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India’s
Technology Services –
Reimagination Ahead
February 2026 Disclaimer
This roadmap has been prepared by NITI Frontier Tech Hub (FTH) in consultation with experts and
stakeholders. The data used is from secondary sources. Any references to specific organisations,
products, services or technologies does not attribute to endorsement but are only for illustrative
purposes. Acknowledgment
W
e are indebted to the Expert Council for its strategic foresight
and guidance in shaping this project. Their contribution
has ensured that the roadmap reflects both ambition and
pragmatism, making the recommendations actionable. Noshir Kaka
Senior Partner,
McKinsey & Company
Mohit Joshi
CEO, Tech Mahindra
Expert Council Members
Debjani Ghosh
Distinguished Fellow,
NITI Aayog
Sonia Pant
Programme Director,
NITI Aayog
Anand Deshpande
MD, Persistent Systems
BK Kalra
CEO, Genpact
Gunjan Samtani
Partner, Co-Chairman,
Goldman Sachs India
Kishor Patil
CEO, KPIT Technologies
Sangeeta Gupta
Senior Vice President
NASSCOM Foreword
India’s technology services industry stands at a crucial AI Inflection
point. Over the past three decades, it has been a cornerstone of India’s
economic rise driving exports, creating millions of jobs, and establishing
India as a trusted global technology partner. As the world now enters
the era of Artificial Intelligence, this sector faces a profound transition
that will shape not only its own future, but also India’s broader economic
future and strategic positioning in the global digital order.
AI is fundamentally reshaping how technology is built, deployed, and
consumed. Traditional service delivery models anchored in scale,
cost efficiency, and incremental productivity are being challenged by
AI-driven automation, platform-based solutions, and outcome-oriented
engagements. Simultaneously, geopolitical realignments, supply-
chain reconfiguration, and rising concerns around digital sovereignty
are reshaping how nations compete—and collaborate—on technology
leadership.
Against this backdrop, this roadmap offers a forward-looking pathway
for India to sustain and extend its global leadership. To meet India’s
aspiration of becoming Viksit Bharat by 2047, the technology services
sector must evolve into an innovation-led, AI-native ecosystem capable
of creating new value pools.
Equally important is the central role of people in this transition. AI will
transform roles, workflows, and skill requirements across the industry.
The challenge before us is not one of displacement, but of transition
redeploying talent, reskilling at scale, and building a workforce that
can work alongside intelligent systems with confidence and judgment.
India’s demographic strength and talent base provide a unique
advantage, provided we act with foresight, coordination, and urgency.
This transformation requires a shared national effort. Industry must
invest in innovation, intellectual property, and new delivery models,
while government must enable speed, ease of doing business, global
market access, and a robust skilling ecosystem. NITI Aayog remains
committed to playing its role as a strategic catalyst in this partnership.
With timely action, collaborative leadership, and a clear focus on trust,
inclusivity, and innovation, India can emerge not merely as a technology
services provider, but as the world’s preferred partner in the AI era.
B.V. R. Subrahmanyam
CEO, NITI Aayog Foreword
For three decades, India’s technology sector has been the global
benchmark for scale and resilience. However, we have reached a
decisive strategic inflection point. The emergence of AI is fundamentally
compressing traditional service value pools—moving the industry from
labor-intensive “effort” to high-impact “outcomes.”
The industry is currently navigating three fundamental transitions:
From Effort to Outcome: Moving away from billable hours toward value-
based, result-driven engagements.
From Bespoke to Productized: Shifting from manual, one-off coding to
scalable, IP-led platforms.
From Siloed IT to Enterprise Transformation: Evolving from back-office
support to being the primary engine of business strategy.
As a strategic pillar of the Indian economy, the technology services
sector contributes nearly 7% of GDP and remains a primary engine for
high-value employment. As we march toward Viksit Bharat, the sector’s
evolution is not merely a corporate necessity but a national imperative.
To maintain technological sovereignty and global competitiveness, we
must transition from being the world’s “back office” to becoming the
world’s AI-native architect.
Leadership in the next decade will be defined by an industry that
transcends traditional service boundaries. This roadmap is shaped by
that imperative. It recognizes that leadership will depend on expanding
into software, platforms, data infrastructure, and innovation-led
offerings. While protecting the core remains essential, future growth will
increasingly arise from adjacent value pools where services converge
with products, intellectual property, and AI-native operating models—
reshaping how value is created, captured, and scaled.
At the NITI Frontier Tech Hub, our role is to work alongside industry,
startups, academia, and policymakers to track emerging technology
trajectories, assess their implications for India’s core sectors, and
translate these insights into actionable recommendations that
strengthen national readiness and unlock new growth opportunities.
This roadmap is intended as a shared reference for strategic choices,
investment priorities, and ecosystem collaboration rather than a
prescriptive blueprint. India’s advantage lies not only in its talent and
scale, but in its capacity to act decisively at moments of transition. With
alignment between government and industry, India can evolve from
being the world’s largest technology services provider into one of the
most influential builders of AI-native, globally relevant technology
systems.
Debjani Ghosh
Distinguished Fellow,
NITI Aayog Table of Content
1.1 A Potential Growth Lever For India In 204702
1.2 The Evolving Industry Landscape For Technology Services 03
1.3 Realities Of Today04
Chapter 01: India’s Technology Services Industry:
At An Inflection Point
02
2.1 Setting A Bold Aspiration For 203505
2.2 The Path To Achieving The 2035 Aspiration06
2.3 Five Potential Plays For The Sector08
Chapter 02: India’s Technology Services:
Reimagination Ahead
05
3.1 Recommendations for industry14
3.2 Recommendations for government16
Chapter 03: Recommendations
14
Chapter 04: The Case For Action For India19
Executive Summary01
Appendix20
Glossary27 Executive Summary
India’s tech services industry (comprises of players that design, build, implement, manage, and
support technology solutions for clients, primarily through IT services, software development, digital
transformation, and operations) stands at an inflection point. Contributing nearly 7 percent to GDP and
generating around $265 billion in annual revenue, the sector remains integral to national growth and
exports. Yet, post-pandemic headwinds—including macroeconomic uncertainty, AI-led automation, and
intensifying competition—have slowed annual growth to 4–5 percent p.a. and compressed margins.
To align with the vision of Viksit Bharat@2047, the sector needs to aim to achieve $750–850 billion in
annual revenue by 2035 to sustain a 7–8 percent share of GDP and expanding its global market share
beyond 25 percent. However, current trajectories indicate a $250–300 billion shortfall, underscoring the
need for decisive action. Emerging technologies such as generative and agentic AI, cloud infrastructure,
and digital engineering present India with a historic opportunity to bridge this gap and reposition itself as
a leader in trusted, innovation-driven digital services.
Realising this ambition requires a dual approach:
—Protecting the core: The industry must strengthen its existing growth engines—data and AI, cloud,
digital transformation, engineering services, and cybersecurity.
—Pivoting to new growth vectors: Advancing into five frontier pathways:
• Agentic AI play: Leverage AI to build hybrid ‘human + agent’ service models and productized
solutions, targeting mid-market businesses and legacy modernization.
• Software play: Strengthen India’s position as the global SaaS capital by capturing a disproportionate
share in high-growth areas such as CRM, ERP, DataOps, cybersecurity, and vertical-specific SaaS.
• Infrastructure play: Consider establishing India as the world’s data services and AI infrastructure
hub, with AI-native cloud stacks, sovereign infra, and data center orchestration capabilities.
• Innovation play: Harness R&D spend pools with India-based innovation centers, vertical-specific
CoEs, and frontier technology partnerships.
• India for India play: Leverage India’s rapidly growing domestic demand with customized AI, multi-
lingual platforms, and delivery model innovations tailored to the local context.
Achieving this vision will require joint industry–government effort:
—Industry must lead the shift into the AI era by reimagining its delivery model, deepening innovation,
and investing in the next wave of growth. Firms need to pivot from cost-based services to outcome-
driven, AI-enabled solutions—embedding ‘human + agent + platform’ models across operations.
Strategic investment in R&D and IP creation, particularly in fast-growing areas such as healthcare,
semiconductors, and cybersecurity, can unlock new value pools. Building global partnerships, scaling
AI focused mergers and acquisitions, and driving large-scale workforce reskilling will be critical to
maintaining India’s global edge and expanding its market share beyond 25 percent by 2035.
—Government policy must enable this transition by strengthening innovation, talent, and
ease of doing business. This includes scaling digital R&D and IP creation through a clear
national digital R&D framework and shared infrastructure, simplifying and accelerating
approvals through a National Tech-Services Single Window, and creating a supportive policy
environment for SaaS and high-growth technology firms through capital targeted R&D
support, ESOP clarifications and regulatory reforms. In parallel, a nationally coordinated
AI talent mission will prepare India’s talent base for AI-driven shifts. Together, these
measures will position India as a preferred destination for global technology operations
and investment.
Swift execution will be critical to sustain competitiveness, close the aspiration gap, and strengthen India’s
position as the global hub for AI, data, and digital innovation.
1India’s Technology Services - Reimagination Ahead India’s Technology
Services Industry:
At An Inflection Point
1.1 A Potential Growth Lever For India In 2047
India’s technology services sector is a cornerstone of the national economy, accounting for a
7 percent relative share of Gross Domestic Product (GDP).
1
With about $265 billion in total annual
revenue across domestic demand and exports, it accounts for nearly 20 percent of the $1.3
trillion global technology services market, consistently outpacing global growth by 200 to 300
basis points.
2
However, the coming decade will be marked by transformation more than continuity. As India
strives to become a $30 trillion economy by 2047
3
, technology services could evolve from being
an export engine to a potential growth lever — one that drives innovation, productivity, and
global competitiveness.
1
Nasscom strategic review, 2025.
2
Nasscom strategic review, 2025; Technology services and the BPM market = ~$190 billion out of the ~$265 billion.
3
India sets ambitious target to become a US$ 30 trillion economy by 2047, Ministry of external affairs, Government of India,
J uly 30, 2024 .
The objective is to catalyze the
transformation of the sector in the
era of AI by maintaining the relative
share of GDP at 7 to 8 percent, and
increasing global share 20 to 25%+
by 2035
Chapter 01
2India’s Technology Services - Reimagination Ahead 1.2 The Evolving Industry Landscape For Technology Services
Over the past decade, the technology services industry has undergone three major shifts, each
marked by changing growth drivers and disruptive tailwinds (Exhibit 1):
—Rapid adoption (2015–2020): The foundation of digital transformation
• The global technology services industry crossed the $1 trillion mark in 2019
4
, driven by rapid
consumer technology adoption (internet, smartphones, social platforms) and large-scale
enterprise modernization Enterprise resource planning (ERP), cloud, 4G, etc.
• India’s low-cost, high-quality talent pool and emerging digital execution infrastructure led
to a 6-7% CAGR growth in technology services.
5
—COVID surge (2020–2022): A period of hyper-acceleration
• Global growth surged at an 8 to 10 percent CAGR, fueled by pandemic-driven demand for
digital transformation, cloud migration, and remote work enablement.
6
• India outpaced global trends at an 11 to 13 percent CAGR, on the back of scaled digital
engineering capabilities.
7
4
Future of Technology services – Winning in this Decade, Nasscom, 2021.
5
Ibid.
6
Future of Technology services – Leading with AI, Nasscom, 2025.
7
Nasscom Strategic Review.
Exhibit 1
India India trendline
Global Global trendline
7.7%
8.6%
6.6%
8.0%
2.9%
16.7%
8.1%
10.6%
5.2%
3.2%
4.4%
6.4%
4.8%
0.0%
12.8%
6.8%
4.0% 4.0%
0%
5%
10%
15%
20%
25%
2016 2017 2018 2019 2020 2021 2022 2023 2024
Source: Gartner, IDC, Nasscom strategic review
3–4%
xx% India CAGR
xx% Global CAGR
6–7%
9–10%
12–13%
3–5%
7–8%
Global and India tech services market, YoY growth %
3India’s Technology Services - Reimagination Ahead
—Early AI era and post-COVID reset (2022–2024): Disruption in the growth model
• Global growth moderated at a 3 to 5 percent CAGR, while India’s growth declined to between
7 and 8 percent CAGR
8
driven by few key factors – macroeconomic uncertainty in key
markets, early-stage AI disruption, structural change in software development with GenAI.
1.3 Realities Of Today
The industry today is characterized by a slow growth environment facing geopolitical
uncertainty and AI-led discontinuity.
—Slowing growth environment: Over the past year, large global technology players have
maintained steady momentum, while specialist providers have recorded strong growth
driven by demand for AI, cloud, and data transformation services. In contrast, large Indian
technology services players see growth slowdown to about 3–5 percent, as reflected in
recent quarterly results of Tier-1 India-headquartered providers—marking one of the most
challenging growth periods for the sector in recent years.
Mergers and acquisitions (M&A) have become a key driver of transformation and growth
as technology firms look to expand capabilities in AI, cloud, and digital engineering. Leading
players such as Accenture are using programmatic M&A—often executing 50 or more
acquisitions annually—to rapidly acquire niche skills, strengthen innovation pipelines, and enter
new markets. This approach is allowing providers to stay ahead of technology shifts, integrate
emerging capabilities faster, and maintain resilience in a slowing growth environment.
—Geopolitical tensions: The global environment is characterized by tightening visa regimes,
tariff adjustments, and potential barriers to cross-border services. Increased restrictions
and higher H-1B costs for skilled worker mobility are constraining talent deployment across
key markets. Changes in trade and tariff policies are disrupting global supply chains and
creating uncertainty around delivery timelines and cost structures. At the same time, growing
emphasis on data localization and digital sovereignty is adding regulatory complexity and
reinforcing a shift toward regionally governed technology ecosystems.
—Dependence on US Markets: The technology services sector exports have a large
concentration in the US with a market share of almost 60%. US multinational companies
including GCCs are also the largest employers in India and are playing a significant role in
reshaping the India value proposition from cost and efficiency to higher value-added
services. While the sector has been focussed on market diversification beyond US, given the
disproportionate share of US, industry’s performance will continue to be shaped by shifts in
the US market across enterprise and mid-sized customers.
—Technology becoming a strategic lever for trade: Technology is emerging as a central
instrument of global trade negotiations, shaping access, alignment, and competitiveness.
Nations are increasingly using technology standards, data governance, and control over critical
supply chains as tools of economic diplomacy and strategic influence. Export controls, digital
trade clauses, and data localization norms are redefining global value chains and market access.
As digital infrastructure, AI, semiconductors, and rare earth ecosystems become closely linked
with trade policy, technology is shifting from a neutral enabler to a core bargaining asset.
—AI discontinuity: Of the 13 foundational technologies expected to shape the next decade, AI
is the most immediate and transformative disruptor. It is redefining how technology services
are delivered, with GenAI / Agentic AI transforming software development, testing, support,
and business operations. This shift is compressing traditional service markets through
automation and efficiency gains while opening new value pools in AI integration, model
engineering, data infrastructure, and governance. The transition offers India a significant
opportunity to position itself as a global hub for AI-driven delivery and innovation.
8
Future of Technology services – Leading with AI, Nasscom, 2025; Nasscom Strategic Review.
4India?s Technology Services - Reimagination Ahead India’s Technology
Services: Reimagination
Ahead
2.1 Setting A Bold Aspiration For 2035
Chapter 1 highlighted factors shaping India’s technology services sector today: a visible decline in
growth post-COVID and the rise of AI-led disruptions, alongside the fastest technology adoption
wave in decades. While these factors have posed significant headwinds, they also present a
timely inflection point — one where the sector can reimagine its growth trajectory by embracing
foundational shifts in value pools, delivery models, and global positioning.
The government has set an ambitious national vision to become a $30 trillion economy by 2047.
9
Within this, the technology services sector is expected to play a crucial role, with aspirations to
contribute 7 to 8 percent of GDP or approximately $750 billion to $850 billion in annual revenue
by 2035, based on the government’s Viksit Bharat goals, up from about $265 billion today
(Exhibit 2).
10
9
India sets ambitious target to become a US$ 30 trillion economy by 2047, Ministry of external affairs, Government of India,
J uly 30, 2024 .
10
Nasscom strategic review, 2025.
Indian Technology Services Industry – Aspiration for 2035
Exhibit 2
Source: Nasscom Future of Technology Services 2030: Leading with AI, Viksit Bharat goals
2024 2035E
~$265B
$750–850B
(%)
Chapter 02
5India’s Technology Services - Reimagination Ahead 2.2 The Path To Achieving The 2035 Aspiration
To meet the 2035 aspiration, India will likely need to drive 10%+ CAGR over the next decade.
