $400 Billion by 2030
From FY22 to FY25, the Indian IT sector grew at an annual rate of 8.1%, reaching $264 billion, and is forecasted to grow by 8.7% each year from FY25 to FY30, ultimately hitting the $400 billion mark by FY30.
This projection reflects a major transformation within India’s IT industry as new technologies influence client needs and spending habits.
Nithin Kaimal, COO and partner at Bessemer Venture Partners, stated that upcoming market opportunities will surpass the temporary price reductions caused by AI and will ultimately boost the industry’s growth.
He remarked, “In the short term, yes-growth has slowed, and many enterprise clients are using AI as a lever to negotiate lower prices, citing productivity gains. However, we view this as a temporary pause in a longer, decade-scale growth story.”
Kaimal added that as AI continues to develop, more complex tasks will be handled through a mix of automation and human skills, creating a fresh surge in outsourcing demand.
He also explained that “while some contracts may shrink in size due to automation, overall addressable market will expand as enterprises increasingly outsource higher-value, AI-enabled work.”
Up to 2.7 Lakh IT Employees In India Can Lose Jobs Due To AI Led Uncertain Future
In August 2025, we reported that to adapt to changing client needs and emerging technologies like AI, IT firms are reorganizing their workforce. TCS, for instance, has announced a 2% reduction, cutting approximately 12,000 roles, mainly targeting employees on the bench for extended periods without relevant reskilling. Many middle and senior-level professionals are unable to transition to evolving roles due to a widening skill gap. According to Nasscom, 54 lakh professionals are currently employed in the sector, and 80% of them need to be digitally enabled by 2030 to remain relevant. The focus is shifting from routine process execution to intelligent, AI-driven orchestration.