The Indian IT industry is undergoing major transformation due to automation, shifting global trends, steepest workforce layoffs, and evolving skill needs.
Indian IT Industry
- Contributes about 12% to total services GVA and nearly 7% to India’s GDP, adding over $280 billion to the economy.
- Employs around 1% of the workforce, with nearly 6 million people working in the sector.
- Women form about 36% of the total workforce, reflecting growing gender inclusion.
- Industry has positioned India as a global hub for software services and digital innovation while providing upward mobility for youth, especially from smaller towns.
Transformations in the IT Industry
- Technology transformation: AI-driven automation is disrupting the sector by automating routine work like reporting, basic coding, and coordination.
- It is drastically improving developer productivity, and shifting the industry’s focus towards high-value, AI-driven digital transformation.
- Global Realignments: Restrictive U.S. immigration policies with hike in H-1B visa fees and tariff threats are prompting Indian IT firms to localise their overseas workforce.
- Outdated outsourcing model: Mass hiring and cost-based services are giving way to solution-driven demand powered by specialised expertise and AI fluency.
- Skill gap: Many professionals lack expertise in evolving fields of AI, cloud, and cybersecurity.
Way Forward
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