However, the current outlook for industry is 5-7% growth including $100-120 billion expansion
from new Total Addressable Market (TAM) opportunities. There is a likely $250-300 billion gap
to meet this objective (Exhibit 3).
Path to 2035–aspirations and gaps to fill
Protect
the core
Pivot to new
growth vectors
EExxppeecctteedd
ssiizzee ((22003355))
Gaps to
aspiration
~$265B
$150–180B
$100–120B $500–580B
$250–300B $750–850B
Source: Viksit Bharat goals, expert conversations
xx% CAGR
(%)
Exhibit 3
While the government’s aspiration
for India’s technology services
sector is to contribute 7–8% of GDP
($750–850 billion) by 2035 to meet
its Viksit Bharat goals, current
market growth outlook indicates a
gap of $250–300 billion
6India’s Technology Services - Reimagination Ahead Protecting the core:
The current base of about $265 billion, driven by India’s strengths in exports, cost arbitrage,
and engineering depth, could potentially grow at 4 to 5 percent annually if India strengthens
its presence in data and AI, cloud, cybersecurity, new markets such as the Middle East and
Japan, and verticals such as defense and healthcare, as well as deep technology and high-
value segments like engineering services.
However, even this sustained growth may not be enough. To accelerate growth, India could pivot
to white spaces beyond the services sector while continuing its global leadership within the
sector.
A pivot to new growth vectors:
Expanding into adjacent high-growth enterprise markets could open additional opportunities for
India, helping it break into adjacent spend pools and unlock value from the accelerating shift
toward software-defined and AI-powered delivery models.
This would require transition in the industry’s focus from a service-only to full-stack digital
enablement, spanning software, infrastructure, operations, and AI-driven automation.
The industry could also expand to new buying centres such as the CIO, COO, and CXO roles,
which account for larger share of tech spending.
Five major adjacent pools could be considered, with a global TAM of about $14 trillion today
11
:
—Core operations spend of about $8,000 billion in AI-led automation of human
operational work.
—Enterprise operations – General & Administrative (G&A) spend of about $3,000 billion in the
automation of finance, procurement, and HR.
—Hardware and infrastructure spend of about $1,100 billion in data centers, hybrid infra, and
infra orchestration.
—Software spend of about $1,100 billion in SaaS, cloud-native tools, and low-code platforms.
—R&D operations spend of about $1,100 billion in product design, co-development, and
frontier technology innovation.
India’s technology services players currently have limited penetration in these areas. However, by
reimagining value propositions, products, and platforms across these spaces, the sector could
build the potential to considerably improve its share-of-wallet within enterprise technology
spending.
Exhibit 4 outlines the five plays that cut across these new markets/enterprises’ spend areas,
offering the potential to unlock the next phase of growth in the adjacent TAM opportunities
for service providers beyond their core technology services sector. Each of these plays would
require reinvention of the proposition, GTM approach, and delivery model, with strengths in
technology-led re-imagination of value for enterprises.
—Agentic AI play: Leverage AI to build hybrid ‘human + agent’ service models and productized
solutions, targeting mid-market businesses and legacy modernization.
—Software play: Strengthen India’s position as the global SaaS capital by capturing a
disproportionate share in high-growth areas such as CRM, ERP, DataOps, cybersecurity, and
vertical-specific SaaS.
—Infrastructure play: Consider establishing India as the world’s data services and AI
infrastructure hub, with AI-native cloud stacks, sovereign infra, and data center orchestration
capabilities.
11
Analysis from Gartner, IDC and expert conversations.
7India’s Technology Services - Reimagination Ahead Total Addressable Market (TAM) map across key enterprise spend areas
Exhibit 4
Source: Future of Technology services – Leading with AI, Nasscom, 2025.
Agentification of core ops
and G&A spends with hybrid ‘human + agent’
operating model
Services
ecosystem for frontier
technologies and CoE hubs
Global hub
for AI infra.
and data
services
SW build in
key growth
hotspots
Serve domestic demand with AI-enabled delivery operating model
$4,400 B,
4-5%
$2,000 B,
4-5%
$3,000 B,
9-10%
$14,000 B,
3-4%
$4,300 B,
3-4%
$1,600 B,
7-8%
Global 2035 TAM $B,
CAGR (2024-35)
—Innovation play: Harness R&D spend pools with India-based innovation centers, vertical-
specific CoEs, and frontier technology partnerships.
—India for India play: Leverage India’s rapidly growing domestic demand with customized AI,
multi-lingual platforms, and delivery model innovations tailored to the local context.
Together, these five plays could potentially generate incremental value by 2035—delivering on
the government’s national aspiration and repositioning India as the world’s technology partner
for the AI era.
2.3 Five Potential Plays For The Sector
8India?s Technology Services - Reimagination Ahead India’s Technology Services - Reimagination Ahead 8 As the Agentic AI technology advances, it is set to reshape core service offerings and deliver non-linear
efficiency gains across technology services and software spending—particularly within the Software
Development Lifecycle. Establishing a strong position in Agentic AI will lay the foundation for future
progress toward Artificial General Intelligence (AGI) and Artificial Superintelligence (ASI), securing
technological, data, and ecosystem leadership for the next phase of innovation.
Potential opportunities for the industry:
— Scale a ‘Services as Software’ proposition
Industry could focus on three key moves. First, develop productized services for targeted areas in
the enterprise software value pool across horizontal applications such as marketing campaign
management and development or infrastructure tools. Second, create customized agent-
led solutions for medium-scale businesses—an under-served segment—with use cases like AI
lifecycle management, security analytics, and digital commerce. Third, drive agentic AI-led legacy
modernization through productized services for enterprises and mid-market players with legacy
software spends, enabling faster and more efficient transformation.
India’s projected potential (2035)
12
: $15–20 billion
—Introduce the ‘human and technology hybrid workforce model powered by AI agent services for
higher productivity in enterprise operations. Potential move includes building domain-specific ‘AI
Agent workforces’ which could drive substitution of labor spend across enterprise functions, which
are currently insourced across existing and new work archetypes, such as legal (automated outcome
simulation and clause extraction), and can deliver business outcomes.
India’s projected potential (2035)
13
: $25–30 billion
India’s readiness for the AI economy depends on strengthening four core enablers — infrastructure,
talent, R&D, and policy. Current industry compute capacity remains largely CPU-based and inadequate
for training AI models at scale, underscoring the need for AI-ready infrastructure with GPUs and sector-
specific training platforms. Despite multiple re-skilling initiatives, shortages in next-generation AI talent—
including prompt engineers, GenAI researchers, and LLMOps specialists—are widening, highlighting the
need to cultivate a stronger product and solution mindset. Building indigenous capability will also require
higher R&D investment to develop proprietary AI solutions, such as small or domain-specific language
models for sectors like banking, cybersecurity, and telecom. Finally, policy modernization—covering
cross-border data usage, responsible AI, and research incentives—will be key to enabling innovation and
collaboration while ensuring governance and ethical deployment.
12
Analysis based on SaaS and on-premise software.
13
Analysis based on the outsourcing potential of existing and new work archetypes.
A. Agentic AI play
Potential enablers
9India’s Technology Services - Reimagination Ahead There has been rapid growth in the global software and SaaS market, driven by increasing demand for
automation, productivity enhancements, and cloud adoption. However, India remains relatively small,
currently capturing only 1 to 3 percent of the global SaaS market despite the success story in services.
14
India has about 3,500 SaaS players
15
, including 20+ unicorns
16
, but there is significant potential for the
industry in the software play. Two potential ideas could be considered:
—Focus on capturing a greater market share by rearchitecting existing software value pools across CRM,
ERM, data management and development tools.
—Rapidly build capabilities and pursue new software value pools by building scalable SaaS products
across cybersecurity software, Applied AI and other vertical specific solutions.
India’s projected potential (2035)
17
: $20–25 billion
Talent, business environment, and R&D are critical enablers for scaling India’s software and SaaS
ecosystem. The current technology talent pipeline remains service-oriented, requiring a shift toward
product lifecycle capabilities and skills in areas like DevSecOps and product management. The ease
of doing business also needs improvement, as complex regulations—such as ESOP taxation, and cross-
border payment hurdles—continue to constrain SaaS operations. Streamlined procedures for IP
registration, export compliance, and talent retention would enhance competitiveness.
14
Shaping India’s SaaS LandScape – SaaSBoomi, 2021.
15
The Rise Of The Indian SaaS Industry: Revealing Its Growth, TechJury, September 10, 2024.
16
SaaS Unicorn Tracker – SaaSBoomi, as of September 2025.
17
Analysis based on India’s share of the global SaaS market.
Potential enablers
B. Software play
10India?s Technology Services - Reimagination Ahead India generates about 20% of global data, with current data center capacity of 1.4 GW expected
to expand by 6–7 GW over the next decade. This growth must accelerate to meet data localization
mandates and low-latency performance needs for real-time applications like UPI. At the same time,
sovereign AI and cloud technologies are gaining momentum globally, as countries adopt national data
center strategies to support locally developed foundational models trained on domestic datasets. Such
moves promote localized innovation and competition, creating space for new players to complement
large hyperscalers. Three potential ideas could be explored to enable this growth.
— Data Center-as-a-Service (DCaaS) with end-to-end data center buildouts to drive capacity growth
from the current 1.4 GW to between 10 and 12GW by 2035
18
.
—Global hub for AI-ready data centers: Develop GPU-enabled data centers for enhanced compute
capacity for AI workloads, driving an increase in GPU share from about 3 to 4 percent to around 15 to
20 percent in line with global demand.
—Monetization of open-source datasets such as transportation and mobility data sets for public
transport and traffic congestion, with a value-added data analytics services ecosystem, such as
drug discovery based on disease outbreak patterns from public health data, for domestic and
international innovation.
India’s projected potential (2035)
19
: $10–15 billion
Data centers remain capital-intensive and face infrastructure and regulatory bottlenecks that slow
expansion. Establishing special data center economic zones could accelerate growth by ensuring reliable
access to affordable, high-quality power—including renewable and nuclear sources—and deploying
advanced cooling solutions such as underwater or floating facilities seen in other countries. Simplified
single-window clearances for land, power, and hardware resources, supported by dedicated facilitation
units and supplier partnerships, would further streamline setup and attract large-scale investments.
18
Analysis based on India’s share of the global SaaS market.
19
Analysis based on data center capacity requirements and data monetization potential..
Potential enablers
C. Infrastructure play
11India’s Technology Services - Reimagination Ahead The rapid emergence of frontier technologies, including AI, quantum technology, bioengineering, and space
technology, underscores the importance for India to show its leadership in innovation and play to its strengths
in offering services around these. Currently, China holds a significant share of about 70 percent of these critical
technology domains,
20
posing competitive challenges and potential IP lock-out risks.
India’s ER&D exports are nearly $56 billion, with potential to reach $78 billion to $100 billion by FY30.
21
Evidence also shows a strong, positive relationship between a nation’s R&D intensity and long run GDP
growth.
22
By executing the focus points in this play, India can lift its R&D share of GDP toward peer benchmarks
among innovation leaders e.g., South Korea, US, accelerating productivity and growth.
Two potential opportunities could help India expand its presence in global technological innovation:
—Position India as a global hub for ER&D and innovation: India can strengthen its role in engineering R&D
outsourcing, co-innovation, and IP creation, enabling end-to-end product lifecycles. The focus should be
on platform- and outcome-based models, validation, and compliance-as-a-service, targeting the $1.1 trillion
global R&D operations market across sectors such as automotive, MedTech, defense, semiconductors,
industrials, energy, and telecom. In parallel, India can expand its global leadership in setting up CoEs across
R&D, sales and marketing, legal, and HR, with R&D centers focusing on horizontal technologies like AI, ML,
data science, and cybersecurity, and sector-specific innovation in digital health, automotive, and embedded
software.
India’s projected potential (2035)
23
: $15–20 billion
—Innovate and offer services around frontier technologies: Offer a service catalog of industry-specific
services for sectors like pharma, bioengineering, space technology, and defense technology, and across
advisory and implementation services, such as clinical trial acceleration, AI-enabled target identification,
drug repositioning, and clinical control tower.
India’s projected potential (2035)
24
: $10–15 billion
—Value proposition in high-value services: The Indian technology industry must move beyond traditional
delivery models and capture higher-value innovation services. This requires developing dedicated
innovation hubs and R&D SEZs with fiscal incentives and showcasing India as the global CoE and R&D
capital through success stories and scalable infrastructure. Leveraging AI-driven ER&D can accelerate
design, testing, and compliance cycles by up to 30%, enhancing speed and cost efficiency in product
development.
—STEM talent infrastructure: India needs to strengthen its innovation-oriented talent base, expanding
beyond service skills to deep domain expertise. Building a specialized CoE and R&D workforce skilled in
enterprise functions (sales, marketing, legal) and frontier technologies such as quantum computing and
bioengineering will be critical to sustain long-term competitiveness.
—Ease of doing business and collaboration: Faster CoE setup, stronger IP protection, and R&D-linked tax
and market access incentives can unlock greater innovation investment. Establishing R&D-specific SEZs,
sectoral co-innovation corridors, and shared testbeds across industries like MedTech, SDV, and telecom—
supported by digital twin platforms and regulatory sandboxes—can position India as the global pre-
certification and design hub for advanced engineering sectors.
20
Who is leading the critical technology race? Australian Strategic Policy Institute, March 1, 2023.
21
Why Global Enterprises Are Doubling Down on India for Engineering the Future, Nasscom, September 2025.
22
Impact of R&D expenditure on economic growth, Journal of Science and Technology Policy Management, April 18, 2024.
23
Analysis based on horizontal technology spend, enterprise R&D spend and other enterprise spends.
24
Analysis based on current R&D and ER&D spends.
Potential enablers
D. Innovation play
12India?s Technology Services - Reimagination Ahead The India for India play represents a convergence of India’s technological capabilities to serve its rapidly
expanding domestic market, expected to be between $40 billion and $60 billion by 2035.
25
Today,
domestic revenue is $40 billion, indicating that domestic demand is being met by non-Indian providers.
26
By integrating advances from Agentic AI, software, infrastructure, and innovation, this play could address
India’s requirements while leveraging the country’s position as a global technology hub. Two potential
opportunities could be considered:
—Customized software across key growth hotspots, including healthcare, manufacturing, and BFSI,
and AI-enabled offerings for India, such as multi-lingual agents supporting Indic languages and agri-
advisory agents. India’s scale in healthcare, agriculture, financial inclusion, and logistics makes it a
natural laboratory for converged technologies. Piloting AI + IoT + bioengineering for Agri-advisory or
AI + fintech + digital trust for MSME credit can create exportable models.
—Reimagine delivery models with AI, including a ‘human + agent’ workforce to drive higher efficiency
and enhance the ability to service low-margin markets at scale effectively using productized solutions
as opposed to a pure services play.
Together, these five plays could generate an additional $100 billion to $120 billion of revenue for India by
2035 and help deliver on the new growth path (Exhibit 5).
All of these are meaningful and at-scale opportunities for India. The industry can make an effort to
build and reinvent itself, embed the capabilities required to serve these opportunities, and compete
at scale globally.
25
Analysis based on expert conversations and historical share as per historical Nasscom strategic review.
26
Nasscom strategic review, FY25.
Source: Expert conversations
IInnddiiaa ffoorr IInnddiiaa ppllaayy:: $$4400––6600BB ooppppoorrttuunniittyy
aaccrroossss ppllaayyss hhiigghhlliigghhtteedd aabboovvee
5 plays to achieve 2035–aspiration
Exhibit 5
Gaps to
aspiration
Innovation
play
Infra-
structure
play
Software
play
2035 –
aspiration
Agentic
AI play
Protect
the core
~$265B
$150–200B
$40–50B
$20-25B $10–15B
$25–35B
$250–300B $750-850B
Current size
(2024)
E. India for India play
13India?s Technology Services - Reimagination Ahead Recommendations
3.1 Recommendations for industry
1. Invest behind fast growth hotspots to counter near term headwinds
—The next decade’s growth will come from new verticals and geographies—particularly
healthcare, semiconductors, defense, and cybersecurity, and regions such as Japan, the
Middle East, and India’s domestic market. Tech services players should prioritize localized
solutions and domain expertise in these high-growth areas, investing in partnerships and
regional delivery models to capture value from emerging demand for AI, cloud, and digital
engineering services
2. Rearchitect offerings to deliver step change in productivity and reimagine operating /
commercial models
—Tech services players must reimagine their service offerings to deliver step-change
productivity—targeting 70% or more efficiency gains across delivery value chains. This
will require embedding Agentic AI and automation across every stage of work—from
requirements to operations—through code generation, autonomous testing, document
synthesis, and workflow orchestration.
—As delivery becomes more AI-augmented, players must shift from people-heavy operations
to human + agent + platform models. These integrate human judgment with AI-driven
execution and platform-led orchestration, enabling faster scaling, higher accuracy, and
predictive service quality. This provides an opportunity for players to move from effort-
based billing to outcome-linked models that tie pricing to measurable productivity and
business impact.
3. Invest in defensible IP (e.g., platforms) with clear value proposition and scale R&D to 1-2%
of revenues
—Differentiation will increasingly depend on intellectual property and platform-led delivery.
Tech services players should allocate 1–2% of revenues to R&D, focusing on vertical-specific
tools, reusable accelerators, and AI-native software IP that deepen client stickiness and
create scalable margin levers. Platformization of services—turning repeatable solutions into
productized offerings—will define the next cycle of growth.
—R&D in technology services is technical work that creates new software, AI, or digital
engineering methods with genuine technical uncertainty and outcomes that are reusable or
protectable as IP, rather than routine delivery or implementation.
—It includes development of new algorithms, models, platforms, or reusable tools, and pre-
commercial experimentation that advances technical capability. It excludes client-specific
development or integration, routine engineering or maintenance, deployment of existing AI
tools, business process automation, and innovation lab or pilot work done for specific clients
that does not result in transferable IP or reusable assets.
Chapter 03
14India’s Technology Services - Reimagination Ahead 4. Reimagine industry approach to R&D by partnering with ANRF and the RDI fund.
—ANRF’s recently launched RDI fund offers avenues for corporate entities and consortia to
partner deeply in India’s R&D acceleration trajectory. Industry bodies like NASSCOM in
consultation with ANRF should chart a pioneering partnership approach for the industry
and RDI. First, companies/ consortia should consider joining SLFMs as limited partners and
co-invest in relevant sectors. Second, companies can partner with RDI (through SLFMs)
strategically as domain & technology experts supporting engineering, deployment and
commercialization. Thirdly, companies can also consider partnering with ANRF specific
missions that drive R&D through academic partnerships.
5. Drive focused reskilling for AI beyond technical skills for problem-solving, business
judgment etc.
—AI adoption demands more than technical skills—it requires a workforce adept at problem-
solving, business judgment, and working effectively with AI systems. Players should scale
targeted reskilling for roles such as AI engineers, prompt designers, and LLMOps specialists,
while reorienting mid-level managers toward governance, orchestration, and client
engagement. A focus on “learnability” and adaptive capability will be key to maintaining a
competitive edge.
6. Drive change management for AI adoption through leadership alignment and workforce
communication
—Embedding AI at scale requires cultural and organizational change. Players should lead
structured change management programs—aligning leadership around AI strategy,
ensuring transparent communication, and integrating “AI literacy” across roles. This will help
overcome resistance, accelerate adoption, and ensure consistent ROI realization from AI-led
investments, addressing one of the biggest barriers to value capture in the industry.
7. Accelerate change with AI focused M&A and frontier-AI partnerships
—Tech services players should adopt a more strategic and capability-led approach to M&A
and ecosystem partnerships to build speed, scale, and differentiation in the AI era. The focus
should be on acquiring or co-developing specialized AI, data, and engineering capabilities,
integrating them rapidly into delivery models, and using joint innovation programs with
startups, hyperscalers, and research institutions to expand solution breadth and accelerate
time-to-market.
15India’s Technology Services - Reimagination Ahead 3.2 Recommendations for Government
Recommendations:
—Strengthen and expand the existing National Single Window System (NSWS) into an
integrated, fully transactional National Tech-Services Single Window (NTSW), anchored
by an inter-ministerial group India should build on the current NSWS by transforming
it into a fully transactional NTSW that provides a unified, end-to-end approval journey
across central, state, and municipal authorities. This should include parallel routing of
approvals; backend API integration with GSTN, DGFT, RBI/Softex, STPI/SEZ, state labour
systems, Shops and Establishments, and municipal clearances; one-time authentication and
document reuse leveraging existing datasets (PAN, GSTIN, ROC, Aadhaar-authenticated
signatories, EntityLocker, GSTN); standardised data and form formats across departments
and States; and enforceable service-level timelines supported by automated escalation and
accountability mechanisms.
Learnings from the world:
United Arab Emirates – Basher Platform: The UAE’s Basher platform provides a single digital
interface that consolidates approvals across both federal and emirate-level authorities. Through
one application, tech services players can initiate commercial registration, tax registration,
and labor establishment processes at the federal level, while simultaneously triggering
municipal licensing, economic department clearances, tenancy verification, and other local
approvals. Unlike informational portals that only guide users to relevant permits, Basher
enables end-to-end transactional processing, routing information across agencies, eliminating
repetitive submissions, and coordinating decisions within a unified workflow across a multi-tier
regulatory system.
1. Improve the speed and ease of doing business to attract global
investments in GCCs and anchor high-growth companies in India
•
A single, end-to-end digital process
enables parallel approvals across government
tiers, with one-time authentication, shared
documentation, backend integration, and
enforceable service-level timelines
•
Multiple
central (GSTN, DGFT, RBI/Softex, STPI/SEZ),
state (labour, Shops and Establishments),
and municipal clearances operate through
separate portals; existing IDs and repositories
(PAN, GSTIN, ROC, Aadhaar, EntityLocker,
GSTN) are not connected; and timelines lack
escalation—resulting in prolonged, multi-
month operationalisation
16India’s Technology Services - Reimagination Ahead 2. Enable tech services growth cohorts (e.g., small and specialized players)
with market access to global high-growth hotspots e.g., Japan, the Middle
East, and Germany
•where
small and specialist players are recognised as
credible partners for AI, digital engineering,
cybersecurity, and other advanced services
•
with dedicated tracks for high-growth
service areas and direct access to relevant
digital agencies, enterprise technology buyers,
and engineering ecosystems
•
through structured support on compliance,
certifications, contracting norms, and
partnership pathways tailored to priority
regions
•Small
and specialist tech services players lack the
brand recognition and credibility required to
engage effectively with enterprise buyers,
digital ministries, and innovation ecosystems
•
Current export-promotion efforts are
generic and not tailored to specialist
technology services, offering limited
engagement with digital decision-makers and
no dedicated tracks for priority domains
•
Smaller providers struggle with region-
specific regulatory, certification, procurement,
and partnership requirements due to limited
institutional capacity and support
Recommendations:
—Launch structured Tech-services Trade Missions led by MeitY, DPIIT, and industry
associations, with defined representation for small and specialist players. Missions should
target priority regions—Japan, the Middle East, and Germany—and include coordinated
meetings with enterprise buyers, digital agencies, and innovation ecosystems.
—Develop a unified India Tech-Services brand platform that positions small and specialist
Indian players as trusted partners in AI, digital engineering, cybersecurity, and next-
generation technology services. This platform should provide co-branding, marketing assets,
and visibility support for tech services players participating in trade missions.
—Establish a Market Access Facilitation Cell that provides structured assistance on market-
entry compliance, sector certifications, contracting norms, and local partnership pathways,
enabling specialist players to meet region-specific requirements more effectively.
Learnings from the world:
South Korea’s KOTRA-led ICT and engineering missions to Germany: Focus on creating
structured opportunities for engineering and digital-engineering players to engage with
industrial clusters, applied research institutes, and leading enterprise buyers. These missions are
organized around thematic tracks such as mobility, industrial IoT, and advanced manufacturing,
and integrate smaller specialist providers into curated B2B meetings, technical workshops,
and ecosystem visits. This approach helps players understand local requirements, explore
collaborative projects, and establish credibility in highly sophisticated engineering markets.
17India’s Technology Services - Reimagination Ahead 3. Prepare India’s workforce for the AI transition by proactively managing
role shifts, workforce renewal, and large-scale reskilling
•
A central workforce transition
map identifying sunset, evolving, and emerging
roles, guiding skilling priorities, curriculum
updates, and labour-market programs
•Structured transition standards for employers
Clear expectations, tools, and templates for
assessing AI impact on roles, redesigning
workflows, and managing planned reskilling
and redeployment
•Unified AI skilling and transition pathways
A national skilling engine delivering modular AI
micro-credentials, bridge programs, and
outcome-linked assessments supporting
movement from at-risk roles to emerging
opportunities
•
No coordinated signal on which roles are
declining, evolving, or emerging in an AI-
driven labour market, resulting in unaligned
planning and investment across the skilling
and employment ecosystem
•
Tech services players—
especially small and mid-sized—lack
structured processes for role redesign, skill
benchmarking, and redeployment, leading to
inconsistent adoption of AI-augmented
workflows
•
Skilling programs across
ministries, industry bodies, and private
providers operate in silos with uneven
standards and limited linkage to hiring or
redeployment outcomes
Recommendations:
—As highlighted in NITI Aayog’s ‘Roadmap for Job Creation in the AI Economy’, setup an
India AI Talent Mission to drive –
• Operationalise a Unified AI Skilling Engine: Build a national, modular skilling platform—
integrated with NAPS/PMKVY—that delivers role-based AI upskilling, micro-credentials,
and bridge programs enabling workers in at-risk roles to transition into adjacent or
emerging occupations. Align funding, assessments, and certifications to measurable
employment outcomes.
• Embed AI Across Education: Integrate AI literacy and applied AI learning across school and
higher-education curricula, expand AI+X interdisciplinary programs through UGC/AICTE,
strengthen faculty development via industry immersion, and significantly scale research
fellowships to create a deep pipeline of advanced AI talent.
—In addition, partner with industry bodies like NASSCOM to define a centralised National
Workforce Transition Framework: Establish a unified architecture that continuously maps
AI’s impact on job families, identifies sunset and emerging high-demand roles, and provides
structured transition pathways. Embed clear expectations for tech services players through
standardised AI-readiness assessments, role redesign templates, human–AI collaboration
practices, and skill benchmarking tools. Use this integrated framework to steer skilling
priorities, curriculum updates, and labour-market programmes across ministries and sectors.
18India’s Technology Services - Reimagination Ahead The Case For Action
For India
India stands at a critical inflection point in the global technology services industry. While its
vast talent base and unparalleled data endowments provide a unique advantage, delaying the
transformation for AI could erode decades of progress. This delay could lead to job losses, a
decline in its global technology leadership, and loss of opportunities in data-driven growth—
which may be difficult to reverse.
1. Redeploy rather than displace jobs
India will have substantial number of technology professionals, estimated to be between
7.5 million and 8 million individuals, mainly in entry and junior positions and at a significant risk
of disruption caused by AI. India will need to consider how to reskill and redeploy these workers,
doing so can help protect about 1.5 million at-risk industry jobs.
27
2. Protect India’s global technology services leadership
India’s leading position as a global services hub is at a tipping point. If the industry embraces
AI, India could see growth in the global technology services market, with an estimated annual
share of over 20 percent. Not acting could potentially jeopardize decades of competitive edge,
allowing other countries to take the lead in next-gen, AI-driven services.
3. Capture the data opportunity ahead of competition
Data is crucial for the country’s success – one that matches India’s significant talent-driven
growth story in scale and impact. Globally, competitors are moving quickly to move into
the data-driven services and innovation, positioning themselves as leaders in this new value
frontier. If India is able to take decisive action it can capture on this opportunity and maintain
their strategic advantage, from having strong endowments, such as the largest data sets in the
country.
27 Projection based on Nasscom strategic review 2025 and Future of Technology services – Leading with AI, Nasscom, 2025.
Chapter 04
19India’s Technology Services - Reimagination Ahead Appendix
Approach to idea detailing and deep dives across plays
•Detailing the idea and its
2 to 3 facets based on
market context and trends
•Clear articulation of the
opportunity for India
•Identifying big thematic
plays across the ideas
•Top-down sizing of each
idea for India with a 2035
timeline
•Incorporating the global
market and India
opportunity share across
various
spend pools
•Outlining key assumptions
around India’s right to win
across tech, talent,
data, etc.
•Identifying potential theme-
level ideas across key
stakeholders
(government and providers)
ABC
The approach to detailing ideas and themes
Exhibit 6
Each play and its respective opportunities have been assessed using a 6-part enabler
framework that covers technology, talent, regulations, innovation, governance, data,
and culture (Exhibit 10) to identify what it will take for India to develop and maintain an
advantage over the next 10 years.
Source: Expert conversations
Six-part enabler framework
Exhibit 7
20India’s Technology Services - Reimagination Ahead ,$,
fiscal year 2035
Focus on
insourced activities across
existing and new work
archetypes:
•
FP&A (variance
analysis), HR (employee
engagement-based attrition
prediction), IT (GenAI-led unit
and performance testing,
code base optimization)
•
Legal (automated
outcome simulation and
clause extraction)
Vertical-specific complex
workflows, such as healthcare
(pathologists – agent-led report
interpretation), automotive
(simulation engineer – agent-led
crash simulation)
•Global population
growth of 0.5 to 1
percent is expected to
lag GDP growth of
2 to 3 percent
1
•TechOps buying
pattern expanding
beyond CIOs to
capture other CXO
stacks such as CMO,
CHRO, and COOs
Human + technology
workforce of the future
encompassing new
services work
archetypes with
Agentic AI, capturing
share of CXO spends
(CMO, CHRO, CFO,
COO, etc.) and direct
people spends, such as
knowledge workers
Horizontal apps such as
marketing campaign
management – Vtiger, Trello,
and Dev + Infra tools such as AI
analytics software – Kubeflow
SaaS unlock for MB software
spend pools such as Workday
human capital management
Agentic AI-led
productized services for the
long tail of enterprises/mid-
market players with legacy
software spends, such as
Oracle E-business Suite
(ERP platform)
•Rising enterprise
technology debt and
lock-in with legacy
software
•Increased preference
for ‘outcome-based’
solutions over owning
complex tools
•Cost-inhibitive for
SMBs to customize
software; OTS plays a
dominant role in the
current setup
‘Service as Software’
proposition across
legacy modernization,
productized services for
enterprises, and custom
solutions for MBs
Source: Expert conversations
Agentic AI play
25–30 billion
15–20 billion
1.Confronting the consequences of a new demographic reality | McKinsey, January 15, 2025.
21India’s Technology Services - Reimagination Ahead Potential Risks: Ethical concerns of using AI, such as algorithmic bias and data privacy issues,
and evolving regulatory landscape, significant digital divide across sectors, environmental
impact of AI’s rising energy demands, and risk of substantial job displacement, particularly in
sectors reliant on repetitive tasks, pose a risk of influencing and restricting development and
enterprise adoption of Agentic AI.
,$,
fiscal year 2035
Focus on
capturing disproportionate
market share
•
Sales pipeline
management, marketing
campaign management
automation
•
Unified suite comprising
multiple business operations,
including finance for tax filing,
general accounting, and HR
•
Data
integration and ETL/ELT
platforms, customer data
platforms, and analytics.
Development tools: DevOps, API
management, BI, and
visualization
•Global software market
currently at about $1.1
trillion, expected to grow
at 10 to 11 percent,
1
driven by faster public
cloud adoption among
SMBs, standardized
services in SaaS model,
and new SaaS categories
such as AI and GenAI
•India SaaS players
account for only 1 to 3
percent of the global
SaaS share despite
leadership in IT services
2
•India founded about
3,500 new SaaS
companies,
3
including
20+ unicorns,
4
in the past
few years
Scale up India as
a software hub
in select existing
and emerging
value pools
Source: Expert conversations
Software play
20–25 billion
1.Future of Technology services – Leading with AI, Nasscom, 2025.
2.Shaping India's SaaS LandScape - SaaSBoomi, 2021.
3.The Rise Of The Indian SaaS Industry: Revealing Its Growth, TechJury, September 10, 2024.
Potential Risks: Cybersecurity threats, sluggish SaaS funding, and competition from other
markets and software players pose operational risks; unclear data ownership regulations and IP
enforcement gaps risk service delivery and innovation.
22India’s Technology Services - Reimagination Ahead ,$,
fiscal year 2035
•Data center as a service
(DCaaS) for E2E data center
buildouts to drive capacity
growth from 1.3 GW currently
to 10 to 12 GW by 2035
•Develop GPU-enabled data
centers for enhanced
compute capacity for Agentic
workloads, driving uptick of
GPU share from 3 to 4
percent to 15 to 20 percent in
line with global momentum
2
•Drive monetization of open-
source datasets, such as
transportation and mobility
data sets for public transport,
traffic congestion, with a
value-added data analytics
services ecosystem, such as
drug discovery based on
disease outbreak patterns
from public health data
•About 20 percent of
global data is generated
in India, resulting in a
rising demand for data
center capacity, with a
6 to 7 GW additional
demand in the next
10 years
1
•Regulatory push for
data localization
•Localized infrastructure
access for performance
objectives such as low
latency for real-time UPI
workloads
India as the data
and data services
capital of the world
with enhanced data
center capacity,
data monetization,
and value-added
DnA services
Source: Expert conversations
Infrastructure play
10–15 billion
1.Projection based on data center capacity requirements by 2035.
2.Projection based on AI based data center capacity requirements by 2035.
Potential Risks: The pace of data center setup and modernization to ensure AI readiness poses a
significant risk to fulfilling demand.
23India’s Technology Services - Reimagination Ahead ,$, fiscal
year 2035
Reimagine the role of GCCs in
India in efficiently managing
common enterprise functions
such as sales and marketing,
procurement, F&A, legal, risk,
and HR at scale
Consider CoEs for emerging
technology hotspots, such as
AI/ML and data science,
cybersecurity, ESG, creating use
cases for improved CX, and
threat detection
Leverage deep domain
expertise to build vertical-
specific CoEs, such as CoEs
for digital health, retail pricing,
automotive embedded
software, biotech, and
pharma R&D
•Rapidly expanding GCC
market in India at 6 to 7
percent CAGR
1
•GCCs are transitioning
from cost centers to
profit centers, focusing
on high-value services
such as AI, cloud
computing, and
cybersecurity
•Large talent pool for
technology and beyond,
e.g., expanding PhD
researchers
•Tier-2 Indian cities, such
as Jaipur and Kochi, are
becoming GCC hubs
given improved
infrastructure, favorable
state policies, and lower
real estate and talent
costs
Develop CoE hubs
for running global
businesses from
India across
enterprise functions,
technologies, and
R&D
Source: Expert conversations
Innovation play
15–20 billion
1.Indian IT Sector Projected to Achieve 6-7% Growth in FY27 Amid Global Uncertainties, ETGCC, August 21, 2025.
24India’s Technology Services - Reimagination Ahead Innovation play (Continued)
,$,
fiscal year 2035
Process
innovation focused R&D targeting
efficiency gains such as:
• Computational
chemistry and in silico modeling
for drug discovery, bio marker
analysis for preclinical testing,
real-time remote monitoring for
clinical trials, dossiers and
responses for approvals etc.
• Workflow optimization to
reduce environmental impact
through processes such as
improved waste management and
water recycling
•Concrete
formulations and reinforcement
innovation using existing methods
•
Lead
global services for the three
prioritized technologies from
India:
–Cloud
(architecture design and build
for genomics and
bioinformatics workloads), DnA
(predictive models for drug
efficacy), prototyping (3D
printing)
– Simulation models
(spacecraft/satellites/launch
system simulation), DnA (earth
imagery analytics), cyber
(secure comms link)
– Cybersecurity
(encryption), simulation and
modeling (molecular structures
and chemical reactions)
•Three times rise in
global R&D spend
over the last two
decades, accounting
for approximately
2.5 percent of global
GDP—an increase
from less than
1.5 percent in the
2000s
1
•Rising cost
pressures and
specialist needs are
driving a boom in
R&D outsourcing
•13 frontier
technologies are
expected to generate
$25 trillion to $45
trillion in economic
impact by 2030
2
•China is leading
global research on
about 70 percent of
these technologies;
risk of IP lockout for
India with delays as
other nations gain
market share with
first mover
advantage
3
Services ecosystem
to drive innovation:
Vertical R&D
disruption and
frontier technology
R&D enablement,
such as bio-
engineering, space,
and quantum
technology
Source: Expert conversations
10–15 billion
1.End of Year Edition – Against All Odds, Global R&D Has Grown Close to USD 3 Trillion in 2023, WIPO, December
18, 2024.
2.McKinsey technology trends outlook 2025 | McKinsey, July 22, 2025.
3.Who is leading the critical technology race? Australian Strategic Policy Institute, March 1, 2023.
Set up a Services ecosystem to drive innovation
25India’s Technology Services - Reimagination Ahead Potential Risks: Decreasing talent retention because of high attrition rates, competition from
other innovation focused economies and widespread adoption of prioritized technologies to
realize value pose significant risk to innovation play.
India for India play
Potential Risks: Limited enterprise technology spending, public sector procurement hurdles,
talent shortages beyond metro cities, and digital infrastructure gaps in Tier 2 and 3 cities may
constrain both scale and execution speed unless addressed proactively.
26India’s Technology Services - Reimagination Ahead Glossary
AGI (Artificial General Intelligence): Form
of AI that can understand, learn, and apply
intelligence across a broad range of tasks,
matching or exceeding human cognitive
ability.
AI (Artificial Intelligence): Includes
software capabilities such as machine
learning, data analytics, and hardware-
driven automation such as robotics.
AICTE (All India Council for Technical
Education): Statutory body and national-
level council for technical education under
the Ministry of Education, India.
AML (Anti-Money Laundering): Regulations
and systems designed to prevent illegal
money transactions and funding sources.
ANRF (Anusandhan National Research
Foundation): India’s R&D funding
body under the Ministry of Science and
Technology.
API (Application Programming Interface):
A software interface that enables interaction
and data exchange between two systems,
applications, or platforms.
ASI (Artificial Superintelligence): Future
intelligence that far surpasses human
intellectual capabilities and creativity.
ASIC (Application-Specific Integrated
Circuit): A microchip designed for a
particular use, such as AI acceleration
or telecommunications, rather than for
general-purpose use.
B2B (Business-to-Business): Refers
to commercial transactions or services
conducted between two businesses rather
than between a business and consumers.
BERD (Business Enterprise Research &
Development): The portion of total R&D
expenditure funded and performed by
private business enterprises.
BFSI (Banking, Financial Services and
Insurance): A broad industry grouping that
includes companies providing banking,
finance, and insurance services.
BI (Business Intelligence): Technologies
and processes used for analyzing business
data to support decision-making and
strategic planning.
BPM (Business Process Management):
A service line in the industry that uses
methods and tools to design, analyze,
optimize, and automate business processes.
CAGR (Compound Annual Growth Rate):
Financial metric.
CBDT (Central Board of Direct Taxes):
Responsible for direct tax policy formulation
and enforcement in India.
CDPI (Common Digital Payment
Interface): A unified framework for enabling
interoperable and secure digital payments
across systems.
CFO (Chief Financial Officer)
CHRO (Chief Human Resources Officer)
CIO (Chief Information Officer)
CMO (Chief Marketing Officer)
CoE (Center of Excellence): Specialized
institutional setup for applied research,
talent development, and innovation.
COO (Chief Operating Officer)
CPU (Central Processing Unit): The main
processor in a computer that executes
instructions and performs calculations for
programs.
CRISPR (Clustered Regularly Interspaced
Short Palindromic Repeats): Gene-editing
technology used in bioengineering and
pharma contexts.
CRM (Customer Relationship
Management): Systems and strategies for
managing a company’s interactions with
current and potential customers.
CX (Customer Experience): The overall
perception and satisfaction customers have
when interacting with an organization across
all touchpoints.
CXO (Chief X Officer)
27India’s Technology Services - Reimagination Ahead DC (Data Center): A facility used to house
computer systems and related components
such as servers, storage, and networking
infrastructure.
DCaaS (Data Center as a Service): Cloud-
based model providing scalable data center
infrastructure and management services.
DEPA 2.0 (Data Empowerment and
Protection Architecture 2.0): Framework
enabling users to share personal data
securely and with consent, enhancing
privacy and portability.
DevOps (Development and Operations):
Approach that integrates software
development and IT operations to shorten
system development life cycles.
DevSecOps (Development, Security,
and Operations): Extension of DevOps
incorporating security practices into the
development and deployment processes.
DGFT (Directorate General of Foreign
Trade): Government body under the
Ministry of Commerce and Industry
responsible for regulating and promoting
India’s foreign trade.
DnA (Data and Analytics): The use of data-
driven insights and analytical models to
improve decision-making and performance.
DO-178C (Software Considerations
in Airborne Systems and Equipment
Certification): International standard
specifying software safety and certification
for avionics systems.
DPDP (Digital Personal Data Protection):
India’s legislative framework to safeguard
personal data and regulate its processing.
DPIIT (Department for Promotion of
Industry and Internal Trade): Indian
ministry responsible for IP frameworks,
industry regulations and startup innovation
policies.
eKYC (Electronic Know Your Customer):
Digital process for verifying a customer’s
identity using electronic data sources.
ELT (Extract, Load, Transform): Data
integration process where data is extracted,
loaded into a destination system, and then
transformed for analysis.
ER&D (Engineering Research &
Development): Engineering-led design,
innovation, and development of new
products and services.
ERM (Enterprise Resource Management):
Integrated management of core business
processes using enterprise software
systems.
ERP (Enterprise Resource Planning):
Software that integrates core business
processes such as finance, HR, and supply
chain into a unified system.
ESG (Environmental, Social, and
Governance): Framework for assessing
an organization’s sustainability and ethical
impact.
ESOP (Employee Stock Ownership Plan):
Program that provides employees with
ownership interest in the company through
shares.
EXIM (Export-Import)
FP&A (Financial Planning and Analysis):
Budgeting, forecasting, and analytical
processes supporting strategic financial
decisions.
FTE (Full-Time Equivalent): A unit that
measures an employee’s workload to make
workloads comparable across contexts.
FY (Fiscal Year): A 12-month accounting
period used for preparing financial
statements and budgets.
G&A (General and Administrative):
Expenses related to the general operations
of a business that are not directly tied to
production.
GCC (Global Capability Center): Offshore
units established by multinational firms in
India to perform technology, analytics, and
business functions.
GDP (Gross Domestic Product): The total
value of all goods and services produced in a
country in a given time.
GenAI (Generative Artificial Intelligence):
Subset of AI that creates new content (text,
images, code) using machine-learning
models like LLMs.
GERD (Gross Expenditure on Research and
Development): Total domestic expenditure
on R&D by all sectors (government, private,
academia).
28India’s Technology Services - Reimagination Ahead GPU (Graphics Processing Unit):
High-performance processor ideal for
AI workloads, simulations, and image
processing.
GSTIN (Goods and Services Tax
Identification Number): Unique
identification number assigned to every
registered taxpayer under India’s Goods and
Services Tax regime.
GSTN (Goods and Services Tax Network):
IT platform managing the digital
infrastructure and data systems supporting
India’s GST ecosystem.
GTM (Go To Market): Strategy defining how
a company delivers its product or service
to customers and achieves competitive
advantage.
HR (Human Resources): Function within
organizations responsible for managing
people, talent development, and culture.
ICT (Information and Communication
Technology): Technologies enabling
communication, processing, and
transmission of information through digital
systems and networks.
IEC (International Electrotechnical
Commission): International standards body.
IoT (Internet of Things): Interconnection of
physical devices via the internet to collect
and exchange data.
IP (Intellectual Property): Legal rights
granted over inventions, datasets, models,
and processes that are original and provide
economic benefit.
ISO (International Organization for
Standardization): International standards
body that sets quality, safety, and
interoperability norms.
iSPIRT (Indian Software Product Industry
Round Table): Think tank and industry
group promoting India’s software product
ecosystem.
IT (Information Technology): The use of
systems and computers for processing,
storing, and transmitting information.
ITeS (Information Technology–enabled
Services): Outsourced processes and
services that use IT for delivery, including
BPO, customer support, and analytics.
KOTRA (Korea Trade-Investment
Promotion Agency): South Korea’s national
agency promoting international trade,
investment, and industrial cooperation.
KYC (Know Your Customer): Regulatory
process to verify the identity of clients to
prevent fraud, money laundering, or illegal
activities.
LEO (Low Earth Orbit): Region of space
around Earth used for satellite operations at
altitudes between 160 and 2,000 km.
LLM (Large Language Model): AI model
that understands and generates human-like
text based on large datasets.
LLMOps (Large Language Model
Operations): Set of practices and tools
for deploying, managing, and optimizing
large language models in production
environments.
M&A (Mergers and Acquisitions):
Corporate strategy involving the
consolidation or purchase of companies
to enhance capabilities, scale, or market
presence.
MB (Medium Business)
MedTech (Medical Technology): Use of
technology, devices, and data to improve
healthcare delivery and outcomes.
MeitY (Ministry of Electronics and
Information Technology): Indian ministry
overseeing digital and AI technology
advancement.
ML (Machine Learning): Form of AI where
systems learn from data to make predictions
or decisions.
MLM (Micro Language Model): Smaller,
domain-specific AI language model
trained for efficiency and lower compute
requirements.
MSME (Micro, Small and Medium
Enterprises): Businesses classified based on
investment size and number of employees.
NAPS (National Apprenticeship Promotion
Scheme): Government program providing
financial support and incentives to promote
apprenticeship training.
NMDS (National Mission on Digital
Skilling): Government initiative aimed at
large-scale skilling in emerging digital and AI
technologies.
29India’s Technology Services - Reimagination Ahead NSWS (National Single Window System):
Existing platform facilitating investor and
business approvals through a centralized
government interface.
NTSW (National Tech-Services Single
Window): Proposed unified digital platform
for integrated approvals and clearances
across government agencies for tech
services.
OEM (Original Equipment Manufacturer):
Company that makes parts or products used
in another company’s end product.
OPGSP (Online Payment Gateway
Service Provider): Entities authorized to
facilitate cross-border and online payment
processing.
OT (Operational Technology): Hardware
and software that detects or causes changes
through direct monitoring and control of
physical devices.
OTS (Off-The-Shelf): Pre-built commercial
software or hardware products available for
general use.
PAN (Permanent Account Number):
Unique 10-digit alphanumeric identifier
issued by India’s Income Tax Department for
individuals and entities.
PLI (Production-Linked Incentive):
Government scheme offering financial
rewards to boost domestic manufacturing
output.
PMKVY (Pradhan Mantri Kaushal Vikas
Yojana): Flagship skill development scheme
aimed at training and certifying India’s
workforce in emerging sectors.
QKD (Quantum Key Distribution): Secure
communication method that uses quantum
mechanics to encrypt data.
R&D (Research and Development):
Systematic investigation to innovate and
introduce new products, processes, or
technologies.
RBI (Reserve Bank of India): India’s central
bank responsible for monetary policy,
financial regulation, and economic stability.
RDEC (Research and Development
Expenditure Credit): UK tax incentive
program offering credits for eligible R&D
activities conducted by large firms.
RDI (Research, Development, and
Innovation): Combined framework
promoting scientific research, development,
and applied innovation.
ROC (Registrar of Companies):
Government authority responsible for
registering companies and maintaining
statutory corporate records.
ROI (Return on Investment): Financial
metric used to evaluate the profitability or
efficiency of an investment relative to its
cost.
RPO (Rendezvous and Proximity
Operations): Spaceflight activities involving
maneuvering and docking between
spacecraft in close orbit.
S&P (Standard & Poor’s): Global credit
rating agency and financial market analytics
provider.
SaaS (Software as a Service): Cloud-based
software delivery model where applications
are hosted and accessed via the internet.
SaaSBOOMi (Software as a Service Boom
India): Community of Indian SaaS founders
promoting collaboration and growth in the
SaaS ecosystem.
SDV (Software-Defined Vehicle): Vehicle
where software controls most functionality,
including safety, navigation, and user
experience.
SDX (Software-Defined Everything):
Architecture where IT infrastructure
elements (networks, storage, data centers)
are virtualized and software-controlled.
SEZ (Special Economic Zone): Designated
area offering tax and regulatory incentives
to promote trade and investment.
SLM (Small Language Model): Compact AI
language model optimized for efficiency and
lower-latency tasks.
SMB (Small and Medium Business)
SQAF (Statistical Quality Assessment
Framework): Framework for measuring
data quality and reliability using statistical
methods.
STEM (Science, Technology, Engineering,
and Mathematics): Academic and
professional fields driving innovation,
technology, and industrial growth.
30India’s Technology Services - Reimagination Ahead STPI (Software Technology Parks of India):
Autonomous society under MeitY supporting
IT/ITeS exports through infrastructure,
incubation, and policy incentives.
T&M (Time and Material): Pricing model in
services where billing is based on actual time
spent and resources used.
TAM (Total Addressable Market): Total
revenue opportunity available for a product
or service if it achieves 100% market share.
TP (Transfer Pricing): Method of setting
prices for transactions between related
entities to ensure compliance with tax
regulations.
UGC (University Grants Commission):
Statutory body under the Ministry of
Education responsible for coordination,
determination, and maintenance of university
standards.
UPI (Unified Payments Interface): Real-time
payment system that enables instant money
transfer between bank accounts via mobile
platforms.
xRAN (Extensible / Open Radio Access
Network): Open and interoperable approach
to radio access networks allowing multiple
vendors and flexible configurations.
31India’s Technology Services - Reimagination Ahead NOTES NOTES NOTES
Technology Services –
Reimagination Ahead
February 2026 Disclaimer
This roadmap has been prepared by NITI Frontier Tech Hub (FTH) in consultation with experts and
stakeholders. The data used is from secondary sources. Any references to specific organisations,
products, services or technologies does not attribute to endorsement but are only for illustrative
purposes. Acknowledgment
W
e are indebted to the Expert Council for its strategic foresight
and guidance in shaping this project. Their contribution
has ensured that the roadmap reflects both ambition and
pragmatism, making the recommendations actionable. Noshir Kaka
Senior Partner,
McKinsey & Company
Mohit Joshi
CEO, Tech Mahindra
Expert Council Members
Debjani Ghosh
Distinguished Fellow,
NITI Aayog
Sonia Pant
Programme Director,
NITI Aayog
Anand Deshpande
MD, Persistent Systems
BK Kalra
CEO, Genpact
Gunjan Samtani
Partner, Co-Chairman,
Goldman Sachs India
Kishor Patil
CEO, KPIT Technologies
Sangeeta Gupta
Senior Vice President
NASSCOM Foreword
India’s technology services industry stands at a crucial AI Inflection
point. Over the past three decades, it has been a cornerstone of India’s
economic rise driving exports, creating millions of jobs, and establishing
India as a trusted global technology partner. As the world now enters
the era of Artificial Intelligence, this sector faces a profound transition
that will shape not only its own future, but also India’s broader economic
future and strategic positioning in the global digital order.
AI is fundamentally reshaping how technology is built, deployed, and
consumed. Traditional service delivery models anchored in scale,
cost efficiency, and incremental productivity are being challenged by
AI-driven automation, platform-based solutions, and outcome-oriented
engagements. Simultaneously, geopolitical realignments, supply-
chain reconfiguration, and rising concerns around digital sovereignty
are reshaping how nations compete—and collaborate—on technology
leadership.
Against this backdrop, this roadmap offers a forward-looking pathway
for India to sustain and extend its global leadership. To meet India’s
aspiration of becoming Viksit Bharat by 2047, the technology services
sector must evolve into an innovation-led, AI-native ecosystem capable
of creating new value pools.
Equally important is the central role of people in this transition. AI will
transform roles, workflows, and skill requirements across the industry.
The challenge before us is not one of displacement, but of transition
redeploying talent, reskilling at scale, and building a workforce that
can work alongside intelligent systems with confidence and judgment.
India’s demographic strength and talent base provide a unique
advantage, provided we act with foresight, coordination, and urgency.
This transformation requires a shared national effort. Industry must
invest in innovation, intellectual property, and new delivery models,
while government must enable speed, ease of doing business, global
market access, and a robust skilling ecosystem. NITI Aayog remains
committed to playing its role as a strategic catalyst in this partnership.
With timely action, collaborative leadership, and a clear focus on trust,
inclusivity, and innovation, India can emerge not merely as a technology
services provider, but as the world’s preferred partner in the AI era.
B.V. R. Subrahmanyam
CEO, NITI Aayog Foreword
For three decades, India’s technology sector has been the global
benchmark for scale and resilience. However, we have reached a
decisive strategic inflection point. The emergence of AI is fundamentally
compressing traditional service value pools—moving the industry from
labor-intensive “effort” to high-impact “outcomes.”
The industry is currently navigating three fundamental transitions:
From Effort to Outcome: Moving away from billable hours toward value-
based, result-driven engagements.
From Bespoke to Productized: Shifting from manual, one-off coding to
scalable, IP-led platforms.
From Siloed IT to Enterprise Transformation: Evolving from back-office
support to being the primary engine of business strategy.
As a strategic pillar of the Indian economy, the technology services
sector contributes nearly 7% of GDP and remains a primary engine for
high-value employment. As we march toward Viksit Bharat, the sector’s
evolution is not merely a corporate necessity but a national imperative.
To maintain technological sovereignty and global competitiveness, we
must transition from being the world’s “back office” to becoming the
world’s AI-native architect.
Leadership in the next decade will be defined by an industry that
transcends traditional service boundaries. This roadmap is shaped by
that imperative. It recognizes that leadership will depend on expanding
into software, platforms, data infrastructure, and innovation-led
offerings. While protecting the core remains essential, future growth will
increasingly arise from adjacent value pools where services converge
with products, intellectual property, and AI-native operating models—
reshaping how value is created, captured, and scaled.
At the NITI Frontier Tech Hub, our role is to work alongside industry,
startups, academia, and policymakers to track emerging technology
trajectories, assess their implications for India’s core sectors, and
translate these insights into actionable recommendations that
strengthen national readiness and unlock new growth opportunities.
This roadmap is intended as a shared reference for strategic choices,
investment priorities, and ecosystem collaboration rather than a
prescriptive blueprint. India’s advantage lies not only in its talent and
scale, but in its capacity to act decisively at moments of transition. With
alignment between government and industry, India can evolve from
being the world’s largest technology services provider into one of the
most influential builders of AI-native, globally relevant technology
systems.
Debjani Ghosh
Distinguished Fellow,
NITI Aayog Table of Content
1.1 A Potential Growth Lever For India In 204702
1.2 The Evolving Industry Landscape For Technology Services 03
1.3 Realities Of Today04
Chapter 01: India’s Technology Services Industry:
At An Inflection Point
02
2.1 Setting A Bold Aspiration For 203505
2.2 The Path To Achieving The 2035 Aspiration06
2.3 Five Potential Plays For The Sector08
Chapter 02: India’s Technology Services:
Reimagination Ahead
05
3.1 Recommendations for industry14
3.2 Recommendations for government16
Chapter 03: Recommendations
14
Chapter 04: The Case For Action For India19
Executive Summary01
Appendix20
Glossary27 Executive Summary
India’s tech services industry (comprises of players that design, build, implement, manage, and
support technology solutions for clients, primarily through IT services, software development, digital
transformation, and operations) stands at an inflection point. Contributing nearly 7 percent to GDP and
generating around $265 billion in annual revenue, the sector remains integral to national growth and
exports. Yet, post-pandemic headwinds—including macroeconomic uncertainty, AI-led automation, and
intensifying competition—have slowed annual growth to 4–5 percent p.a. and compressed margins.
To align with the vision of Viksit Bharat@2047, the sector needs to aim to achieve $750–850 billion in
annual revenue by 2035 to sustain a 7–8 percent share of GDP and expanding its global market share
beyond 25 percent. However, current trajectories indicate a $250–300 billion shortfall, underscoring the
need for decisive action. Emerging technologies such as generative and agentic AI, cloud infrastructure,
and digital engineering present India with a historic opportunity to bridge this gap and reposition itself as
a leader in trusted, innovation-driven digital services.
Realising this ambition requires a dual approach:
—Protecting the core: The industry must strengthen its existing growth engines—data and AI, cloud,
digital transformation, engineering services, and cybersecurity.
—Pivoting to new growth vectors: Advancing into five frontier pathways:
• Agentic AI play: Leverage AI to build hybrid ‘human + agent’ service models and productized
solutions, targeting mid-market businesses and legacy modernization.
• Software play: Strengthen India’s position as the global SaaS capital by capturing a disproportionate
share in high-growth areas such as CRM, ERP, DataOps, cybersecurity, and vertical-specific SaaS.
• Infrastructure play: Consider establishing India as the world’s data services and AI infrastructure
hub, with AI-native cloud stacks, sovereign infra, and data center orchestration capabilities.
• Innovation play: Harness R&D spend pools with India-based innovation centers, vertical-specific
CoEs, and frontier technology partnerships.
• India for India play: Leverage India’s rapidly growing domestic demand with customized AI, multi-
lingual platforms, and delivery model innovations tailored to the local context.
Achieving this vision will require joint industry–government effort:
—Industry must lead the shift into the AI era by reimagining its delivery model, deepening innovation,
and investing in the next wave of growth. Firms need to pivot from cost-based services to outcome-
driven, AI-enabled solutions—embedding ‘human + agent + platform’ models across operations.
Strategic investment in R&D and IP creation, particularly in fast-growing areas such as healthcare,
semiconductors, and cybersecurity, can unlock new value pools. Building global partnerships, scaling
AI focused mergers and acquisitions, and driving large-scale workforce reskilling will be critical to
maintaining India’s global edge and expanding its market share beyond 25 percent by 2035.
—Government policy must enable this transition by strengthening innovation, talent, and
ease of doing business. This includes scaling digital R&D and IP creation through a clear
national digital R&D framework and shared infrastructure, simplifying and accelerating
approvals through a National Tech-Services Single Window, and creating a supportive policy
environment for SaaS and high-growth technology firms through capital targeted R&D
support, ESOP clarifications and regulatory reforms. In parallel, a nationally coordinated
AI talent mission will prepare India’s talent base for AI-driven shifts. Together, these
measures will position India as a preferred destination for global technology operations
and investment.
Swift execution will be critical to sustain competitiveness, close the aspiration gap, and strengthen India’s
position as the global hub for AI, data, and digital innovation.
1India’s Technology Services - Reimagination Ahead India’s Technology
Services Industry:
At An Inflection Point
1.1 A Potential Growth Lever For India In 2047
India’s technology services sector is a cornerstone of the national economy, accounting for a
7 percent relative share of Gross Domestic Product (GDP).
1
With about $265 billion in total annual
revenue across domestic demand and exports, it accounts for nearly 20 percent of the $1.3
trillion global technology services market, consistently outpacing global growth by 200 to 300
basis points.
2
However, the coming decade will be marked by transformation more than continuity. As India
strives to become a $30 trillion economy by 2047
3
, technology services could evolve from being
an export engine to a potential growth lever — one that drives innovation, productivity, and
global competitiveness.
1
Nasscom strategic review, 2025.
2
Nasscom strategic review, 2025; Technology services and the BPM market = ~$190 billion out of the ~$265 billion.
3
India sets ambitious target to become a US$ 30 trillion economy by 2047, Ministry of external affairs, Government of India,
J uly 30, 2024 .
The objective is to catalyze the
transformation of the sector in the
era of AI by maintaining the relative
share of GDP at 7 to 8 percent, and
increasing global share 20 to 25%+
by 2035
Chapter 01
2India’s Technology Services - Reimagination Ahead 1.2 The Evolving Industry Landscape For Technology Services
Over the past decade, the technology services industry has undergone three major shifts, each
marked by changing growth drivers and disruptive tailwinds (Exhibit 1):
—Rapid adoption (2015–2020): The foundation of digital transformation
• The global technology services industry crossed the $1 trillion mark in 2019
4
, driven by rapid
consumer technology adoption (internet, smartphones, social platforms) and large-scale
enterprise modernization Enterprise resource planning (ERP), cloud, 4G, etc.
• India’s low-cost, high-quality talent pool and emerging digital execution infrastructure led
to a 6-7% CAGR growth in technology services.
5
—COVID surge (2020–2022): A period of hyper-acceleration
• Global growth surged at an 8 to 10 percent CAGR, fueled by pandemic-driven demand for
digital transformation, cloud migration, and remote work enablement.
6
• India outpaced global trends at an 11 to 13 percent CAGR, on the back of scaled digital
engineering capabilities.
7
4
Future of Technology services – Winning in this Decade, Nasscom, 2021.
5
Ibid.
6
Future of Technology services – Leading with AI, Nasscom, 2025.
7
Nasscom Strategic Review.
Exhibit 1
India India trendline
Global Global trendline
7.7%
8.6%
6.6%
8.0%
2.9%
16.7%
8.1%
10.6%
5.2%
3.2%
4.4%
6.4%
4.8%
0.0%
12.8%
6.8%
4.0% 4.0%
0%
5%
10%
15%
20%
25%
2016 2017 2018 2019 2020 2021 2022 2023 2024
Source: Gartner, IDC, Nasscom strategic review
3–4%
xx% India CAGR
xx% Global CAGR
6–7%
9–10%
12–13%
3–5%
7–8%
Global and India tech services market, YoY growth %
3India’s Technology Services - Reimagination Ahead
—Early AI era and post-COVID reset (2022–2024): Disruption in the growth model
• Global growth moderated at a 3 to 5 percent CAGR, while India’s growth declined to between
7 and 8 percent CAGR
8
driven by few key factors – macroeconomic uncertainty in key
markets, early-stage AI disruption, structural change in software development with GenAI.
1.3 Realities Of Today
The industry today is characterized by a slow growth environment facing geopolitical
uncertainty and AI-led discontinuity.
—Slowing growth environment: Over the past year, large global technology players have
maintained steady momentum, while specialist providers have recorded strong growth
driven by demand for AI, cloud, and data transformation services. In contrast, large Indian
technology services players see growth slowdown to about 3–5 percent, as reflected in
recent quarterly results of Tier-1 India-headquartered providers—marking one of the most
challenging growth periods for the sector in recent years.
Mergers and acquisitions (M&A) have become a key driver of transformation and growth
as technology firms look to expand capabilities in AI, cloud, and digital engineering. Leading
players such as Accenture are using programmatic M&A—often executing 50 or more
acquisitions annually—to rapidly acquire niche skills, strengthen innovation pipelines, and enter
new markets. This approach is allowing providers to stay ahead of technology shifts, integrate
emerging capabilities faster, and maintain resilience in a slowing growth environment.
—Geopolitical tensions: The global environment is characterized by tightening visa regimes,
tariff adjustments, and potential barriers to cross-border services. Increased restrictions
and higher H-1B costs for skilled worker mobility are constraining talent deployment across
key markets. Changes in trade and tariff policies are disrupting global supply chains and
creating uncertainty around delivery timelines and cost structures. At the same time, growing
emphasis on data localization and digital sovereignty is adding regulatory complexity and
reinforcing a shift toward regionally governed technology ecosystems.
—Dependence on US Markets: The technology services sector exports have a large
concentration in the US with a market share of almost 60%. US multinational companies
including GCCs are also the largest employers in India and are playing a significant role in
reshaping the India value proposition from cost and efficiency to higher value-added
services. While the sector has been focussed on market diversification beyond US, given the
disproportionate share of US, industry’s performance will continue to be shaped by shifts in
the US market across enterprise and mid-sized customers.
—Technology becoming a strategic lever for trade: Technology is emerging as a central
instrument of global trade negotiations, shaping access, alignment, and competitiveness.
Nations are increasingly using technology standards, data governance, and control over critical
supply chains as tools of economic diplomacy and strategic influence. Export controls, digital
trade clauses, and data localization norms are redefining global value chains and market access.
As digital infrastructure, AI, semiconductors, and rare earth ecosystems become closely linked
with trade policy, technology is shifting from a neutral enabler to a core bargaining asset.
—AI discontinuity: Of the 13 foundational technologies expected to shape the next decade, AI
is the most immediate and transformative disruptor. It is redefining how technology services
are delivered, with GenAI / Agentic AI transforming software development, testing, support,
and business operations. This shift is compressing traditional service markets through
automation and efficiency gains while opening new value pools in AI integration, model
engineering, data infrastructure, and governance. The transition offers India a significant
opportunity to position itself as a global hub for AI-driven delivery and innovation.
8
Future of Technology services – Leading with AI, Nasscom, 2025; Nasscom Strategic Review.
4India?s Technology Services - Reimagination Ahead India’s Technology
Services: Reimagination
Ahead
2.1 Setting A Bold Aspiration For 2035
Chapter 1 highlighted factors shaping India’s technology services sector today: a visible decline in
growth post-COVID and the rise of AI-led disruptions, alongside the fastest technology adoption
wave in decades. While these factors have posed significant headwinds, they also present a
timely inflection point — one where the sector can reimagine its growth trajectory by embracing
foundational shifts in value pools, delivery models, and global positioning.
The government has set an ambitious national vision to become a $30 trillion economy by 2047.
9
Within this, the technology services sector is expected to play a crucial role, with aspirations to
contribute 7 to 8 percent of GDP or approximately $750 billion to $850 billion in annual revenue
by 2035, based on the government’s Viksit Bharat goals, up from about $265 billion today
(Exhibit 2).
10
9
India sets ambitious target to become a US$ 30 trillion economy by 2047, Ministry of external affairs, Government of India,
J uly 30, 2024 .
10
Nasscom strategic review, 2025.
Indian Technology Services Industry – Aspiration for 2035
Exhibit 2
Source: Nasscom Future of Technology Services 2030: Leading with AI, Viksit Bharat goals
2024 2035E
~$265B
$750–850B
(%)
Chapter 02
5India’s Technology Services - Reimagination Ahead 2.2 The Path To Achieving The 2035 Aspiration
To meet the 2035 aspiration, India will likely need to drive 10%+ CAGR over the next decade.
However, the current outlook for industry is 5-7% growth including $100-120 billion expansion
from new Total Addressable Market (TAM) opportunities. There is a likely $250-300 billion gap
to meet this objective (Exhibit 3).
Path to 2035–aspirations and gaps to fill
Protect
the core
Pivot to new
growth vectors
EExxppeecctteedd
ssiizzee ((22003355))
Gaps to
aspiration
~$265B
$150–180B
$100–120B $500–580B
$250–300B $750–850B
Source: Viksit Bharat goals, expert conversations
xx% CAGR
(%)
Exhibit 3
While the government’s aspiration
for India’s technology services
sector is to contribute 7–8% of GDP
($750–850 billion) by 2035 to meet
its Viksit Bharat goals, current
market growth outlook indicates a
gap of $250–300 billion
6India’s Technology Services - Reimagination Ahead Protecting the core:
The current base of about $265 billion, driven by India’s strengths in exports, cost arbitrage,
and engineering depth, could potentially grow at 4 to 5 percent annually if India strengthens
its presence in data and AI, cloud, cybersecurity, new markets such as the Middle East and
Japan, and verticals such as defense and healthcare, as well as deep technology and high-
value segments like engineering services.
However, even this sustained growth may not be enough. To accelerate growth, India could pivot
to white spaces beyond the services sector while continuing its global leadership within the
sector.
A pivot to new growth vectors:
Expanding into adjacent high-growth enterprise markets could open additional opportunities for
India, helping it break into adjacent spend pools and unlock value from the accelerating shift
toward software-defined and AI-powered delivery models.
This would require transition in the industry’s focus from a service-only to full-stack digital
enablement, spanning software, infrastructure, operations, and AI-driven automation.
The industry could also expand to new buying centres such as the CIO, COO, and CXO roles,
which account for larger share of tech spending.
Five major adjacent pools could be considered, with a global TAM of about $14 trillion today
11
:
—Core operations spend of about $8,000 billion in AI-led automation of human
operational work.
—Enterprise operations – General & Administrative (G&A) spend of about $3,000 billion in the
automation of finance, procurement, and HR.
—Hardware and infrastructure spend of about $1,100 billion in data centers, hybrid infra, and
infra orchestration.
—Software spend of about $1,100 billion in SaaS, cloud-native tools, and low-code platforms.
—R&D operations spend of about $1,100 billion in product design, co-development, and
frontier technology innovation.
India’s technology services players currently have limited penetration in these areas. However, by
reimagining value propositions, products, and platforms across these spaces, the sector could
build the potential to considerably improve its share-of-wallet within enterprise technology
spending.
Exhibit 4 outlines the five plays that cut across these new markets/enterprises’ spend areas,
offering the potential to unlock the next phase of growth in the adjacent TAM opportunities
for service providers beyond their core technology services sector. Each of these plays would
require reinvention of the proposition, GTM approach, and delivery model, with strengths in
technology-led re-imagination of value for enterprises.
—Agentic AI play: Leverage AI to build hybrid ‘human + agent’ service models and productized
solutions, targeting mid-market businesses and legacy modernization.
—Software play: Strengthen India’s position as the global SaaS capital by capturing a
disproportionate share in high-growth areas such as CRM, ERP, DataOps, cybersecurity, and
vertical-specific SaaS.
—Infrastructure play: Consider establishing India as the world’s data services and AI
infrastructure hub, with AI-native cloud stacks, sovereign infra, and data center orchestration
capabilities.
11
Analysis from Gartner, IDC and expert conversations.
7India’s Technology Services - Reimagination Ahead Total Addressable Market (TAM) map across key enterprise spend areas
Exhibit 4
Source: Future of Technology services – Leading with AI, Nasscom, 2025.
Agentification of core ops
and G&A spends with hybrid ‘human + agent’
operating model
Services
ecosystem for frontier
technologies and CoE hubs
Global hub
for AI infra.
and data
services
SW build in
key growth
hotspots
Serve domestic demand with AI-enabled delivery operating model
$4,400 B,
4-5%
$2,000 B,
4-5%
$3,000 B,
9-10%
$14,000 B,
3-4%
$4,300 B,
3-4%
$1,600 B,
7-8%
Global 2035 TAM $B,
CAGR (2024-35)
—Innovation play: Harness R&D spend pools with India-based innovation centers, vertical-
specific CoEs, and frontier technology partnerships.
—India for India play: Leverage India’s rapidly growing domestic demand with customized AI,
multi-lingual platforms, and delivery model innovations tailored to the local context.
Together, these five plays could potentially generate incremental value by 2035—delivering on
the government’s national aspiration and repositioning India as the world’s technology partner
for the AI era.
2.3 Five Potential Plays For The Sector
8India?s Technology Services - Reimagination Ahead India’s Technology Services - Reimagination Ahead 8 As the Agentic AI technology advances, it is set to reshape core service offerings and deliver non-linear
efficiency gains across technology services and software spending—particularly within the Software
Development Lifecycle. Establishing a strong position in Agentic AI will lay the foundation for future
progress toward Artificial General Intelligence (AGI) and Artificial Superintelligence (ASI), securing
technological, data, and ecosystem leadership for the next phase of innovation.
Potential opportunities for the industry:
— Scale a ‘Services as Software’ proposition
Industry could focus on three key moves. First, develop productized services for targeted areas in
the enterprise software value pool across horizontal applications such as marketing campaign
management and development or infrastructure tools. Second, create customized agent-
led solutions for medium-scale businesses—an under-served segment—with use cases like AI
lifecycle management, security analytics, and digital commerce. Third, drive agentic AI-led legacy
modernization through productized services for enterprises and mid-market players with legacy
software spends, enabling faster and more efficient transformation.
India’s projected potential (2035)
12
: $15–20 billion
—Introduce the ‘human and technology hybrid workforce model powered by AI agent services for
higher productivity in enterprise operations. Potential move includes building domain-specific ‘AI
Agent workforces’ which could drive substitution of labor spend across enterprise functions, which
are currently insourced across existing and new work archetypes, such as legal (automated outcome
simulation and clause extraction), and can deliver business outcomes.
India’s projected potential (2035)
13
: $25–30 billion
India’s readiness for the AI economy depends on strengthening four core enablers — infrastructure,
talent, R&D, and policy. Current industry compute capacity remains largely CPU-based and inadequate
for training AI models at scale, underscoring the need for AI-ready infrastructure with GPUs and sector-
specific training platforms. Despite multiple re-skilling initiatives, shortages in next-generation AI talent—
including prompt engineers, GenAI researchers, and LLMOps specialists—are widening, highlighting the
need to cultivate a stronger product and solution mindset. Building indigenous capability will also require
higher R&D investment to develop proprietary AI solutions, such as small or domain-specific language
models for sectors like banking, cybersecurity, and telecom. Finally, policy modernization—covering
cross-border data usage, responsible AI, and research incentives—will be key to enabling innovation and
collaboration while ensuring governance and ethical deployment.
12
Analysis based on SaaS and on-premise software.
13
Analysis based on the outsourcing potential of existing and new work archetypes.
A. Agentic AI play
Potential enablers
9India’s Technology Services - Reimagination Ahead There has been rapid growth in the global software and SaaS market, driven by increasing demand for
automation, productivity enhancements, and cloud adoption. However, India remains relatively small,
currently capturing only 1 to 3 percent of the global SaaS market despite the success story in services.
14
India has about 3,500 SaaS players
15
, including 20+ unicorns
16
, but there is significant potential for the
industry in the software play. Two potential ideas could be considered:
—Focus on capturing a greater market share by rearchitecting existing software value pools across CRM,
ERM, data management and development tools.
—Rapidly build capabilities and pursue new software value pools by building scalable SaaS products
across cybersecurity software, Applied AI and other vertical specific solutions.
India’s projected potential (2035)
17
: $20–25 billion
Talent, business environment, and R&D are critical enablers for scaling India’s software and SaaS
ecosystem. The current technology talent pipeline remains service-oriented, requiring a shift toward
product lifecycle capabilities and skills in areas like DevSecOps and product management. The ease
of doing business also needs improvement, as complex regulations—such as ESOP taxation, and cross-
border payment hurdles—continue to constrain SaaS operations. Streamlined procedures for IP
registration, export compliance, and talent retention would enhance competitiveness.
14
Shaping India’s SaaS LandScape – SaaSBoomi, 2021.
15
The Rise Of The Indian SaaS Industry: Revealing Its Growth, TechJury, September 10, 2024.
16
SaaS Unicorn Tracker – SaaSBoomi, as of September 2025.
17
Analysis based on India’s share of the global SaaS market.
Potential enablers
B. Software play
10India?s Technology Services - Reimagination Ahead India generates about 20% of global data, with current data center capacity of 1.4 GW expected
to expand by 6–7 GW over the next decade. This growth must accelerate to meet data localization
mandates and low-latency performance needs for real-time applications like UPI. At the same time,
sovereign AI and cloud technologies are gaining momentum globally, as countries adopt national data
center strategies to support locally developed foundational models trained on domestic datasets. Such
moves promote localized innovation and competition, creating space for new players to complement
large hyperscalers. Three potential ideas could be explored to enable this growth.
— Data Center-as-a-Service (DCaaS) with end-to-end data center buildouts to drive capacity growth
from the current 1.4 GW to between 10 and 12GW by 2035
18
.
—Global hub for AI-ready data centers: Develop GPU-enabled data centers for enhanced compute
capacity for AI workloads, driving an increase in GPU share from about 3 to 4 percent to around 15 to
20 percent in line with global demand.
—Monetization of open-source datasets such as transportation and mobility data sets for public
transport and traffic congestion, with a value-added data analytics services ecosystem, such as
drug discovery based on disease outbreak patterns from public health data, for domestic and
international innovation.
India’s projected potential (2035)
19
: $10–15 billion
Data centers remain capital-intensive and face infrastructure and regulatory bottlenecks that slow
expansion. Establishing special data center economic zones could accelerate growth by ensuring reliable
access to affordable, high-quality power—including renewable and nuclear sources—and deploying
advanced cooling solutions such as underwater or floating facilities seen in other countries. Simplified
single-window clearances for land, power, and hardware resources, supported by dedicated facilitation
units and supplier partnerships, would further streamline setup and attract large-scale investments.
18
Analysis based on India’s share of the global SaaS market.
19
Analysis based on data center capacity requirements and data monetization potential..
Potential enablers
C. Infrastructure play
11India’s Technology Services - Reimagination Ahead The rapid emergence of frontier technologies, including AI, quantum technology, bioengineering, and space
technology, underscores the importance for India to show its leadership in innovation and play to its strengths
in offering services around these. Currently, China holds a significant share of about 70 percent of these critical
technology domains,
20
posing competitive challenges and potential IP lock-out risks.
India’s ER&D exports are nearly $56 billion, with potential to reach $78 billion to $100 billion by FY30.
21
Evidence also shows a strong, positive relationship between a nation’s R&D intensity and long run GDP
growth.
22
By executing the focus points in this play, India can lift its R&D share of GDP toward peer benchmarks
among innovation leaders e.g., South Korea, US, accelerating productivity and growth.
Two potential opportunities could help India expand its presence in global technological innovation:
—Position India as a global hub for ER&D and innovation: India can strengthen its role in engineering R&D
outsourcing, co-innovation, and IP creation, enabling end-to-end product lifecycles. The focus should be
on platform- and outcome-based models, validation, and compliance-as-a-service, targeting the $1.1 trillion
global R&D operations market across sectors such as automotive, MedTech, defense, semiconductors,
industrials, energy, and telecom. In parallel, India can expand its global leadership in setting up CoEs across
R&D, sales and marketing, legal, and HR, with R&D centers focusing on horizontal technologies like AI, ML,
data science, and cybersecurity, and sector-specific innovation in digital health, automotive, and embedded
software.
India’s projected potential (2035)
23
: $15–20 billion
—Innovate and offer services around frontier technologies: Offer a service catalog of industry-specific
services for sectors like pharma, bioengineering, space technology, and defense technology, and across
advisory and implementation services, such as clinical trial acceleration, AI-enabled target identification,
drug repositioning, and clinical control tower.
India’s projected potential (2035)
24
: $10–15 billion
—Value proposition in high-value services: The Indian technology industry must move beyond traditional
delivery models and capture higher-value innovation services. This requires developing dedicated
innovation hubs and R&D SEZs with fiscal incentives and showcasing India as the global CoE and R&D
capital through success stories and scalable infrastructure. Leveraging AI-driven ER&D can accelerate
design, testing, and compliance cycles by up to 30%, enhancing speed and cost efficiency in product
development.
—STEM talent infrastructure: India needs to strengthen its innovation-oriented talent base, expanding
beyond service skills to deep domain expertise. Building a specialized CoE and R&D workforce skilled in
enterprise functions (sales, marketing, legal) and frontier technologies such as quantum computing and
bioengineering will be critical to sustain long-term competitiveness.
—Ease of doing business and collaboration: Faster CoE setup, stronger IP protection, and R&D-linked tax
and market access incentives can unlock greater innovation investment. Establishing R&D-specific SEZs,
sectoral co-innovation corridors, and shared testbeds across industries like MedTech, SDV, and telecom—
supported by digital twin platforms and regulatory sandboxes—can position India as the global pre-
certification and design hub for advanced engineering sectors.
20
Who is leading the critical technology race? Australian Strategic Policy Institute, March 1, 2023.
21
Why Global Enterprises Are Doubling Down on India for Engineering the Future, Nasscom, September 2025.
22
Impact of R&D expenditure on economic growth, Journal of Science and Technology Policy Management, April 18, 2024.
23
Analysis based on horizontal technology spend, enterprise R&D spend and other enterprise spends.
24
Analysis based on current R&D and ER&D spends.
Potential enablers
D. Innovation play
12India?s Technology Services - Reimagination Ahead The India for India play represents a convergence of India’s technological capabilities to serve its rapidly
expanding domestic market, expected to be between $40 billion and $60 billion by 2035.
25
Today,
domestic revenue is $40 billion, indicating that domestic demand is being met by non-Indian providers.
26
By integrating advances from Agentic AI, software, infrastructure, and innovation, this play could address
India’s requirements while leveraging the country’s position as a global technology hub. Two potential
opportunities could be considered:
—Customized software across key growth hotspots, including healthcare, manufacturing, and BFSI,
and AI-enabled offerings for India, such as multi-lingual agents supporting Indic languages and agri-
advisory agents. India’s scale in healthcare, agriculture, financial inclusion, and logistics makes it a
natural laboratory for converged technologies. Piloting AI + IoT + bioengineering for Agri-advisory or
AI + fintech + digital trust for MSME credit can create exportable models.
—Reimagine delivery models with AI, including a ‘human + agent’ workforce to drive higher efficiency
and enhance the ability to service low-margin markets at scale effectively using productized solutions
as opposed to a pure services play.
Together, these five plays could generate an additional $100 billion to $120 billion of revenue for India by
2035 and help deliver on the new growth path (Exhibit 5).
All of these are meaningful and at-scale opportunities for India. The industry can make an effort to
build and reinvent itself, embed the capabilities required to serve these opportunities, and compete
at scale globally.
25
Analysis based on expert conversations and historical share as per historical Nasscom strategic review.
26
Nasscom strategic review, FY25.
Source: Expert conversations
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5 plays to achieve 2035–aspiration
Exhibit 5
Gaps to
aspiration
Innovation
play
Infra-
structure
play
Software
play
2035 –
aspiration
Agentic
AI play
Protect
the core
~$265B
$150–200B
$40–50B
$20-25B $10–15B
$25–35B
$250–300B $750-850B
Current size
(2024)
E. India for India play
13India?s Technology Services - Reimagination Ahead Recommendations
3.1 Recommendations for industry
1. Invest behind fast growth hotspots to counter near term headwinds
—The next decade’s growth will come from new verticals and geographies—particularly
healthcare, semiconductors, defense, and cybersecurity, and regions such as Japan, the
Middle East, and India’s domestic market. Tech services players should prioritize localized
solutions and domain expertise in these high-growth areas, investing in partnerships and
regional delivery models to capture value from emerging demand for AI, cloud, and digital
engineering services
2. Rearchitect offerings to deliver step change in productivity and reimagine operating /
commercial models
—Tech services players must reimagine their service offerings to deliver step-change
productivity—targeting 70% or more efficiency gains across delivery value chains. This
will require embedding Agentic AI and automation across every stage of work—from
requirements to operations—through code generation, autonomous testing, document
synthesis, and workflow orchestration.
—As delivery becomes more AI-augmented, players must shift from people-heavy operations
to human + agent + platform models. These integrate human judgment with AI-driven
execution and platform-led orchestration, enabling faster scaling, higher accuracy, and
predictive service quality. This provides an opportunity for players to move from effort-
based billing to outcome-linked models that tie pricing to measurable productivity and
business impact.
3. Invest in defensible IP (e.g., platforms) with clear value proposition and scale R&D to 1-2%
of revenues
—Differentiation will increasingly depend on intellectual property and platform-led delivery.
Tech services players should allocate 1–2% of revenues to R&D, focusing on vertical-specific
tools, reusable accelerators, and AI-native software IP that deepen client stickiness and
create scalable margin levers. Platformization of services—turning repeatable solutions into
productized offerings—will define the next cycle of growth.
—R&D in technology services is technical work that creates new software, AI, or digital
engineering methods with genuine technical uncertainty and outcomes that are reusable or
protectable as IP, rather than routine delivery or implementation.
—It includes development of new algorithms, models, platforms, or reusable tools, and pre-
commercial experimentation that advances technical capability. It excludes client-specific
development or integration, routine engineering or maintenance, deployment of existing AI
tools, business process automation, and innovation lab or pilot work done for specific clients
that does not result in transferable IP or reusable assets.
Chapter 03
14India’s Technology Services - Reimagination Ahead 4. Reimagine industry approach to R&D by partnering with ANRF and the RDI fund.
—ANRF’s recently launched RDI fund offers avenues for corporate entities and consortia to
partner deeply in India’s R&D acceleration trajectory. Industry bodies like NASSCOM in
consultation with ANRF should chart a pioneering partnership approach for the industry
and RDI. First, companies/ consortia should consider joining SLFMs as limited partners and
co-invest in relevant sectors. Second, companies can partner with RDI (through SLFMs)
strategically as domain & technology experts supporting engineering, deployment and
commercialization. Thirdly, companies can also consider partnering with ANRF specific
missions that drive R&D through academic partnerships.
5. Drive focused reskilling for AI beyond technical skills for problem-solving, business
judgment etc.
—AI adoption demands more than technical skills—it requires a workforce adept at problem-
solving, business judgment, and working effectively with AI systems. Players should scale
targeted reskilling for roles such as AI engineers, prompt designers, and LLMOps specialists,
while reorienting mid-level managers toward governance, orchestration, and client
engagement. A focus on “learnability” and adaptive capability will be key to maintaining a
competitive edge.
6. Drive change management for AI adoption through leadership alignment and workforce
communication
—Embedding AI at scale requires cultural and organizational change. Players should lead
structured change management programs—aligning leadership around AI strategy,
ensuring transparent communication, and integrating “AI literacy” across roles. This will help
overcome resistance, accelerate adoption, and ensure consistent ROI realization from AI-led
investments, addressing one of the biggest barriers to value capture in the industry.
7. Accelerate change with AI focused M&A and frontier-AI partnerships
—Tech services players should adopt a more strategic and capability-led approach to M&A
and ecosystem partnerships to build speed, scale, and differentiation in the AI era. The focus
should be on acquiring or co-developing specialized AI, data, and engineering capabilities,
integrating them rapidly into delivery models, and using joint innovation programs with
startups, hyperscalers, and research institutions to expand solution breadth and accelerate
time-to-market.
15India’s Technology Services - Reimagination Ahead 3.2 Recommendations for Government
Recommendations:
—Strengthen and expand the existing National Single Window System (NSWS) into an
integrated, fully transactional National Tech-Services Single Window (NTSW), anchored
by an inter-ministerial group India should build on the current NSWS by transforming
it into a fully transactional NTSW that provides a unified, end-to-end approval journey
across central, state, and municipal authorities. This should include parallel routing of
approvals; backend API integration with GSTN, DGFT, RBI/Softex, STPI/SEZ, state labour
systems, Shops and Establishments, and municipal clearances; one-time authentication and
document reuse leveraging existing datasets (PAN, GSTIN, ROC, Aadhaar-authenticated
signatories, EntityLocker, GSTN); standardised data and form formats across departments
and States; and enforceable service-level timelines supported by automated escalation and
accountability mechanisms.
Learnings from the world:
United Arab Emirates – Basher Platform: The UAE’s Basher platform provides a single digital
interface that consolidates approvals across both federal and emirate-level authorities. Through
one application, tech services players can initiate commercial registration, tax registration,
and labor establishment processes at the federal level, while simultaneously triggering
municipal licensing, economic department clearances, tenancy verification, and other local
approvals. Unlike informational portals that only guide users to relevant permits, Basher
enables end-to-end transactional processing, routing information across agencies, eliminating
repetitive submissions, and coordinating decisions within a unified workflow across a multi-tier
regulatory system.
1. Improve the speed and ease of doing business to attract global
investments in GCCs and anchor high-growth companies in India
•
A single, end-to-end digital process
enables parallel approvals across government
tiers, with one-time authentication, shared
documentation, backend integration, and
enforceable service-level timelines
•
Multiple
central (GSTN, DGFT, RBI/Softex, STPI/SEZ),
state (labour, Shops and Establishments),
and municipal clearances operate through
separate portals; existing IDs and repositories
(PAN, GSTIN, ROC, Aadhaar, EntityLocker,
GSTN) are not connected; and timelines lack
escalation—resulting in prolonged, multi-
month operationalisation
16India’s Technology Services - Reimagination Ahead 2. Enable tech services growth cohorts (e.g., small and specialized players)
with market access to global high-growth hotspots e.g., Japan, the Middle
East, and Germany
•where
small and specialist players are recognised as
credible partners for AI, digital engineering,
cybersecurity, and other advanced services
•
with dedicated tracks for high-growth
service areas and direct access to relevant
digital agencies, enterprise technology buyers,
and engineering ecosystems
•
through structured support on compliance,
certifications, contracting norms, and
partnership pathways tailored to priority
regions
•Small
and specialist tech services players lack the
brand recognition and credibility required to
engage effectively with enterprise buyers,
digital ministries, and innovation ecosystems
•
Current export-promotion efforts are
generic and not tailored to specialist
technology services, offering limited
engagement with digital decision-makers and
no dedicated tracks for priority domains
•
Smaller providers struggle with region-
specific regulatory, certification, procurement,
and partnership requirements due to limited
institutional capacity and support
Recommendations:
—Launch structured Tech-services Trade Missions led by MeitY, DPIIT, and industry
associations, with defined representation for small and specialist players. Missions should
target priority regions—Japan, the Middle East, and Germany—and include coordinated
meetings with enterprise buyers, digital agencies, and innovation ecosystems.
—Develop a unified India Tech-Services brand platform that positions small and specialist
Indian players as trusted partners in AI, digital engineering, cybersecurity, and next-
generation technology services. This platform should provide co-branding, marketing assets,
and visibility support for tech services players participating in trade missions.
—Establish a Market Access Facilitation Cell that provides structured assistance on market-
entry compliance, sector certifications, contracting norms, and local partnership pathways,
enabling specialist players to meet region-specific requirements more effectively.
Learnings from the world:
South Korea’s KOTRA-led ICT and engineering missions to Germany: Focus on creating
structured opportunities for engineering and digital-engineering players to engage with
industrial clusters, applied research institutes, and leading enterprise buyers. These missions are
organized around thematic tracks such as mobility, industrial IoT, and advanced manufacturing,
and integrate smaller specialist providers into curated B2B meetings, technical workshops,
and ecosystem visits. This approach helps players understand local requirements, explore
collaborative projects, and establish credibility in highly sophisticated engineering markets.
17India’s Technology Services - Reimagination Ahead 3. Prepare India’s workforce for the AI transition by proactively managing
role shifts, workforce renewal, and large-scale reskilling
•
A central workforce transition
map identifying sunset, evolving, and emerging
roles, guiding skilling priorities, curriculum
updates, and labour-market programs
•Structured transition standards for employers
Clear expectations, tools, and templates for
assessing AI impact on roles, redesigning
workflows, and managing planned reskilling
and redeployment
•Unified AI skilling and transition pathways
A national skilling engine delivering modular AI
micro-credentials, bridge programs, and
outcome-linked assessments supporting
movement from at-risk roles to emerging
opportunities
•
No coordinated signal on which roles are
declining, evolving, or emerging in an AI-
driven labour market, resulting in unaligned
planning and investment across the skilling
and employment ecosystem
•
Tech services players—
especially small and mid-sized—lack
structured processes for role redesign, skill
benchmarking, and redeployment, leading to
inconsistent adoption of AI-augmented
workflows
•
Skilling programs across
ministries, industry bodies, and private
providers operate in silos with uneven
standards and limited linkage to hiring or
redeployment outcomes
Recommendations:
—As highlighted in NITI Aayog’s ‘Roadmap for Job Creation in the AI Economy’, setup an
India AI Talent Mission to drive –
• Operationalise a Unified AI Skilling Engine: Build a national, modular skilling platform—
integrated with NAPS/PMKVY—that delivers role-based AI upskilling, micro-credentials,
and bridge programs enabling workers in at-risk roles to transition into adjacent or
emerging occupations. Align funding, assessments, and certifications to measurable
employment outcomes.
• Embed AI Across Education: Integrate AI literacy and applied AI learning across school and
higher-education curricula, expand AI+X interdisciplinary programs through UGC/AICTE,
strengthen faculty development via industry immersion, and significantly scale research
fellowships to create a deep pipeline of advanced AI talent.
—In addition, partner with industry bodies like NASSCOM to define a centralised National
Workforce Transition Framework: Establish a unified architecture that continuously maps
AI’s impact on job families, identifies sunset and emerging high-demand roles, and provides
structured transition pathways. Embed clear expectations for tech services players through
standardised AI-readiness assessments, role redesign templates, human–AI collaboration
practices, and skill benchmarking tools. Use this integrated framework to steer skilling
priorities, curriculum updates, and labour-market programmes across ministries and sectors.
18India’s Technology Services - Reimagination Ahead The Case For Action
For India
India stands at a critical inflection point in the global technology services industry. While its
vast talent base and unparalleled data endowments provide a unique advantage, delaying the
transformation for AI could erode decades of progress. This delay could lead to job losses, a
decline in its global technology leadership, and loss of opportunities in data-driven growth—
which may be difficult to reverse.
1. Redeploy rather than displace jobs
India will have substantial number of technology professionals, estimated to be between
7.5 million and 8 million individuals, mainly in entry and junior positions and at a significant risk
of disruption caused by AI. India will need to consider how to reskill and redeploy these workers,
doing so can help protect about 1.5 million at-risk industry jobs.
27
2. Protect India’s global technology services leadership
India’s leading position as a global services hub is at a tipping point. If the industry embraces
AI, India could see growth in the global technology services market, with an estimated annual
share of over 20 percent. Not acting could potentially jeopardize decades of competitive edge,
allowing other countries to take the lead in next-gen, AI-driven services.
3. Capture the data opportunity ahead of competition
Data is crucial for the country’s success – one that matches India’s significant talent-driven
growth story in scale and impact. Globally, competitors are moving quickly to move into
the data-driven services and innovation, positioning themselves as leaders in this new value
frontier. If India is able to take decisive action it can capture on this opportunity and maintain
their strategic advantage, from having strong endowments, such as the largest data sets in the
country.
27 Projection based on Nasscom strategic review 2025 and Future of Technology services – Leading with AI, Nasscom, 2025.
Chapter 04
19India’s Technology Services - Reimagination Ahead Appendix
Approach to idea detailing and deep dives across plays
•Detailing the idea and its
2 to 3 facets based on
market context and trends
•Clear articulation of the
opportunity for India
•Identifying big thematic
plays across the ideas
•Top-down sizing of each
idea for India with a 2035
timeline
•Incorporating the global
market and India
opportunity share across
various
spend pools
•Outlining key assumptions
around India’s right to win
across tech, talent,
data, etc.
•Identifying potential theme-
level ideas across key
stakeholders
(government and providers)
ABC
The approach to detailing ideas and themes
Exhibit 6
Each play and its respective opportunities have been assessed using a 6-part enabler
framework that covers technology, talent, regulations, innovation, governance, data,
and culture (Exhibit 10) to identify what it will take for India to develop and maintain an
advantage over the next 10 years.
Source: Expert conversations
Six-part enabler framework
Exhibit 7
20India’s Technology Services - Reimagination Ahead ,$,
fiscal year 2035
Focus on
insourced activities across
existing and new work
archetypes:
•
FP&A (variance
analysis), HR (employee
engagement-based attrition
prediction), IT (GenAI-led unit
and performance testing,
code base optimization)
•
Legal (automated
outcome simulation and
clause extraction)
Vertical-specific complex
workflows, such as healthcare
(pathologists – agent-led report
interpretation), automotive
(simulation engineer – agent-led
crash simulation)
•Global population
growth of 0.5 to 1
percent is expected to
lag GDP growth of
2 to 3 percent
1
•TechOps buying
pattern expanding
beyond CIOs to
capture other CXO
stacks such as CMO,
CHRO, and COOs
Human + technology
workforce of the future
encompassing new
services work
archetypes with
Agentic AI, capturing
share of CXO spends
(CMO, CHRO, CFO,
COO, etc.) and direct
people spends, such as
knowledge workers
Horizontal apps such as
marketing campaign
management – Vtiger, Trello,
and Dev + Infra tools such as AI
analytics software – Kubeflow
SaaS unlock for MB software
spend pools such as Workday
human capital management
Agentic AI-led
productized services for the
long tail of enterprises/mid-
market players with legacy
software spends, such as
Oracle E-business Suite
(ERP platform)
•Rising enterprise
technology debt and
lock-in with legacy
software
•Increased preference
for ‘outcome-based’
solutions over owning
complex tools
•Cost-inhibitive for
SMBs to customize
software; OTS plays a
dominant role in the
current setup
‘Service as Software’
proposition across
legacy modernization,
productized services for
enterprises, and custom
solutions for MBs
Source: Expert conversations
Agentic AI play
25–30 billion
15–20 billion
1.Confronting the consequences of a new demographic reality | McKinsey, January 15, 2025.
21India’s Technology Services - Reimagination Ahead Potential Risks: Ethical concerns of using AI, such as algorithmic bias and data privacy issues,
and evolving regulatory landscape, significant digital divide across sectors, environmental
impact of AI’s rising energy demands, and risk of substantial job displacement, particularly in
sectors reliant on repetitive tasks, pose a risk of influencing and restricting development and
enterprise adoption of Agentic AI.
,$,
fiscal year 2035
Focus on
capturing disproportionate
market share
•
Sales pipeline
management, marketing
campaign management
automation
•
Unified suite comprising
multiple business operations,
including finance for tax filing,
general accounting, and HR
•
Data
integration and ETL/ELT
platforms, customer data
platforms, and analytics.
Development tools: DevOps, API
management, BI, and
visualization
•Global software market
currently at about $1.1
trillion, expected to grow
at 10 to 11 percent,
1
driven by faster public
cloud adoption among
SMBs, standardized
services in SaaS model,
and new SaaS categories
such as AI and GenAI
•India SaaS players
account for only 1 to 3
percent of the global
SaaS share despite
leadership in IT services
2
•India founded about
3,500 new SaaS
companies,
3
including
20+ unicorns,
4
in the past
few years
Scale up India as
a software hub
in select existing
and emerging
value pools
Source: Expert conversations
Software play
20–25 billion
1.Future of Technology services – Leading with AI, Nasscom, 2025.
2.Shaping India's SaaS LandScape - SaaSBoomi, 2021.
3.The Rise Of The Indian SaaS Industry: Revealing Its Growth, TechJury, September 10, 2024.
Potential Risks: Cybersecurity threats, sluggish SaaS funding, and competition from other
markets and software players pose operational risks; unclear data ownership regulations and IP
enforcement gaps risk service delivery and innovation.
22India’s Technology Services - Reimagination Ahead ,$,
fiscal year 2035
•Data center as a service
(DCaaS) for E2E data center
buildouts to drive capacity
growth from 1.3 GW currently
to 10 to 12 GW by 2035
•Develop GPU-enabled data
centers for enhanced
compute capacity for Agentic
workloads, driving uptick of
GPU share from 3 to 4
percent to 15 to 20 percent in
line with global momentum
2
•Drive monetization of open-
source datasets, such as
transportation and mobility
data sets for public transport,
traffic congestion, with a
value-added data analytics
services ecosystem, such as
drug discovery based on
disease outbreak patterns
from public health data
•About 20 percent of
global data is generated
in India, resulting in a
rising demand for data
center capacity, with a
6 to 7 GW additional
demand in the next
10 years
1
•Regulatory push for
data localization
•Localized infrastructure
access for performance
objectives such as low
latency for real-time UPI
workloads
India as the data
and data services
capital of the world
with enhanced data
center capacity,
data monetization,
and value-added
DnA services
Source: Expert conversations
Infrastructure play
10–15 billion
1.Projection based on data center capacity requirements by 2035.
2.Projection based on AI based data center capacity requirements by 2035.
Potential Risks: The pace of data center setup and modernization to ensure AI readiness poses a
significant risk to fulfilling demand.
23India’s Technology Services - Reimagination Ahead ,$, fiscal
year 2035
Reimagine the role of GCCs in
India in efficiently managing
common enterprise functions
such as sales and marketing,
procurement, F&A, legal, risk,
and HR at scale
Consider CoEs for emerging
technology hotspots, such as
AI/ML and data science,
cybersecurity, ESG, creating use
cases for improved CX, and
threat detection
Leverage deep domain
expertise to build vertical-
specific CoEs, such as CoEs
for digital health, retail pricing,
automotive embedded
software, biotech, and
pharma R&D
•Rapidly expanding GCC
market in India at 6 to 7
percent CAGR
1
•GCCs are transitioning
from cost centers to
profit centers, focusing
on high-value services
such as AI, cloud
computing, and
cybersecurity
•Large talent pool for
technology and beyond,
e.g., expanding PhD
researchers
•Tier-2 Indian cities, such
as Jaipur and Kochi, are
becoming GCC hubs
given improved
infrastructure, favorable
state policies, and lower
real estate and talent
costs
Develop CoE hubs
for running global
businesses from
India across
enterprise functions,
technologies, and
R&D
Source: Expert conversations
Innovation play
15–20 billion
1.Indian IT Sector Projected to Achieve 6-7% Growth in FY27 Amid Global Uncertainties, ETGCC, August 21, 2025.
24India’s Technology Services - Reimagination Ahead Innovation play (Continued)
,$,
fiscal year 2035
Process
innovation focused R&D targeting
efficiency gains such as:
• Computational
chemistry and in silico modeling
for drug discovery, bio marker
analysis for preclinical testing,
real-time remote monitoring for
clinical trials, dossiers and
responses for approvals etc.
• Workflow optimization to
reduce environmental impact
through processes such as
improved waste management and
water recycling
•Concrete
formulations and reinforcement
innovation using existing methods
•
Lead
global services for the three
prioritized technologies from
India:
–Cloud
(architecture design and build
for genomics and
bioinformatics workloads), DnA
(predictive models for drug
efficacy), prototyping (3D
printing)
– Simulation models
(spacecraft/satellites/launch
system simulation), DnA (earth
imagery analytics), cyber
(secure comms link)
– Cybersecurity
(encryption), simulation and
modeling (molecular structures
and chemical reactions)
•Three times rise in
global R&D spend
over the last two
decades, accounting
for approximately
2.5 percent of global
GDP—an increase
from less than
1.5 percent in the
2000s
1
•Rising cost
pressures and
specialist needs are
driving a boom in
R&D outsourcing
•13 frontier
technologies are
expected to generate
$25 trillion to $45
trillion in economic
impact by 2030
2
•China is leading
global research on
about 70 percent of
these technologies;
risk of IP lockout for
India with delays as
other nations gain
market share with
first mover
advantage
3
Services ecosystem
to drive innovation:
Vertical R&D
disruption and
frontier technology
R&D enablement,
such as bio-
engineering, space,
and quantum
technology
Source: Expert conversations
10–15 billion
1.End of Year Edition – Against All Odds, Global R&D Has Grown Close to USD 3 Trillion in 2023, WIPO, December
18, 2024.
2.McKinsey technology trends outlook 2025 | McKinsey, July 22, 2025.
3.Who is leading the critical technology race? Australian Strategic Policy Institute, March 1, 2023.
Set up a Services ecosystem to drive innovation
25India’s Technology Services - Reimagination Ahead Potential Risks: Decreasing talent retention because of high attrition rates, competition from
other innovation focused economies and widespread adoption of prioritized technologies to
realize value pose significant risk to innovation play.
India for India play
Potential Risks: Limited enterprise technology spending, public sector procurement hurdles,
talent shortages beyond metro cities, and digital infrastructure gaps in Tier 2 and 3 cities may
constrain both scale and execution speed unless addressed proactively.
26India’s Technology Services - Reimagination Ahead Glossary
AGI (Artificial General Intelligence): Form
of AI that can understand, learn, and apply
intelligence across a broad range of tasks,
matching or exceeding human cognitive
ability.
AI (Artificial Intelligence): Includes
software capabilities such as machine
learning, data analytics, and hardware-
driven automation such as robotics.
AICTE (All India Council for Technical
Education): Statutory body and national-
level council for technical education under
the Ministry of Education, India.
AML (Anti-Money Laundering): Regulations
and systems designed to prevent illegal
money transactions and funding sources.
ANRF (Anusandhan National Research
Foundation): India’s R&D funding
body under the Ministry of Science and
Technology.
API (Application Programming Interface):
A software interface that enables interaction
and data exchange between two systems,
applications, or platforms.
ASI (Artificial Superintelligence): Future
intelligence that far surpasses human
intellectual capabilities and creativity.
ASIC (Application-Specific Integrated
Circuit): A microchip designed for a
particular use, such as AI acceleration
or telecommunications, rather than for
general-purpose use.
B2B (Business-to-Business): Refers
to commercial transactions or services
conducted between two businesses rather
than between a business and consumers.
BERD (Business Enterprise Research &
Development): The portion of total R&D
expenditure funded and performed by
private business enterprises.
BFSI (Banking, Financial Services and
Insurance): A broad industry grouping that
includes companies providing banking,
finance, and insurance services.
BI (Business Intelligence): Technologies
and processes used for analyzing business
data to support decision-making and
strategic planning.
BPM (Business Process Management):
A service line in the industry that uses
methods and tools to design, analyze,
optimize, and automate business processes.
CAGR (Compound Annual Growth Rate):
Financial metric.
CBDT (Central Board of Direct Taxes):
Responsible for direct tax policy formulation
and enforcement in India.
CDPI (Common Digital Payment
Interface): A unified framework for enabling
interoperable and secure digital payments
across systems.
CFO (Chief Financial Officer)
CHRO (Chief Human Resources Officer)
CIO (Chief Information Officer)
CMO (Chief Marketing Officer)
CoE (Center of Excellence): Specialized
institutional setup for applied research,
talent development, and innovation.
COO (Chief Operating Officer)
CPU (Central Processing Unit): The main
processor in a computer that executes
instructions and performs calculations for
programs.
CRISPR (Clustered Regularly Interspaced
Short Palindromic Repeats): Gene-editing
technology used in bioengineering and
pharma contexts.
CRM (Customer Relationship
Management): Systems and strategies for
managing a company’s interactions with
current and potential customers.
CX (Customer Experience): The overall
perception and satisfaction customers have
when interacting with an organization across
all touchpoints.
CXO (Chief X Officer)
27India’s Technology Services - Reimagination Ahead DC (Data Center): A facility used to house
computer systems and related components
such as servers, storage, and networking
infrastructure.
DCaaS (Data Center as a Service): Cloud-
based model providing scalable data center
infrastructure and management services.
DEPA 2.0 (Data Empowerment and
Protection Architecture 2.0): Framework
enabling users to share personal data
securely and with consent, enhancing
privacy and portability.
DevOps (Development and Operations):
Approach that integrates software
development and IT operations to shorten
system development life cycles.
DevSecOps (Development, Security,
and Operations): Extension of DevOps
incorporating security practices into the
development and deployment processes.
DGFT (Directorate General of Foreign
Trade): Government body under the
Ministry of Commerce and Industry
responsible for regulating and promoting
India’s foreign trade.
DnA (Data and Analytics): The use of data-
driven insights and analytical models to
improve decision-making and performance.
DO-178C (Software Considerations
in Airborne Systems and Equipment
Certification): International standard
specifying software safety and certification
for avionics systems.
DPDP (Digital Personal Data Protection):
India’s legislative framework to safeguard
personal data and regulate its processing.
DPIIT (Department for Promotion of
Industry and Internal Trade): Indian
ministry responsible for IP frameworks,
industry regulations and startup innovation
policies.
eKYC (Electronic Know Your Customer):
Digital process for verifying a customer’s
identity using electronic data sources.
ELT (Extract, Load, Transform): Data
integration process where data is extracted,
loaded into a destination system, and then
transformed for analysis.
ER&D (Engineering Research &
Development): Engineering-led design,
innovation, and development of new
products and services.
ERM (Enterprise Resource Management):
Integrated management of core business
processes using enterprise software
systems.
ERP (Enterprise Resource Planning):
Software that integrates core business
processes such as finance, HR, and supply
chain into a unified system.
ESG (Environmental, Social, and
Governance): Framework for assessing
an organization’s sustainability and ethical
impact.
ESOP (Employee Stock Ownership Plan):
Program that provides employees with
ownership interest in the company through
shares.
EXIM (Export-Import)
FP&A (Financial Planning and Analysis):
Budgeting, forecasting, and analytical
processes supporting strategic financial
decisions.
FTE (Full-Time Equivalent): A unit that
measures an employee’s workload to make
workloads comparable across contexts.
FY (Fiscal Year): A 12-month accounting
period used for preparing financial
statements and budgets.
G&A (General and Administrative):
Expenses related to the general operations
of a business that are not directly tied to
production.
GCC (Global Capability Center): Offshore
units established by multinational firms in
India to perform technology, analytics, and
business functions.
GDP (Gross Domestic Product): The total
value of all goods and services produced in a
country in a given time.
GenAI (Generative Artificial Intelligence):
Subset of AI that creates new content (text,
images, code) using machine-learning
models like LLMs.
GERD (Gross Expenditure on Research and
Development): Total domestic expenditure
on R&D by all sectors (government, private,
academia).
28India’s Technology Services - Reimagination Ahead GPU (Graphics Processing Unit):
High-performance processor ideal for
AI workloads, simulations, and image
processing.
GSTIN (Goods and Services Tax
Identification Number): Unique
identification number assigned to every
registered taxpayer under India’s Goods and
Services Tax regime.
GSTN (Goods and Services Tax Network):
IT platform managing the digital
infrastructure and data systems supporting
India’s GST ecosystem.
GTM (Go To Market): Strategy defining how
a company delivers its product or service
to customers and achieves competitive
advantage.
HR (Human Resources): Function within
organizations responsible for managing
people, talent development, and culture.
ICT (Information and Communication
Technology): Technologies enabling
communication, processing, and
transmission of information through digital
systems and networks.
IEC (International Electrotechnical
Commission): International standards body.
IoT (Internet of Things): Interconnection of
physical devices via the internet to collect
and exchange data.
IP (Intellectual Property): Legal rights
granted over inventions, datasets, models,
and processes that are original and provide
economic benefit.
ISO (International Organization for
Standardization): International standards
body that sets quality, safety, and
interoperability norms.
iSPIRT (Indian Software Product Industry
Round Table): Think tank and industry
group promoting India’s software product
ecosystem.
IT (Information Technology): The use of
systems and computers for processing,
storing, and transmitting information.
ITeS (Information Technology–enabled
Services): Outsourced processes and
services that use IT for delivery, including
BPO, customer support, and analytics.
KOTRA (Korea Trade-Investment
Promotion Agency): South Korea’s national
agency promoting international trade,
investment, and industrial cooperation.
KYC (Know Your Customer): Regulatory
process to verify the identity of clients to
prevent fraud, money laundering, or illegal
activities.
LEO (Low Earth Orbit): Region of space
around Earth used for satellite operations at
altitudes between 160 and 2,000 km.
LLM (Large Language Model): AI model
that understands and generates human-like
text based on large datasets.
LLMOps (Large Language Model
Operations): Set of practices and tools
for deploying, managing, and optimizing
large language models in production
environments.
M&A (Mergers and Acquisitions):
Corporate strategy involving the
consolidation or purchase of companies
to enhance capabilities, scale, or market
presence.
MB (Medium Business)
MedTech (Medical Technology): Use of
technology, devices, and data to improve
healthcare delivery and outcomes.
MeitY (Ministry of Electronics and
Information Technology): Indian ministry
overseeing digital and AI technology
advancement.
ML (Machine Learning): Form of AI where
systems learn from data to make predictions
or decisions.
MLM (Micro Language Model): Smaller,
domain-specific AI language model
trained for efficiency and lower compute
requirements.
MSME (Micro, Small and Medium
Enterprises): Businesses classified based on
investment size and number of employees.
NAPS (National Apprenticeship Promotion
Scheme): Government program providing
financial support and incentives to promote
apprenticeship training.
NMDS (National Mission on Digital
Skilling): Government initiative aimed at
large-scale skilling in emerging digital and AI
technologies.
29India’s Technology Services - Reimagination Ahead NSWS (National Single Window System):
Existing platform facilitating investor and
business approvals through a centralized
government interface.
NTSW (National Tech-Services Single
Window): Proposed unified digital platform
for integrated approvals and clearances
across government agencies for tech
services.
OEM (Original Equipment Manufacturer):
Company that makes parts or products used
in another company’s end product.
OPGSP (Online Payment Gateway
Service Provider): Entities authorized to
facilitate cross-border and online payment
processing.
OT (Operational Technology): Hardware
and software that detects or causes changes
through direct monitoring and control of
physical devices.
OTS (Off-The-Shelf): Pre-built commercial
software or hardware products available for
general use.
PAN (Permanent Account Number):
Unique 10-digit alphanumeric identifier
issued by India’s Income Tax Department for
individuals and entities.
PLI (Production-Linked Incentive):
Government scheme offering financial
rewards to boost domestic manufacturing
output.
PMKVY (Pradhan Mantri Kaushal Vikas
Yojana): Flagship skill development scheme
aimed at training and certifying India’s
workforce in emerging sectors.
QKD (Quantum Key Distribution): Secure
communication method that uses quantum
mechanics to encrypt data.
R&D (Research and Development):
Systematic investigation to innovate and
introduce new products, processes, or
technologies.
RBI (Reserve Bank of India): India’s central
bank responsible for monetary policy,
financial regulation, and economic stability.
RDEC (Research and Development
Expenditure Credit): UK tax incentive
program offering credits for eligible R&D
activities conducted by large firms.
RDI (Research, Development, and
Innovation): Combined framework
promoting scientific research, development,
and applied innovation.
ROC (Registrar of Companies):
Government authority responsible for
registering companies and maintaining
statutory corporate records.
ROI (Return on Investment): Financial
metric used to evaluate the profitability or
efficiency of an investment relative to its
cost.
RPO (Rendezvous and Proximity
Operations): Spaceflight activities involving
maneuvering and docking between
spacecraft in close orbit.
S&P (Standard & Poor’s): Global credit
rating agency and financial market analytics
provider.
SaaS (Software as a Service): Cloud-based
software delivery model where applications
are hosted and accessed via the internet.
SaaSBOOMi (Software as a Service Boom
India): Community of Indian SaaS founders
promoting collaboration and growth in the
SaaS ecosystem.
SDV (Software-Defined Vehicle): Vehicle
where software controls most functionality,
including safety, navigation, and user
experience.
SDX (Software-Defined Everything):
Architecture where IT infrastructure
elements (networks, storage, data centers)
are virtualized and software-controlled.
SEZ (Special Economic Zone): Designated
area offering tax and regulatory incentives
to promote trade and investment.
SLM (Small Language Model): Compact AI
language model optimized for efficiency and
lower-latency tasks.
SMB (Small and Medium Business)
SQAF (Statistical Quality Assessment
Framework): Framework for measuring
data quality and reliability using statistical
methods.
STEM (Science, Technology, Engineering,
and Mathematics): Academic and
professional fields driving innovation,
technology, and industrial growth.
30India’s Technology Services - Reimagination Ahead STPI (Software Technology Parks of India):
Autonomous society under MeitY supporting
IT/ITeS exports through infrastructure,
incubation, and policy incentives.
T&M (Time and Material): Pricing model in
services where billing is based on actual time
spent and resources used.
TAM (Total Addressable Market): Total
revenue opportunity available for a product
or service if it achieves 100% market share.
TP (Transfer Pricing): Method of setting
prices for transactions between related
entities to ensure compliance with tax
regulations.
UGC (University Grants Commission):
Statutory body under the Ministry of
Education responsible for coordination,
determination, and maintenance of university
standards.
UPI (Unified Payments Interface): Real-time
payment system that enables instant money
transfer between bank accounts via mobile
platforms.
xRAN (Extensible / Open Radio Access
Network): Open and interoperable approach
to radio access networks allowing multiple
vendors and flexible configurations.
31India’s Technology Services - Reimagination Ahead NOTES NOTES NOTES